Motorola 2014 Annual Report Download - page 85

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software and hardware maintenance, security patches and upgrades, call center support, network monitoring, and
repair services. Managed services includes managing and operating customer systems and devices at defined
services levels. Smart Public Safety Solutions includes software and hardware solutions for our customers’ "Command
& Control" centers providing video monitoring support, data analytics, and content management with the objective of
enabling smart policing. iDEN services consists primarily of hardware and software maintenance services for our
legacy iDEN customers. In 2014, the segment’s net sales were $2.1 billion, representing 35% of the Company's
consolidated net sales.
For the years ended December 31, 2014, 2013 and 2012, no single customer accounted for more than 10% of the
Company's net sales.
Segment Information
Net Sales Operating Earnings (Loss)
Years ended December 31 2014 2013 2012 2014 2013 2012
Products $ 3,807 $ 4,109 $ 4,236 $ (667) $ 639 $ 656
Services 2,074 2,118 2,033 (339) 308 264
$ 5,881 $ 6,227 $ 6,269 (1,006) 947 920
Total other expense (155) (67) (39)
Earnings (loss) from continuing operations before income
taxes $ (1,161) $ 880 $ 881
Capital Expenditures Depreciation Expense
Years ended December 31 2014 2013 2012 2014 2013 2012
Products $ 87 $ 90 $ 90 $ 94 $ 93 $ 87
Services 94 79 80 75 64 63
$ 181 $ 169 $ 170 $ 169 $ 157 $ 150
The Company's "chief operating decision maker" does not review and allocate resources by segment assets.
Geographic Area Information
Net Sales Assets
Years ended December 31 2014 2013 2012 2014 2013* 2012*
United States $ 3,354 $ 3,648 $ 3,685 $ 8,468 $ 6,201 $ 6,268
China 160 203 198 382 420 552
United Kingdom 128 112 118 966 1,607 1,323
Israel 95 94 107 131 186 797
Other, net of eliminations 2,144 2,170 2,161 476 895 1,203
$ 5,881 $ 6,227 $ 6,269 $ 10,423 $ 9,309 $ 10,143
* Excluding assets held for disposition
13. Reorganization of Businesses
The Company maintains a formal Involuntary Severance Plan (the “Severance Plan”), which permits the Company to offer
eligible employees severance benefits based on years of service and employment grade level in the event that employment is
involuntarily terminated as a result of a reduction-in-force or restructuring. The Severance Plan includes defined formulas to
calculate employees’ termination benefits. In addition to the Involuntary Severance Plan, during the year ended December 31,
2013, the Company accepted voluntary applications to its Severance Plan from a defined subset of employees within the United
States. Voluntary applicants received termination benefits based on the formulas defined in the Severance Plan; however,
termination benefits, which are normally capped at six months of salary, were capped at a full year’s salary.
The Company recognizes termination benefits based on formulas per the Severance Plan at the point in time that future
settlement is probable and can be reasonably estimated based on estimates prepared at the time a restructuring plan is
approved by management. Exit costs consist of future minimum lease payments on vacated facilities and other contractual
terminations. At each reporting date, the Company evaluates its accruals for employee separation and exit costs to ensure the
accruals are still appropriate. In certain circumstances, accruals are no longer needed because of efficiencies in carrying out the
plans or because employees previously identified for separation resigned from the Company and did not receive severance, or
were redeployed due to circumstances not foreseen when the original plans were approved. In these cases, the Company