Other Financial Data

9 Months Ended

Oct. 01, 2011

Other Financial Data [Abstract]

Other Financial Data

3. Other Financial Data

Statement of Operations Information

Other Charges

Other charges included in Operating earnings consist of the following:

	Three Months Ended				Nine Months Ended
	October 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010
Other charges (income):
Amortization of intangible assets		$50		$51		$150		$152
Legal matters and intellectual property reserve adjustments, net		—		(39)		48		(68)
Reorganization of business charges		10		22		32		35
Pension plan adjustments, net		—		—		(9)		—
		$60		$34		$221		$119

Other Income (Expense)

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

	Three Months Ended				Nine Months Ended
	October 1, 2011		October 2, 2010		October 1, 2011		October2, 2010
Interest income (expense), net:
Interest expense		$(31)		$(48)		$(105)		$(164)
Interest income		13		19		46		67
		$(18)		$(29)		$(59)		$(97)
Other:
Loss from the extinguishment of the Company's outstanding long-term debt		$—		$—		$(81)		$(12)
Investment impairments		—		(2)		(3)		(20)
Foreign currency gain (loss)		(6)		4		5		7
Gain (loss) on Sigma Fund investments		(2)		3		(2)		15
Other		8		1		9		1
		$—		$6		$(72)		$(9)

Earnings Per Common Share

The computation of basic and diluted earnings (loss) per common share attributable to Motorola Solutions, Inc. common stockholders is as follows:

	Amounts attributable to Motorola Solutions, Inc. common stockholders
	Earnings (loss) from Continuing Operations				Net Earnings
Three Months Ended	October 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010
Basic earnings per common share:
Earnings (loss)		$152		$(13)		$128		$110
Weighted average common shares outstanding		335.4		334.1		335.4		334.1
Per share amount		$0.45		$(0.04)		$0.38		$0.33
Diluted earnings per common share:
Earnings (loss)		$152		$(13)		$128		$110
Weighted average common shares outstanding		335.4		334.1		335.4		334.1
Add effect of dilutive securities:
Share-based awards and other		4.1		—		4.1		—
Diluted weighted average common shares outstanding		339.5		334.1		339.5		334.1
Per share amount		$0.45		$(0.04)		$0.38		$0.33

	Amounts attributable to Motorola Solutions, Inc. common stockholders
	Earnings from Continuing  Operations				Net Earnings
Nine Months Ended	October 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010
Basic earnings per common share:
Earnings		$567		$78		$974		$341
Weighted average common shares outstanding		337.3		332.5		337.3		332.5
Per share amount		$1.68		$0.23		$2.89		$1.03
Diluted earnings per common share:
Earnings		$567		$78		$974		$341
Weighted average common shares outstanding		337.3		332.5		337.3		332.5
Add effect of dilutive securities:
Share-based awards and other		6.1		4.6		6.1		4.6
Diluted weighted average common shares outstanding		343.4		337.1		343.4		337.1
Per share amount		$1.65		$0.23		$2.84		$1.01

In the computation of diluted earnings per common share from both continuing operations and on a net earnings basis for the three and nine months ended October 1, 2011, the assumed exercise of 8.9 million and 8.8 million stock options, respectively, and the assumed vesting of 0.3 million and 0.2 million restricted stock units, respectively, were excluded because their inclusion would have been antidilutive.

For the three months ended October 2, 2010, the Company was in a net loss position on a continuing operations basis and, accordingly, the assumed exercise of 20.5 million stock options and the assumed vesting of 9.6 million restricted stock units were excluded from diluted weighted average shares outstanding because their inclusion would have been antidilutive. In the computation of diluted earnings per common share from both continuing operations and on a net earnings basis for the nine months ended October 2, 2010, the assumed exercise of 16.3 million stock options and the assumed vesting of 0.9 million restricted stock units, were excluded because their inclusion would have been antidilutive.

Balance Sheet Information

Cash and Cash Equivalents

The Company's cash and cash equivalents (which are highly-liquid investments with an original maturity of three months or less) were $1.8 billion and $4.2 billion at October 1, 2011 and December 31, 2010, respectively. Of these amounts, $63 million and $226 million, respectively, was restricted.

Sigma Fund

The Sigma Fund consists of the following:

	October 1, 2011				December 31, 2010
Fair Value	Current		Non-current		Current		Non-Current
Cash		$218		$—		$2,355		$—
Securities:
U.S. government and agency obligations		4,245		—		2,291		—
Corporate bonds		—		19		—		58
Asset-backed securities		—		—		—		1
Mortgage-backed securities		—		7		—		11
		$4,463		$26		$4,646		$70

Investments

Investments consist of the following:

	Recorded Value				Less
October 1, 2011	Short-term   Investments		Investments		Unrealized   Gains		Cost   Basis
Available-for-sale securities:
U.S. government, agency and government-sponsored enterprise obligations		$—		$16		$—		$16
Corporate bonds		2		11		—		13
Mortgage-backed securities		—		3		—		3
Common stock and equivalents		—		14		4		10
		2		44		4		42
Other securities, at cost		—		98		—		98
Equity method investments		—		25		—		25
		$2		$167		$4		$165

	Recorded Value				Less
December 31, 2010	Short-term   Investments		Investments		Unrealized   Gains		Cost   Basis
Certificates of deposit		$7		$—		$—		$7
Available-for-sale securities:
U.S. government, agency and government-sponsored enterprise obligations		—		17		—		17
Corporate bonds		2		11		—		13
Mortgage-backed securities		—		3		—		3
Common stock and equivalents		—		12		4		8
		9		43		4		48
Other securities, at cost		—		113		—		113
Equity method investments		—		16		—		16
		$9		$172		$4		$177

Accounts Receivable, Net

Accounts receivable, net, consists of the following:

	October 1, 2011		December 31, 2010
Accounts receivable		$1,583		$1,596
Less allowance for doubtful accounts		(48)		(49)
		$1,535		$1,547

Inventories, Net

Inventories, net, consist of the following:

	October 1, 2011		December 31, 2010
Finished goods		$433		$386
Work-in-process and production materials		280		292
		713		678
Less inventory reserves		(165)		(157)
		$548		$521

Other Current Assets

Other current assets consist of the following:

	October 1, 2011		December 31, 2010
Costs and earnings in excess of billings		$323		$291
Contract-related deferred costs		169		160
Tax-related refunds receivable		103		116
Other		148		181
		$743		$748

Property, Plant and Equipment, Net

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

	October 1, 2011		December 31, 2010
Land		$70		$71
Building		768		804
Machinery and equipment		2,125		2,094
		2,963		2,969
Less accumulated depreciation		(2,074)		(2,047)
		$889		$922

Depreciation expense for the three months ended October 1, 2011 and October 2, 2010 was $41 million and $34 million, respectively. Depreciation expense for the nine months ended October 1, 2011 and October 2, 2010 was $123 million and $105 million, respectively.

Other Assets

Other assets consist of the following:

	October 1, 2011		December 31, 2010
Long-term receivables, net of allowances of $1		$129		$251
Intangible assets, net of accumulated amortization of $1,097 and $947		100		246
Other		220		237
		$449		$734

Accrued Liabilities

Accrued liabilities consist of the following:

	October 1, 2011		December 31, 2010
Deferred revenue		$810		$746
Compensation		417		558
Distribution-related obligation		225		—
Billings in excess of costs and earnings		241		226
Customer reserves		119		117
Tax liabilities		116		179
Networks purchase price adjustment		118		—
Dividend payable		72		—
Other		793		748
		$2,911		$2,574

As part of the Distribution of Motorola Mobility, the Company had an obligation to fund an additional $300 million, upon receipt of cash distributions as a result of future capital reductions of an overseas subsidiary of which $75 million was paid in the third quarter of 2011 to Motorola Mobility.

Other Liabilities

Other liabilities consist of the following:

	October 1, 2011		December 31, 2010
Defined benefit plans, including split dollar life insurance policies		$1,940		$2,113
Deferred revenue		291		274
Postretirement health care benefit plan		286		277
Unrecognized tax benefits		94		70
Other		295		311
		$2,906		$3,045

Stockholders' Equity

Separation of Motorola Mobility: As a result of the Distribution on January 4, 2011, certain equity balances were transferred by the Company to Motorola Mobility including: (i) $9 million in fair value adjustments to available for sale securities, net of tax of $5 million, (ii) $8 million in retirement benefit adjustments, net of tax of $4 million, and (iii) $1 million in foreign currency translation adjustments. The distribution of net assets and these equity balances were effected by way of a pro rata dividend to Motorola Solutions stockholders, which reduced retained earnings and additional paid in capital by $5.3 billion.

Share Repurchase Program: On July 28, 2011, the Company announced that its Board of Directors approved a share repurchase program that allows the Company to purchase up to $2.0 billion of its outstanding common stock through December 31, 2012. During the third quarter of 2011, the Company paid an aggregate of $744 million, including transactions costs, to repurchase 18.4 million shares at an average price of $40.38 per share. All repurchased shares have been retired.

Payment of Dividends: Also on July 28, 2011, the Company announced that its Board of Directors approved the initiation of a regular quarterly cash dividend on the Company's outstanding common stock. The Board of Directors approved a cash dividend of $0.22 per share of common stock paid on October 14, 2011 to shareholders of record as of the close of business on September 15, 2011.