Google 2015 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 of the 2015 Google 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 127

  • 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
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127

Table of Contents Alphabet Inc. and Google Inc.
80
As of December 31, 2015, expected amortization expense for our purchased intangible assets for each of the
next five years and thereafter was as follows (in millions):
2016 $ 806
2017 724
2018 637
2019 528
2020 434
Thereafter 718
$ 3,847
Note 9. Discontinued Operations
Motorola Mobile
On October 29, 2014, we closed the sale of the Motorola Mobile business to Lenovo for a total purchase price
of approximately $2.9 billion, including $1.4 billion paid at close, comprised of $660 million in cash and $750 million
in Lenovo ordinary shares (519.1 million shares). The remaining $1.5 billion was paid in the form of an interest-free,
three-year prepayable promissory note.
We maintain ownership of the vast majority of the Motorola Mobile patent portfolio, including pre-closing patent
applications and invention disclosures, which we licensed to Motorola Mobile for its continued operations. Additionally,
in connection with the sale, we agreed to indemnify Lenovo for certain potential liabilities of the Motorola Mobile
business, for which we recorded an indemnification liability of $130 million.
The sale resulted in a gain of $740 million, net of tax, which was presented as part of net income from discontinued
operations in the Consolidated Statements of Income for the year ended December 31, 2014. Incremental to this net
gain, we recognized additional income of $254 million, net of tax, in connection with certain IP licensing arrangements
between the parties, included as part of net income from discontinued operations on the Consolidated Statements of
Income for the year ended December 31, 2014.
The financial results of Motorola Mobile through the date of divestiture are presented as net income (loss) from
discontinued operations on the Consolidated Statements of Income. The following table presents financial results of
the Motorola Mobile business included in net income (loss) from discontinued operations for the years ended December
31, 2013 and 2014 (in millions):
Year Ended December 31,
2013 2014 (1)
Revenues $ 4,306 $ 5,486
Loss from discontinued operations before income taxes (1,403) (177)
Benefits from/(Provision for) income taxes 270 (47)
Gain on disposal 0 740
Net (loss) income from discontinued operations $ (1,133) $ 516
(1) The operating results of Motorola Mobile were included in our Consolidated Statements of Income from January 1, 2014
through October 29, 2014, the date of divestiture.