Motorola 2013 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2013 Motorola 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 111

  • 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
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111

94
Years ended December 31 2011
Government $ 40
Enterprise 18
$ 58
The following table displays a rollforward of the reorganization of businesses accruals established for exit costs and
employee separation costs from January 1, 2011 to December 31, 2011:
2011 Accruals at
January 1 Additional
Charges Adjustments Amount
Used Accruals at
December 31
Exit costs $ 17 $ 19 $ 1 $ (23) $ 14
Employee separation costs 50 41 (3)(58) 30
$ 67 $ 60 $ (2) $ (81) $ 44
Exit Costs
At January 1, 2011, the Company had an accrual of $17 million for exit costs attributable to lease terminations. The 2011
additional charges of $19 million were primarily related to the exit of leased facilities and contractual termination costs. The
adjustments of $1 million reflect reversals of accruals no longer needed. The $23 million used in 2011 reflected cash payments.
The remaining accrual of $14 million, which was included in Accrued liabilities in the Company’s consolidated balance sheets
at December 31, 2011, represented future cash payments, primarily for lease termination obligations.
Employee Separation Costs
At January 1, 2011, the Company had an accrual of $50 million for employee separation costs, representing the severance
costs for approximately 1,000 employees. The additional 2011 charges of $41 million were severance costs for approximately
an additional 900 employees, of which 300 were direct employees and 600 were indirect employees. The adjustments of $3
million reflect accruals no longer required.
During 2011, approximately 1,300 employees, of which 800 were direct employees and 500 were indirect employees,
were separated from the Company. The $58 million used in 2011 reflected cash payments to these separated employees. The
remaining accrual of $30 million was included in Accrued liabilities in the Company’s consolidated balance sheet at
December 31, 2011.
14. Intangible Assets and Goodwill
The Company accounts for acquisitions using purchase accounting with the results of operations for each acquiree
included in the Company’s consolidated financial statements for the period subsequent to the date of acquisition. The pro forma
effects of the acquisitions completed in 2013, 2012, and 2011 were not significant individually or in the aggregate. The
Company did not have any significant acquisitions during the years ended December 31, 2013, 2012 and 2011.
Intangible Assets
Amortized intangible assets were comprised of the following:
2013 2012
December 31,
Gross
Carrying
Amount Accumulated
Amortization
Gross
Carrying
Amount Accumulated
Amortization
Intangible assets:
Completed technology $ 662 $ 639 $ 657 $ 632
Patents 276 276 276 276
Customer-related 203 144 201 125
Licensed technology 17 16 23 19
Other intangibles 96 92 94 90
$ 1,254 $ 1,167 $ 1,251 $ 1,142
Amortization expense on intangible assets, which is included within Other charges in the consolidated statements of
operations, was $26 million, $29 million and $200 million for the years ended December 31, 2013, 2012 and 2011,