Other Financial Data

Statement of Operations Information

Other Charges

Other charges included in Operating earnings consist of the following:



	Three Months Ended
	March 31, 2012		April 2, 2011
Other charges (income):
Amortization of intangible assets	$	6	$	50
Reorganization of business charges	9		5
	$	15	$	55

Other Income (Expense)

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



	Three Months Ended
	March 31, 2012			April 2, 2011
Interest income (expense), net:
Interest expense	$	(25	)	$	(34	)
Interest income	11			14
	$	(14	)	$	(20	)
Other:
Investment impairments	$	(2	)	$	(3	)
Foreign currency gain	10			5
Other	1			3
	$	9		$	5

Earnings Per Common Share

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



	Amounts attributable to Motorola Solutions, Inc. common stockholders
	Earnings from continuing operations				Net Earnings
Three Months Ended	March 31, 2012		April 2, 2011		March 31, 2012		April 2, 2011
Basic earnings per common share:
Earnings	$	159	$	367	$	157	$	497
Weighted average common shares outstanding	311.3		337.4		311.3		337.4
Per share amount	$	0.51	$	1.09	$	0.50	$	1.47
Diluted earnings per common share:
Earnings	$	159	$	367	$	157	$	497
Weighted average common shares outstanding	311.3		337.4		311.3		337.4
Add effect of dilutive securities:
Share-based awards and other	6.4		6.8		6.4		6.8
Diluted weighted average common shares outstanding	317.7		344.2		317.7		344.2
Per share amount	$	0.50	$	1.07	$	0.49	$	1.44

In the computation of diluted earnings per common share from both continuing operations and on a net earnings basis for the three months ended March 31, 2012 and April 2, 2011, the assumed exercise of 5.8 million and 9.5 million stock options, respectively, 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 $1.7 billion and $1.9 billion at March 31, 2012 and December 31, 2011, respectively. Of these amounts, $63 million at both March 31, 2012 and December 31, 2011, respectively, was restricted.

Sigma Fund

The Sigma Fund consists of the following:



	March 31, 2012		December 31, 2011
Cash	$	1	$	264
Securities:
U.S. government, agency, and government-sponsored enterprise obligations	2,044		2,944
	$	2,045	$	3,208

Investments

Investments consist of the following:



	Recorded Value				Less
March 31, 2012	Short-term Investments		Investments		Unrealized Gains		Unrealized Loss			Cost Basis
Available-for-sale securities:
U.S. government, agency and government-sponsored enterprise obligations	$	—	$	16	$	—	$	—		$	16
Corporate bonds	2		10		—		—			12
Mortgage-backed securities	—		2		—		—			2
Common stock and equivalents	—		12		3		(1		)	10
	2		40		3		(1		)	40
Other securities, at cost	—		106		—		—			106
Equity method investments	—		22		—		—			22
	$	2	$	168	$	3	$	(1	)	$	168



	Recorded Value				Less
December 31, 2011	Short-term Investments		Investments		Unrealized Gains		Unrealized Loss			Cost Basis
Available-for-sale securities:
U.S. government, agency and government-sponsored enterprise obligations	$	—	$	16	$	—	$	—		$	16
Corporate bonds	2		10		—		—			12
Mortgage-backed securities	—		2		—		—			2
Common stock and equivalents	—		11		2		(1		)	10
	2		39		2		(1		)	40
Other securities, at cost	—		106		—		—			106
Equity method investments	—		21		—		—			21
	$	2	$	166	$	2	$	(1	)	$	167

During the three months ended March 31, 2012, the Company recorded Gains on sales of investments primarily related to one of our equity investments.

Accounts Receivable, Net

Accounts receivable, net, consists of the following:



	March 31, 2012			December 31, 2011
Accounts receivable	$	1,768		$	1,911
Less allowance for doubtful accounts	(51		)	(45		)
	$	1,717		$	1,866

Inventories, Net

Inventories, net, consist of the following:



	March 31, 2012			December 31, 2011
Finished goods	$	307		$	319
Work-in-process and production materials	334			363
	641			682
Less inventory reserves	(170		)	(170		)
	$	471		$	512

Other Current Assets

Other current assets consist of the following:



	March 31, 2012		December 31, 2011
Costs and earnings in excess of billings	$	339	$	302
Contract-related deferred costs	150		142
Tax-related refunds receivable	86		85
Other	197		147
	$	772	$	676

Property, Plant and Equipment, Net

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



	March 31, 2012			December 31, 2011
Land	$	62		$	69
Building	761			774
Machinery and equipment	2,131			2,052
	2,954			2,895
Less accumulated depreciation	(2,080		)	(1,999		)
	$	874		$	896

Depreciation expense for the three months ended March 31, 2012 and April 2, 2011 was $46 million and $40 million, respectively.

Other Assets

Other assets consist of the following:



	March 31, 2012		December 31, 2011
Intangible assets	$	42	$	48
Long-term receivables	31		37
Other	201		209
	$	274	$	294

Accrued Liabilities

Accrued liabilities consist of the following:



	March 31, 2012		December 31, 2011
Deferred revenue	$	802	$	774
Billings in excess of costs and earnings	400		250
Compensation	337		471
Tax liabilities	119		126
Customer reserves	94		125
Distribution-related obligation	75		75
Dividend payable	64		70
Networks purchase price adjustment	24		96
Other	658		734
	$	2,573	$	2,721

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 substantially all of the final $75 million was paid to Motorola Mobility subsequent to March 31, 2012.

Other Liabilities

Other liabilities consist of the following:



	March 31, 2012		December 31, 2011
Defined benefit plans, including split dollar life insurance policies	$	2,591	$	2,675
Postretirement health care benefit plan	297		295
Deferred revenue	273		275
Unrecognized tax benefits	112		112
Other	351		353
	$	3,624	$	3,710

Stockholders’ Equity

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. On January 30, 2012, the Company announced that its Board of Directors authorized up to $1.0 billion in additional funds for use under the existing share repurchase program through the end of 2012. On February 26, 2012, the Company entered into a stock purchase agreement with Carl C. Icahn and certain of his affiliates to purchase 23,739,362 shares of its common stock. The Company paid an aggregate of $1.4 billion during the first quarter of 2012, including transactions costs, to repurchase 28.0 million shares at an average price of $48.81 per share. All repurchased shares have been retired.

Payment of Dividends: During the quarter ended March 31, 2012, the Company paid $70 million in cash dividends to holders of its common stock.

Noncontrolling Interest: On January 1, 2012, the Company entered into a series of transactions which resulted in exiting the amateur, marine and airband radio businesses. One of those transactions was acquiring the remaining 20% of the land mobile radio business previously owned by our Japanese joint venture. The acquisition of the remaining 20% of this land mobile radio business, which the Company already had a controlling interest in, resulted in a decrease of $35 million to the Company's noncontrolling interest, and an increase of $20 million to the Company's additional paid in capital, which primarily represents the increase in deferred tax assets from the acquisition of the 20% of the land mobile radio business assets.