Google 2012 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 2012 Google annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

65GOOGLE INC. |Form10-K
PART II
ITEM8.Notes to Consolidated Financial Statements
NOTE8. Discontinued Operations
In December2012, we entered into an agreement with Arris Group, Inc. and certain other persons providing for the disposition of
the Motorola Home business for total consideration of approximately $2.35billion in cash and common stock, subject to certain
adjustments. The transaction is expected to close in 2013. Financial results of the Motorola Home business are presented as net
loss from discontinued operations on the Consolidated Statements of Income.
The following table presents fi nancial results of the Motorola Home business for the period from May22, 2012 to December31,
2012 (in millions):
Revenues $ 2,028
Loss from discontinued operations before income taxes (22)
Provision for income taxes (29)
Net loss from discontinued operations $ (51)
NOTE9. Restructuring Charges
Subsequent to our acquisition of Motorola in May2012, we initiated a restructuring plan primarily in our Mobile segment to
reduce workforce, reorganize management structure, close, consolidate and dispose certain facilities, as well as simplify our
mobile product portfolio. These changesare designed to return Motorola’s Mobile segment to profi tability. For the year ended
December31, 2012, activities related to restructuring charges were summarized as below (in millions):
Severance
andRelated
Other
Charges Total
Balance as of December31, 2011 $ 0 $ 0 $ 0
Charges(1) 572 59 631
Cash payments (189) (8) (197)
Non-cash items(2) (145) (36) (181)
Balance as of December31, 2012 $ 238 $ 15 $ 253
(1) Includes restructuring charges related to Home of $55million.
(2) Non-cash items were primarily related to RSUs, stock options and asset impairments.
For the year ended December31, 2012, restructuring charges were included in costs and expenses as follows (in millions):
Year Ended December31, 2012
Severance
andRelated
Other
Charges Total
Cost of revenues—Motorola Mobile $ 88 $41 $129
Research and development 195 5 200
Sales and marketing 123 8 131
General and administrative 114 2 116
Total charges $520 $56 $ 576
Restructuring charges related to Home of $55million were included in net loss from discontinued operations in the Consolidated
Statements of Income.
We continue to evaluate our plans and further restructuring actions may occur which may cause us to incur additional restructuring
charges, some of which may be signifi cant.
4
Contents
4