Motorola 2015 Annual Report Download - page 84

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83
In addition, the Company may provide indemnifications for losses that result from the breach of general warranties
contained in certain commercial and intellectual property agreements. Historically, the Company has not made significant
payments under these agreements.
12. Information by Segment and Geographic Region
The Company conducts its business globally and manages it through two segments:
Products: The Products segment is comprised of Devices and Systems. Devices includes two-way portable and
vehicle-mounted radios, accessories, software features, and upgrades. Systems includes the radio network core and
central processing software, base stations, consoles, repeaters, and software applications and features. The primary
customers of the Products segment are government, public safety and first-responder agencies, municipalities, and
commercial and industrial customers who operate private communications networks and manage a mobile workforce.
In 2015, the segment’s net sales were $3.7 billion, representing 65% of the Company's consolidated net sales.
Services: The Services segment provides a full set of offerings for government, public safety and commercial
communication networks including: (i) Integration services, (ii) Managed & Support services, and (iii) iDEN services.
Integration services includes implementation, optimization, and integration of networks, devices, software, and
applications. Managed & Support services includes a continuum of service offerings beginning with repair, technical
support and hardware maintenance. More advanced offerings include network monitoring, software maintenance and
cyber security services. Managed service offerings range from partial or full operation of customer owned networks to
operation of Motorola Solutions owned networks. Services are provided across all radio network technologies,
Command Center Consoles and Smart Public Safety Solutions. iDEN services consists primarily of hardware and
software maintenance services for our legacy iDEN customers. In 2015, the segment’s net sales were $2.0 billion,
representing 35% of the Company's consolidated net sales.
For the years ended December 31, 2015, 2014 and 2013, no single customer accounted for more than 10% of the
Company's net sales.
Segment Information
Net Sales Operating Earnings (Loss)
Years ended December 31 2015 2014 2013 2015 2014 2013
Products $3,676 $3,807 $4,109 $704$(667)$ 639
Services 2,019 2,074 2,118 290 (339) 308
$5,695 $5,881 $6,227 994 (1,006) 947
Total other expense (77) (155) (67)
Earnings (loss) from continuing operations before income
taxes $917$ (1,161) $ 880
Capital Expenditures Depreciation Expense
Years ended December 31 2015 2014 2013 2015 2014 2013
Products $76$87$90$82$94$93
Services 99 94 79 60 75 64
$ 175 $ 181 $ 169 $142$169$157
The Company's "chief operating decision maker" does not review or allocate resources based on segment assets.
Geographic Area Information
Net Sales Assets
Years ended December 31 2015 2014 2013 2015 2014 2013*
United States $3,473$3,354$3,648$6,254$8,468$6,201
United Kingdom 96 128 112 1,127 966 1,607
Other, net of eliminations 2,126 2,399 2,467 1,006 989 1,501
$5,695$5,881$6,227$8,387$ 10,423 $ 9,309
* Excluding assets held for disposition