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Other Financial Data
12 Months Ended
Dec. 31, 2013
Other Financial Data [Abstract]  
Other Financial Data
Other Financial Data
Statement of Operations Information
Other Charges
Other charges included in Operating earnings consist of the following: 
Years ended December 31
2013
 
2012
 
2011
Other charges:
 
 
 
 
 
Intangibles amortization
$
26

 
$
29

 
$
200

Reorganization of businesses
107

 
41

 
52

Legal and related insurance matters, net

 
(16
)
 
88

Other

 

 
1

 
$
133

 
$
54

 
$
341


During 2012, the Company recorded a $16 million gain in connection with the settlement of a legal matter involving the legacy paging business.
During 2011, the Company recorded $88 million of net charges for legal matters. These charges primarily relate to litigation settlement and legal matters related to 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
2013
 
2012
 
2011
Interest income (expense), net:
 
 
 
 
 
Interest expense
$
(132
)
 
$
(108
)
 
$
(132
)
Interest income
19

 
42

 
58

 
$
(113
)
 
$
(66
)
 
$
(74
)
Other:
 
 
 
 
 
Loss from the extinguishment of long-term debt
$

 
$
(6
)
 
$
(81
)
Investment impairments
(6
)
 
(8
)
 
(4
)
Foreign currency gain (loss)
(12
)
 
(13
)
 
8

Gains on equity method investments
10

 
3

 
12

Other
11

 
10

 
(4
)
 
$
3

 
$
(14
)
 
$
(69
)

Earnings Per Common Share
Basic and diluted earnings per common share from both continuing operations and net earnings attributable to Motorola Solutions, Inc., including discontinued operations, is computed as follows: 
 
Earnings from Continuing Operations
 
Net Earnings
Years ended December 31
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Basic earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
Earnings
$
1,099

 
$
878

 
$
747

 
$
1,099

 
$
881

 
$
1,158

Weighted average common shares outstanding
266.0

 
292.1

 
333.8

 
266.0

 
292.1

 
333.8

Per share amount
$
4.13

 
$
3.01

 
$
2.24

 
$
4.13

 
$
3.01

 
$
3.47

Diluted earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
Earnings
$
1,099

 
$
878

 
$
747

 
$
1,099

 
$
881

 
$
1,158

Weighted average common shares outstanding
266.0

 
292.1

 
333.8

 
266.0

 
292.1

 
333.8

Add effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
Share-based awards
4.5

 
5.3

 
5.9

 
4.5

 
5.3

 
5.9

Diluted weighted average common shares outstanding
270.5

 
297.4

 
339.7

 
270.5

 
297.4

 
339.7

Per share amount
$
4.06

 
$
2.95

 
$
2.20

 
$
4.06

 
$
2.96

 
$
3.41

In the computation of diluted earnings per common share from both 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. For the year ended December 31, 2011, the assumed exercise of 8.6 million stock options and vesting of 0.2 million restricted stock units were excluded because their inclusion would have been antidilutive.
Balance Sheet Information
Sigma Fund
During the fourth quarter of 2013, the Company exited the Sigma Fund. The balance of Sigma Fund as December 31, 2012 consisted of the following: 
Cash
$
149

Government, agency, and government-sponsored enterprise obligations
1,984

 
$
2,133


Investments
Investments consist of the following:
 
Recorded Value
 
Less
 
 
December 31, 2013
Short-term  
Investments
 
Investments  
 
  Unrealized  
Gains
 
  Cost  
Basis
Available-for-sale securities:
 
 
 
 
 
 
 
Government, agency, and government-sponsored enterprise obligations
$

 
$
15

 
$

 
$
15

Corporate bonds
2

 
7

 

 
9

Mutual funds

 
11

 

 
11

Common stock and equivalents

 
2

 

 
2

 
2

 
35

 

 
37

Other investments, at cost

 
201

 

 
201

Equity method investments

 
15

 

 
15

 
$
2

 
$
251

 
$

 
$
253

 
Recorded Value
 
Less
 
 
December 31, 2012
  Short-term  
Investments
 
Investments  
 
  Unrealized  
Gains
 
  Cost  
Basis
Available-for-sale securities:
 
 
 
 
 
 
 
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 investments, at cost

 
189

 

 
189

Equity method investments

 
13

 

 
13

 
$
2

 
$
240

 
$
3

 
$
239


The Company reclassified $96 million of cash surrender values of its split-dollar value life insurance plans as of December 31, 2012, from Other assets to Investments, to conform to the balance sheet presentation as of December 31, 2013
During the years ended December 31, 2013, 2012 and 2011, the Company recorded investment impairment charges of $6 million, $8 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.
Gains on sales of investments and businesses, net, consists of the following: 
Years ended December 31
2013
 
2012
 
2011
Gains on sales of investments, net
$
40

 
$
39

 
$
17

Gains on sales of businesses, net

 

 
6

 
$
40

 
$
39

 
$
23


Accounts Receivable, Net
Accounts receivable, net, consist of the following: 
December 31
2013
 
2012
Accounts receivable
$
1,976

 
$
1,932

Less allowance for doubtful accounts
(56
)
 
(51
)
 
$
1,920

 
$
1,881


Inventories, Net
Inventories, net, consist of the following: 
December 31
2013
 
2012
Finished goods
$
232

 
$
244

Work-in-process and production materials
468

 
432

 
700

 
676

Less inventory reserves
(178
)
 
(163
)
 
$
522

 
$
513


Other Current Assets
Other current assets consist of the following:
December 31
2013
 
2012
Costs and earnings in excess of billings
$
390

 
$
416

Contract-related deferred costs
105

 
141

Tax-related deposits and refunds receivable
113

 
95

Other
159

 
148

 
$
767

 
$
800


Property, Plant and Equipment, Net
Property, plant and equipment, net, consist of the following: 
December 31
2013
 
2012
Land
$
36

 
$
38

Building
649

 
739

Machinery and equipment
1,938

 
1,932

 
2,623

 
2,709

Less accumulated depreciation
(1,813
)
 
(1,870
)
 
$
810

 
$
839


Depreciation expense for the years ended December 31, 2013, 2012 and 2011 was $202 million, $179 million and $165 million, respectively.
Other Assets
Other assets consist of the following: 
December 31
2013
 
2012
Intangible assets
$
87

 
$
109

Long-term receivables
6

 
60

Other
92

 
104

 
$
185

 
$
273


Accrued Liabilities
Accrued liabilities consist of the following: 
December 31
2013
 
2012
Deferred revenue
$
778

 
$
820

Compensation
334

 
424

Billings in excess of costs and earnings
295

 
387

Tax liabilities
95

 
95

Customer reserves
146

 
144

Dividend payable
79

 
72

Other
675

 
684

 
$
2,402

 
$
2,626


Other Liabilities
Other liabilities consist of the following: 
December 31
2013
 
2012
Defined benefit plans, including split dollar life insurance arrangements
$
1,759

 
$
3,389

Postretirement health care benefit plan
117

 
167

Deferred revenue
302

 
304

Unrecognized tax benefits
102

 
98

Other
205

 
237

 
$
2,485

 
$
4,195


Stockholders’ Equity Information
Share Repurchase Program: 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 per share. 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. During 2011, the Company paid an aggregate of $1.1 billion, including transaction costs, to repurchase 26.6 million shares at an average price of $41.77.
On July 24, 2013, the Company announced that its Board of Directors authorized up to $2.0 billion in additional funds for share repurchases, bringing the aggregate amount of the share repurchase program to $7.0 billion. As of December 31, 2013, the Company had used approximately $5.2 billion of the share repurchase authority, including transaction costs, to repurchase shares, leaving $1.8 billion of authority available for future repurchases.
Payment of Dividends:  On July 24, 2013, the Company announced that its Board of Directors approved an increase in the quarterly cash dividend from $0.26 per share to $0.31 per share of common stock. During the years ended December 31, 2013, 2012, and 2011 the Company paid $292 million, $270 million, and $72 million respectively, in cash dividends to holders of its common stock. During 2011, the Company paid $8 million of dividends to minority shareholders in connection with subsidiary common stock.
Motorola Mobility Distribution:  On January 4, 2011, the distribution of Motorola Mobility from Motorola Solutions was completed. On January 4, 2011, the stockholders of record as of the close of business on December 21, 2010 (the "Record Date") received one (1) share of Motorola Mobility common stock for each eight (8) shares of the Company's common stock held as of the Record Date. The distribution was completed pursuant to an Amended and Restated Master Separation and Distribution Agreement, effective as of July 31, 2010, among the Company, Motorola Mobility and Motorola Mobility, Inc.
Reverse Stock Split:  On January 4, 2011, immediately following the distribution of Motorola Mobility common stock, the Company completed a reverse stock split. All consolidated per share information presented gives effect to the distribution of Motorola Mobility and the reverse stock split.
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 December 31, 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 as of December 31, 2012
$
1

 
$
2

 
$
(3,211
)
 
$
(92
)
 
$
(3,300
)
Other comprehensive income (loss) before reclassifications
(1
)
 
(1
)
 
953

 
(4
)
 
947

Amounts reclassified from accumulated other comprehensive income (loss)
(1
)
 
(3
)
 
70

 

 
66

Net current-period other comprehensive income (loss)
(2
)
 
(4
)
 
1,023

 
(4
)
 
1,013

Balance as of December 31, 2013
$
(1
)
 
$
(2
)
 
$
(2,188
)
 
$
(96
)
 
$
(2,287
)

The following table displays the amounts reclassified from Accumulated other comprehensive loss and the affected line item in the consolidated statements of operations during 2013:
Year ended December 31
2013
 
 
Gains on cash flow hedges:
 
 
 
Foreign exchange contracts
$
(1
)
 
Cost of sales
 
$
(1
)
 
Net of tax
Unrealized Gains and Losses on Available-for-Sale Securities:
 
 
 
Realized loss (gain)
$
(4
)
 
Gains on sales of investments and businesses, net
 
1

 
Tax expense
 
$
(3
)
 
Net of tax
Amortization of Retirement Benefit Items:
 
 
 
Prior-service costs
$
(49
)
 
Selling, general, and administrative expenses
Actuarial net losses
159

 
Selling, general, and administrative expenses
 
110

 
Total before tax
 
(40
)
 
Tax benefit
 
$
70

 
Net of tax
Total reclassifications for the period, net of tax
$
66