Other Financial Data

Statement of Operations Information

Other Charges

Other charges included in Operating earnings consist of the following:



	Three Months Ended
	March 30, 2013		March 31, 2012
Other charges:
Amortization of intangible assets	$	6	$	6
Reorganization of business charges	11		9
	$	17	$	15

Other Income (Expense)

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



	Three Months Ended
	March 30, 2013			March 31, 2012
Interest income (expense), net:
Interest expense	$	(30	)	$	(25	)
Interest income	5			11
	$	(25	)	$	(14	)
Other:
Investment impairments	—			(2		)
Foreign currency gain	4			10
Other	3			1
	$	7		$	9

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 30, 2013		March 31, 2012		March 30, 2013		March 31, 2012
Basic earnings per common share:
Earnings	$	192	$	159	$	192	$	157
Weighted average common shares outstanding	274.5		311.3		274.5		311.3
Per share amount	$	0.70	$	0.51	$	0.70	$	0.50
Diluted earnings per common share:
Earnings	$	192	$	159	$	192	$	157
Weighted average common shares outstanding	274.5		311.3		274.5		311.3
Add effect of dilutive securities:
Share-based awards	6.2		6.4		6.2		6.4
Diluted weighted average common shares outstanding	280.7		317.7		280.7		317.7
Per share amount	$	0.68	$	0.50	$	0.68	$	0.49

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 30, 2013 and March 31, 2012, the assumed exercise of 4.5 million and 5.8 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 $1.5 billion at both March 30, 2013 and December 31, 2012. Of these amounts, $62 million at March 30, 2013 and $63 million at December 31, 2012 were restricted.

Sigma Fund

The Sigma Fund consists of the following:



	March 30, 2013		December 31, 2012
Cash	$	—	$	149
Securities:
U.S. government, agency, and government-sponsored enterprise obligations	2,245		1,984
	$	2,245	$	2,133

Investments

Investments consist of the following:



	Recorded Value				Less
March 30, 2013	Short-term Investments		Investments		Unrealized Gains		Unrealized Loss		Cost Basis
Available-for-sale securities:
U.S. government, agency and government-sponsored enterprise obligations	$	—	$	18	$	—	$	—	$	18
Corporate bonds	3		7		—		—		10
Mortgage-backed securities	—		2		—		—		2
Common stock and equivalents	—		11		3		—		8
	3		38		3		—		38
Other securities, at cost	—		98		—		—		98
Equity method investments	—		12		—		—		12
	$	3	$	148	$	3	$	—	$	148



	Recorded Value				Less
December 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	$	—	$	15	$	—	$	—	$	15
Corporate bonds	2		11		—		—		13
Mortgage-backed securities	—		2		—		—		2
Common stock and equivalents	—		10		3		—		7
	2		38		3		—		37
Other securities, at cost	—		93		—		—		93
Equity method investments	—		13		—		—		13
	$	2	$	144	$	3	$	—	$	143

Accounts Receivable, Net

Accounts receivable, net, consists of the following:



	March 30, 2013			December 31, 2012
Accounts receivable	$	1,695		$	1,932
Less allowance for doubtful accounts	(51		)	(51		)
	$	1,644		$	1,881

Inventories, Net

Inventories, net, consist of the following:



	March 30, 2013			December 31, 2012
Finished goods	$	247		$	244
Work-in-process and production materials	433			432
	680			676
Less inventory reserves	(165		)	(163		)
	$	515		$	513

Other Current Assets

Other current assets consist of the following:



	March 30, 2013		December 31, 2012
Costs and earnings in excess of billings	$	429	$	416
Contract-related deferred costs	124		141
Tax-related deposits and refunds receivable	142		95
Other	173		148
	$	868	$	800

Property, Plant and Equipment, Net

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



	March 30, 2013			December 31, 2012
Land	$	37		$	38
Building	745			739
Machinery and equipment	1,946			1,932
	2,728			2,709
Less accumulated depreciation	(1,903		)	(1,870		)
	$	825		$	839

Depreciation expense for the three months ended March 30, 2013 and March 31, 2012 was $45 million and $46 million, respectively.

Other Assets

Other assets consist of the following:



	March 30, 2013		December 31, 2012
Intangible assets	$	98	$	109
Long-term receivables	30		60
Other	203		200
	$	331	$	369

Accrued Liabilities

Accrued liabilities consist of the following:



	March 30, 2013		December 31, 2012
Deferred revenue	$	819	$	820
Billings in excess of costs and earnings	297		387
Compensation	329		424
Tax liabilities	75		95
Customer reserves	106		144
Dividend payable	71		72
Other	595		684
	$	2,292	$	2,626

Other Liabilities

Other liabilities consist of the following:



	March 30, 2013		December 31, 2012
Defined benefit plans, including split dollar life insurance policies	$	3,356	$	3,389
Postretirement health care benefit plan	165		167
Deferred revenue	319		304
Unrecognized tax benefits	100		98
Other	196		237
	$	4,136	$	4,195

Stockholders’ Equity

Share Repurchase Program: The Company paid an aggregate of $357 million during the first quarter of 2013, including transactions costs, to repurchase 5.9 million shares at an average price of $60.27 per share. As of March 30, 2013, the Company has used approximately $3.9 billion of the share repurchase authority, including transaction costs, to repurchase shares, leaving approximately $1.1 billion of authority available for repurchases. All repurchased shares have been retired.

Payment of Dividends: During the three months ended March 30, 2013 and March 31, 2012, the Company paid $72 million and $70 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, 2013 to March 30, 2013:



	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 at December 31, 2012:	$	1		$	2	$	(3,211	)	$	(92	)	$	(3,300	)
Other comprehensive loss before reclassifications	—			—		—			(37		)	(37		)
Amounts reclassified from accumulated other comprehensive income (loss)	$	(1	)	$	—	$	19		$	—		$	18
Net current-period other comprehensive income (loss)	(1		)	—		19			(37		)	(19		)
Balance at March 30, 2013	$	—		$	2	$	(3,192	)	$	(129	)	$	(3,319	)

Amounts Reclassified from Accumulated Other Comprehensive Loss during the three months ended March 30, 2013:



Three months ended March 30, 2013	Amount Reclassified from Accumulated Other Comprehensive Loss			Affected Line Item in the Condensed Consolidated Statement of Operations
Gain on cash flow hedges:
Foreign exchange contracts	(1		)	Cost of sales
	$	(1	)	Total before tax
	—			Tax expense
	$	(1	)	Net of tax
Amortization of retirement benefit items:
Prior service costs	(11		)	Selling, general, and administrative expenses
Unrecognized net losses	$	39		Selling, general, and administrative expenses
	28			Total before tax
	$	(9	)	Tax benefit
	19			Net of tax
Total reclassifications for the period, net of tax	$	18