Restructuring charges
Subsequent to our acquisition of Motorola in May 2012, we initiated a restructuring plan for Motorola, primarily in our Motorola Mobile segment, to reduce workforce, reorganize management structure, close or consolidate certain facilities, as well as simplify our mobile product portfolio. These changes were designed to return the Motorola Mobile segment to profitability. Pursuant to this restructuring plan, we have incurred cumulative charges of approximately $821 million.
For the year ended December 31, 2013, changes to restructuring accruals were as follows (in millions):
|
| | | | | | | | | | | |
| Severance and Related | | Other Charges | | Total |
Balance as of December 31, 2012 | $ | 238 |
| | $ | 15 |
| | $ | 253 |
|
Charges | 145 |
| | 45 |
| | $ | 190 |
|
Cash payments | (254 | ) | | (34 | ) | | (288 | ) |
Non-cash items (1) | (84 | ) | | (14 | ) | | (98 | ) |
Balance as of December 31, 2013 | $ | 45 |
| | $ | 12 |
| | $ | 57 |
|
(1) Non-cash items were primarily related to restricted stock units (RSUs) and stock options.
For the year ended December 31, 2012 and 2013, restructuring charges were included in costs and expenses as follows (in millions):
|
| | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2012 | | 2013 |
| Severance and Related | | Other Charges | | Total | | Severance and
Related | | Other
Charges | | Total |
Cost of revenues - Motorola Mobile | $ | 88 |
| | $ | 41 |
| | $ | 129 |
| | $ | 20 |
| | $ | 14 |
| | $ | 34 |
|
Research and development | 195 |
| | 5 |
| | 200 |
| | 23 |
| | 19 |
| | 42 |
|
Sales and marketing | 123 |
| | 8 |
| | 131 |
| | 13 |
| | 13 |
| | 26 |
|
General and administrative | 114 |
| | 2 |
| | 116 |
| | 26 |
| | (5 | ) | | 21 |
|
Net income (loss) from discontinued operations | 55 |
| | 0 |
| | 55 |
| | 63 |
| | 4 |
| | 67 |
|
Total charges | $ | 575 |
| | $ | 56 |
| | $ | 631 |
| | $ | 145 |
| | $ | 45 |
| | $ | 190 |
|
