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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 (income)
Other charges included in Operating earnings consist of the following: 
Years ended December 31
2013
 
2012
 
2011
Other charges (income):
 
 
 
 
 
Intangibles amortization
$
1

 
$
1

 
$
5

Reorganization of businesses
70

 
27

 
35

Legal and related insurance matters, net

 
(16
)
 
88

Other

 

 
1

 
$
71

 
$
12

 
$
129


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: (i) a litigation settlement and (ii) 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
(3
)
 
(4
)
 
(4
)
Foreign currency gain (loss)
(9
)
 
(1
)
 
10

Gains on equity method investments
10

 
3

 
12

Other
11

 
9

 
(3
)
 
$
9

 
$
1

 
$
(66
)

Gains on Sales of Investments and Businesses, net
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
$
37

 
$
26

 
$
17

Gains on sales of businesses, net

 

 
6

 
$
37

 
$
26

 
$
23


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: 
 
Amounts attributable to Motorola Solutions, Inc. common stockholders
 
Earnings from Continuing Operations
 
Net Earnings
Years ended December 31
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Basic earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
Earnings
$
933

 
$
670

 
$
582

 
$
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
$
3.51

 
$
2.29

 
$
1.74

 
$
4.13

 
$
3.02

 
$
3.47

Diluted earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
Earnings
$
933

 
$
670

 
$
582

 
$
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
$
3.45

 
$
2.25

 
$
1.71

 
$
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:
December 31, 2013
 
Available-for-sale securities:
 
Government, agency, and government-sponsored enterprise obligations
$
15

Corporate bonds
7

Mutual funds
11

Common stock and equivalents
2

 
35

Other investments, at cost
182

Equity method investments
15

 
$
232

 
Recorded Value
 
Less
 
 
December 31, 2012
Investments  
 
  Unrealized  
Gains
 
  Cost  
Basis
Available-for-sale securities:
 
 
 
 
 
Government, agency, and government-sponsored enterprise obligations
$
15

 
$

 
$
15

Corporate bonds
11

 

 
11

Mortgage-backed securities
2

 

 
2

Common stock and equivalents
10

 
3

 
7

 
38

 
3

 
35

Other investments, at cost
173

 

 
173

Equity method investments
13

 

 
13

 
$
224

 
$
3

 
$
221


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 $3 million, $4 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.
Accounts Receivable, Net
Accounts receivable, net, consist of the following: 
December 31
2013
 
2012
Accounts receivable
$
1,422

 
$
1,408

Less allowance for doubtful accounts
(53
)
 
(50
)
 
$
1,369

 
$
1,358


Inventories, Net
Inventories, net, consist of the following: 
December 31
2013
 
2012
Finished goods
$
157

 
$
168

Work-in-process and production materials
315

 
283

 
472

 
451

Less inventory reserves
(125
)
 
(112
)
 
$
347

 
$
339


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
15

 
43

Tax-related deposits and refunds receivable
107

 
90

Other
123

 
117

 
$
635

 
$
666


Property, Plant and Equipment, Net
Property, plant and equipment, net, consist of the following: 
December 31
2013
 
2012
Land
$
22

 
$
23

Building
582

 
671

Machinery and equipment
1,760

 
1,776

 
2,364

 
2,470

Less accumulated depreciation
(1,669
)
 
(1,740
)
 
$
695

 
$
730


Depreciation expense for the years ended December 31, 2013, 2012 and 2011 was $157 million, $150 million and $128 million, respectively.
Other Assets
Other assets consist of the following: 
December 31
2013
 
2012
Intangible assets
$
6

 
$
4

Long-term receivables
1

 
42

Other
82

 
93

 
$
89

 
$
139


Accrued Liabilities
Accrued liabilities consist of the following: 
December 31
2013
 
2012
Deferred revenue
$
359

 
$
377

Compensation
315

 
406

Billings in excess of costs and earnings
295

 
387

Tax liabilities
85

 
74

Customer reserves
52

 
75

Dividend payable
79

 
72

Other
578

 
597

 
$
1,763

 
$
1,988


Other Liabilities
Other liabilities consist of the following: 
December 31
2013
 
2012
Defined benefit plans, including split dollar life insurance arrangements
$
1,751

 
$
3,379

Postretirement health care benefit plan
117

 
167

Deferred revenue
162

 
178

Unrecognized tax benefits
99

 
94

Other
185

 
202

 
$
2,314

 
$
4,020


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 share of Motorola Mobility common stock for each eight 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 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