Share-Based Compensation Plans

9 Months Ended

Oct. 03, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Compensation expense for the Company’s employee stock options, stock appreciation rights, employee stock purchase plan, restricted stock and restricted stock units (“RSUs”) was as follows:



	Three Months Ended						Nine Months Ended
	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Share-based compensation expense included in:
Costs of sales	$	2		$	2		$	7		$	9
Selling, general and administrative expenses	13			14			38			47
Research and development expenditures	3			4			13			18
Share-based compensation expense included in Operating earnings	18			20			58			74
Tax benefit	6			6			19			23
Share-based compensation expense, net of tax	$	12		$	14		$	39		$	51
Decrease in basic earnings per share	$	(0.06	)	$	(0.06	)	$	(0.19	)	$	(0.20	)
Decrease in diluted earnings per share	$	(0.06	)	$	(0.06	)	$	(0.19	)	$	(0.20	)
Share-based compensation expense in discontinued operations	$	—		$	5		$	—		$	18

During the nine months ended October 3, 2015, the Company granted 0.8 million RSUs and 2.6 million stock options. The total aggregate compensation expense, net of estimated forfeitures, for these RSUs and stock options was $44 million and $17 million, respectively, which will generally be recognized over the vesting period of three years.

During the third quarter of 2015, the Company approved a one-time grant of performance-contingent stock options (the “PCSOs”) to certain officers under the Motorola Solutions Omnibus Incentive Plan of 2015 (the “Omnibus Plan”). The PCSOs have a seven-year term and a per share exercise price of $68.50. The PCSOs would vest upon satisfaction of the following Company stock price hurdles which must be maintained for 10-consecutive trading days during the three-year period following the grant date: 20% of the total award would vest at an $85 stock price; an additional 30% of the total award would vest at a $102.50 stock price; and the final 50% of the total award would vest at a $120 stock price. If any stock price hurdles are not met during the three-year period, the corresponding portion of the PCSOs would not vest and would be forfeited. PCSOs are generally not exercisable prior to the end of the three-year performance period.