Motorola 2011 Annual Report Download - page 108

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102
Segment information
Net Sales Operating Earnings
Years Ended December 31 2011 2010 2009 2011 2010 2009
Government $5,358 $5,049 $4,796 $ 616 $534 $534
Enterprise 2,845 2,568 2,151 242 217 33
8,203 7,617 6,947
Operating earnings 858 751 567
Total other income (expense) (120) (87) 66
Earnings from continuing operations before income taxes $ 738 $664 $633
Assets
Capital
Expenditures
Depreciation
Expense
Years Ended December 31 2011 2010 2009 2011 2010 2009 2011 2010 2009
Government $ 2,892 $ 3,424 $ 2,873 $159 $172 $115 $128 $110 $115
Enterprise 2,264 2,724 2,853 27 20 21 37 40 55
5,156 6,148 5,726 186 192 136 165 150 170
Other 8,761 11,649 11,771
13,917 17,797 17,497
Discontinued Operations 12 7,780 8,106
$13,929 $25,577 $25,603
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
Net Sales Assets
Property, Plant, and
Equipment, net
Years Ended December 31 2011 2010 2009 2011 2010 2009 2011 2010 2009
United States $4,399 $4,157 $3,938 $ 8,888 $10,501 $10,063 $504 $484 $ 351
China 322 307 241 860 1,823 1,716 14 913
United Kingdom 670 568 513 584 850 1,084 21 23 26
Israel 173 225 240 1,128 1,366 1,321 26 40 172
Japan 97 99 95 553 724 684 60 61 56
Other, net of eliminations 2,542 2,261 1,920 1,904 2,533 2,629 271 305 394
$8,203 $7,617 $6,947 $13,917 $17,797 $17,497 $896 $922 $1,012
Net sales by geographic region are measured by the locale of end customer. For 2009 and 2010, all U.S. federal government sales were reclassified
from “Other, net of eliminations” to the United States to conform to current year’s presentation.
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. 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 consist of future minimum lease payments on vacated facilities and other
contractual terminations. At each reporting date, the Company evaluates its accruals for employee separation and
exit costs to ensure the accruals are still appropriate. In certain circumstances, accruals are no longer needed because
of efficiencies in carrying out the plans or because employees previously identified for separation resigned from the
Company and did not receive severance or were redeployed due to circumstances not foreseen when the original
plans were initiated. In these cases, the Company reverses accruals through the consolidated statements of
operations where the original charges were recorded when it is determined they are no longer needed.