Motorola 2012 Annual Report Download - page 94

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86
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 2012 2011
Long-term receivables $ 101 $ 177
Less allowance for losses —(10)
101 167
Less current portion (41)(130)
Non-current long-term receivables, net $60
$37
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. Interest income recognized on long-term
receivables for the years ended December 31, 2012, 2011 and 2010 was $7 million, $15 million and $14 million, respectively.
Certain purchasers of the Company's infrastructure equipment may request that the Company provide long-term
financing (defined as financing with a term of greater than one year) in connection with the sale of equipment. These requests
may include all or a portion of the purchase price of the equipment. 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 $84 million at December 31,
2012, compared to $138 million at December 31, 2011.
As of December 31, 2012, $60 million of net long-term receivables are classified as non-current. The remainder of the
long-term receivables are current and included in Accounts receivable, net.
Sales of Receivables
From time to time, the Company sells accounts receivable and long-term receivables on a non-recourse basis to third-
parties under one-time arrangements while others are sold to third-parties under committed facilities. The Company may or
may not retain the obligation to service the sold accounts receivable and long-term receivables.
The Company had no sales facilities and no significant committed facilities for the sale of long-term receivables at
December 31, 2012 or at December 31, 2011.
The following table summarizes the proceeds received from non-recourse sales of accounts receivable and long-term
receivables for the years ended December 31, 2012, 2011, and 2010.
Years ended December 31 2012 2011 2010
Cumulative annual proceeds received from one-time sales:
Accounts receivable sales proceeds $12
$8$30
Long-term receivables sales proceeds 178 224 67
Total proceeds from one-time sales 190 232 97
Cumulative annual proceeds received from sales under committed facilities ——70
Total proceeds from receivables sales $ 190 $ 232 $ 167
At December 31, 2012, the Company had retained servicing obligations for $375 million of long-term receivables,
compared to $263 million of long-term receivables at December 31, 2011. Servicing obligations are limited to collection
activities of the non-recourse sales of accounts receivables and long-term receivables.