Motorola 2014 Annual Report Download - page 82

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80
Postretirement Health Care Benefits Plan
December 31, 2014 Level 1 Level 2 Total
Common stock and equivalents $ 20 $ — $ 20
Commingled equity funds — 13 13
Government, agency, and government-sponsored enterprise obligations — 11 11
Other government bonds — 2 2
Corporate bonds — 18 18
Commingled bond funds ———
Commingled short-term investment funds — 99 99
Fair value plan assets $ 20 $ 143 $ 163
The table above includes no securities on loan as part of a securities lending arrangement.
December 31, 2013 Level 1 Level 2 Total
Common stock and equivalents $ 38 $ — $ 38
Commingled equity funds — 55 55
Government, agency, and government-sponsored enterprise obligations — 6 6
Other government bonds — 1 1
Corporate bonds — 9 9
Commingled bond funds — 49 49
Commingled short-term investment funds — 3 3
Fair value plan assets $ 38 $ 123 $ 161
The table above includes securities on loan as part of a securities lending arrangement of $3 million of common stock and
equivalents and $5 million of government, agency, and government-sponsored enterprise obligations. All securities on loan are
fully cash collateralized.
There were no significant transfers between Level 1 and Level 2 during 2014 or 2013.
At December 31, 2014, the Company had $3.3 billion of investments in money market funds (Level 2) classified as Cash
and cash equivalents in its consolidated balance sheet, compared to $2.1 billion at December 31, 2013. The money market
funds had quoted market prices that are equivalent to par.
Using quoted market prices and market interest rates, the Company determined that the fair value of long-term debt at
December 31, 2014 was $3.6 billion (Level 2), compared to a face value of $3.5 billion. Since considerable judgment is required
in interpreting market information, the fair value of the long-term debt is not necessarily indicative of the amount which could be
realized in a current market exchange.
All other financial instruments are carried at cost, which is not materially different from the instruments’ fair values.
10. Long-term Customer Financing and Sales of Receivables
Long-term Customer Financing
Long-term receivables consist of trade receivables with payment terms greater than twelve months, long-term loans and
lease receivables under sales-type leases. Long-term receivables consist of the following:
December 31 2014 2013
Long-term receivables $ 49 $ 27
Less current portion (18) (26)
Non-current long-term receivables, net $ 31 $ 1
The current portion of long-term receivables is included in Accounts receivable and the non-current portion of long-term
receivables is included in Other assets in the Company’s consolidated balance sheets. There was $1 million Interest income
recognized on long-term receivables for the year ended December 31, 2014. There was no interest income recognized on long-
term receivables for the year ended 2013 and $5 million for the year ended 2012.
Certain purchasers of the Company's products and services may request that the Company provide long-term financing
(defined as financing with a term greater than one year) in connection with the sale of products and services. These requests
may include all or a portion of the purchase price of the products and services. The Company's obligation to provide long-term
financing may be conditioned on the issuance of a letter of credit in favor of the Company by a reputable bank to support the
purchaser's credit or a pre-existing commitment from a reputable bank to purchase the long-term receivables from the Company.