Google 2013 Annual Report Download - page 73

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
PART II
ITEM8.Notes to Consolidated Financial Statements
 Restructuring Charges
SubsequenttoouracquisitionofMotorolainMay2012,weinitiatedarestructuringplanforMotorola,primarilyinourMotorola
Mobilesegment,toreduceworkforce,reorganizemanagementstructure,closeorconsolidatecertainfacilities,aswellassimplify
ourmobileproductportfolio.ThesechangesweredesignedtoreturntheMotorolaMobilesegmenttoprotability.Pursuantto
thisrestructuringplan,wehaveincurredcumulativechargesofapproximately$821million.
FortheyearendedDecember31,2013,changestorestructuringaccrualswereasfollows(inmillions):
Severance
andRelated
Other
Charges Total
BalanceasofDecember31,2012 $238 $ 15 $ 253
Charges 145 45 190
Cashpayments (254) (34) (288)
Non-cashitems(1) (84) (14) (98)
BalanceasofDecember31,2013 $ 45 $ 12 $ 57
(1) Non-cashitemswereprimarilyrelatedtorestrictedstockunits(RSUs)andstockoptions.
FortheyearendedDecember31,2012and2013,restructuringchargeswereincludedincostsandexpensesasfollows(inmillions):
Year Ended December 31,
2012 2013
Severance and
Related
Other
Charges Total
Severance and
Related
Other
Charges Total
Costofrevenues—
Motorola Mobile $ 88 $ 41 $ 129 $ 20 $ 14 $ 34
Researchanddevelopment 195 5 200 23 19 42
Salesandmarketing 123 8131 13 13 26
Generalandadministrative 114 2 116 26 (5) 21
Netincome(loss)from
discontinuedoperations 55 0 55 63 4 67
Total charges $ 575 $ 56 $631 $145 $ 45 $ 190
 Interest and Other Income, Net
Thecomponentsofinterestandotherincome,net,wereasfollows(inmillions):
Year Ended December31,
2011 2012 2013
Interest income $ 812 $ 713 $ 785
Interestexpense (58) (84) (83)
Realizedgainsonavailable-for-saleinvestments,net 254 282 201
Impairmentofequityinvestments (110 ) 0 0
Foreigncurrencyexchangelosses (379) (531) (379)
Gain(loss)ondivestitureofbusiness(1) 0 188 (57)
Other 65 58 63
Interest and other income, net $ 584 $626 $ 530
(1) GainondivestitureofHomebusinesswasincludedinnetincome(loss)fromdiscontinuedoperationsfortheyearendedDecember31,2013.
 Commitments and Contingencies
Operating Leases
Wehaveenteredintovariousnon-cancelableoperatingleaseagreementsforcertainofouroces,land,anddatacenters
throughouttheworldwithoriginalleaseperiodsexpiringprimarilybetween2014and2063.Wearecommittedtopayaportion
oftheactualoperatingexpensesundercertainoftheseleaseagreements.Theseoperatingexpensesarenotincludedinthe
tablebelow.Certainofthesearrangementshavefreeorescalatingrentpaymentprovisions.Werecognizerentexpenseunder
sucharrangementsonastraight-linebasis.
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