Motorola 2014 Annual Report Download - page 89

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87
operating segment. The Company has determined that the Products segment and Services segment each meet the definition of
a reporting unit.
The Company performed a qualitative assessment to determine whether it was more-likely-than-not that the fair value of
each reporting unit was less than its carrying amount for the fiscal years 2014, 2013, and 2012. In performing this qualitative
assessment the Company assessed relevant events and circumstances including macroeconomic conditions, industry and
market conditions, cost factors, overall financial performance, changes in share price, and entity-specific events. For fiscal years
2014, 2013, and 2012, the Company concluded it was more-likely-than-not that the fair value of each reporting unit exceeded its
carrying value. Therefore, the two-step goodwill impairment test was not required and there was no impairment of goodwill.
15. Valuation and Qualifying Accounts
The following table presents the valuation and qualifying account activity for the years ended December 31, 2014, 2013
and 2012:
Balance at
January 1 Charged to
Earnings Used Adjustments* Balance at
December 31
2014
Allowance for doubtful accounts $ 53 $ 19 $ (35) $ (2) $ 35
Inventory reserves 125 24 (15) (3) 131
2013
Allowance for doubtful accounts 50 13 (8) (2) 53
Inventory reserves 112 25 (14) 2 125
2012
Allowance for doubtful accounts 44 7 (3) 2 50
Inventory reserves 126 17 (31) — 112
* Adjustments include translation adjustments