Discontinued Operations
On April 17, 2013, we completed the disposition of the Motorola Home segment to Arris and certain other persons for consideration of approximately $2,412 million in cash, including cash of $2,238 million received at the date of close and certain post-close adjustments of $174 million received in the third quarter of 2013, and approximately $175 million in Arris' common stock (10.6 million shares). Subsequent to the transaction, we own approximately 7.8% of the outstanding shares of Arris. Additionally, in connection with the disposition, we agreed to indemnify Arris for potential liability from certain intellectual property infringement litigation, for which we recorded an indemnification liability of $175 million, the majority of which was settled subsequent to the disposition.
The disposition resulted in a net gain of $757 million, which was presented as part of net income from discontinued operations in the Consolidated Statements of Income for the year ended December 31, 2013.
The Motorola Home segment results have been presented as a discontinued operation for the years ended December 31, 2012 and 2013. The following table provides the financial results included in net income (loss) from discontinued operations during the periods presented (in millions):
|
| | | | | | | |
| Year Ended December 31, |
| 2012 | | 2013 |
Revenues | $ | 2,028 |
| | $ | 804 |
|
| | | |
Loss from discontinued operations before income taxes | (22 | ) | | (67 | ) |
(Provision for)/Benefits from income taxes | (29 | ) | | 16 |
|
Gain on disposal | 0 |
| | 757 |
|
Net (loss) income from discontinued operations | $ | (51 | ) | | $ | 706 |
|
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities divested (in millions):
|
| | | |
Assets: | |
Accounts receivable | $ | 424 |
|
Inventories | 228 |
|
Deferred income taxes, net | 144 |
|
Prepaid and other current assets | 152 |
|
Property and equipment, net | 282 |
|
Intangible assets, net | 701 |
|
Other assets, non-current | 182 |
|
Total assets | $ | 2,113 |
|
Liabilities: | |
Accounts payable | 169 |
|
Accrued expenses and other liabilities | 289 |
|
Total liabilities | $ | 458 |
|
