Other Financial Data

Statement of Operations Information

Other Charges (income)

Other charges (income) included in Operating earnings (loss) consist of the following:



Years ended December 31	2014			2013		2012
Other charges (income):
Intangibles amortization (see Note 14)	$	4		$	1	$	1
Reorganization of businesses (see Note 13)	64			70		27
Settlement of pension plan, including transaction fees (see Note 7)	1,917			—		—
Legal and related insurance matters, net	8			—		(16		)
Gain on sale of building and land	(21		)	—		—
	$	1,972		$	71	$	12

During 2014, the Company completed the sale of a building and parcel of land on its Schaumburg, Illinois campus with a net book value of $3 million for net cash proceeds of $24 million resulting in a gain on sale of $21 million. Also, the Company recognized an $8 million loss related to the settlement of a legal matter.

During 2012, the Company recorded a $16 million gain in connection with the settlement of a legal matter involving the legacy paging business.

Other Income (Expense)

Interest expense, net, and Other both included in Other income (expense) consist of the following:



Years ended December 31	2014			2013			2012
Interest expense, net:
Interest expense	$	(147	)	$	(132	)	$	(108	)
Interest income	21			19			42
	$	(126	)	$	(113	)	$	(66	)
Other:
Loss from the extinguishment of long-term debt	$	(37	)	$	—		$	(6	)
Investment impairments	—			(3		)	(4		)
Foreign currency loss	(7		)	(9		)	(1		)
Gains on equity method investments	16			10			3
Other	(6		)	11			9
	$	(34	)	$	9		$	1

Earnings Per Common Share

Basic and diluted earnings per common share from both continuing operations and net earnings attributable to Motorola Solutions, Inc. is computed as follows:



	Amounts attributable to Motorola Solutions, Inc. common stockholders
	Earnings (loss) from Continuing Operations							Net Earnings
Years ended December 31	2014			2013		2012		2014		2013		2012
Basic earnings per common share:
Earnings (loss)	$	(697	)	$	933	$	670	$	1,299	$	1,099	$	881
Weighted average common shares outstanding	245.6			266.0		292.1		245.6		266.0		292.1
Per share amount	$	(2.84	)	$	3.51	$	2.29	$	5.29	$	4.13	$	3.02
Diluted earnings per common share:
Earnings (loss)	$	(697	)	$	933	$	670	$	1,299	$	1,099	$	881
Weighted average common shares outstanding	245.6			266.0		292.1		245.6		266.0		292.1
Add effect of dilutive securities:
Share-based awards	—			4.5		5.3		—		4.5		5.3
Diluted weighted average common shares outstanding	245.6			270.5		297.4		245.6		270.5		297.4
Per share amount	$	(2.84	)	$	3.45	$	2.25	$	5.29	$	4.06	$	2.96

For the year ended December 31, 2014, the Company had a net loss from continuing operations and, accordingly, the basic and diluted weighted average shares outstanding are equal because any increase to the basic shares would be antidilutive, including the assumed exercise of 6.3 million stock options and the assumed vesting of 1.1 million restricted stock units. In the computation of diluted earnings per common share from continuing operations and on a net earnings basis for the years ended December 31, 2013 and December 31, 2012, the assumed exercise of 5.6 million and 5.9 million stock options, respectively, were excluded because their inclusion would have been antidilutive.

Balance Sheet Information

Investments

Investments consist of the following:



	Recorded Value		Less
December 31, 2014	Investments		Unrealized Gains		Cost Basis
Available-for-sale securities:
Government, agency, and government-sponsored enterprise obligations	$	14	$	—	$	14
Corporate bonds	16		—		16
Mutual funds	2		—		2
Common stock and equivalents	71		70		1
	103		70		33
Other investments, at cost	191		—		191
Equity method investments	22		—		22
	$	316	$	70	$	246



	Recorded Value
December 31, 2013	Investments
Available-for-sale securities:
Government, agency, and government-sponsored enterprise obligations	$	15
Corporate bonds	7
Mutual funds	11
Common stock and equivalents	2
	35
Other investments, at cost	182
Equity method investments	15
	$	232

During the years ended December 31, 2013 and 2012, the Company recorded investment impairment charges of $3 million and $4 million, respectively, representing other-than-temporary declines in the value of the Company’s equity investment portfolio. Investment impairment charges are included in Other within Other income (expense) in the Company’s consolidated statements of operations.

Accounts Receivable, Net

Accounts receivable, net, consist of the following:



December 31	2014			2013
Accounts receivable	$	1,444		$	1,422
Less allowance for doubtful accounts	(35		)	(53		)
	$	1,409		$	1,369

Inventories, Net

Inventories, net, consist of the following:



December 31	2014			2013
Finished goods	$	163		$	157
Work-in-process and production materials	313			315
	476			472
Less inventory reserves	(131		)	(125		)
	$	345		$	347

Other Current Assets

Other current assets consist of the following:



December 31	2014		2013
Costs and earnings in excess of billings	$	417	$	405
Tax-related deposits and refunds receivable	103		107
Zebra receivable for cash transferred	49		—
Other	171		123
	$	740	$	635

In conjunction with the sale of the Enterprise business to Zebra, the Company transfered legal entities which maintained cash balances. Approximately $49 million of cash balances will be reimbursed by Zebra in accordance with the Acquisition Agreement.

Property, Plant and Equipment, Net

Property, plant and equipment, net, consist of the following:



December 31	2014			2013
Land	$	18		$	22
Building	559			582
Machinery and equipment	1,672			1,642
	2,249			2,246
Less accumulated depreciation	(1,700		)	(1,636		)
	$	549		$	610

Depreciation expense for the years ended December 31, 2014, 2013 and 2012 was $169 million, $157 million and $150 million, respectively.

Other Assets

Other assets consist of the following:



December 31	2014		2013
Intangible assets	$	23	$	6
Long-term receivables	31		1
Other	91		82
	$	145	$	89

Accrued Liabilities

Accrued liabilities consist of the following:



December 31	2014		2013
Deferred revenue	$	355	$	359
Compensation	190		315
Billings in excess of costs and earnings	358		295
Tax liabilities	91		85
Customer liabilities	55		52
Dividend payable	75		79
Other	582		578
	$	1,706	$	1,763

Other Liabilities

Other liabilities consist of the following:



December 31	2014		2013
Defined benefit plans	$	1,611	$	1,751
Postretirement health care benefit plan	49		117
Deferred revenue	139		162
Unrecognized tax benefits	54		99
Other	158		185
	$	2,011	$	2,314

Stockholders’ Equity Information

Share Repurchase Program: During 2014, the Company paid an aggregate of $2.5 billion, including transaction costs, to repurchase 39.4 million shares at an average price of $64.63 per share. During 2013, the Company paid an aggregate of $1.7 billion, including transaction costs, to repurchase 28.6 million shares at an average price of $59.30. During 2012, the Company paid an aggregate of $2.4 billion, including transaction costs, to repurchase 49.6 million shares at an average price of $49.14.

On November 4, 2014, the Company announced that its Board of Directors authorized up to $5.0 billion in additional funds for share repurchases, bringing the aggregate amount of the share repurchase program to $12.0 billion. As of December 31, 2014, the Company had used approximately $7.8 billion of the share repurchase authority, including transaction costs, to repurchase shares, leaving $4.2 billion of authority available for future repurchases.

Payment of Dividends: On July 31, 2014, the Company announced that its Board of Directors approved an increase in the quarterly cash dividend from $0.31 per share to $0.34 per share of common stock. During the years ended December 31, 2014, 2013, and 2012 the Company paid $318 million, $292 million, and $270 million respectively, in cash dividends to holders of its common stock.

Accumulated Other Comprehensive Loss

The following table displays the changes in Accumulated other comprehensive loss, net of tax, by component from January 1, 2014 to December 31, 2014:



	Gains and Losses on Cash Flow Hedges			Unrealized Gains and Losses on Available-for-Sale Securities			Retirement Benefit Items			Foreign Currency Translation Adjustments			Total
Balance as of December 31, 2013	$	(1	)	$	(2	)	$	(2,188	)	$	(96	)	$	(2,287	)
Other comprehensive income (loss) before reclassifications	—			46			(718		)	(49		)	(721		)
Amounts reclassified from accumulated other comprehensive income (loss)	1			—			1,211			(59		)	1,153
Net current-period other comprehensive income (loss)	1			46			493			(108		)	432
Balance as of December 31, 2014	$	—		$	44		$	(1,695	)	$	(204	)	$	(1,855	)

The following table displays the amounts reclassified from Accumulated other comprehensive loss and the affected line item in the consolidated statements of operations during 2014:



Years ended December 31	2014			2013			Statement of Operations Location
Loss (gain) on cash flow hedges:
Foreign exchange contracts	$	1		$	(1	)	Cost of sales
	$	1		$	(1	)	Net of tax
Unrealized Gains and Losses on Available-for-Sale Securities:
Realized gain	$	—		$	(4	)	Gains on sales of investments and businesses, net
	—			1			Tax benefit
	$	—		$	(3	)	Net of tax
Foreign Currency Translation Adjustments:
Disposition of the Enterprise business	$	(75	)	$	—		Earnings from discontinued operations
	16			—			Tax expense
	$	(59	)	$	—		Net of tax
Retirement Benefit Items:
Amortization of prior-service costs	$	(57	)	$	(49	)	Selling, general, and administrative expenses
Amortization of actuarial net losses	118			159			Selling, general, and administrative expenses
Settlement of pension plan	1,883			—			Other charges
Disposition of the Enterprise business retirement benefits	(1		)	—			Earnings from discontinued operations
	1,943			110			Total before tax
	(732		)	(40		)	Tax benefit
	$	1,211		$	70		Net of tax
Total reclassifications for the period, net of tax	$	1,153		$	66