Motorola 2013 Annual Report Download - page 7

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5
We experience widespread competition from a growing number of existing and new competitors, including present
manufacturers of data capture devices, notebook computers and tablets, smart phones, cordless phones, and cellular/WLAN/
wired infrastructure equipment. Competitors include: Apple, Aruba, Bluebird, Cisco, Datalogic, HP, Honeywell (which
recently acquired Intermec), Panasonic, Ruckus and Samsung.
Other Information
Backlog
Our backlog includes all product and service orders that have been received and are believed to be firm. As of
December 31, 2013 and December 31, 2012 our backlog was as follows:
December 31
(In millions) 2013 2012
Government $ 5,383 $ 4,937
Enterprise 833 782
$ 6,216 $ 5,719
Approximately 32% of the Government backlog and 75% of the Enterprise backlog is expected to be recognized as
revenue during 2014. The forward-looking estimate of the firmness of such orders is subject to future events that may cause
the amount recognized to change.
Research and Development
We continue to prioritize investments in R&D to expand and improve our portfolio of products through both new product
introductions and continuous enhancements to our existing products. In the Government segment our R&D programs are
focused on the development of: (i) new public safety devices and infrastructure, (ii) public safety broadband networks based on
the LTE standard, (iii) critical command center applications that include voice, data and video, and (iv) the development of new
products for use in vertical expansion. In the Enterprise segment our R&D programs are focused on: (i) the continuous
expansion of our devices portfolio including products using both the Microsoft and Android operating systems, (ii)
development of 2D imaging technology and products, (iii) expansion of our devices portfolio to address new markets including
bioptic and linear scanning and imaging, and (iv) continued expansion of applications to complement our portfolio of wireless
infrastructure and devices.
R&D expenditures were $1.1 billion in 2013 and 2012 and $1.0 billion in 2011. As of December 31, 2013, we had
approximately 7,000 employees engaged in R&D activities. In addition, we engage in R&D activities with joint development
and manufacturing partners and outsource certain activities to engineering firms to further supplement our internal spend.
Payment Terms
Payment terms vary worldwide, depending on the arrangement. Generally, contract payment terms range from 30 to
45 days from the invoice date within North America and typically do not exceed 90 days from the invoice date in regions
outside of North America. A portion of the contracts within our Government segment include implementation milestones, such
as delivery, installation and system acceptance, which generally take 30 to 180 days to complete. Invoicing the customer is
dependent on completion of the milestone.
We generally do not grant extended payment terms. As required for competitive reasons, we may provide long-term
financing in connection with equipment purchases. Financing may cover all or a portion of the purchase price.