Motorola 2015 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2015 Motorola annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 103

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103

81
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 2015 2014
Long-term receivables $60$49
Less current portion (13) (18)
Non-current long-term receivables, net $47$31
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 $2 million of interest income
recognized on long-term receivables for the year ended December 31, 2015. There was $1 million of interest income recognized
on long-term receivables for the year ended 2014 and no interest income recognized on long-term receivables for the year
ended 2013.
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.
The Company had outstanding commitments to provide long-term financing to third-parties totaling $112 million at December 31,
2015, compared to $293 million at December 31, 2014. Outstanding commitments decreased during the year ended
December 31, 2015 primarily as a result of two large customer contracts, one of which was converted to an order without long-
term financing and the other where the financing commitment was funded and sold.
Sales of Receivables
From time to time, the Company sells accounts receivable and long-term receivables to third-parties under one-time
arrangements. The Company may or may not retain the obligation to service the sold accounts receivable and long-term
receivables.
The following table summarizes the proceeds received from sales of accounts receivable and long-term receivables for the
years ended December 31, 2015, 2014 and 2013.
Years ended December 31 2015 2014 2013
Cumulative annual proceeds received from sales:
Accounts receivable sales proceeds $29$50$14
Long-term receivables sales proceeds 196 124 131
Total proceeds from receivable sales $ 225 $ 174 $ 145
At December 31, 2015, the Company had retained servicing obligations for $668 million of long-term receivables,
compared to $496 million of long-term receivables at December 31, 2014. Servicing obligations are limited to collection activities
of sold accounts receivables and long-term receivables.
Credit Quality of Customer Financing Receivables and Allowance for Credit Losses
An aging analysis of financing receivables at December 31, 2015 and December 31, 2014 is as follows:
December 31, 2015
Total
Long-term
Receivable
Current Billed
Due
Past Due Under
90 Days
Past Due Over
90 Days
Municipal leases secured tax exempt $ 35$ —$ —$ —
Commercial loans and leases secured 25111
Total gross long-term receivables, including
current portion $ 60$ 1$ 1$ 1