Memorex 2014 Annual Report Download - page 89

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December 31, 2014, 2013 and 2012, respectively and litigation settlement gains of $2.5 million for the year ended
December 31, 2013.
The following table presents net revenue by geographical region based on the country in which the revenue
originated:
Years Ended December 31,
2014 2013 2012
(In millions)
Net Revenue
United States $ 253.6 $ 348.1 $ 376.2
International 475.9 512.7 630.5
Total $ 729.5 $ 860.8 $ 1,006.7
The United States and Japan each comprise more than 10 percent of our total net revenue. Net revenue from
Japan was 23.5 percent, 20.6 percent and 21.0 percent of total net revenue for the years ended December 31,
2014, 2013 and 2012, respectively.
The following table presents long-lived assets by geographical region:
As of December 31,
2014 2013 2012
(In millions)
Long-Lived Assets
United States $ 121.6 $ 150.7 $ 166.9
International 17.4 41.6 47.4
Total $ 139.0 $ 192.3 $ 214.3
Note 15 — Litigation, Commitments and Contingencies
Litigation
In the normal course of business, we periodically enter into agreements that incorporate general indemnification
language. Performance under these indemnities would generally be triggered by a breach of terms of the contract
or by a supportable third-party claim. There have historically been no material losses related to such
indemnifications. As of December 31, 2014 and 2013, estimated liability amounts associated with such
indemnifications are inconsequential.
We are the subject of various pending or threatened legal actions in the ordinary course of our business. All
such matters are subject to many uncertainties and outcomes that are not predictable with assurance. Additionally,
our businesses are subject to allegations of patent infringement by our competitors as well as by non-practicing
entities (NPEs), sometimes referred to as “patent trolls,” who may seek monetary settlements from us, our
competitors, suppliers and resellers, including the One-Blue litigation described below. Consequently, as of
December 31, 2014, we are unable to reasonably estimate the ultimate aggregate amount of any monetary liability
or financial impact that we may incur with respect to these matters. It is reasonably possible that the ultimate
resolution of these matters could materially affect our financial condition, results of operations and cash flows.
On May 22, 2013, Imation was sued in U.S. District Court for the District of Delaware by five entities: One-Blue,
LLC (One-Blue), which is an entity with licensing authority for a pool of patents relating to Blu-ray discs, and four
members of One-Blue, Koninklijke Philips N.V., Panasonic Corporation, Pioneer Corporation and Sony
Corporation. The plaintiffs allege that Imation's sales of certain Blu-ray discs infringe six patents and seek
unspecified damages, treble damages, and attorney's fees. On June 13, 2013, Imation filed an Answer, Affirmative
Defenses, and Counterclaims, naming various defenses including that plaintiffs are barred, in whole or in part, from
any recovery or relief by their refusal to license the patents-in-suit under fair, reasonable, and nondiscriminatory
terms. Imation intends to vigorously defend the case. This matter is now in the discovery phase for issues relating to
determination of a fair, reasonable, and nondiscriminatory royalty rate. Imation has notified its manufacturers of their
indemnity obligations that it believes cover a portion of its liability, if any, to One-Blue and the other plaintiffs. In
addition, Imation has a dispute with One-Blue regarding One-Blue's refusal to license its Japanese Blu-ray patents
under fair, reasonable, and nondiscriminatory terms in Japan, where Imation’s sales of Blu-ray discs are
substantially greater than in the U.S. Imation Corporation Japan, Imation's Japanese subsidiary, has sued One-Blue