Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation: Freescale Semiconductor, Inc. ( Freescale Inc. ) was incorporated in Delaware in 2003. In the second quarter of 2004, Motorola, Inc. ( Motorola ) transferred substantially all of its semiconductor businesses  assets and liabilities to Freescale Inc. (the  Contribution ) in anticipation of an initial public offering (IPO) of Freescale Inc. Class A common stock; the IPO was completed on July 21, 2004. Prior to the IPO, Freescale Inc. was a wholly owned subsidiary of Motorola. All of the Freescale Inc. Class B shares of common stock were held by Motorola until Motorola distributed its remaining ownership interest in Freescale Inc. by means of a special dividend to its common stockholders (the  Distribution ) on December 2, 2004 (the  Distribution Date ). On December 1, 2006, Freescale Inc. was acquired by a consortium of private equity funds (the  Merger ). The consortium includes The Blackstone Group, The Carlyle Group, funds advised by Permira Advisers, LLC, TPG Capital and others (collectively, the  Sponsors ). Pursuant to the terms of the Merger, Freescale Inc. continues as a wholly owned indirect subsidiary of Freescale Semiconductor, Ltd. ( Freescale Ltd. ). At the close of the Merger, Freescale Inc. became a subsidiary of Freescale Semiconductor Holdings V, Inc. ( Holdings V ), which is wholly owned by Freescale Semiconductor Holdings IV, Ltd. ( Holdings IV ), which is wholly owned by Freescale Semiconductor Holdings III, Ltd. ( Holdings III ), which is wholly owned by Freescale Semiconductor Holdings II, Ltd. ( Holdings II ), which is wholly owned by Freescale Ltd. All five of these companies were formed for the purposes of facilitating the Merger and are collectively referred to as the  Parent Companies.  Freescale Holdings L.P., a Cayman Islands limited partnership ( Freescale LP ), an entity controlled by the Sponsors, owns the majority of the outstanding shares of Freescale Ltd. as of December 31, 2014 . The