Motorola 2014 Annual Report Download - page 88

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14. Intangible Assets and Goodwill
The Company accounts for acquisitions using purchase accounting with the results of operations for each acquiree
included in the Company’s consolidated financial statements for the period subsequent to the date of acquisition. The pro forma
effects of the acquisitions completed in 2014, 2013, and 2012 were not significant individually or in the aggregate. The Company
did not have any significant acquisitions during the years ended December 31, 2014, 2013 and 2012.
Intangible Assets
Amortized intangible assets are comprised of the following:
2014 2013
December 31
Gross
Carrying
Amount Accumulated Amortization
Gross
Carrying
Amount Accumulated Amortization
Intangible assets:
Completed technology $ 37 $ 27 $ 24 $ 24
Patents 8 4 8 3
Customer-related 15 8 6 6
Other intangibles 17 15 15 14
$ 77 $ 54 $ 53 $ 47
Amortization expense on intangible assets, which is included within Other charges in the consolidated statements of
operations, was $4 million, $1 million and $1 million for the years ended December 31, 2014, 2013 and 2012, respectively. As of
December 31, 2014, future amortization expense is estimated to be $4 million in 2015, 2016, and 2017, and $3 million in 2018
and 2019.
As of both December 31, 2014, and December 31, 2013, all of the Company's amortized intangible assets, excluding
goodwill, were aligned with the Products segment.
Goodwill
The following table displays a rollforward of the carrying amount of goodwill by segment from January 1, 2013 to
December 31, 2014:
Products Services Total
Balance as of January 1, 2013
Aggregate goodwill acquired $ 249 $ 112 $ 361
Accumulated impairment losses ———
Goodwill, net of impairment losses 249 112 361
Balance as of December 31, 2013
Aggregate goodwill acquired/disposed 249 112 361
Accumulated impairment losses ———
Goodwill, net of impairment losses 249 112 361
Goodwill acquired 15 7 22
Balance as of December 31, 2014
Aggregate goodwill acquired 264 119 383
Accumulated impairment losses ———
Goodwill, net of impairment losses $ 264 $ 119 $ 383
On December 31, 2013, the Company completed the acquisition of a communication software provider in push-to-talk-
over-broadband applications for a gross purchase price of $48 million. As a result of the acquisition, the Company recognized
$22 million of goodwill and $20 million of identifiable intangible assets.
On November 18, 2014, the Company completed the acquisition of an equipment provider for a gross purchase price of
$22 million with $3 million of net tangible assets. The Company will complete the purchase price allocation for this acquisition
during the first quarter of 2015, pending completion. As of December 31, 2014, $19 million is included in Other assets in the
Company’s consolidated balance sheet.
The Company conducts its annual assessment of goodwill for impairment in the fourth quarter of each year. The goodwill
impairment assessment is performed at the reporting unit level. A reporting unit is an operating segment or one level below an