Motorola 2015 Annual Report Download - page 37

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repatriation of some of these funds may be subject to delay for local country approvals and could have potential adverse cash
tax consequences.
Operating Activities
Cash provided by operating activities from continuing operations in 2015 was $1.0 billion, compared to cash used by
operating activities from continuing operations of $685 million in 2014 and cash provided by operating activities from continuing
operations of $555 million in 2013. Operating cash flows in 2015, as compared to 2014, were positively impacted by: (i) an
increase in earnings from continuing operations, (ii) reduced pension contributions, and (iii) higher sales of accounts receivable.
Operating cash flows in 2014, as compared to 2013, were negatively impacted by contributions to our pension plans of $1.3
billion, an increase of $1.1 billion compared to 2013.
We made $3 million of contributions to our U.S. pension plans during 2015, compared to $1.1 billion contributed in 2014 to
fund the purchase of group annuity contracts and lump sum distributions from one of our U.S. pension plans, as described in
Note 7 to our consolidated financial statements, and $150 million contributed in 2013. In addition, we contributed $10 million,
$237 million, and $32 million to our Non-U.S. Pension Plans during 2015, 2014, and 2013, respectively. We expect to make
approximately $12 million of cash contributions in 2016, primarily to our Non-U.S. Pension Benefit Plans in 2016.
Investing Activities
Net cash used by investing activities from continuing operations was $528 million in 2015, compared to net cash provided
by investing activities from continuing operations of $3.2 billion in 2014 and $2.0 billion in 2013. The $3.7 billion decrease in net
cash provided by investing activities from 2014 to 2015 was primarily due to reduced proceeds from sales of investments and
businesses related to the sale of the Enterprise business and a $401 million investment in United Kingdom treasury securities.
The $1.2 billion increase in net cash provided by investing activities from 2013 to 2014 was primarily due to a $3.3 billion
increase of proceeds from sales of investments and businesses, related to the sale of our Enterprise business, partially offset by
a $2.1 billion decrease in proceeds from sales of Sigma Fund investments, which we exited in the fourth quarter of 2013.
Sigma Fund: Prior to December 2013, we invested most of our U.S. dollar-denominated cash in a fund (the “Sigma
Fund”) that was managed by independent investment management firms under specific investment guidelines restricting the
type of investments held and their time to maturity. In December 2013, we completed the liquidation of the Sigma Fund and
migrated the international U.S dollar-denominated cash to a U.S. dollar cash pool invested primarily in U.S. dollar prime money
market funds. The creation of the international cash pool enhances our flexibility to repatriate excess overseas cash and fund
global operations. These money market funds are classified as Cash and cash equivalents within the consolidated balance
sheets as of December 31, 2015 and 2014.
Acquisitions and Investments: We used cash of $586 million for acquisitions and new investment activities in 2015,
compared to $47 million in 2014, and $57 million in 2013. In December 2015, we invested $401 million in United Kingdom
treasury securities in order to partially offset our British Pound Sterling foreign currency risk associated with the purchase of
Airwave. We liquidated these investments in February 2016 to partially fund the acquisition of Airwave. Additionally, we paid $49
million for the acquisition of two public safety software solution providers, as well as several debt and equity investments. The
cash used in 2014 was for the acquisition of an equipment provider for $22 million and a number of equity investments. The
cash used in 2013 was for the acquisition of a communications software provider in push-to-talk-over-broadband applications for
a purchase price, net of cash acquired, of $36 million, and other small strategic equity investments.
Capital Expenditures: Capital expenditures were $175 million in 2015, compared to $181 million in 2014, and $169
million in 2013. Capital spending in 2015, 2014, and 2013 was primarily comprised of: (i) network build-out expenditures related
to our Services segment, (ii) updates to our information technology infrastructure, and (iii) facility renovations. The decrease in
capital spending in 2015, as compared to 2014, was primarily driven by a decrease in facilities and information technology
spend. The increase in capital spending in 2014, as compared to 2013, was primarily driven by an increase in revenue-
generating network build-out expenditures.
Sales of Property, Plant, and Equipment: We had $3 million of proceeds related to the sale of property, plant, and
equipment in 2015, compared to $33 million in 2014 and $66 million in 2013. The proceeds in all periods were primarily
comprised of sales of buildings and land.
Sales of Investments and Businesses: We received $230 million of proceeds in 2015 compared to $3.4 billion in 2014
and $61 million in 2013. The $230 million of proceeds received in 2015 were primarily comprised of: (i) $49 million
reimbursement from Zebra for cash transferred with the sale of the Enterprise business in conjunction with legal entities sold
through a stock sale, (ii) $107 million from the sale of two equity investments, (iii) $13 million net cash received from Zebra for
the final purchase price adjustment, as well as for reimbursement of liabilities of the Enterprise business paid on Zebra's behalf,
and (iv) proceeds from the sale of various debt and equity securities, partially offset by $27 million of net cash transferred in
conjunction with the sale of our ownership interest in a majority owned subsidiary to the entity's noncontrolling interest. The $3.4
billion of cash received in 2014 was primarily comprised of proceeds from the sale of the Enterprise business. The $61 million of
proceeds received in 2013 were primarily comprised of proceeds from sales of equity investments.