Motorola 2014 Annual Report Download - page 57

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55
estimates. The ASU will be effective for the Company beginning January 1, 2017, and allows for both retrospective and modified-
retrospective methods of adoption. The Company is in the process of determining the method of adoption it will elect and is
currently assessing the impact of this ASU on its consolidated financial statements and footnote disclosures.
2. Discontinued Operations
On April 14, 2014, the Company entered into a Master Acquisition Agreement (the “Acquisition Agreement”) with Zebra
Technologies Corporation ("Zebra") to sell the Company’s Enterprise business for $3.5 billion in cash. The transaction closed on
October 27, 2014. The historical financial results of the Enterprise business, excluding those assets and liabilities retained in the
transaction, are reflected in the Company's consolidated financial statements and footnotes as discontinued operations for all
periods presented.
On January 1, 2012, the Company completed a series of transactions which resulted in exiting the amateur, marine and
airband radio businesses. The operating results of the amateur, marine and airband radio businesses are reported as
discontinued operations in the consolidated statements of operations for the year ended December 31, 2012.
The following table displays summarized activity in the Company’s consolidated statements of operations for discontinued
operations during the years ended December 31, 2014, 2013, and 2012.
Years ended December 31 2014 2013 2012
Net sales $ 1,904 $ 2,469 $ 2,429
Operating earnings 203 268 347
Gains on sales of investments and businesses, net 1,888 3 7
Earnings before income taxes 2,074 266 341
Income tax expense 78 100 130
Earnings from discontinued operations, net of tax 1,996 166 211
The following table displays a summary of the assets and liabilities held for sale as of December 31, 2013:
2013
Assets
Accounts receivable, net $ 551
Deferred income taxes 219
Inventories, net 175
Other current assets 134
Property, plant and equipment, net 201
Investments 19
Goodwill 1,149
Other assets 94
$ 2,542
Liabilities
Accounts payable $ 231
Accrued liabilities 639
Other liabilities 171
$ 1,041