10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the period ended July 2, 2011

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number: 1-7221

MOTOROLA SOLUTIONS, INC.

(Exact name of registrant as specified in its charter)

DELAWARE (State of Incorporation)	36-1115800 (I.R.S. Employer Identification No.)
1303 E. Algonquin Road, Schaumburg, Illinois (Address of principal executive offices)	60196 (Zip Code)

Registrant’s telephone number, including area code:

(847) 576-5000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨ (Do not check if a smaller reporting company) Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ¨  No x

The number of shares outstanding of each of the issuer’s classes of common stock as of the close of business on July 2, 2011:

Class	Number of Shares
Common Stock; $.01 Par Value	343,136,511

	Page
PART I FINANCIAL INFORMATION		1
Item 1 Financial Statements
Condensed Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended July  2, 2011 and July 3, 2010		1
Condensed Consolidated Balance Sheets (Unaudited) as of July 2, 2011 and December 31, 2010		2
Condensed Consolidated Statement of Stockholders’ Equity (Unaudited) for the Six Months Ended July 2, 2011		3
Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended July  2, 2011 and July 3, 2010		4
Notes to Condensed Consolidated Financial Statements (Unaudited)		5
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations		28
Item 3 Quantitative and Qualitative Disclosures About Market Risk		45
Item 4 Controls and Procedures		47
PART II OTHER INFORMATION		48
Item 1 Legal Proceedings		48
Item 1A Risk Factors		50
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds		50
Item 3 Defaults Upon Senior Securities		50
Item 4 (Removed and Reserved)		50
Item 5 Other Information		50
Item 6 Exhibits		51

Part I—Financial Information

Motorola Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended				Six Months Ended
(In millions, except per share amounts)	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Net sales from products		$1,524		$1,438		$2,948		$2,729
Net sales from services		531		498		991		947
Net sales		2,055		1,936		3,939		3,676
Costs of product sales		685		656		1,341		1,250
Costs of services sales		331		315		617		608
Costs of sales		1,016		971		1,958		1,858
Gross margin		1,039		965		1,981		1,818
Selling, general and administrative expenses		492		471		960		925
Research and development expenditures		271		269		520		527
Other charges		106		64		161		85
Operating earnings		170		161		340		281
Other income (expense):
Interest expense, net		(21)		(35)		(41)		(68)
Gain on sales of investments and businesses, net		1		33		19		40
Other		(77)		(30)		(72)		(15)
Total other income (expense)		(97)		(32)		(94)		(43)
Earnings from continuing operations before income taxes		73		129		246		238
Income tax expense (benefit)		17		122		(169)		135
Earnings from continuing operations		56		7		415		103
Earnings from discontinued operations, net of tax		291		159		423		131
Net earnings		347		166		838		234
Less: Earnings (loss) attributable to noncontrolling interests		(2)		4		(8)		3
Net earnings attributable to Motorola Solutions, Inc.		$349		$162		$846		$231
Amounts attributable to Motorola Solutions, Inc. common stockholders:
Earnings from continuing operations, net of tax		$58		$3		$423		$100
Earnings from discontinued operations, net of tax		291		159		423		131
Net earnings		$349		$162		$846		$231
Earnings per common share:
Basic:
Continuing operations		$0.17		$0.01		$1.24		$0.30
Discontinued operations		0.85		0.48		1.25		0.40
		$1.02		$0.49		$2.49		$0.70
Diluted:
Continuing operations		$0.17		$0.01		$1.22		$0.30
Discontinued operations		0.83		0.47		1.22		0.39
		$1.00		$0.48		$2.44		$0.69
Weighted average common shares outstanding:
Basic		341.2		332.7		339.3		331.7
Diluted		348.5		337.9		346.3		336.1

See accompanying notes to condensed consolidated financial statements (unaudited).

1

Motorola Solutions, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

(In millions, except par value amounts)	July 2, 2011		December 31, 2010
ASSETS
Cash and cash equivalents		$2,203		$4,208
Sigma Fund and short-term investments		4,424		4,655
Accounts receivable, net		1,546		1,547
Inventories, net		522		521
Deferred income taxes		729		871
Other current assets		729		748
Current assets held for disposition		116		4,604
Total current assets		10,269		17,154
Property, plant and equipment, net		899		922
Sigma Fund		28		70
Investments		175		172
Deferred income taxes		2,063		1,920
Goodwill		1,429		1,429
Other assets		641		734
Non-current assets held for disposition		93		3,176
Total assets		$15,597		$25,577
LIABILITIES AND STOCKHOLDERS’ EQUITY
Notes payable and current portion of long-term debt		$606		$605
Accounts payable		625		731
Accrued liabilities		2,790		2,574
Current liabilities held for disposition		110		4,800
Total current liabilities		4,131		8,710
Long-term debt		1,548		2,098
Other liabilities		3,015		3,045
Non-current liabilities held for disposition		79		737
Stockholders’ Equity
Preferred stock, $100 par value		—		—
Common stock, $.01 par value:		3		3
Authorized shares: 600.0
Issued shares: 7/02/11—344.9; 12/31/10—337.2
Outstanding shares: 7/02/11—343.1; 12/31/10—336.3
Additional paid-in capital		8,030		8,644
Retained earnings		846		4,460
Accumulated other comprehensive loss		(2,140)		(2,222)
Total Motorola Solutions, Inc. stockholders’ equity		6,739		10,885
Noncontrolling interests		85		102
Total stockholders’ equity		6,824		10,987
Total liabilities and stockholders’ equity		$15,597		$25,577

See accompanying notes to condensed consolidated financial statements (unaudited).

2

Motorola Solutions, Inc. and Subsidiaries

Condensed Consolidated Statement of Stockholders’ Equity

(Unaudited)

					Motorola Solutions, Inc. Stockholders Accumulated Other Comprehensive Income (Loss)
(In millions)	Shares		Common Stock and Additional Paid-in Capital		Fair Value Adjustment to Available for Sale Securities, Net of  Tax		Foreign Currency Translation Adjustments, Net of Tax		Retirement Benefits Adjustments, Net of Tax		Other Items, Net of Tax		Retained Earnings		Noncontrolling Interests		Comprehensive Earnings
Balances at December 31, 2010		337.2		$8,647		$12		$(126)		$(2,108)		$—		$4,460		$102
Net earnings (loss)														846		(8)		$838
Net unrealized gain on securities, net of tax of $6						9												9
Foreign currency translation adjustments, net of tax of $(5)								83										83
Amortization of retirement benefit adjustments, net of tax of $36										65								65
Remeasurement of retirement benefits, net of tax of $9										(77)								(77)
Issuance of common stock and stock options exercised		7.7		92
Excess tax benefit from stock-based compensation				36
Share-based compensation expense				91
Net gain on derivative instruments, net of tax of $0												2						2
Distribution of Motorola Mobility				(831)		(9)		1		8				(4,460)
Dividends paid to noncontrolling interest on subsidiary common stock																(8)
Purchase of noncontrolling interest in subsidiary																(1)
Reclassification of share-based awards from equity to liability				(2)
Balances at July 2, 2011		344.9		$8,033		$12		$(42)		$(2,112)		$2		$846		$85		$920

See accompanying notes to condensed consolidated financial statements (unaudited).

3

Motorola Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended
(In millions)	July 2,          2011		July 3,         2010
Operating
Net earnings attributable to Motorola Solutions, Inc.		$846		$231
Earnings (loss) attributable to noncontrolling interests		(8)		3
Net earnings		838		234
Earnings from discontinued operations, net of tax		423		131
Earnings from continuing operations		415		103
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities:
Depreciation and amortization		181		172
Non-cash other charges (income)		45		(37)
Share-based compensation expense		78		69
Gain on sales of investments and businesses, net		(19)		(40)
Loss from the extinguishment of long-term debt		81		12
Deferred income taxes		(10)		255
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable		88		(32)
Inventories		(12)		(36)
Other current assets		9		10
Accounts payable and accrued liabilities		(338)		(144)
Other assets and liabilities		(185)		(170)
Net cash provided by operating activities from continuing operations		333		162
Investing
Acquisitions and investments, net		(2)		(6)
Proceeds from sales of investments and businesses, net		1,078		239
Capital expenditures		(60)		(74)
Proceeds from sales of property, plant and equipment		4		27
Proceeds from sales (purchases) of Sigma Fund investments, net		266		(248)
Proceeds from sales (purchases) of short-term investments, net		6		(23)
Net cash provided by (used for) investing activities from continuing operations		1,292		(85)
Financing
Repayment of short-term borrowings, net		—		(5)
Repayment of debt		(616)		(481)
Contribution to Motorola Mobility		(3,200)		—
Issuance of common stock		128		68
Distribution from discontinued operations		75		531
Net cash provided by (used for) financing activities from continuing operations		(3,613)		113
Discontinued Operations
Net cash provided by operating activities from discontinued operations		38		567
Net cash used for investing activities from discontinued operations		(8)		(88)
Net cash used for financing activities from discontinued operations		(75)		(531)
Effect of exchange rate changes on cash and cash equivalents from discontinued operations		45		52
Net cash provided by (used for) discontinued operations		—		—
Effect of exchange rate changes on cash and cash equivalents from continuing operations		(17)		(166)
Net increase (decrease) in cash and cash equivalents		(2,005)		24
Cash and cash equivalents, beginning of period		4,208		2,869
Cash and cash equivalents, end of period		$2,203		$2,893
Cash Flow Information
Cash paid during the period for:
Interest, net		$105		$130
Income taxes, net of refunds		39		34

See accompanying notes to condensed consolidated financial statements (unaudited).

4

Motorola Solutions, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Dollars in millions, except as noted)

(Unaudited)

1. Basis of Presentation

The condensed consolidated financial statements as of July 2, 2011 and for the three and six months ended July 2, 2011 and July 3, 2010, include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the consolidated financial position, results of operations and cash flows of Motorola Solutions, Inc. (“Motorola Solutions” or the “Company”) for all periods presented.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2010, as well as the Company’s Form 8-K filed on May 12, 2011 to reflect: (i) the revised presentation of the Company’s segments as a result of the realignment of its operations into two segments: Government and Enterprise, and (ii) the reclassification of the historical financial results of Motorola Mobility Holdings, Inc. (“Motorola Mobility”) as discontinued operations. The results of operations for the three and six months ended July 2, 2011 are not necessarily indicative of the operating results to be expected for the full year. Certain amounts in prior period financial statements and related notes have been reclassified to conform to the 2011 presentation.

The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Changes in Presentation

Networks Transaction

On July 19, 2010, the Company announced an agreement to sell certain assets and liabilities of its Networks business to Nokia Siemens Networks B.V. (“NSN”) (the “Transaction”). On April 12, 2011, the Company announced certain amendments to the Transaction. On April 29, 2011, the Company completed the Transaction, as amended. Based on the terms and conditions of the amended sale agreement, certain assets including $150 million of accounts receivable and the Company’s iDEN infrastructure business were excluded from the Transaction. During the three months ended July 2, 2011, the Company recorded a pre-tax gain related to the completion of the Transaction of $488 million, net of closing costs and an expected purchase price adjustment, to Gains on sales of investments and business, net, within the discontinued operations in the Company’s condensed consolidated statements of operations. As of July 2, 2011, regulatory approvals required to complete the Transaction in certain countries are still in-process and are expected to be completed in the second half of 2011. Until these approvals are received, the Company will maintain the assets and liabilities associated with these countries in assets and liabilities held for disposition in the Company’s condensed consolidated balance sheets.

The results of operations of the portions of the Networks business included in the Transaction are reported as discontinued operations for all periods presented. Certain Corporate and general costs which have historically been allocated to the Networks business remain with the Company after the sale of the Networks business.

5

Motorola Mobility Distribution

On January 4, 2011, the distribution by the Company of all the common stock of Motorola Mobility was completed (the “Distribution”). The stockholders of record as of the close of business on December 21, 2010 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 structured to be tax-free to Motorola Solutions and its stockholders for U.S. tax purposes (other than with respect to any cash received in lieu of fractional shares). The historical financial results of Motorola Mobility are reflected in the Company’s condensed consolidated financial statements as discontinued operations for all periods presented.

Reverse Stock Split and Name Change

On January 4, 2011, immediately following the Distribution, the Company completed a 1-for-7 reverse stock split (“the Reverse Stock Split”) and changed its name to Motorola Solutions, Inc. All consolidated per share information presented gives effect to the Reverse Stock Split.

Change in Segmentation

Following the Distribution, the Company reports financial results for the following two segments:

• Government: Our Government segment includes sales of two-way radios and public safety systems. Service revenues included in the Government segment are primarily those associated with the design, installation, maintenance and optimization of equipment for public safety networks.

• Enterprise: Our Enterprise segment includes sales of enterprise mobile computing devices, scanning devices, wireless broadband systems, RFID data capture solutions and iDEN infrastructure. Service revenues included in the Enterprise segment are primarily maintenance contracts associated with the above products.

Recent Accounting Pronouncements

In May 2011, the FASB issued Accounting Standards Update No. 2011-04, “Fair Value Measurements (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs,” (“ASU 2011-04”). ASU 2011-04 expands the disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. This new guidance is to be applied prospectively. This guidance will be effective for the Company beginning January 1, 2012. The Company anticipates that the adoption of this standard will not materially affect its financial statements.

In June 2011, the FASB issued Accounting Standards Update No. 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income,” (“ASU 2011-05”). ASU 2011-05 eliminates the option to report other comprehensive income and its components in the statement of changes in equity. ASU 2011-05 requires that all non-owner changes in stockholders’ equity be presented in either a single continuous statement of comprehensive income or in two separate but consecutive statements. This new guidance is to be applied retrospectively. This guidance will be effective for the Company beginning January 1, 2012. The Company anticipates that the adoption of this standard will change the presentation of its consolidated financial statements.

2. Discontinued Operations

During the three and six months ended July 2, 2011, the activity from discontinued operations substantially relates to the operations of the Networks business. During the three and six months ended July 3, 2010, the activity from discontinued operations substantially relates to the operations of Motorola Mobility and

6

the Networks business. The following table displays summarized activity in the Company’s condensed consolidated statements of operations for discontinued operations during the three and six months ended July 2, 2011 and July 3, 2010.

	Three Months Ended				Six Months Ended
	July 2,     2011		July 3,     2010		July 2,     2011		July 3,     2010
Net sales		$260		$3,491		$1,108		$6,821
Operating earnings (loss)		(14)		202		190		158
Gains on sales of investments and businesses, net		488		20		488		21
Earnings before income taxes		467		217		666		171
Income tax expense		176		58		243		40
Earnings from discontinued operations, net of tax		291		159		423		131

At July 2, 2011, the assets and liabilities held for disposition relate to the assets and liabilities of the Networks business in the certain countries that are yet to receive regulatory approvals. At December 31, 2010, the assets and liabilities held for disposition relate to the assets and liabilities of Motorola Mobility and the Networks business. The following table displays a summary of the assets and liabilities held for disposition as of July 2, 2011 and December 31, 2010.

	July 2, 2011		December 31, 2010
Assets
Accounts receivable, net		$60		$2,072
Inventories, net		24		1,040
Other current assets		32		1,492
Property, plant and equipment, net		10		1,013
Investments		—		145
Goodwill		—		1,504
Other assets		83		514
		$209		$7,780
Liabilities
Accounts payable		$27		$2,060
Accrued liabilities		83		2,740
Other liabilities		79		737
		$189		$5,537

7

3. Other Financial Data

Statement of Operations Information

Other Charges

Other charges included in Operating earnings consist of the following:

	Three Month Ended				Six Months Ended
	July 2,     2011		July 3,     2010		July 2,     2011		July 3,     2010
Other charges:
Amortization of intangible assets		$50		$50		$100		$101
Legal matters and settlements, net		48		—		48		(29)
Reorganization of business charges		17		14		22		13
Pension plan adjustments, net		(9)		—		(9)		—
		$106		$64		$161		$85

Other Income (Expense)

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

	Three Month Ended				Six Months Ended
	July 2,     2011		July 3,     2010		July 2,     2011		July 3,     2010
Interest income (expense), net:
Interest expense		$(40)		$(56)		$(74)		$(116)
Interest income		19		21		33		48
		$(21)		$(35)		$(41)		$(68)
Other:
Loss from the extinguishment of the Company’s outstanding long-term debt		$(81)		$(12)		$(81)		$(12)
Investment impairments		—		(9)		(3)		(18)
Foreign currency gain (loss)		6		(4)		11		3
Gain (loss) on Sigma Fund investments		—		(4)		—		12
Other		(2)		(1)		1		—
		$(77)		$(30)		$(72)		$(15)

8

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	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Basic earnings per common share:
Earnings		$58		$3		$349		$162
Weighted average common shares outstanding		341.2		332.7		341.2		332.7
Per share amount		$0.17		$0.01		$1.02		$0.49
Diluted earnings per common share:
Earnings		$58		$3		$349		$162
Weighted average common shares outstanding		341.2		332.7		341.2		332.7
Add effect of dilutive securities:
Share-based awards and other		7.3		5.2		7.3		5.2
Diluted weighted average common shares outstanding		348.5		337.9		348.5		337.9
Per share amount		$0.17		$0.01		$1.00		$0.48

	Amounts attributable to Motorola Solutions, Inc. common stockholders
	Earnings from Continuing Operations				Net Earnings
Six Months Ended	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Basic earnings per common share:
Earnings		$423		$100		$846		$231
Weighted average common shares outstanding		339.3		331.7		339.3		331.7
Per share amount		$1.24		$0.30		$2.49		$0.70
Diluted earnings per common share:
Earnings		$423		$100		$846		$231
Weighted average common shares outstanding		339.3		331.7		339.3		331.7
Add effect of dilutive securities:
Share-based awards and other		7.0		4.4		7.0		4.4
Diluted weighted average common shares outstanding		346.3		336.1		346.3		336.1
Per share amount		$1.22		$0.30		$2.44		$0.69

In the computation of diluted earnings per common share from both continuing operations and on a net earnings basis for the three and six months ended July 2, 2011, the assumed exercise of 8.0 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. In the computation of diluted earnings per common share from both continuing operations and on a net earnings basis for the three and six months ended July 3, 2010, the assumed exercise of 19.1 million and 18.9 million stock options, respectively, and the assumed vesting of 1.2 million and 0.7 million restricted stock units, respectively, were excluded because their inclusion would have been antidilutive.

9

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 $2.2 billion and $4.2 billion at July 2, 2011 and December 31, 2010, respectively. Of these amounts, $63 million and $226 million, respectively, were restricted. The decrease in the Company’s cash and cash equivalents from December 31, 2010 to July 2, 2011 is reflective of the Company’s contribution of $3.2 billion of cash and cash equivalents to Motorola Mobility, which included $160 million of restricted cash.

Sigma Fund

The Sigma Fund consists of the following:

	July 2, 2011				December 31, 2010
Fair Value	Current		Non-current		Current		Non-Current
Cash		$1,988		$—		$2,355		$—
Securities:
U.S. government and agency obligations		2,434		—		2,291		—
Corporate bonds		—		21		—		58
Asset-backed securities		—		—		—		1
Mortgage-backed securities		—		7		—		11
		$4,422		$28		$4,646		$70

During the three months ended July 2, 2011, the Company recorded de minimus gains on Sigma Fund investments, compared to a net loss of $4 million during the three months ended July 3, 2010, in Other income (expense) in the condensed consolidated statement of operations. During the six months ended July 2, 2011, the Company recorded de minimus losses on Sigma Fund investments, compared to gains of $12 million during the six months ended July 3, 2010, in Other income (expense) in the condensed consolidated statement of operations.

Investments

Investments consist of the following:

	Recorded Value				Less
July 2, 2011	Short-term   Investments		Investments		Unrealized   Gains		Cost   Basis
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		—		30		19		11
		2		61		19		44
Other securities, at cost		—		104		—		104
Equity method investments		—		10		—		10
		$2		$175		$19		$158

10

	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

During the three months ended July 2, 2011, the Company recorded no investment impairment charges. During the three months ended July 3, 2010, the Company recorded investment impairment charges of $9 million, representing other-than-temporary declines in the value of the Company’s investment portfolio, primarily related to common stock and equivalents and other securities recorded at cost. During the six months ended July 2, 2011 and July 3, 2010, the Company recorded investment impairment charges of $3 million and $18 million, respectively, representing other-than-temporary declines in the value of the Company’s investment portfolio, primarily related to common stock and equivalents and other securities recorded at cost. Investment impairment charges are included in Other within Other income (expense) in the Company’s condensed consolidated statements of operations.

Accounts Receivable, Net

Accounts receivable, net, consists of the following:

	July 2, 2011		December 31, 2010
Accounts receivable		$1,596		$1,596
Less allowance for doubtful accounts		(50)		(49)
		$1,546		$1,547

Inventories, Net

Inventories, net, consist of the following:

	July 2, 2011		December 31, 2010
Finished goods		$398		$386
Work-in-process and production materials		284		292
		682		678
Less inventory reserves		(160)		(157)
		$522		$521

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Other Current Assets

Other current assets consist of the following:

	July 2, 2011		December 31, 2010
Costs and earnings in excess of billings		$314		$291
Contract-related deferred costs		163		160
Tax-related refunds receivable		105		116
Other		147		181
		$729		$748

Property, Plant and Equipment, Net

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

	July 2, 2011		December 31, 2010
Land		$70		$71
Building		769		804
Machinery and equipment		2,115		2,094
		2,954		2,969
Less accumulated depreciation		(2,055)		(2,047)
		$899		$922

Depreciation expense for the three months ended July 2, 2011 and July 3, 2010 was $40 million and $35 million, respectively. Depreciation expense for the six months ended July 2, 2011 and July 3, 2010 was $81 million and $71 million, respectively.

Other Assets

Other assets consist of the following:

	July 2, 2011		December 31, 2010
Long-term receivables, net of allowances of $6 and $1		$272		$251
Intangible assets, net of accumulated amortization of $1,047 and $947		146		246
Other		223		237
		$641		$734

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Accrued Liabilities

Accrued liabilities consist of the following:

	July 2, 2011		December 31, 2010
Deferred revenue		$760		$746
Compensation		336		558
Distribution-related obligation		300		—
Billings in excess of costs and earnings		251		226
Tax liabilities		146		179
Customer reserves		112		117
Other		885		748
		$2,790		$2,574

As part of the Distribution of Motorola Mobility, the Company has 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 to Motorola Mobility on July 22, 2011.

Other Liabilities

Other liabilities consist of the following:

	July 2, 2011		December 31, 2010
Defined benefit plans, including split dollar life insurance policies		$2,025		$2,113
Deferred revenue		293		274
Postretirement health care benefit plan		286		277
Unrecognized tax benefits		102		70
Other		309		311
		$3,015		$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) $1 million in Foreign currency translation adjustments, net of tax of a de minimus amount, (ii) $9 million in Fair value adjustments to available for sale securities, net of tax of $5 million, and (iii) $8 million in Retirement benefit adjustments, net of tax of $4 million. 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, subject to market conditions. All repurchased shares are expected to be 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 payable on October 14, 2011 to shareholders of record as of the close of business on September 15, 2011.

4. Debt and Credit Facilities

During the six months ended July 2, 2011, the Company repurchased $540 million of its outstanding long-term debt for a purchase price of $615 million, excluding approximately $6 million of accrued interest, all

13

of which occurred during the three months ended July 2, 2011. The $540 million of long-term debt repurchased included principal amounts of: (i) $196 million of the $314 million then outstanding of the 6.50% Debentures due 2025, (ii) $174 million of the $210 million then outstanding of the 6.50% Debentures due 2028, and (iii) $170 million of the $225 million then outstanding of the 6.625% Senior Notes due 2037. After accelerating the amortization of debt issuance costs and debt discounts, the Company recognized a loss of approximately $81 million related to this debt tender in Other within Other income (expense) in the condensed consolidated statements of operations.

During the six months ended July 3, 2010, the Company repurchased $500 million of its outstanding long-term debt for a purchase price of $477 million, excluding approximately $5 million of accrued interest, all of which occurred during the three months ended July 3, 2010. The $500 million of long-term debt repurchased included principal amounts of: (i) $65 million of the $379 million then outstanding of the 6.50% Debentures due 2025, (ii) $75 million of the $286 million then outstanding of the 6.50% Debentures due 2028, (iii) $222 million of the $446 million then outstanding of the 6.625% Senior Notes due 2037, and (iv) $138 million of the $252 million then outstanding of the 5.22% Debentures due 2097. After accelerating the amortization of debt issuance costs and debt discounts, the Company recognized a loss of approximately $12 million related to this debt tender in Other within Other income (expense) in the condensed consolidated statements of operations.

During the first quarter of 2011, the Company terminated its $1.5 billion domestic syndicated revolving credit facility scheduled to mature December 2011 and entered into a new $1.5 billion unsecured syndicated revolving credit facility (the “2011 Motorola Solutions Credit Agreement”) scheduled to mature on June 30, 2014. The 2011 Motorola Solutions Credit Agreement includes a provision pursuant to which the Company can increase the aggregate credit facility size up to a maximum of $2.0 billion by adding lenders or having existing lenders increase their commitments. The Company must comply with certain customary covenants, including maximum leverage and minimum interest coverage ratios as defined in the 2011 Motorola Solutions Credit Agreement. The Company was in compliance with its financial covenants as of July 2, 2011. The Company has no outstanding borrowings under the 2011 Motorola Solutions Credit Agreement.

5. Risk Management

Derivative Financial Instruments

Foreign Currency Risk

At July 2, 2011, the Company had outstanding foreign exchange contracts with notional amounts totaling $665 million, compared to $1.5 billion outstanding at December 31, 2010. The decrease in outstanding contracts is primarily related to the Distribution of Motorola Mobility. Management believes that these financial instruments should not subject the Company to undue risk due to foreign exchange movements because gains and losses on these contracts should generally offset losses and gains on the underlying assets, liabilities and transactions, except for the ineffective portion of the instruments, which are charged to Other within Other income (expense) in the Company’s condensed consolidated statements of operations.

The following table shows the five largest net notional amounts of the positions to buy or sell foreign currency as of July 2, 2011 and the corresponding positions as of December 31, 2010:

	Notional Amount
Net Buy (Sell) by Currency	July 2, 2011		December 31, 2010
Chinese Renminbi		$(424)		$(423)
Malaysian Ringgit		45		64
Euro		42		(195)
British Pound		24		187
Israeli Shekel		24		(5)

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Interest Rate Risk

At July 2, 2011, the Company had $2.2 billion of long-term debt, including the current portion of long-term debt, which is primarily priced at long-term, fixed interest rates.

As part of its liability management program, one of the Company’s European subsidiaries has an outstanding interest rate agreement (“Interest Agreement”) relating to a Euro-denominated loan. The interest on the Euro-denominated loan is variable. The Interest Agreement changes the characteristics of interest payments from variable to fixed-rate payments. The Interest Agreement is not accounted for as a part of a hedging relationship and, accordingly, the changes in the fair value of the Interest Agreement are included in Other income (expense) in the Company’s condensed consolidated statements of operations. The fair value of the Interest Agreement was in a liability position of $3 million at both July 2, 2011 and December 31, 2010.

Counterparty Risk

The use of derivative financial instruments exposes the Company to counterparty credit risk in the event of non-performance by counterparties. However, the Company’s risk is limited to the fair value of the instruments when the derivative is in an asset position. The Company actively monitors its exposure to credit risk. As of July 2, 2011, all of the counterparties have investment grade credit ratings. The Company is not exposed to material credit risk with any single counterparty. As of July 2, 2011, the Company was exposed to an aggregate credit risk of approximately $3 million with all counterparties.

The following tables summarize the fair values and location in the condensed consolidated balance sheets of all derivative financial instruments held by the Company, including amounts held for disposition, at July 2, 2011 and December 31, 2010:

	Fair Values of Derivative Instruments
	Assets				Liabilities
July 2, 2011	Fair Value		Balance Sheet Location		Fair Value		Balance Sheet Location
Derivatives designated as hedging instruments:
Foreign exchange contracts		$2		Other assets		$—		Other liabilities
Derivatives not designated as hedging instruments:
Foreign exchange contracts		1		Other assets		1		Other liabilities
Interest agreement contracts		—		Other assets		3		Other liabilities
Total derivatives not designated as hedging instruments		1				4
Total derivatives		$3				$4

	Fair Values of Derivative Instruments
	Assets				Liabilities
December 31, 2010	Fair Value		Balance Sheet Location		Fair Value		Balance Sheet Location
Derivatives designated as hedging instruments:
Foreign exchange contracts		$1		Other assets		$—		Other liabilities
Derivatives not designated as hedging instruments:
Foreign exchange contracts		4		Other assets		15		Other liabilities
Interest agreement contracts		—		Other assets		3		Other liabilities
Total derivatives not designated as hedging instruments		4				18
Total derivatives		$5				$18

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The following table summarizes the effect of derivative instruments in our condensed consolidated statements of operations, including amounts related to discontinued operations, for the three and six months ended July 2, 2011 and July 3, 2010:

	Three Months Ended				Statement of Operations Location
Gain (Loss) on Derivative Instruments	July 2, 2011		July 3, 2010
Derivatives not designated as hedging instruments:
Interest rate contracts		$(3)		$(4)		Other income (expense)
Foreign exchange contracts		(8)		22		Other income (expense)
Total derivatives not designated as hedging instruments		$(11)		$18

	Six Months Ended					Statement of Operations Location
Gain (Loss) on Derivative Instruments	July 2, 2011			July 3, 2010
Derivatives not designated as hedging instruments:
Interest rate contracts		$(5	)		$(8)		Other income (expense)
Foreign exchange contracts		(15	)		31		Other income (expense)
Total derivatives not designated as hedging instruments		$(20	)		$23

The following table summarizes the gains and losses recognized in the condensed consolidated financial statements, including amounts related to discontinued operations, for the three and six months ended July 2, 2011 and July 3, 2010:

	Three Months Ended				Financial Statement Location
Foreign Exchange Contracts	July 2, 2011		July 3, 2010
Derivatives in cash flow hedging relationships:
Loss recognized in Accumulated other comprehensive loss (effective portion)		$—		$(6)		Accumulated other comprehensive loss
Gain reclassified from Accumulated other comprehensive loss into Net earnings (effective portion)		2		3		Cost of sales/Sales

	Six Months Ended				Financial Statement Location
Foreign Exchange Contracts	July 2, 2011		July 3, 2010
Derivatives in cash flow hedging relationships:
Gain (loss) recognized in Accumulated other comprehensive loss (effective portion)		$3		$(3)		Accumulated other comprehensive loss
Gain reclassified from Accumulated other comprehensive loss into Net earnings (effective portion)		2		3		Cost of sales/Sales

Fair Value of Financial Instruments

The Company’s financial instruments include cash equivalents, Sigma Fund investments, short-term investments, accounts receivable, long-term receivables, accounts payable, accrued liabilities, derivative financial instruments and other financing commitments. The Company’s Sigma Fund, available-for-sale investment portfolios and derivative financial instruments are recorded in the Company’s condensed consolidated balance sheets at fair value. All other financial instruments, with the exception of long-term debt, are carried at cost, which is not materially different than the instruments’ fair values.

Using quoted market prices and market interest rates, the Company determined that the fair value of long-term debt at July 2, 2011 was $2.3 billion, compared to a face value of $2.2 billion. Since considerable judgment is required in interpreting market information, the fair value of the long-term debt is not necessarily indicative of the amount which could be realized in a current market exchange.

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6. Income Taxes

At July 2, 2011 and December 31, 2010, the Company had valuation allowances of $283 million and $502 million, respectively, including $258 million and $187 million, respectively, relating to deferred tax assets for non-U.S. subsidiaries. During the three months ended April 2, 2011, the Company reassessed its valuation allowance requirements taking into consideration the Distribution of Motorola Mobility. The Company evaluated all available evidence in its analysis, including the historical and projected pre-tax profits generated by the Motorola Solutions U.S. operations. The Company also considered tax planning strategies that are prudent and can be reasonably implemented. As a result, the Company recorded a $244 million tax benefit related to the reversal of a significant portion of the valuation allowance established on U.S. deferred tax assets. During the three months ended July 2, 2011, the U.S. valuation allowance was reduced by $34 million for deferred tax assets related to future capital losses that the Company expects to utilize due to the capital gain realized on the disposition of the Networks business. The U.S. valuation allowance as of July 2, 2011 relates primarily to state tax carryforwards. The valuation allowance relating to deferred tax assets of non-U.S. subsidiaries was adjusted for current year activity, exchange rate variances and a $34 million increase for loss carryforwards the Company expects to expire unutilized. The Company believes the remaining deferred tax assets are more-likely-than-not to be realized based on estimates of future taxable income and the implementation of tax planning strategies.

The Company had unrecognized tax benefits of $233 million and $198 million, at July 2, 2011 and December 31, 2010, respectively, of which approximately $175 million and $20 million, respectively, if recognized, would affect the effective tax rate, net of resulting changes to valuation allowances.

Based on the potential outcome of the Company’s global tax examinations or the expiration of the statute of limitations for specific jurisdictions, it is reasonably possible that the unrecognized tax benefits will change within the next 12 months. The associated net tax impact on the effective tax rate, exclusive of valuation allowance changes, is estimated to be in the range of a $50 million tax charge to a $125 million tax benefit, with cash payments in the range of $0 to $100 million.

The Company has audits pending in several tax jurisdictions. Although the final resolution of the Company’s global tax disputes is uncertain, based on current information, in the opinion of the Company’s management, the ultimate disposition of these matters is not expected to have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations. However, an unfavorable resolution of the Company’s global tax disputes could have a material adverse effect on the Company’s results of operations in the periods in which the matters are ultimately resolved.

7. Retirement Benefits

Pension Benefit Plans

The net periodic pension costs for the U.S. Regular Pension Plan, Officers’ Plan, the Motorola Supplemental Pension Plan (“MSPP”) and Non-U.S. plans were as follows:

	July 2, 2011						July 3, 2010
Three Months Ended	U.S. Regular Pension		Officers’ and MSPP		Non U.S.		U.S. Regular Pension		Officers’ and MSPP		Non U.S.
Service cost		$—		$—		$8		$—		$—		$6
Interest cost		83		—		31		85		1		21
Expected return on plan assets		(96)		—		(35)		(94)		—		(20)
Amortization of:
Unrecognized net loss		46		1		5		36		—		4
Unrecognized prior service cost		—		—		(5)		—		—		(1)
Settlement/curtailment loss		—		3		(9)		—		1		—
Net periodic pension cost		$33		$4		$(5)		$27		$2		$10

17

	July 2, 2011						July 3, 2010
Six Months Ended	U.S. Regular Pension		Officers’ and MSPP		Non U.S.		U.S. Regular Pension		Officers’ and MSPP		Non U.S.
Service cost		$—		$—		$14		$—		$—		$13
Interest cost		170		1		49		171		1		49
Expected return on plan assets		(194)		—		(55)		(189)		—		(48)
Amortization of:
Unrecognized net loss		93		2		8		74		1		10
Unrecognized prior service cost		—		—		(7)		—		—		(2)
Settlement/curtailment loss		—		4		(9)		—		2		—
Net periodic pension cost		$69		$7		$—		$56		$4		$22

During the six months ended July 2, 2011, contributions of $23 million were made to the Company’s Non-U.S. plans, $6 million to its Officers’ plan and $110 million to the Company’s Regular Pension Plan.

During the three months ended July 2, 2011, the Company recognized a curtailment gain in its United Kingdom defined benefit plan, offset by a settlement loss in its Japan defined benefit plan, due to the Networks Transaction. As a result, the Company recorded a net gain of $9 million to Other charges in the Company’s condensed consolidated statements of operations.

Postretirement Health Care Benefit Plans

Net postretirement health care expenses consist of the following:

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 3, 2010		July 3, 2010
Service cost		$1		$2		$2		$3
Interest cost		6		6		12		13
Expected return on plan assets		(4)		(4)		(8)		(8)
Amortization of:
Unrecognized net loss		3		3		6		5
Unrecognized prior service cost		—		(1)		—		(1)
Net postretirement health care expense		$6		$6		$12		$12

The Company made no contributions to its postretirement healthcare fund during the three and six months ended July 2, 2011.

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8. Share-Based Compensation Plans

Compensation expense for the Company’s employee stock options, stock appreciation rights, employee stock purchase plans, restricted stock and restricted stock units (“RSUs”) was as follows:

	Three Months Ended				Six Months Ended
	July 2,   2011		July 3,   2010		July 2,   2011		July 3,   2010
Share-based compensation expense included in:
Costs of sales		$5		$5		$8		$9
Selling, general and administrative expenses		25		20		54		40
Research and development expenditures		9		11		16		20
Share-based compensation expense included in Operating earnings		39		36		78		69
Tax benefit		13		11		25		21
Share-based compensation expense, net of tax		$26		$25		$53		$48
Decrease in basic earnings per share		$(0.08)		$(0.08)		$(0.16)		$(0.15)
Decrease in diluted earning per share		$(0.08)		$(0.08)		$(0.15)		$(0.14)
Share-based compensation expense in discontinued operations		$5		$40		$13		$79

For the three months ended July 2, 2011, the Company granted 4.4 million and 0.5 million RSUs and stock options, respectively. The total compensation expense, net of estimated forfeitures, for these RSUs and stock options was $161 million and $6 million, respectively. For the six months ended July 2, 2011, the Company granted 4.9 million, 3.1 million, and 0.1 million RSUs, stock options and shares of restricted stock, respectively. The total compensation expense, net of estimated forfeitures, for these RSUs, stock options and shares of restricted stock was $180 million, $35 million and $4 million, respectively. The expense will be recognized over a weighted average vesting period of 3 years.

Following the completion of the Distribution on January 4, 2011, 3.8 million unvested RSUs and 8.0 million stock options held by the employees of Motorola Mobility were cancelled.

All RSUs and stock options remaining with Motorola Solutions after the Distribution were adjusted to reflect the Distribution and the Reverse Stock Split. The number of shares covered by, and the exercise price of, all vested and unvested stock options was adjusted to reflect the change in the Company’s stock price immediately following the Distribution and Reverse Stock Split by:

• Multiplying the number of shares subject to each stock option grant by .238089 (“the Motorola Adjustment Factor”) and rounding down to the next whole share; and

• Dividing the exercise price per share for each such stock option grant by the Motorola Adjustment Factor and rounding up to the penny.

The number of RSUs immediately following the Distribution and Reverse Stock Split was calculated by multiplying the number of shares subject to each such grant by the Motorola Adjustment Factor and rounding down to the next whole share.

In April 2011, the vesting terms of certain awards, granted to Networks employees, were modified to allow for pro rata vesting. These awards were within a few days of vesting at the time of the closing of the sale. This modification resulted in the vesting of 0.3 million RSUs and a de minimus amount of options which would not have otherwise vested, resulting in an additional compensation expense of $5.0 million for the three and six months ended July 2, 2011. Upon the completion of the Networks Transaction on April 29, 2011, approximately 1.3 million unvested RSUs and 0.2 million unvested stock options were cancelled.

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9. Fair Value Measurements

The Company holds certain fixed income securities, equity securities and derivatives, which must be measured using the fair value hierarchy and related valuation methodologies. The guidance specifies a hierarchy of valuation techniques based on whether the inputs to each measurement are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about current market conditions. The prescribed fair value hierarchy and related valuation methodologies are as follows:

Level 1—Quoted prices for identical instruments in active markets.

Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets.

Level 3—Valuations derived from valuation techniques, in which one or more significant inputs are unobservable.

The fair values of the Company’s financial assets and liabilities by level in the fair value hierarchy as of July 2, 2011 and December 31, 2010 were as follows:

July 2, 2011	Level 1		Level 2		Level 3		Total
Assets:
Sigma Fund securities:
U.S. government, agency and government-sponsored enterprise obligations		$—		$2,434		$—		$2,434
Corporate bonds		—		—		21		21
Asset-backed securities		—		0		—		0
Mortgage-backed securities		—		7		—		7
Available-for-sale securities:
U.S. government, agency and government-sponsored enterprise obligations		—		17		—		17
Corporate bonds		—		11		—		11
Mortgage-backed securities		—		3		—		3
Common stock and equivalents		21		9		—		30
Foreign exchange derivative contracts*		—		3		—		3
Liabilities:
Foreign exchange derivative contracts*		—		1		—		1
Interest agreement derivative contracts		—		3		—		3

* Includes amounts included in held for disposition.

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December 31, 2010	Level 1		Level 2		Level 3		Total
Assets:
Sigma Fund securities:
U.S. government, agency and government-sponsored enterprise obligations		$—		$2,291		$—		$2,291
Corporate bonds		—		43		15		58
Asset-backed securities		—		1		—		1
Mortgage-backed securities		—		11		—		11
Available-for-sale securities:
U.S. government, agency and government-sponsored enterprise obligations		—		17		—		17
Corporate bonds		—		11		—		11
Mortgage-backed securities		—		3		—		3
Common stock and equivalents		2		10		—		12
Foreign exchange derivative contracts*		—		5		—		5
Liabilities:
Foreign exchange derivative contracts*		—		15		—		15
Interest agreement derivative contracts		—		3		—		3

* Includes amounts included in held for disposition.

The following table summarizes the changes in fair value of our Level 3 assets:

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Beginning balance		$21		$22		$15		$19
Transfers to Level 3		—		3		21		3
Payments received and securities sold		—		(4)		(18)		(5)
Mark-to-market on Sigma Fund investments included in Other income (expense)		—		1		3		5
Ending balance		$21		$22		$21		$22

At July 2, 2011, the Company had $388 million of investments in money market mutual funds classified as Cash and cash equivalents in its condensed consolidated balance sheet, compared to $1.0 billion at December 31, 2010. The money market funds have quoted market prices that are equivalent to par.

10. Long-term Customer Financing and Sales of Receivables

Long-term Customer Financing

Long-term receivables consist of trade receivables with payment terms greater than twelve months, long-term loans and lease receivables under sales-type leases. Long-term receivables consist of the following:

	July 2, 2011		December 31, 2010
Long-term receivables		$307		$265
Less allowance for losses		(6)		(1)
		301		264
Less current portion		(29)		(13)
Non-current long-term receivables, net		$272		$251

21

The current portion of long-term receivables is included in Accounts receivable and the non-current portion of long-term receivables is included in Other assets in the Company’s condensed consolidated balance sheets.

The Company had outstanding commitments to provide long-term financing to third parties totaling $135 million at July 2, 2011, compared to $333 million at December 31, 2010 (including $168 million at December 31, 2010 relating to the Networks business). Of these amounts, $1 million was supported by letters of credit or by bank commitments to purchase long-term receivables at July 2, 2011, compared to $27 million at December 31, 2010. The Company retained the funded portion of the financing arrangements related to the Networks business following the sale to NSN, which totaled approximately $286 million at July 2, 2011 and is included in Long-term receivables reported in the table above.

The Company had committed to provide financial guarantees relating to customer financing facilities totaling $1 million at July 2, 2011, compared to $10 million at December 31, 2010 (including $6 million at December 31, 2010 relating to the sale of short-term receivables). Customer financing guarantees outstanding were $1 million at both July 2, 2011 and December 31, 2010 (all relating to the sale of long-term receivables).

Sales of Receivables

As of July 2, 2011 and December 31, 2010, the Company had a $200 million committed revolving receivable sales facility, maturing December 2011, for the sale of accounts receivable, which was fully available at both periods. The initial cash proceeds received by the Company for the sale of these receivables is capped at the lower of $200 million or eligible receivables less reserves. The Company had no significant committed facilities for the sale of long-term receivables at July 2, 2011 or at December 31, 2010.

The following table summarizes the proceeds received from non-recourse sales of accounts receivable and long-term receivables for the three and six months ended July 2, 2011 and July 3, 2010:

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Cumulative quarterly proceeds received from one-time sales:
Accounts receivable sales proceeds		$—		$5		$1		$28
Long-term receivables sales proceeds		17		6		23		9
Total proceeds from one-time sales		17		11		24		37
Cumulative quarterly proceeds received from sales under committed facilities		—		16		—		70
Total proceeds from receivables sales		$17		$27		$24		$107

At July 2, 2011, the Company retained no servicing obligations for sold accounts receivable and $266 million of long-term receivables, compared to $329 million of sold accounts receivable and $277 million of long-term receivables at December 31, 2010.

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Credit Quality of Customer Financing Receivables and Allowance for Credit Losses

An aging analysis of financing receivables at July 2, 2011 and December 31, 2010 is as follows:

July 2, 2011	Total Long-term Receivable		Current Billed Due	Past Due Under 90 Days
Municipal leases secured tax exempt		$11	$—	$—
Commercial loans and leases secured		80	—	6
Commercial loans unsecured		216	—	—
Total long-term receivables		$307	$—	$6

December 31, 2010	Total Long-term Receivable		Current Billed Due	Past Due Under 90 Days
Municipal leases secured tax exempt		$16	$—	$—
Commercial loans and leases secured		67	1	—
Commercial loans unsecured		182	—	—
Total long-term receivables		$265	$1	$—

The Company uses an internally developed credit risk rating system for establishing customer credit limits. This system is aligned with and comparable to the rating systems utilized by independent rating agencies.

The Company policy for valuing the allowance for credit losses is on an individual review basis. All customer financing receivables with past due balances greater than 90 days are reviewed for collectability. The value of impairment is calculated based on the net present value of anticipated future cash streams from the customer. The Company did not have any financing receivables past due over 90 days as of July 2, 2011 or December 31, 2010.

At July 2, 2011, long-term receivables included an impaired loan of $49 million with a related reserve for credit losses of $5 million. The Company recognizes interest income on impaired loans on a cash basis with cash receipts recorded as interest income when received. The average recorded investment in this impaired loan during both the three and six months ended July 2, 2011 was $48 million. Interest income recognized during the period the loan was impaired was de minimus.

11. Commitments and Contingencies

Legal

The Company is a defendant in various suits, claims and investigations that arise in the normal course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations. However, an unfavorable resolution could have a material adverse effect on the Company’s results of operations in the periods in which the matters are ultimately resolved.

Other

The Company is a party to a variety of agreements pursuant to which it is obligated to indemnify the other party with respect to certain matters. Some of these obligations arise as a result of divestitures of the Company’s assets or businesses and require the Company to hold the other party harmless against losses arising from the settlement of these pending obligations. The total amount of indemnification under these types of provisions is $251 million, of which the Company accrued $8 million at July 2, 2011 for potential claims under these provisions.

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In addition, the Company may provide indemnifications for losses that result from the breach of general warranties contained in certain commercial and intellectual property agreements. Historically, the Company has not made significant payments under these agreements. However, there is an increasing risk in relation to patent indemnities given the current legal climate.

In indemnification cases, payment by the Company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party’s claims. Further, the Company’s obligations under these agreements for indemnification based on breach of representations and warranties are generally limited in terms of duration, and for amounts not in excess of the contract value, and, in some instances, the Company may have recourse against second parties for certain payments made by the Company.

In addition, pursuant to the Master Separation and Distribution Agreement and certain other agreements with Motorola Mobility, Motorola Mobility agreed to indemnify the Company for certain liabilities, and the Company agreed to indemnify Motorola Mobility for certain liabilities, in each case for uncapped amounts.

During the three months ended July 2, 2011, the Company recorded $48 million of net charges related to legal matters to Other charges in the Company’s condensed consolidated statements of operations. The net charges primarily related to a contingent reserve for a suit in which the Company has assessed the likelihood of having to pay as probable.

12. Segment Information

The following table summarizes the Net sales by segment:

	Three Months Ended				Six Months Ended
	July 2,     2011		July 3,     2010		July 2,     2011		July 3,     2010
Government		$1,308		$1,262		$2,497		$2,394
Enterprise		747		674		1,442		1,282
		$2,055		$1,936		$3,939		$3,676

The following table summarizes the Operating earnings by segment:

	Three Months Ended				Six Months Ended
	July 2,   2011		July 3,     2010		July 2,     2011		July 3,     2010
Government		$111		$117		$215		$209
Enterprise		59		44		125		72
Operating earnings		170		161		340		281
Total other income (expense)		(97)		(32)		(94)		(43)
Earnings from continuing operations before income taxes		$73		$129		$246		$238

13. Reorganization of Businesses

The Company maintains a formal Involuntary Severance Plan (the “Severance Plan”), which permits the Company to offer eligible employees severance benefits based on years of service and employment grade level in the event that employment is involuntarily terminated as a result of a reduction-in-force or restructuring. The Company recognizes termination benefits based on formulas per the Severance Plan at the point in time that future settlement is probable and can be reasonably estimated based on estimates prepared at the time a

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restructuring plan is approved by management. Exit costs consist of future minimum lease payments on vacated facilities and other contractual terminations. At each reporting date, the Company evaluates its accruals for employee separation and exit costs to ensure the accruals are still appropriate. In certain circumstances, accruals are no longer needed because of efficiencies in carrying out the plans or because employees previously identified for separation resigned from the Company and did not receive severance or were redeployed due to circumstances not foreseen when the original plans were initiated. In these cases, the Company reverses accruals through the condensed consolidated statements of operations where the original charges were recorded when it is determined they are no longer needed.

2011 Charges

During the three months ended July 2, 2011, the Company recorded net reorganization of business charges of $17 million, primarily under Other charges in the Company’s condensed consolidated statements of operations. Included in the aggregate $17 million are charges of $13 million for exit costs and $5 million for employee separation costs, partially offset by $1 million of reversals for accruals no longer needed.

During the six months ended July 2, 2011, the Company recorded net reorganization of business charges of $25 million, including $3 million of charges in Costs of sales and $22 million of charges under Other charges in the Company’s condensed consolidated statements of operations. Included in the aggregate $25 million are charges of $14 million for employee separation costs and $13 million for exit costs, partially offset by $2 million of reversals for accruals no longer needed.

The following table displays the net charges incurred by segment:

July 2, 2011	Three Months Ended		Six Months Ended
Government		$10		$18
Enterprise		7		7
		$17		$25

The following table displays a rollforward of the reorganization of businesses accruals established for exit costs and employee separation costs from January 1, 2011 to July 2, 2011:

	Accruals at January 1, 2011		Additional Charges		Adjustments		Amount Used		Accruals at July 2, 2011
Exit costs		$17		$13		$—		$(16)		$14
Employee separation costs		50		14		(2)		(36)		26
		$67		$27		$(2)		$(52)		$40

Exit Costs

At January 1, 2011, the Company had an accrual of $17 million for exit costs attributable to lease terminations. During the first half of 2011, the additional 2011 charges were $13 million primarily related to the exit of leased facilities. The $16 million used reflects cash payments. The remaining accrual of $14 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at July 2, 2011, primarily represents future cash payments for lease termination obligations that are expected to be paid over a number of years.

Employee Separation Costs

At January 1, 2011, the Company had an accrual of $50 million for employee separation costs, representing the severance costs for: (i) severed employees who began receiving payments in 2010, and (ii) approximately 1,000 employees who began receiving payments in 2011. The 2011 additional charges of

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$14 million represent severance costs for approximately an additional 200 employees, of whom substantially all were indirect employees. The adjustment of $2 million reflects reversals of accruals no longer needed. The $36 million used reflects cash payments. The remaining accrual of $26 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at July 2, 2011, is expected to be paid, generally, within one year to approximately 1,000 employees, who have either been severed or notified to be severed and have begun or will begin receiving payments.

2010 Charges

During the three months ended July 3, 2010, the Company recorded net reorganization of business charges of $20 million, including $6 million of charges in Costs of sales and $14 million of charges under Other charges in the Company’s condensed consolidated statements of operations. Included in the aggregate $20 million are charges of $21 million for employee separation costs, partially offset by $1 million of reversals for accruals no longer needed.

During the six months ended July 3, 2010, the Company recorded net reorganization of business charges of $20 million, including $7 million of charges in Costs of sales and $13 million of charges under Other charges in the Company’s condensed consolidated statements of operations. Included in the aggregate $20 million are charges of $27 million for employee separation costs, partially offset by $7 million of reversals for accruals no longer needed.

The following table displays the net charges incurred by segment:

July 3, 2010	Three Months Ended		Six Months Ended
Government		$15		$15
Enterprise		5		5
		$20		$20

The following table displays a rollforward of the reorganization of businesses accruals established for exit costs and employee separation costs from January 1, 2010 to July 3, 2010:

	Accruals at January 1, 2010		Additional Charges		Adjustments		Amount Used		Accruals at July 3, 2010
Exit costs		$16		$—		$(2)		$(7)		$7
Employee separation costs		31		27		(5)		(27)		26
		$47		$27		$(7)		$(34)		$33

During the first half of 2010, approximately 500 employees, of whom substantially all were indirect employees, were separated from the Company, resulting in charges of $27 million. These charges were offset by adjustments of $5 million, reflecting reversals of accruals no longer needed, and $27 million used for cash payments. At July 3, 2010, the Company had accruals of $7 million and $26 million, for exit costs attributable to lease terminations and employee separation costs, respectively.

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14. Intangible Assets and Goodwill

Intangible Assets

Amortized intangible assets were comprised of the following:

	July 2, 2011				December 31, 2010
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Completed technology		$642		$596		$642		$532
Patents		277		237		277		211
Customer-related		148		100		148		90
Licensed technology		25		18		25		18
Other intangibles		101		96		101		96
		$1,193		$1,047		$1,193		$947

Amortization expense on intangible assets was $50 million for both the three months ended July 2, 2011 and July 3, 2010. Amortization expense on intangible assets was $100 million and $101 million for the six months ended July 2, 2011 and July 3, 2010, respectively. As of July 2, 2011, annual amortization expense is estimated to be $200 million in 2011, $25 million in 2012, $9 million in 2013, $7 million in 2014 and $2 million in 2015.

Amortized intangible assets, excluding goodwill, by segment:

	July 2, 2011				December 31, 2010
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Government		$   140		$   133		$   140		$130
Enterprise		1,053		914		1,053		817
		$1,193		$1,047		$1,193		$947

Goodwill

The following table displays a rollforward of the carrying amount of goodwill by segment from January 1, 2011 to July 2, 2011:

	Government		Enterprise		Total
Balances as of January 1, 2011:
Aggregate goodwill acquired		$350		$2,643		$2,993
Accumulated impairment losses		—		(1,564)		(1,564)
Goodwill, net of impairment losses		$350		$1,079		$1,429
Goodwill acquired		—		—		—
Balances as of July 2, 2011:
Aggregate goodwill acquired		$350		$2,643		$2,993
Accumulated impairment losses		—		(1,564)		(1,564)
Goodwill, net of impairment losses		$350		$1,079		$1,429

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This commentary should be read in conjunction with the condensed consolidated financial statements of Motorola Solutions, Inc. (“Motorola Solutions” or the “Company”) for the three and six months ended July 2, 2011 and July 3, 2010, as well as the Company’s consolidated financial statements and related notes thereto and management’s discussion and analysis of financial condition and results of operations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, as well as the Company’s Form 8-K filed on May 12, 2011 to reflect: (i) the revised presentation of the Company’s segments as a result of the realignment of its operations into two segments: Government and Enterprise, and (ii) the reclassification of the historical financial results of Motorola Mobility Holdings, Inc. (“Motorola Mobility”) as discontinued operations.

Executive Overview

Recent Developments

On July 19, 2010, the Company announced an agreement to sell certain assets and liabilities of its Networks business to Nokia Siemens Networks B.V. (“NSN”) (the “Transaction”). On April 12, 2011, the Company announced certain amendments to the Transaction. On April 29, 2011, the Company completed the Transaction, as amended. Based on the terms and conditions of the amended sale agreement, certain assets including $150 million of accounts receivable and the Company’s iDEN infrastructure business were excluded from the Transaction. Based on the terms and conditions of the Transaction, the sale is subject to a purchase price adjustment that is contingent upon the review of final assets and liabilities transferred to NSN and is based on the change in net assets from the original agreed upon sale date. The Company expects to settle the purchase price adjustment with NSN in the second half of 2011.

During the three months ended July 2, 2011, the Company recorded a pre-tax gain related to the completion of the Transaction of $488 million, net of closing costs and the expected purchase price adjustment, to Gains on sales of investments and business, net, within the discontinued operations in the Company’s condensed consolidated statements of operations. The cash proceeds, including the $150 million of accounts receivable collected after the Transaction closed, were $1.0 billion, net of taxes, assignment fees, the expected purchase price adjustment and other transaction-related fees and expenses. A significant amount of the cash proceeds were received in the U.S. As of July 2, 2011, regulatory approvals required to complete the Transaction in certain countries are still in-process and are expected to be completed in the second half of 2011. Until these approvals are received, the Company will maintain the assets and liabilities associated with these countries in assets and liabilities held for sale in the Company’s condensed consolidated balance sheets. The results of operations of the portions of the Networks business included in the Transaction are reported as discontinued operations for all periods presented.

On January 4, 2011, the distribution by the Company of all the common stock of Motorola Mobility was completed (the “Distribution”). Immediately following the Distribution, the Company changed its name from Motorola, Inc. to Motorola Solutions, Inc. The Distribution was structured to be tax-free to Motorola Solutions and its stockholders for U.S. tax purposes (other than with respect to any cash received in lieu of fractional shares). The historical financial results of Motorola Mobility are reflected in the Company’s condensed consolidated financial statements as discontinued operations for all periods presented.

Reporting Segments

As of the first quarter of 2011, the Company reports financial results for the following two segments:

• Government: Our Government segment includes sales of two-way radios and public safety systems. Service revenues included in the Government segment are primarily those associated with the design, installation, maintenance and optimization of equipment for public safety networks. In the second quarter of 2011, the segment’s net sales were $1.3 billion, representing 64% of the Company’s consolidated net sales.

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• Enterprise: Our Enterprise segment includes sales of enterprise mobile computing devices, scanning devices, wireless broadband systems, RFID data capture solutions and iDEN infrastructure. Service revenues included in the Enterprise segment are primarily maintenance contracts associated with the above products. In the second quarter of 2011, the segment’s net sales were $747 million, representing 36% of the Company’s consolidated net sales.

Second Quarter Summary

• Our net sales were $2.1 billion in the second quarter of 2011, up 6% compared to net sales of $1.9 billion in the second quarter of 2010.

• We had operating earnings of $170 million in the second quarter of 2011, compared to operating earnings of $161 million in the second quarter of 2010. Operating margin was 8.3% of net sales in both the second quarter of 2011 and the second quarter of 2010.

• We had earnings from continuing operations, net of tax, of $58 million, or $0.17 per diluted common share, in the second quarter of 2011, compared to earnings from continuing operations, net of tax, of $3 million, or $0.01 per diluted common share, in the second quarter of 2010. The increase in earnings from continuing operations, net of tax, was primarily driven by lower income taxes.

• We generated cash from operating activities of $333 million in the first half of 2011, compared to $162 million in the first half of 2010.

Highlights for each of our segments are as follows:

• Government: Net sales were $1.3 billion during both the second quarter of 2011 and 2010. On a geographic basis, net sales increased in North America, Latin America and Asia and decreased in the Europe, Middle East and Africa region (“EMEA”) compared to the year-ago quarter.

• Enterprise: Net sales were $747 million in the second quarter of 2011, an increase of 11% compared to net sales of $674 million in the second quarter of 2010. On a geographic basis, net sales increased in North America, EMEA, and Asia and decreased in Latin America compared to the year-ago quarter.

Looking Forward

Our Government segment showed continued growth in the second quarter. Although the government budget environment remains challenging in the U.S. and in parts of Western Europe in particular, there are signs of improvement as tax receipts continue to increase and approach 2008 levels. Our customers continue to prioritize funding of their public safety communication needs, and we remain focused on helping them find ways to fund system upgrades, improve interoperability and meet spectrum narrow-banding requirements. In addition, governments are increasingly examining their operations for the productivity and efficiency improvements that our solutions enable.

Our Enterprise segment demonstrated sustained momentum in the second quarter driven by retailers that continue to invest in technology to drive sales growth. Our solutions have a high return on investment, and with increasing demands for real-time information and rapid increases in knowledge workers, we expect continued sales growth.

Private public safety broadband networks based on the long-term evolution (“LTE”) standard are an important next generation tool for our first-responder customers. There is increasing support from our U.S. first-responder customers’ position to dedicate the 700Mhz D-Block to public safety, which would efficiently

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and effectively double the spectrum available for public safety grade broadband data networks. We have been investing in research and development for next generation public safety, and our expertise in both public and private networks makes us uniquely qualified to provide LTE solutions. The development of this market is an important part of our overall growth strategy for government and public safety.

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Results of Operations

	Three Months Ended										Six Months Ended
(Dollars in millions, except per share amounts)	July 2, 2011		% of Sales			July 3, 2010		% of Sales			July 2, 2011		% of Sales			July 3, 2010		% of Sales
Net sales from products		$1,524					$1,438					$2,948					$2,729
Net sales from services		531					498					991					947
Net sales		2,055					1,936					3,939					3,676
Costs of products sales		685		44.9	%		656		45.6	%		1,341		45.5	%		1,250		45.8	%
Costs of services sales		331		62.3	%		315		63.3	%		617		62.3	%		608		64.2	%
Costs of sales		1,016					971		50.2	%		1,958					1,858		50.5	%
Gross margin		1,039		50.6	%		965		49.8	%		1,981		50.3	%		1,818		49.5	%
Selling, general and administrative expenses		492		23.9	%		471		24.3	%		960		24.4	%		925		25.2	%
Research and development expenditures		271		13.2	%		269		13.9	%		520		13.2	%		527		14.3	%
Other charges		106		5.2	%		64		3.3	%		161		4.1	%		85		2.4	%
Operating earnings		170		8.3	%		161		8.3	%		340		8.6	%		281		7.6	%
Other income (expense):
Interest expense, net		(21)		(1.0	)%		(35)		(1.8	)%		(41)		(1.0	)%		(68)		(1.8	)%
Gains on sales of investments and businesses, net		1		0.0	%		33		1.7	%		19		0.5	%		40		1.1	%
Other expense		(77)		(3.7	)%		(30)		(1.6	)%		(72)		(1.9	)%		(15)		(0.4	)%
Total other income (expense)		(97)		(4.7	)%		(32)		(1.7	)%		(94)		(2.4	)%		(43)		(1.1	)%
Earnings from continuing operations before income taxes		73		3.6	%		129		6.6	%		246		6.2	%		238		6.5	%
Income tax expense (benefit)		17		0.9	%		122		6.2	%		(169)		(4.3	)%		135		3.7	%
		56		2.7	%		7		0.4	%		415		10.5	%		103		2.8	%
Less: Earnings (loss) attributable to noncontrolling interests		(2)		(0.1	)%		4		0.2	%		(8)		(0.2	)%		3		0.1	%
Earnings from continuing operations*		58		2.8	%		3		0.2	%		423		10.7	%		100		2.7	%
Earnings from discontinued operations, net of tax		291		14.2	%		159		8.2	%		423		10.8	%		131		3.6	%
Net earnings		$349		17.0	%		$162		8.4	%		$846		21.5	%		$231		6.3	%
Earnings per diluted common share:
Continuing operations		$0.17					$0.01					$1.22					$0.30
Discontinued operations		0.83					0.47					1.22					0.39
		$1.00					$0.48					$2.44					$0.69

* Amounts attributable to Motorola Solutions, Inc. common stockholders.

Results of Operations—Three months ended July 2, 2011 compared to three months ended July 3, 2010

Net Sales

Net sales were $2.1 billion in the second quarter of 2011, up 6% compared to net sales of $1.9 billion in the second quarter of 2010. The increase in net sales reflects: (i) a $73 million, or 11%, increase in net sales in the Enterprise segment, and (ii) a $46 million, or 4%, increase in net sales in the Government segment.

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Gross Margin

Gross margin was $1.0 billion, or 50.6% of net sales, in the second quarter of 2011, compared to $965 million, or 49.8% of net sales, in the second quarter of 2010. The increase in gross margin reflects higher gross margins in both segments, primarily driven by the increase in net sales and product mix. The increase in gross margin as a percentage of net sales in the second quarter of 2011 compared to the second quarter of 2010 reflects an increase in gross margin percentage in both segments. The Company’s overall gross margin as a percentage of net sales is impacted by the proportion of overall net sales generated by its businesses.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses increased 4% to $492 million, or 23.9% of net sales, in the second quarter of 2011, compared to $471 million, or 24.3% of net sales, in the second quarter of 2010. The increase in SG&A expenses reflects higher SG&A expenses in both segments. The increase in both segments was primarily due to (i) an increase in selling and marketing expenses related to the increase in net sales, and (ii) increased employee benefit-related expenses, partially offset by savings from cost-reduction initiatives. The increases in employee benefit-related expenses are primarily due to an increase in pension-related expenses and the reinstatement of the Company’s 401(k) matching contributions. SG&A expenses as a percentage of net sales decreased in the Enterprise segment and slightly increased in the Government segment.

Research and Development Expenditures

Research and development (“R&D”) expenditures increased 1% to $271 million, or 13.2% of net sales, in the second quarter of 2011, compared to $269 million, or 13.9% of net sales, in the second quarter of 2010. The increase in R&D expenditures reflects higher R&D expenditures in the Enterprise segment and relatively flat R&D expenditures in the Government segment. The increase in the Enterprise segment was primarily due to higher developmental engineering expenditures for new product development, investment in next-generation technologies and increased employee benefit-related expenses. R&D expenditures as a percentage of net sales decreased in both segments. The Company participates in competitive industries with constant changes in technology and, accordingly, the Company continues to believe that a strong commitment to R&D is required to drive long-term growth.

Other Charges

The Company recorded net charges of $106 million in Other charges in the second quarter of 2011, compared to net charges of $64 million in the second quarter of 2010. The net charges in the second quarter of 2011 included: (i) $50 million of charges relating to the amortization of intangibles, (ii) $48 million of charges for legal matters, net, (iii) $17 million of net reorganization of business charges, partially offset by a $9 million pension plan adjustments, net, related to the Networks Transaction. The charges in the second quarter of 2010 included: (i) $50 million of charges relating to the amortization of intangibles, and (ii) $14 million of net reorganization of business charges included in Other charges. The net reorganization of business charges are discussed in further detail in the “Reorganization of Businesses” section.

Net Interest Expense

Net interest expense was $21 million in the second quarter of 2011, compared to net interest expense of $35 million in the second quarter of 2010. Net interest expense in the second quarter of 2011 included interest expense of $40 million, partially offset by interest income of $19 million. Net interest expense in the second quarter of 2010 includes interest expense of $56 million, partially offset by interest income of $21 million. The decrease in net interest expense in the second quarter of 2011 is primarily attributable to a decline in interest expense due to lower average debt outstanding during the second quarter of 2011 compared to the second quarter of 2010. Additionally, interest income decreased due to lower average cash and cash equivalents during the second quarter of 2011 compared to the second quarter of 2010.

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Gains on Sales of Investments and Businesses

Gains on sales of investments and businesses were $1 million in the second quarter of 2011, compared to $33 million in the second quarter of 2010. In the second quarter of 2011, the net gains were primarily comprised of gains related to sales of certain of the Company’s equity investments. In the second quarter of 2010, the net gains were primarily comprised of a $31 million gain on a sale of a single investment.

Other

Net Other expense was $77 million in the second quarter of 2011, compared to net Other expense of $30 million in the second quarter of 2010. The net Other expense in the second quarter of 2011 was primarily comprised of an $81 million loss from the extinguishment of debt, partially offset by $6 million of foreign currency gains. The net Other expense in the second quarter of 2010 was primarily comprised of: (i) a $12 million loss from the extinguishment of debt, (ii) $9 million of investment impairments, (iii) $4 million of foreign currency losses, and (iv) $4 million of net losses from Sigma Fund investments.

Effective Tax Rate

The Company recorded $17 million of net tax expense in the second quarter of 2011, resulting in an effective tax rate of 23%, compared to $122 million of net tax expense in the second quarter of 2010, resulting in an effective tax rate of 95%. The Company’s effective tax rate in the second quarter of 2011 was lower than the U.S. statutory tax rate of 35% primarily due to a pension curtailment gain for which no tax expense was recorded.

The Company’s effective tax rate in the second quarter of 2010 was higher than the U.S. statutory tax rate of 35% primarily due to an increase in the U.S. federal income tax accrual for repatriation of undistributed foreign earnings, offset by a reduction in unrecognized tax benefits for facts that now indicate the extent to which certain tax positions are more-likely-than-not of being sustained.

The Company’s effective tax rate will change from period to period based on non-recurring events, such as the settlement of income tax audits, changes in valuation allowances and the tax impact of significant unusual or extraordinary items, as well as recurring factors including changes in the geographic mix of income before taxes and effects of various global income tax strategies

Earnings from Continuing Operations

The Company had net earnings from continuing operations before income taxes of $73 million in the second quarter of 2011, compared with net earnings from continuing operations before income taxes of $129 million in the second quarter of 2010. After taxes, and excluding Loss attributable to noncontrolling interests, the Company had net earnings from continuing operations of $58 million, or $0.17 per diluted share, in the second quarter of 2011, compared to a net earnings from continuing operations of $3 million, or $0.01 per diluted share, in the second quarter of 2010.

The decrease in net earnings from continuing operations was primarily driven by: (i) a $74 million increase in gross margin, and (ii) a $105 million decrease in income tax expense, offset by: (i) a $65 million increase in Other income (expense), (ii) a $42 million increase in Other charges, and (iii) a $21 million increase in SG&A.

Earnings from Discontinued Operations

In the second quarter of 2011, the Company had after-tax earnings from discontinued operations of $291 million, or $0.83 per diluted share, primarily from the $488 million pre-tax gain on the sale of the Networks

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business. In the second quarter of 2010, the Company had after-tax earnings from discontinued operations of $159 million, or $0.47 per diluted share, from Motorola Mobility and the Networks business.

Results of Operations—Six months ended July 2, 2011 compared to six months ended July 3, 2010

Net Sales

Net sales were $3.9 billion in the first half of 2011, up 7% compared to net sales of $3.7 billion in the first half of 2010. The increase in net sales reflects: (i) a $160 million, or 12%, increase in net sales in the Enterprise segment, and (ii) a $103 million, or 4%, increase in net sales in the Government segment.

Gross Margin

Gross margin was $2.0 billion, or 50.3% of net sales, in the first half of 2011, compared to $1.8 billion, or 49.5% of net sales, in the first half of 2010. The increase in gross margin reflects higher gross margins in both segments, primarily driven by the increase in net sales and product mix. The increase in gross margin as a percentage of net sales in the first half of 2011 compared to the first half of 2010 reflects an increase in gross margin percentage in both segments. The Company’s overall gross margin as a percentage of net sales is impacted by the proportion of overall net sales generated by its businesses.

Selling, General and Administrative Expenses

SG&A expenses increased 4% to $960 million, or 24.4% of net sales, in the first half of 2011, compared to $925 million, or 25.2% of net sales, in the first half of 2010. The increase in SG&A expenses reflects higher SG&A expenses in both segments. The increase in both segments was primarily due to (i) an increase in selling and marketing expenses related to the increase in net sales, and (ii) increased employee benefit-related expenses, partially offset by savings from cost-reduction initiatives. The increases in employee benefit-related expenses are primarily due to an increase in pension-related expenses and the reinstatement of the Company’s 401(k) matching contributions. SG&A expenses as a percentage of net sales decreased in the Enterprise segment and slightly increased in the Government segment.

Research and Development Expenditures

R&D expenditures decreased 1% to $520 million, or 13.2% of net sales, in the first half of 2011, compared to $527 million, or 14.3% of net sales, in the first half of 2010. The decrease in R&D expenditures reflects lower R&D expenditures in the Government segment and slightly higher R&D expenditures in the Enterprise segment. The decrease in R&D expenditures in the Government segment was primarily due to savings from cost-reduction initiatives, partially offset by higher developmental engineering expenditures for new product development, investment in next-generation technologies and increased employee benefit-related expenses. The slight increase in R&D expenditures in the Enterprise segment was primarily due to investment in next-generation technologies and increased employee benefit-related expenses. R&D expenditures as a percentage of net sales decreased in both segments. The Company participates in competitive industries with constant changes in technology and, accordingly, the Company continues to believe that a strong commitment to R&D is required to drive long-term growth.

Other Charges

The Company recorded net charges of $161 million in Other charges in the first half of 2011, compared to net charges of $85 million in the first half of 2010. The net charges in the first half of 2011 included: (i) $100 million of charges relating to the amortization of intangibles, (ii) $48 million of charges for legal matters, net, and (iii) $22 million of net reorganization of business charge, partially offset by a $9 million pension plan adjustments, net, related to the Networks Transaction. The charges in the first half of 2010 included:

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(i) $101 million of charges relating to the amortization of intangibles, and (ii) $13 million of net reorganization of business charges included in Other charges, partially offset by a $29 million gain related to a legal settlement. The net reorganization of business charges are discussed in further detail in the “Reorganization of Businesses” section.

Net Interest Expense

Net interest expense was $41 million in the first half of 2011, compared to net interest expense of $68 million in the first half of 2010. Net interest expense in the first half of 2011 included interest expense of $74 million, partially offset by interest income of $33 million. Net interest expense in the first half of 2010 includes interest expense of $116 million, partially offset by interest income of $48 million. The decrease in net interest expense in the first half of 2011 is primarily attributable to a decline in interest expense due to lower average debt outstanding during the first half of 2011 compared to the first half of 2010 and the reversal of an interest accrual that was no longer needed. Additionally, interest income decreased due to lower average cash and cash equivalents during the first half of 2011 compared to the first half of 2010.

Gains on Sales of Investments and Businesses

Gains on sales of investments and businesses were $19 million in the first half of 2011, compared to gains on sales of investments and businesses of $40 million in the first half of 2010. In the first half of 2011, the net gains were primarily comprised of gains related to sales of certain of the Company’s equity investments. In the first half of 2010, the net gains were primarily comprised of a $31 million gain on a sale of a single investment.

Other

Net Other expense was $72 million in the first half of 2011, compared to net Other expense of $15 million in the first half of 2010. The net Other expense in the first half of 2011 was primarily comprised of (i) $81 million loss from the extinguishment of debt, and (ii) $3 million of investment impairments, partially offset by $11 million of foreign currency gain. The net Other expense in the first half of 2010 was primarily comprised of: (i) $18 million of investment impairments, and (ii) a $12 million loss from the extinguishment of debt, partially offset by: (i) $12 million of net gains from Sigma Fund investments, and (ii) $7 million of foreign currency gains.

Effective Tax Rate

The Company recorded $169 million of net tax benefits in the first half of 2011, resulting in a negative effective tax rate on continuing operations, compared to $135 million of net tax expense in the first half of 2010, resulting in an effective tax rate of 57%. The Company’s negative effective tax rate in the first half of 2011 was primarily related to the recording of a $244 million tax benefit for the reversal of a significant portion of the valuation allowance established on the U.S. deferred tax assets. The valuation allowances on the Company’s deferred tax assets are discussed further in Note 6, “Income Taxes,” of the Company’s condensed consolidated financial statements.

The Company’s effective tax rate in the first half of 2010 was higher than the U.S. statutory tax rate of 35% primarily due to an increase in the U.S. federal income tax accrual for repatriation of undistributed foreign earnings and a non-cash tax charge related to the Medicare Part D subsidy tax law change, partially offset by reductions in unrecognized tax benefits for facts that now indicate the extent to which certain tax positions are more-likely-than-not of being sustained.

The Company’s effective tax rate will change from period to period based on non-recurring events, such as the settlement of income tax audits, changes in valuation allowances and the tax impact of significant unusual or extraordinary items, as well as recurring factors including changes in the geographic mix of income before taxes and effects of various global income tax strategies.

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Earnings from Continuing Operations

The Company had net earnings from continuing operations before income taxes of $246 million in the first half of 2011, compared with net earnings from continuing operations before income taxes of $238 million in the first half of 2010. After taxes, and excluding Earnings attributable to noncontrolling interests, the Company had net earnings from continuing operations of $423 million, or $1.22 per diluted share, in the first half of 2011, compared to a net earnings from continuing operations of $100 million, or $0.30 per diluted share, in the first half of 2010.

The increase in net earnings from continuing operations was primarily driven by a $244 million tax benefit for the reversal of a significant portion of the valuation allowance established on the U.S. deferred tax assets recorded during the first quarter of 2011 and an $163 million increase in gross margin, partially offset by a $76 million increase in Other charges.

Earnings from Discontinued Operations

In the first half of 2011, the Company had after-tax earnings from discontinued operations of $423 million, or $1.22 per diluted share, substantially from the operations and gain from the sale of the Networks business. In the first half of 2010, the Company had an after-tax earnings from discontinued operations of $131 million, or $0.39 per diluted share, from Motorola Mobility and the Networks business.

Segment Information

The following commentary should be read in conjunction with the financial results of each reporting segment for the three and six months ended July 2, 2011 and July 3, 2010 as detailed in Note 12, “Segment Information,” of the Company’s condensed consolidated financial statements.

Government Segment

For the second quarter of 2011, the segment’s net sales represented 64% of the Company’s consolidated net sales, compared to 65% in the second quarter of 2010. For the first half of 2011, the segment’s net sales represented 63% of the Company’s consolidated net sales, compared to 65% in the first half of 2010.

	Three Months Ended							Six Months Ended
	July 2, 2011		July 3, 2010		% Change			July 2, 2011		July 3, 2010		% Change
Segment net sales		$1,308		$1,262		4	%		$2,497		$2,394		4	%
Operating earnings		111		117		(5	)%		215		209		3	%

Three months ended July 2, 2011 compared to three months ended July 3, 2010

The segment’s net sales were $1.3 billion during both the second quarter of 2011 and 2010. The increase in net sales in the Government segment reflects an increase in radio sales and service revenues. On a geographic basis, net sales increased in North America, Latin America and Asia and decreased in the Europe, Middle East and Africa (“EMEA”) region compared to the year-ago quarter. Net sales in North America continued to comprise a significant portion of the segment’s business, accounting for approximately 64% of the segment’s net sales in both the second quarter of 2011 and the second quarter of 2010.

The segment had operating earnings of $111 million in the second quarter of 2011, compared to operating earnings of $117 million in the second quarter of 2010. The decrease in operating earnings was primarily due to an increase in Other charges and SG&A expenses, partially offset by an increase in gross

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margin, driven by the 4% increase in net sales. The increase in Other charges was primarily due to charges from legal matters, net. The increase in SG&A expenses was primarily due to an increase in selling and marketing expenses related to the increase in net sales, and increased employee benefit-related expenses, partially offset by savings from cost-reduction initiatives. As a percentage of net sales in the second quarter of 2011 as compared to the second quarter of 2010, gross margin increased, SG&A expenses slightly increased, and R&D expenditures decreased.

Six months ended July 2, 2011 compared to six months ended July 3, 2010

In the first half of 2011, the segment’s net sales were $2.5 billion, a 4% increase compared to net sales of $2.4 billion in the first half of 2010. The increase in net sales in the Government segment reflects an increase in radio sales and service revenues. On a geographic basis, net sales increased in North America, Latin America and Asia and decreased in the EMEA region compared to the first half of 2010. Net sales in North America continued to comprise a significant portion of the segment’s business, accounting for approximately 63% of the segment’s net sales in both the first half of 2011 and the first half of 2010.

The segment had operating earnings of $215 million in the first half of 2011, compared to operating earnings of $209 million in the first half of 2010. The increase in operating earnings was primarily due to: (i) an increase in gross margin, driven by the 4% increase in net sales, and (ii) a decrease in R&D expenditures, partially offset by increases in Other charges and SG&A expenses. The decrease in R&D expenditures was primarily due to savings from cost-reduction initiatives, partially offset by higher developmental engineering expenditures for new product development and investment in next-generation technologies. The increase in Other charges was primarily due to charges from legal matters, net. The increase in SG&A expenses was primarily due to an increase in selling and marketing expenses related to the increase in net sales and increased employee benefit-related expenses, partially offset by savings from cost-reduction initiatives. As a percentage of net sales in the first half of 2011 as compared to the first half of 2010, gross margin increased, SG&A expenses increased, and R&D expenditures decreased.

Enterprise Segment

For the second quarter of 2011, the segment’s net sales represented 36% of the Company’s consolidated net sales, compared to 35% in the second quarter of 2010. For the first half of 2011, the segment’s net sales represented 37% of the Company’s consolidated net sales, compared to 35% in the first half of 2010.

	Three Months Ended							Six Months Ended
	July 2, 2011		July 3, 2010		% Change			July 2, 2011		July 3, 2010		% Change
Segment net sales		$747		$674		11	%		$1,442		$1,282		12	%
Operating earnings (loss)		59		44		34	%		125		72		74	%

Three months ended July 2, 2011 compared to three months ended July 3, 2010

In the second quarter of 2011, the segment’s net sales were $747 million, an 11% increase compared to net sales of $674 million in the second quarter of 2010. The 11% increase in net sales in the Enterprise segment reflects an increase in mobile computing, wireless network solutions and advanced data capture, partially offset by a decrease in the iDEN infrastructure business. On a geographic basis, net sales increased in North America, EMEA region and Asia and decreased in Latin America compared to the year-ago quarter. Net sales in North America continued to comprise a significant portion of the segment’s business, accounting for approximately 46% and 49% of the segment’s net sales in the second quarter of 2011 and the second quarter of 2010, respectively. The decrease in the percentage of net sales in the North America regions reflects an increase in net sales in the EMEA and Asia regions.

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The segment had operating earnings of $59 million in the second quarter of 2011, compared to operating earnings of $44 million in the second quarter of 2010. The increase in operating earnings was primarily due to an increase in gross margin, driven by the 11% increase in net sales, partially offset by increases in Other charges and SG&A expenses. The increase in Other charges was primarily due to charges from legal matters, net. The increase in SG&A expenses was primarily due to an increase in selling and marketing expenses related to the increase in net sales and increased employee benefit-related expenses, partially offset by savings from cost-reduction initiatives. As a percentage of net sales in the second quarter of 2011 as compared to the second quarter of 2010, gross margin increased, SG&A expenses decreased, and R&D expenditures decreased.

Six months ended July 2, 2011 compared to six months ended July 3, 2010

In the first half of 2011, the segment’s net sales were $1.4 billion, a 12% increase compared to net sales of $1.3 billion in the first half of 2010. The 12% increase in net sales in the Enterprise segment reflects an increase in mobile computing and wireless network solutions, partially offset by a decrease in the iDEN infrastructure business. On a geographic basis, net sales increased in all regions compared to the first half of 2010. Net sales in North America continued to comprise a significant portion of the segment’s business, accounting for approximately 45% and 50% of the segment’s net sales in the first half of 2011 and the first half of 2010, respectively. The decrease in the percentage of net sales in the North America regions reflects an increase in net sales in the EMEA region.

The segment had operating earnings of $125 million in the first half of 2011, compared to operating earnings of $72 million in the first half of 2010. The increase in operating earnings was primarily due to an increase in gross margin, driven by the 12% increase in net sales, partially offset by increases in Other charges and SG&A expenses. The increase in Other charges was primarily due to charges from legal matters, net. The increase in SG&A expenses was primarily due to an increase in selling and marketing expenses related to the increase in net sales, and increased employee benefit-related expenses, partially offset by savings from cost-reduction initiatives. As a percentage of net sales in the first half of 2011 as compared to the first half of 2010, gross margin increased, SG&A expenses decreased, and R&D expenditures decreased.

Reorganization of Businesses

During 2011, the Company implemented various productivity improvement plans aimed at achieving long term, sustainable profitability by driving efficiencies and reducing operating costs. During the second quarter of 2011, the Company recorded net reorganization of business charges of $17 million, including: (i) $13 million for exit costs relating to the exit of leased facilities, and (ii) $5 million relating to the separation of 100 employees, of whom substantially all were indirect employees, partially offset by $1 million of reversals for accruals no longer needed. These charges were substantially all classified as Other charges in the Company’s condensed consolidated statements of operations.

During the second quarter of 2010, the Company’s net reorganization of business charges were $20 million, including $6 million of charges in Costs of sales and $14 million of charges under Other charges in the Company’s condensed consolidated statements of operations. Included in the aggregate $20 million are charges of $21 million for employee separation costs, partially offset by $1 million of reversals for accruals no longer needed.

The Company expects to realize cost-saving benefits of approximately $3 million during the remaining six months of 2011 from the plans that were initiated during the first half of 2011, primarily in SG&A expenses. Beyond 2011, the Company expects the reorganization plans initiated during the first half of 2011 to provide annualized cost savings of approximately $6 million, primarily in SG&A expenses.

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The following table displays the net charges incurred by business segment:

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Government		$10		$15		$18		$15
Enterprise		7		5		7		5
		$17		$20		$25		$20

Cash payments for employee severance and exit costs in connection with the reorganization of business plans were $52 million in the first half of 2011, as compared to $34 million in the first half of 2010. Of the $40 million of reorganization of businesses accruals at July 2, 2011, $26 million relate to employee separation costs and are expected to be paid in 2011. The remaining $14 million in accruals relate to lease termination obligations that are expected to be paid over a number of years.

Liquidity and Capital Resources

As highlighted in the condensed consolidated statements of cash flows, the Company’s liquidity and available capital resources are impacted by four key components: (i) cash and cash equivalents, (ii) operating activities, (iii) investing activities, and (iv) financing activities.

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 $2.2 billion at July 2, 2011, compared to $4.2 billion at December 31, 2010. At July 2, 2011, $206 million of this amount was held in the U.S. and $1.9 billion was held by the Company or its subsidiaries in other countries. At July 2, 2011, restricted cash was $63 million (including $60 million held in the U.S.), compared to $226 million (including $60 million held in the U.S.) at December 31, 2010. The decrease in the Company’s cash and cash equivalents from December 31, 2010 to July 2, 2011 is reflective of the Company’s contribution of $3.2 billion of cash and cash equivalents to Motorola Mobility, which included $160 million of restricted cash, partially offset by $1.0 billion of net cash received from the sale of the Networks business.

The Company continues to analyze and review various repatriation strategies to continue to efficiently repatriate funds. During the first half of 2011, the Company repatriated $1.0 billion in funds to the U.S. from international jurisdictions with minimal cash tax cost. The Company has approximately $2.4 billion of earnings in foreign subsidiaries that are not permanently reinvested and may be repatriated without additional U.S. federal income tax charges to the Company’s condensed consolidated statements of operations, given the U.S. Federal tax provisions previously accrued on undistributed earnings and the utilization of available foreign tax credits. On a cash basis, these repatriations from the Company’s non-U.S. subsidiaries could require the payment of additional foreign taxes. While the Company regularly repatriates funds and a portion of offshore funds can be repatriated with minimal adverse financial impact, repatriation of some of these funds could be subject to delay for local country approvals and could have potential adverse cash tax consequences.

On January 4, 2011, the Distribution of Motorola Mobility from Motorola Solutions was completed. Immediately prior to the Distribution, the Company contributed $3.2 billion of cash and cash equivalents to Motorola Mobility. The contribution is reflected in the Company’s condensed consolidated statements of cash flow in the first half of 2011. The Company has 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 to Motorola Mobility on July 22, 2011.

During the six months ended July 2, 2011, the Company received cash proceeds from the sale of the Networks business of $1.0 billion, net of taxes, assignment fees, an expected purchase price adjustment and other transaction-related fees and expenses. Included in the cash proceeds were the $150 million of accounts receivable

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collected after the Transaction closed. A significant amount of the cash proceeds was received in the U.S. Based on the terms and conditions of the Transaction, the sale is subject to a purchase price adjustment that is contingent upon the review of final assets and liabilities transferred to NSN and is based on the change in net assets from the original agreed upon sale date. The Company expects to settle the purchase price adjustment with NSN in the second half of 2011.

Operating Activities

In the first half of 2011, the cash provided by operating activities was $333 million, compared to $162 million of cash provided by operating activities in the first half of 2010. The primary contributors to the cash provided in the first half of 2011 were: (i) income from continuing operations (adjusted for net non-cash charges) of $771 million, (ii) a $338 million decrease in accounts payable and accrued liabilities, and (iii) a $185 million net decrease in other assets and liabilities.

Accounts Receivable: The Company’s net accounts receivable were $1.5 billion at both July 2, 2011 and December 31, 2010. The Company’s businesses sell their products in a variety of markets throughout the world and payment terms can vary by market type and geographic location. Accordingly, the Company’s levels of net accounts receivable can be impacted by the timing and level of sales that are made by its various businesses and by the geographic locations in which those sales are made. See related discussion below under “Sales of Receivables.”

Inventory: The Company’s net inventory was $522 million at July 2, 2011, compared to $521 million at December 31, 2010. Inventory management continues to be an area of focus as the Company balances the need to maintain strategic inventory levels to ensure competitive delivery performance to its customers against the risk of inventory excess and obsolescence due to rapidly changing technology and customer spending requirements.

Accounts Payable: The Company’s accounts payable were $625 million at July 2, 2011, compared to $731 million at December 31, 2010. The Company buys products in a variety of markets throughout the world and payment terms can vary by market type and geographic location. Accordingly, the Company’s levels of accounts payable can be impacted by the timing and level of purchases made by its various businesses and by the geographic locations in which those purchases are made.

Benefit Plan Contributions: During the six months ended July 2, 2011, contributions of $23 million were made to the Company’s Non-U.S. plans, $6 million to its Officer’s plan and $110 million to the Company’s Regular Pension Plan. The Company expects to make additional contributions of approximately $125 million to its U.S. Regular Pension Plan during the remainder of 2011. The Company expects to make additional cash contributions of approximately $17 million to its non-U.S. plans and no cash contributions to its retiree health care plan during the remainder of 2011.

Investing Activities

Net cash provided by investing activities was $1.3 billion in the first half of 2011, compared to net cash used of $85 million in the first half of 2010. This $1.3 billion change was primarily due to the proceeds from the sale of the Networks business and the increase in cash received from net sales of Sigma Fund investments.

Sigma Fund: The Company and its wholly-owned subsidiaries invest most of their U.S. dollar-denominated cash in a fund (the “Sigma Fund”) that allows the Company to efficiently manage its cash around the world. The Company had net proceeds from sales of $266 million of Sigma Fund investments in the first half of 2011, compared to $248 million in net purchases of Sigma Fund investments in the first half of 2010. The aggregate fair value of Sigma Fund investments was $4.5 billion at July 2, 2011 (including $1.6 billion held by the Company or its subsidiaries outside the U.S.), compared to $4.7 billion at December 31, 2010 (including $1.9 billion held by the Company or its subsidiaries outside the U.S.).

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The Company continuously assesses its cash needs and continues to believe that the balance of cash and cash equivalents, short-term investments and investments in the Sigma Fund classified as current are more than adequate to meet its current operating requirements over the next twelve months.

Capital Expenditures: Capital expenditures were $60 million in the first half of 2011, compared to $74 million in the first half of 2010. The Company’s emphasis when making capital expenditure decisions is to focus on strategic investments driven by customer demand and new design capability.

Sales of Investments and Businesses: The Company received $1.1 billion in net proceeds from the sales of investments and businesses, primarily from the sale of the Networks business, in the first half of 2011, compared to proceeds of $239 million in the first half of 2010. The proceeds in the first half of 2011 were primarily comprised of net proceeds received in connection with sales of: (i) Networks business, (ii) certain portions of the Company’s equity investments, and (iii) the Israel-based module business. The proceeds in the first half of 2010 were primarily comprised of net proceeds received in connection with: (i) the sale of our Israel-based wireless networks operator business, and (ii) the sales of certain of the Company’s equity investments.

Financing Activities

Net cash used for financing activities was $3.6 billion in the first half of 2011, compared to net cash provided of $113 million in the first half of 2010. Cash used for financing activities in the first half of 2011 was primarily comprised of: (i) a $3.2 billion cash contribution relating to the Distribution of Motorola Mobility, and (ii) $616 million of cash used for the repurchase of long-term debt, partially offset by: (i) $128 million of net cash received from the issuance of common stock in connection with the Company’s employee stock option plans and employee stock purchase plan, and (ii) $75 million of distributions from discontinued operations. Net cash provided by financing activities in the first half of 2010 was primarily comprised of $531 million of distributions from discontinued operations and $68 million of cash received from the issuance of common stock in connection with the Company’s employee stock option plans and employee stock purchase plan, partially offset by $481 million of cash used for the repurchase of long-term debt.

Short-Term Debt: At July 2, 2011, the Company’s outstanding notes payable and current portion of long-term debt was $606 million, compared to $605 million at December 31, 2010.

Long-Term Debt: At July 2, 2011, the Company had outstanding long-term debt of $1.5 billion, compared to $2.1 billion. at December 31, 2010.

During the six months ended July 2, 2011, the Company repurchased $540 million of its outstanding long-term debt for a purchase price of $615 million, excluding approximately $6 million of accrued interest, all of which occurred during the three months ended July 2, 2011. The $540 million of long-term debt repurchased included principal amounts of: (i) $196 million of the $314 million then outstanding of the 6.50% Debentures due 2025, (ii) $174 million of the $210 million then outstanding of the 6.50% Debentures due 2028, and (iii) $170 million of the $225 million then outstanding of the 6.625% Senior Notes due 2037. After accelerating the amortization of debt issuance costs and debt discounts, the Company recognized a loss of $81 million related to this debt tender in Other within Other income (expense) in the condensed consolidated statements of operations.

During the six months ended July 3, 2010, the Company repurchased $500 million of its outstanding long-term debt for a purchase price of $477 million, excluding approximately $5 million of accrued interest, all of which occurred during the three months ended July 3, 2010. The $500 million of long-term debt repurchased included principal amounts of: (i) $65 million of the $379 million then outstanding of the 6.50% Debentures due 2025, (ii) $75 million of the $286 million then outstanding of the 6.50% Debentures due 2028, (iii) $222 million of the $446 million then outstanding of the 6.625% Senior Notes due 2037, and (iv) $138 million of the

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$252 million then outstanding of the 5.22% Debentures due 2097. After accelerating the amortization of debt issuance costs and debt discounts, the Company recognized a loss of approximately $12 million related to this debt tender in Other within Other income (expense) in the condensed consolidated statements of operations.

The three largest U.S. national rating agencies rate the Company’s senior unsecured long-term debt investment grade. The Company believes that it will be able to maintain sufficient access to the capital markets at its current ratings. Any future disruptions, uncertainty or volatility in the capital markets may result in higher funding costs for the Company and adversely affect its ability to access funds.

The Company may from time to time seek to retire certain of its outstanding debt through open market cash purchases, privately-negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, the Company’s liquidity requirements, contractual restrictions and other factors.

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, subject to market conditions. All repurchased shares are expected to be 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 payable on October 14, 2011 to shareholders of record as of the close of business on September 15, 2011.

Credit Facilities

During the first quarter 2011, the Company terminated its $1.5 billion domestic syndicated revolving credit facility scheduled to mature in December 2011 and entered into a new $1.5 billion unsecured syndicated revolving credit facility (the “2011 Motorola Solutions Credit Agreement”) scheduled to mature on June 30, 2014. The 2011 Motorola Solutions Credit Agreement includes a provision pursuant to which the Company can increase the aggregate credit facility size up to a maximum of $2.0 billion by adding lenders or having existing lenders increase their commitments. The Company must comply with certain customary covenants, including maximum leverage and minimum interest coverage ratios as defined in the 2011 Motorola Solutions Credit Agreement. The Company was in compliance with its financial covenants as of July 2, 2011. The Company has no outstanding borrowing under the 2011 Motorola Solutions Credit Agreement.

Long-Term Customer Financing Commitments

Outstanding Commitments: The Company had outstanding commitments to provide long-term financing to third parties totaling $135 million at July 2, 2011, compared to $333 million at December 31, 2010 (including $168 million at December 31, 2010 relating to the Networks business). Of these amounts, $1 million was supported by letters of credit or by bank commitments to purchase long-term receivables at July 2, 2011, compared to $27 million at December 31, 2010. The Company retained the funded portion of the financing arrangements related to the Networks business following the sale to NSN, which totaled approximately $286 million at July 2, 2011.

Guarantees of Third-Party Debt: The Company had committed to provide financial guarantees relating to customer financing facilities totaling $1 million at July 2, 2011, compared to $10 million at December 31, 2010 (including $6 million at December 31, 2010 relating to the sale of short-term receivables). Customer financing guarantees outstanding were $1 million at both July 2, 2011 and December 31, 2010 (all relating to the sale of long-term receivables).

Outstanding Long-Term Receivables: The Company had net long-term receivables of $301 million (net of allowances for losses of $6 million) at July 2, 2011, compared to net long-term receivables of $264 million (net of allowances for losses of $1 million) at December 31, 2010. These long-term receivables are generally interest bearing, with interest rates ranging from 1% to 13%.

42

Sales of Receivables

As of July 2, 2011 and December 31, 2010, the Company had a $200 million committed revolving receivable sales facility, maturing December 2011, for the sale of accounts receivable, which was fully available at both periods. The initial cash proceeds received by the Company for the sale of these receivables is capped at the lower of $200 million or eligible receivables less reserves. The Company had no significant committed facilities for the sale of long-term receivables at July 2, 2011 or at December 31, 2010.

The following table summarizes the proceeds received from non-recourse sales of accounts receivable and long-term receivables for the three and six months ended July 2, 2011 and July 3, 2010:

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Cumulative quarterly proceeds received from one-time sales:
Accounts receivable sales proceeds		$—		$5		$1		$28
Long-term receivables sales proceeds		17		6		23		9
Total proceeds from one-time sales		17		11		24		37
Cumulative quarterly proceeds received from sales under committed facilities		—		16		—		70
Total proceeds from receivables sales		$17		$27		$24		$107

At July 2, 2011, the Company retained no servicing obligations for sold accounts receivable and $266 million of long-term receivables, compared to $329 million of sold accounts receivable and $277 million of long-term receivables at December 31, 2010.

Other Contingencies

Potential Contractual Damage Claims in Excess of Underlying Contract Value:    In certain circumstances, our businesses may enter into contracts with customers pursuant to which the damages that could be claimed by the other party for failed performance might exceed the revenue the Company receives from the contract. Contracts with these types of uncapped damage provisions are fairly rare, but individual contracts could still represent meaningful risk. There is a possibility that a damage claim by a counterparty to one of these contracts could result in expenses to the Company that are far in excess of the revenue received from the counterparty in connection with the contract.

Indemnification Provisions:    In addition, the Company may provide indemnifications for losses that result from the breach of general warranties contained in certain commercial, intellectual property and divestiture agreements. Historically, the Company has not made significant payments under these agreements, nor have there been significant claims asserted against the Company. However, there is an increasing risk in relation to intellectual property indemnities given the current legal climate. In indemnification cases, payment by the Company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party’s claims. Further, the Company’s obligations under divestiture agreements for indemnification based on breach of representations and warranties are generally limited in terms of duration, typically not more than 24 months, and for amounts not in excess of the contract value, and in some instances the Company may have recourse against third parties for certain payments made by the Company.

Legal Matters:    The Company is a defendant in various lawsuits, claims and actions, which arise in the normal course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations. However, an unfavorable resolution could have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations in the periods in which the matters are ultimately resolved.

43

In addition, pursuant to the Master Separation and Distribution Agreement and certain other agreements with Motorola Mobility, Motorola Mobility agreed to indemnify the Company for certain liabilities, and the Company agreed to indemnify Motorola Mobility for certain liabilities, in each case for uncapped amounts.

During the second quarter of 2011, the Company recorded $48 million of net charges related to legal matters to Other charges in the Company’s condensed consolidated statements of operations. The net charges primarily related to a contingent reserve for a suit in which the Company has assessed the likelihood of having to pay as probable.

Significant Accounting Policies

Management’s Discussion and Analysis of Financial Condition and Results of Operations discusses the Company’s condensed consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period.

Management bases its estimates and judgments on historical experience, current economic and industry conditions and on various other factors that are believed to be reasonable under the circumstances. This forms the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Management believes the following significant accounting policies require significant judgment and estimates:

– Revenue recognition

– Inventory valuation

– Income taxes

– Valuation of the Sigma Fund and investment portfolios

– Restructuring activities

– Retirement-related benefits

– Valuation and recoverability of goodwill and long-lived assets

44

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Derivative Financial Instruments

At July 2, 2011, the Company had outstanding foreign exchange contracts with notional amounts totaling $665 million, compared to $1.5 billion outstanding at December 31, 2010. The decrease in outstanding contracts is primarily related to the Distribution of Motorola Mobility. Management believes that these financial instruments should not subject the Company to undue risk due to foreign exchange movements because gains and losses on these contracts should generally offset losses and gains on the underlying assets, liabilities and transactions, except for the ineffective portion of the instruments, which are charged to Other within Other income (expense) in the Company’s condensed consolidated statements of operations.

The following table shows the five largest net notional amounts of the positions to buy or sell foreign currency as of July 2, 2011 and the corresponding positions as of December 31, 2010:

	Notional Amount
Net Buy (Sell) by Currency	July 2, 2011		December 31, 2010
Chinese Renminbi		$(424)		$(423)
Malaysian Ringgit		45		64
Euro		42		(195	)
British Pound		24		187
Israeli Shekel		24		(5	)

45

Forward-Looking Statements

Except for historical matters, the matters discussed in this Form 10-Q are forward-looking statements within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes”, “expects”, “intends”, “anticipates”, “estimates” and similar expressions. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this Form 10-Q. Forward-looking statements include, but are not limited to, statements included in: (1) the Executive Overview about: (a) the expected net cash proceeds from the sale of our Networks business, (b) the tax free nature of the Distribution of Motorola Mobility, (c) our business strategies and expected results, (d) our industry and market expectations including demand levels and customer priorities for each of our businesses, and (e) the timing and impact of new product launches, (2) “Management’s Discussion and Analysis,” about: (a) future payments, charges, use of accruals and expected cost-saving benefits associated with our reorganization of business programs and employee separation costs, (b) the Company’s ability and cost to repatriate funds, (c) the Company’s ability to declare quarterly dividends, (d) the Company’s ability to repurchase shares of the Company’s common stock under its share repurchase program, (e) the impact of the timing and level of sales of accounts receivable and the geographic location of such sales, (f) the impact of the timing and level of purchases by various businesses and the geographic location of such purchases, (g) expectations for the Sigma Fund and other investments, (h) the Company’s ability and cost to access the capital markets, (i) the Company’s plans with respect to the level of outstanding debt, (j) expected payments pursuant to commitments under long-term agreements, (k) potential contractual damages claims, (l) the outcome of ongoing and future legal proceedings, (m) the completion and impact of pending acquisitions and divestitures, and (n) the impact of recent accounting pronouncements on the Company, (3) “Quantitative and Qualitative Disclosures about Market Risk,” about the impact of foreign currency exchange risks, and (4) “Legal Proceedings,” about the ultimate disposition of pending legal matters. Motorola undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.

Some of the risk factors that affect the Company’s business and financial results are discussed in Part I, “Item 1A: Risk Factors” on pages 12 through 25 of our 2010 Annual Report on Form 10-K, in Part II, “Item 1A: Risk Factors” on page 46 of our Quarterly Report on Form 10-Q for the period ended April 2, 2011, and in our other SEC filings available for free on the SEC’s website at www.sec.gov and on Motorola Solutions’ website at www.motorolasolutions.com. We wish to caution the reader that the risk factors discussed in each of these documents and those described in our other Securities and Exchange Commission filings, could cause our actual results to differ materially from those stated in the forward-looking statements.

46

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures. Under the supervision and with the participation of our senior management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this quarterly report (the “Evaluation Date”). Based on this evaluation, our chief executive officer and chief financial officer concluded as of the Evaluation Date that our disclosure controls and procedures were effective such that the information relating to Motorola Solutions, including our consolidated subsidiaries, required to be disclosed in our Securities and Exchange Commission (“SEC”) reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to Motorola Solutions’ management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in internal control over financial reporting. There have been no changes in our internal control over financial reporting that occurred during the quarter ended July 2, 2011, that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

47

Part II—Other Information

Item 1. Legal Proceedings

The proceedings referenced below refer to Motorola, Inc., our former name, and we have not changed the court descriptions to refer to Motorola Solutions, Inc.

St. Lucie County Fire District Firefighters’ Pension Trust Fund Securities Class Action Case and Related Derivative Matter

A purported class action lawsuit, St. Lucie County Fire District Firefighters’ Pension Fund v. Motorola, Inc., et al., was filed against the Company and certain current and former officers and directors of the Company on January 21, 2010, in the United States District Court for the Northern District of Illinois. The complaint was amended on June 11, 2010, and again on December 3, 2010. The alleged class included purchasers of Motorola securities between October 25, 2007 and January 23, 2008. The complaint alleged violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, as well as, in the case of the individual defendants, the control person provisions of the Securities Exchange Act. The primary factual allegations were that the defendants knowingly or recklessly made materially misleading statements concerning Motorola’s financial projections and sales demand for Motorola phones during the class period. The complaint sought unspecified damages and other relief relating to the purported inflation in the price of Motorola shares during the class period. On February 28, 2011, the Court granted defendants’ motion to dismiss and dismissed the Second Amended Complaint in its entirety with prejudice. Plaintiffs subsequently filed a notice of appeal with the Seventh Circuit United States Court of Appeals. While the appeal was pending, the parties reached a settlement following mediation with a Court-appointed mediator. The case was remanded to the District Court for settlement proceedings. On July 7, 2011, the Court entered an Order preliminarily approving the settlement. The final approval hearing is scheduled for November 2, 2011.

Silverman Federal Securities Lawsuits

A purported class action lawsuit on behalf of the purchasers of Motorola securities between July 19, 2006 and January 5, 2007, Silverman v. Motorola, Inc., et al., was filed against the Company and certain current and former officers and directors of the Company on August 9, 2007, in the United States District Court for the Northern District of Illinois. The complaint alleges violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, as well as, in the case of the individual defendants, the control person provisions of the Securities Exchange Act. The factual assertions in the complaint consist primarily of the allegation that the defendants knowingly made incorrect statements concerning Motorola’s projected revenues for the third and fourth quarter of 2006. The complaint seeks unspecified damages and other relief relating to the purported inflation in the price of Motorola shares during the class period. An amended complaint was filed December 20, 2007, and Motorola moved to dismiss that complaint in February 2008. On September 24, 2008, the district court granted this motion in part to dismiss Section 10(b) claims as to two individuals and certain claims related to forward looking statements, among other things, and denied the motion in part. On August 25, 2009, the district court granted plaintiff’s motion for class certification. On March 10, 2010, the district court granted plaintiffs motion to file a second amended complaint which adds allegations concerning Motorola’s accounting and disclosures for certain transactions entered into in the third quarter of 2006. On February 16, 2011, the district court granted summary judgment to dismiss the remaining claims as to two individual defendants and the Section 10(b) claim as to a third individual, and denied the motion in part. On March 21, 2011, Motorola filed a motion for summary judgment to dismiss the remaining claims against the Company and other individual defendants. On July 25, 2011, the district court denied the motion for summary judgment.

48

Microsoft Corporation v. Motorola, Inc.

On October 1, 2010, Microsoft Corporation (“Microsoft”) filed complaints against Motorola, Inc. in the United States International Trade Commission (“ITC”) and the United States District Court for the Western District of Washington (“District Court”) alleging patent infringement based on products manufactured and sold by Motorola, Inc. The ITC matter is entitled In the Matter of Mobile Devices, Associated Software, and Components Thereof (Inv. No. 337-TA-744). On October 6, 2010 and October 12, 2010, Microsoft amended the District Court and ITC complaints, respectively, to add Motorola Mobility, Inc. as a defendant. The complaints, as amended, allege infringement of claims of nine patents based on Motorola, Inc.’s and Motorola Mobility, Inc.’s manufacture, sale and/or importation of Android-based mobile phones. The ITC complaint seeks exclusion and cease and desist orders. On November 5, 2010, the ITC instituted the investigation. The District Court complaint (No. C10-01577) seeks unspecified monetary damages and injunctive relief.

On November 9, 2010, Microsoft filed a complaint in the United States District Court for the Western District of Washington (No. C10-01823) against Motorola, Inc. and Motorola Mobility, Inc. (the “Motorola Defendants”) alleging that the Motorola Defendants breached a contractual obligation to license certain patents related to 802.11 wireless networking technology and H.264 video coding technology on reasonable and non-discriminatory terms and conditions. The complaint seeks unspecified monetary damages and injunctive relief including a declaration that the Motorola Defendants have not offered licenses to these patents to Microsoft under reasonable royalty rates, with terms and conditions that are demonstrably free of any unfair discrimination. On February 23, 2011, Microsoft amended the complaint to add General Instrument Corporation as a defendant.

In November 2010, Motorola Mobility, Inc. and General Instrument Corporation filed complaints against Microsoft in the ITC and in the U.S. District Courts for the Southern District of Florida, Motorola Mobility, Inc. v. Microsoft Corporation and the Western District of Wisconsin, Motorola Mobility, Inc. and General Instrument Corporation v. Microsoft Corporation (No. 10-cv-699) and Motorola Mobility, Inc. and General Instrument Corporation v. Microsoft Corporation (No. 10-cv-700). The ITC matter is entitled In the Matter of Certain Gaming and Entertainment Consoles, Related Software, and Components Thereof (Inv. No. 337-TA-752). Among the complaints, Motorola Mobility, Inc. and General Instrument Corporation are asserting infringement of claims of sixteen patents by Microsoft’s PC and Server software, Windows mobile and smartphone software and Xbox products. The ITC complaint seeks exclusion and cease and desist orders directed to these products. On December 23, 2010, the ITC instituted the investigation. The District Court complaints seek monetary damages and injunctive relief. In December 2010 and February 2011, Motorola Mobility, Inc. subsequently asserted claims of five additional patents in the Western District of Wisconsin, Motorola Mobility, Inc. v. Microsoft Corporation (No. 10-cv-826). Between December 23, 2010 and January 25, 2011, Microsoft filed counterclaims against Motorola Mobility, Inc. in several of these actions, alleging infringement of a total of fourteen additional Microsoft patents. Two of the complaints filed by Motorola Mobility, Inc. and General Instrument Corporation in the Western District of Wisconsin have been transferred to the Western District of Washington.

In late June 2011 Motorola Solutions, Inc., Motorola Mobility, Inc. and Microsoft Corporation filed a joint motion to remove Motorola Solutions, Inc. as a respondent in the ITC matter. That motion was subsequently approved by the Commission in early July 2011. As a result, Motorola Solutions, Inc. is no longer a participant in the ITC matter except with regard to the production of certain information dating from prior to January 4, 2011. Motorola Solutions, Inc. will not be bound by any remedy granted by the ITC, such as an exclusion order, unless Motorola Solutions, Inc. is importing and/or reselling products made by Motorola Mobility, Inc.

49

Item 1A. Risk Factors

The reader should carefully consider, in connection with the other information in this report, the factors discussed in Part I, “Item 1A: Risk Factors” on pages 12 through 25 of the Company’s 2010 Annual Report on Form 10-K and in Part II, “Item 1A: Risk Factors” on page 46 of our Quarterly Report on Form 10-Q for the period ended April 2, 2011. These factors could cause our actual results to differ materially from those stated in forward-looking statements contained in this document and elsewhere.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None

Item 3. Defaults Upon Senior Securities.

None

Item 4. (Removed and Reserved)

Item 5. Other Information.

None

50

Item 6. Exhibits

Exhibit No.	Exhibit
*31.1	Certification of Gregory Q. Brown pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2	Certification of Edward J. Fitzpatrick pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
*32.1	Certification of Gregory Q. Brown pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*32.2	Certification of Edward J. Fitzpatrick pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
**101.INS	XBRL Instance Document
**101.SCH	XBRL Taxonomy Extension Scheme Document
**101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
**101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
**101.LAB	XBRL Taxonomy Extension Label Linkbase Document
**101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith

** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securii4es Exchange Act of 1934, and otherwise is not subject to liability under these sections.

MOTOROLA, MOTO, MOTOROLA SOLUTIONS and the Stylized M Logo, as well as iDEN are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license.

All other product or service names are the property of their respective owners. ^© 2011 Motorola Solutions, Inc. All rights reserved.

51

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

MOTOROLA SOLUTIONS, INC.
By:	/S/ JOHN K. WOZNIAK
	John K. Wozniak Corporate Vice President and Chief Accounting Officer (Principal Accounting Officer)

Date: July 28, 2011

52

EXHIBIT INDEX

Exhibit No.	Exhibit
*31.1	Certification of Gregory Q. Brown pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2	Certification of Edward J. Fitzpatrick pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
*32.1	Certification of Gregory Q. Brown pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*32.2	Certification of Edward J. Fitzpatrick pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
**101.INS	XBRL Instance Document
**101.SCH	XBRL Taxonomy Extension Scheme Document
**101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
**101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
**101.LAB	XBRL Taxonomy Extension Label Linkbase Document
**101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith

** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

53

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Gregory Q. Brown, Chairman and Chief Executive Officer, Motorola Solutions, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Motorola Solutions, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 28, 2011

/s/ GREGORY Q. BROWN

Gregory Q. Brown

Chairman and Chief Executive Officer

Motorola Solutions, Inc.

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Edward J. Fitzpatrick, Executive Vice President and Chief Financial Officer, Motorola Solutions, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Motorola Solutions, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 28, 2011

/s/ EDWARD J. FITZPATRICK

Edward J. Fitzpatrick

Executive Vice President and

Chief Financial Officer

Motorola Solutions, Inc.

EX-32.1

Exhibit 32.1

CERTIFICATION

I, Gregory Q. Brown, Chairman and Chief Executive Officer, Motorola Solutions, Inc., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (“Section 906”), that, to my knowledge:

(1) the quarterly report on Form 10-Q for the period ended July 2, 2011 (the “Quarterly Report”), which this statement accompanies fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

(2) the information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of Motorola Solutions, Inc.

This certificate is being furnished solely for purposes of Section 906.

Dated: July 28, 2011

/s/ GREGORY Q. BROWN

Gregory Q. Brown

Chairman and Chief Executive Officer

Motorola Solutions, Inc.

EX-32.2

Exhibit 32.2

CERTIFICATION

I, Edward J. Fitzpatrick, Executive Vice President and Chief Financial Officer, Motorola Solutions, Inc., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (“Section 906”), that, to my knowledge:

(1) the quarterly report on Form 10-Q for the period ended July 2, 2011 (the “Quarterly Report”), which this statement accompanies fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

(2) the information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of Motorola Solutions, Inc.

This certificate is being furnished solely for purposes of Section 906.

Dated: July 28, 2011

/s/ EDWARD J. FITZPATRICK

Edward J. Fitzpatrick

Executive Vice President and

Chief Financial Officer

Motorola Solutions, Inc.

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Document And Entity Information	6 Months Ended
	Jul. 02, 2011
Document And Entity Information
Entity Registrant Name	Motorola Solutions, Inc.
Entity Central Index Key	0000068505
Document Type	10-Q
Document Period End Date	Jul. 02, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	343,136,511
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2

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Other Financial Data

6 Months Ended

Jul. 02, 2011

Other Financial Data

Other Financial Data

3. Other Financial Data

Statement of Operations Information

Other Charges

Other charges included in Operating earnings consist of the following:

	Three Month Ended				Six Months Ended
	July 2,     2011		July 3,     2010		July 2,     2011		July 3,     2010
Other charges:
Amortization of intangible assets		$50		$50		$100		$101
Legal matters and settlements, net		48		—		48		(29)
Reorganization of business charges		17		14		22		13
Pension plan adjustments, net		(9)		—		(9)		—
		$106		$64		$161		$85

Other Income (Expense)

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

	Three Month Ended				Six Months Ended
	July 2,     2011		July 3,     2010		July 2,     2011		July 3,     2010
Interest income (expense), net:
Interest expense		$(40)		$(56)		$(74)		$(116)
Interest income		19		21		33		48
		$(21)		$(35)		$(41)		$(68)
Other:
Loss from the extinguishment of the Company's outstanding long-term debt		$(81)		$(12)		$(81)		$(12)
Investment impairments		—		(9)		(3)		(18)
Foreign currency gain (loss)		6		(4)		11		3
Gain (loss) on Sigma Fund investments		—		(4)		—		12
Other		(2)		(1)		1		—
		$(77)		$(30)		$(72)		$(15)

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	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Basic earnings per common share:
Earnings		$58		$3		$349		$162
Weighted average common shares outstanding		341.2		332.7		341.2		332.7
Per share amount		$0.17		$0.01		$1.02		$0.49
Diluted earnings per common share:
Earnings		$58		$3		$349		$162
Weighted average common shares outstanding		341.2		332.7		341.2		332.7
Add effect of dilutive securities:
Share-based awards and other		7.3		5.2		7.3		5.2
Diluted weighted average common shares outstanding		348.5		337.9		348.5		337.9
Per share amount		$0.17		$0.01		$1.00		$0.48

	Amounts attributable to Motorola Solutions, Inc. common stockholders
	Earnings from Continuing Operations				Net Earnings
Six Months Ended	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Basic earnings per common share:
Earnings		$423		$100		$846		$231
Weighted average common shares outstanding		339.3		331.7		339.3		331.7
Per share amount		$1.24		$0.30		$2.49		$0.70
Diluted earnings per common share:
Earnings		$423		$100		$846		$231
Weighted average common shares outstanding		339.3		331.7		339.3		331.7
Add effect of dilutive securities:
Share-based awards and other		7.0		4.4		7.0		4.4
Diluted weighted average common shares outstanding		346.3		336.1		346.3		336.1
Per share amount		$1.22		$0.30		$2.44		$0.69

In the computation of diluted earnings per common share from both continuing operations and on a net earnings basis for the three and six months ended July 2, 2011, the assumed exercise of 8.0 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. In the computation of diluted earnings per common share from both continuing operations and on a net earnings basis for the three and six months ended July 3, 2010, the assumed exercise of 19.1 million and 18.9 million stock options, respectively, and the assumed vesting of 1.2 million and 0.7 million restricted stock units, 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 $2.2 billion and $4.2 billion at July 2, 2011 and December 31, 2010, respectively. Of these amounts, $63 million and $226 million, respectively, were restricted. The decrease in the Company's cash and cash equivalents from December 31, 2010 to July 2, 2011 is reflective of the Company's contribution of $3.2 billion of cash and cash equivalents to Motorola Mobility, which included $160 million of restricted cash.

Sigma Fund

The Sigma Fund consists of the following:

	July 2, 2011				December 31, 2010
Fair Value	Current		Non-current		Current		Non-Current
Cash		$1,988		$—		$2,355		$—
Securities:
U.S. government and agency obligations		2,434		—		2,291		—
Corporate bonds		—		21		—		58
Asset-backed securities		—		—		—		1
Mortgage-backed securities		—		7		—		11
		$4,422		$28		$4,646		$70

During the three months ended July 2, 2011, the Company recorded de minimus gains on Sigma Fund investments, compared to a net loss of $4 million during the three months ended July 3, 2010, in Other income (expense) in the condensed consolidated statement of operations. During the six months ended July 2, 2011, the Company recorded de minimus losses on Sigma Fund investments, compared to gains of $12 million during the six months ended July 3, 2010, in Other income (expense) in the condensed consolidated statement of operations.

Investments

Investments consist of the following:

	Recorded Value				Less
July 2, 2011	Short-term   Investments		Investments		Unrealized   Gains		Cost   Basis
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		—		30		19		11
		2		61		19		44
Other securities, at cost		—		104		—		104
Equity method investments		—		10		—		10
		$2		$175		$19		$158
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

During the three months ended July 2, 2011, the Company recorded no investment impairment charges. During the three months ended July 3, 2010, the Company recorded investment impairment charges of $9 million, representing other-than-temporary declines in the value of the Company's investment portfolio, primarily related to common stock and equivalents and other securities recorded at cost. During the six months ended July 2, 2011 and July 3, 2010, the Company recorded investment impairment charges of $3 million and $18 million, respectively, representing other-than-temporary declines in the value of the Company's investment portfolio, primarily related to common stock and equivalents and other securities recorded at cost. Investment impairment charges are included in Other within Other income (expense) in the Company's condensed consolidated statements of operations.

Accounts Receivable, Net

Accounts receivable, net, consists of the following:

	July 2, 2011		December 31, 2010
Accounts receivable		$1,596		$1,596
Less allowance for doubtful accounts		(50)		(49)
		$1,546		$1,547

Inventories, Net

Inventories, net, consist of the following:

	July 2, 2011		December 31, 2010
Finished goods		$398		$386
Work-in-process and production materials		284		292
		682		678
Less inventory reserves		(160)		(157)
		$522		$521

Other Current Assets

Other current assets consist of the following:

	July 2, 2011		December 31, 2010
Costs and earnings in excess of billings		$314		$291
Contract-related deferred costs		163		160
Tax-related refunds receivable		105		116
Other		147		181
		$729		$748

Property, Plant and Equipment, Net

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

	July 2, 2011		December 31, 2010
Land		$70		$71
Building		769		804
Machinery and equipment		2,115		2,094
		2,954		2,969
Less accumulated depreciation		(2,055)		(2,047)
		$899		$922

Depreciation expense for the three months ended July 2, 2011 and July 3, 2010 was $40 million and $35 million, respectively. Depreciation expense for the six months ended July 2, 2011 and July 3, 2010 was $81 million and $71 million, respectively.

Other Assets

Other assets consist of the following:

	July 2, 2011		December 31, 2010
Long-term receivables, net of allowances of $6 and $1		$272		$251
Intangible assets, net of accumulated amortization of $1,047 and $947		146		246
Other		223		237
		$641		$734

Accrued Liabilities

Accrued liabilities consist of the following:

	July 2, 2011		December 31, 2010
Deferred revenue		$760		$746
Compensation		336		558
Distribution-related obligation		300		—
Billings in excess of costs and earnings		251		226
Tax liabilities		146		179
Customer reserves		112		117
Other		885		748
		$2,790		$2,574

As part of the Distribution of Motorola Mobility, the Company has 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 to Motorola Mobility on July 22, 2011.

Other Liabilities

Other liabilities consist of the following:

	July 2, 2011		December 31, 2010
Defined benefit plans, including split dollar life insurance policies		$2,025		$2,113
Deferred revenue		293		274
Postretirement health care benefit plan		286		277
Unrecognized tax benefits		102		70
Other		309		311
		$3,015		$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) $1 million in Foreign currency translation adjustments, net of tax of a de minimus amount, (ii) $9 million in Fair value adjustments to available for sale securities, net of tax of $5 million, and (iii) $8 million in Retirement benefit adjustments, net of tax of $4 million. 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, subject to market conditions. All repurchased shares are expected to be 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 payable on October 14, 2011 to shareholders of record as of the close of business on September 15, 2011.

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Debt And Credit Facilities

6 Months Ended

Jul. 02, 2011

Debt And Credit Facilities

Debt And Credit Facilities

4. Debt and Credit Facilities

During the six months ended July 2, 2011, the Company repurchased $540 million of its outstanding long-term debt for a purchase price of $615 million, excluding approximately $6 million of accrued interest, all of which occurred during the three months ended July 2, 2011. The $540 million of long-term debt repurchased included principal amounts of: (i) $196 million of the $314 million then outstanding of the 6.50% Debentures due 2025, (ii) $174 million of the $210 million then outstanding of the 6.50% Debentures due 2028, and (iii) $170 million of the $225 million then outstanding of the 6.625% Senior Notes due 2037. After accelerating the amortization of debt issuance costs and debt discounts, the Company recognized a loss of approximately $81 million related to this debt tender in Other within Other income (expense) in the condensed consolidated statements of operations.

During the six months ended July 3, 2010, the Company repurchased $500 million of its outstanding long-term debt for a purchase price of $477 million, excluding approximately $5 million of accrued interest, all of which occurred during the three months ended July 3, 2010. The $500 million of long-term debt repurchased included principal amounts of: (i) $65 million of the $379 million then outstanding of the 6.50% Debentures due 2025, (ii) $75 million of the $286 million then outstanding of the 6.50% Debentures due 2028, (iii) $222 million of the $446 million then outstanding of the 6.625% Senior Notes due 2037, and (iv) $138 million of the $252 million then outstanding of the 5.22% Debentures due 2097. After accelerating the amortization of debt issuance costs and debt discounts, the Company recognized a loss of approximately $12 million related to this debt tender in Other within Other income (expense) in the condensed consolidated statements of operations.

During the first quarter of 2011, the Company terminated its $1.5 billion domestic syndicated revolving credit facility scheduled to mature December 2011 and entered into a new $1.5 billion unsecured syndicated revolving credit facility (the "2011 Motorola Solutions Credit Agreement") scheduled to mature on June 30, 2014. The 2011 Motorola Solutions Credit Agreement includes a provision pursuant to which the Company can increase the aggregate credit facility size up to a maximum of $2.0 billion by adding lenders or having existing lenders increase their commitments. The Company must comply with certain customary covenants, including maximum leverage and minimum interest coverage ratios as defined in the 2011 Motorola Solutions Credit Agreement. The Company was in compliance with its financial covenants as of July 2, 2011. The Company has no outstanding borrowings under the 2011 Motorola Solutions Credit Agreement.

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Risk Management

6 Months Ended

Jul. 02, 2011

Risk Management

Risk Management

5. Risk Management

Derivative Financial Instruments

Foreign Currency Risk

At July 2, 2011, the Company had outstanding foreign exchange contracts with notional amounts totaling $665 million, compared to $1.5 billion outstanding at December 31, 2010. The decrease in outstanding contracts is primarily related to the Distribution of Motorola Mobility. Management believes that these financial instruments should not subject the Company to undue risk due to foreign exchange movements because gains and losses on these contracts should generally offset losses and gains on the underlying assets, liabilities and transactions, except for the ineffective portion of the instruments, which are charged to Other within Other income (expense) in the Company's condensed consolidated statements of operations.

The following table shows the five largest net notional amounts of the positions to buy or sell foreign currency as of July 2, 2011 and the corresponding positions as of December 31, 2010:

	Notional Amount
Net Buy (Sell) by Currency	July 2, 2011		December 31, 2010
Chinese Renminbi		$(424)		$(423)
Malaysian Ringgit		45		64
Euro		42		(195)
British Pound		24		187
Israeli Shekel		24		(5)

Interest Rate Risk

At July 2, 2011, the Company had $2.2 billion of long-term debt, including the current portion of long-term debt, which is primarily priced at long-term, fixed interest rates.

As part of its liability management program, one of the Company's European subsidiaries has an outstanding interest rate agreement ("Interest Agreement") relating to a Euro-denominated loan. The interest on the Euro-denominated loan is variable. The Interest Agreement changes the characteristics of interest payments from variable to fixed-rate payments. The Interest Agreement is not accounted for as a part of a hedging relationship and, accordingly, the changes in the fair value of the Interest Agreement are included in Other income (expense) in the Company's condensed consolidated statements of operations. The fair value of the Interest Agreement was in a liability position of $3 million at both July 2, 2011 and December 31, 2010.

Counterparty Risk

The use of derivative financial instruments exposes the Company to counterparty credit risk in the event of non-performance by counterparties. However, the Company's risk is limited to the fair value of the instruments when the derivative is in an asset position. The Company actively monitors its exposure to credit risk. As of July 2, 2011, all of the counterparties have investment grade credit ratings. The Company is not exposed to material credit risk with any single counterparty. As of July 2, 2011, the Company was exposed to an aggregate credit risk of approximately $3 million with all counterparties.

The following tables summarize the fair values and location in the condensed consolidated balance sheets of all derivative financial instruments held by the Company, including amounts held for disposition, at July 2, 2011 and December 31, 2010:

	Fair Values of Derivative Instruments
	Assets				Liabilities
July 2, 2011	Fair Value		Balance Sheet Location		Fair Value		Balance Sheet Location
Derivatives designated as hedging instruments:
Foreign exchange contracts		$2		Other assets		$—		Other liabilities
Derivatives not designated as hedging instruments:
Foreign exchange contracts		1		Other assets		1		Other liabilities
Interest agreement contracts		—		Other assets		3		Other liabilities
Total derivatives not designated as hedging instruments		1				4
Total derivatives		$3				$4

	Fair Values of Derivative Instruments
	Assets				Liabilities
December 31, 2010	Fair Value		Balance Sheet Location		Fair Value		Balance Sheet Location
Derivatives designated as hedging instruments:
Foreign exchange contracts		$1		Other assets		$—		Other liabilities
Derivatives not designated as hedging instruments:
Foreign exchange contracts		4		Other assets		15		Other liabilities
Interest agreement contracts		—		Other assets		3		Other liabilities
Total derivatives not designated as hedging instruments		4				18
Total derivatives		$5				$18

The following table summarizes the effect of derivative instruments in our condensed consolidated statements of operations, including amounts related to discontinued operations, for the three and six months ended July 2, 2011 and July 3, 2010:

	Three Months Ended				Statement of Operations Location
Gain (Loss) on Derivative Instruments	July 2, 2011		July 3, 2010
Derivatives not designated as hedging instruments:
Interest rate contracts		$(3)		$(4)		Other income (expense)
Foreign exchange contracts		(8)		22		Other income (expense)
Total derivatives not designated as hedging instruments		$(11)		$18

	Six Months Ended					Statement of Operations Location
Gain (Loss) on Derivative Instruments	July 2, 2011			July 3, 2010
Derivatives not designated as hedging instruments:
Interest rate contracts		$(5	)		$(8)		Other income (expense)
Foreign exchange contracts		(15	)		31		Other income (expense)
Total derivatives not designated as hedging instruments		$(20	)		$23

The following table summarizes the gains and losses recognized in the condensed consolidated financial statements, including amounts related to discontinued operations, for the three and six months ended July 2, 2011 and July 3, 2010:

	Three Months Ended				Financial Statement Location
Foreign Exchange Contracts	July 2, 2011		July 3, 2010
Derivatives in cash flow hedging relationships:
Loss recognized in Accumulated other comprehensive loss (effective portion)		$—		$(6)		Accumulated other comprehensive loss
Gain reclassified from Accumulated other comprehensive loss into Net earnings (effective portion)		2		3		Cost of sales/Sales

	Six Months Ended				Financial Statement Location
Foreign Exchange Contracts	July 2, 2011		July 3, 2010
Derivatives in cash flow hedging relationships:
Gain (loss) recognized in Accumulated other comprehensive loss (effective portion)		$3		$(3)		Accumulated other comprehensive loss
Gain reclassified from Accumulated other comprehensive loss into Net earnings (effective portion)		2		3		Cost of sales/Sales

Fair Value of Financial Instruments

The Company's financial instruments include cash equivalents, Sigma Fund investments, short-term investments, accounts receivable, long-term receivables, accounts payable, accrued liabilities, derivative financial instruments and other financing commitments. The Company's Sigma Fund, available-for-sale investment portfolios and derivative financial instruments are recorded in the Company's condensed consolidated balance sheets at fair value. All other financial instruments, with the exception of long-term debt, are carried at cost, which is not materially different than the instruments' fair values.

Using quoted market prices and market interest rates, the Company determined that the fair value of long-term debt at July 2, 2011 was $2.3 billion, compared to a face value of $2.2 billion. Since considerable judgment is required in interpreting market information, the fair value of the long-term debt is not necessarily indicative of the amount which could be realized in a current market exchange.

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Income Taxes

6 Months Ended

Jul. 02, 2011

Income Taxes

Income Taxes

6. Income Taxes

At July 2, 2011 and December 31, 2010, the Company had valuation allowances of $283 million and $502 million, respectively, including $258 million and $187 million, respectively, relating to deferred tax assets for non-U.S. subsidiaries. During the three months ended April 2, 2011, the Company reassessed its valuation allowance requirements taking into consideration the Distribution of Motorola Mobility. The Company evaluated all available evidence in its analysis, including the historical and projected pre-tax profits generated by the Motorola Solutions U.S. operations. The Company also considered tax planning strategies that are prudent and can be reasonably implemented. As a result, the Company recorded a $244 million tax benefit related to the reversal of a significant portion of the valuation allowance established on U.S. deferred tax assets. During the three months ended July 2, 2011, the U.S. valuation allowance was reduced by $34 million for deferred tax assets related to future capital losses that the Company expects to utilize due to the capital gain realized on the disposition of the Networks business. The U.S. valuation allowance as of July 2, 2011 relates primarily to state tax carryforwards. The valuation allowance relating to deferred tax assets of non-U.S. subsidiaries was adjusted for current year activity, exchange rate variances and a $34 million increase for loss carryforwards the Company expects to expire unutilized. The Company believes the remaining deferred tax assets are more-likely-than-not to be realized based on estimates of future taxable income and the implementation of tax planning strategies.

The Company had unrecognized tax benefits of $233 million and $198 million, at July 2, 2011 and December 31, 2010, respectively, of which approximately $175 million and $20 million, respectively, if recognized, would affect the effective tax rate, net of resulting changes to valuation allowances.

Based on the potential outcome of the Company's global tax examinations or the expiration of the statute of limitations for specific jurisdictions, it is reasonably possible that the unrecognized tax benefits will change within the next 12 months. The associated net tax impact on the effective tax rate, exclusive of valuation allowance changes, is estimated to be in the range of a $50 million tax charge to a $125 million tax benefit, with cash payments in the range of $0 to $100 million.

The Company has audits pending in several tax jurisdictions. Although the final resolution of the Company's global tax disputes is uncertain, based on current information, in the opinion of the Company's management, the ultimate disposition of these matters is not expected to have a material adverse effect on the Company's consolidated financial position, liquidity or results of operations. However, an unfavorable resolution of the Company's global tax disputes could have a material adverse effect on the Company's results of operations in the periods in which the matters are ultimately resolved.

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Retirement Benefits

6 Months Ended

Jul. 02, 2011

Retirement Benefits

Retirement Benefits

7. Retirement Benefits

Pension Benefit Plans

The net periodic pension costs for the U.S. Regular Pension Plan, Officers' Plan, the Motorola Supplemental Pension Plan ("MSPP") and Non-U.S. plans were as follows:

	July 2, 2011						July 3, 2010
Three Months Ended	U.S. Regular Pension		Officers' and MSPP		Non U.S.		U.S. Regular Pension		Officers' and MSPP		Non U.S.
Service cost		$—		$—		$8		$—		$—		$6
Interest cost		83		—		31		85		1		21
Expected return on plan assets		(96)		—		(35)		(94)		—		(20)
Amortization of:
Unrecognized net loss		46		1		5		36		—		4
Unrecognized prior service cost		—		—		(5)		—		—		(1)
Settlement/curtailment loss		—		3		(9)		—		1		—
Net periodic pension cost		$33		$4		$(5)		$27		$2		$10
	July 2, 2011						July 3, 2010
Six Months Ended	U.S. Regular Pension		Officers' and MSPP		Non U.S.		U.S. Regular Pension		Officers' and MSPP		Non U.S.
Service cost		$—		$—		$14		$—		$—		$13
Interest cost		170		1		49		171		1		49
Expected return on plan assets		(194)		—		(55)		(189)		—		(48)
Amortization of:
Unrecognized net loss		93		2		8		74		1		10
Unrecognized prior service cost		—		—		(7)		—		—		(2)
Settlement/curtailment loss		—		4		(9)		—		2		—
Net periodic pension cost		$69		$7		$—		$56		$4		$22

During the six months ended July 2, 2011, contributions of $23 million were made to the Company's Non-U.S. plans, $6 million to its Officers' plan and $110 million to the Company's Regular Pension Plan.

During the three months ended July 2, 2011, the Company recognized a curtailment gain in its United Kingdom defined benefit plan, offset by a settlement loss in its Japan defined benefit plan, due to the Networks Transaction. As a result, the Company recorded a net gain of $9 million to Other charges in the Company's condensed consolidated statements of operations.

Postretirement Health Care Benefit Plans

Net postretirement health care expenses consist of the following:

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 3, 2010		July 3, 2010
Service cost		$1		$2		$2		$3
Interest cost		6		6		12		13
Expected return on plan assets		(4)		(4)		(8)		(8)
Amortization of:
Unrecognized net loss		3		3		6		5
Unrecognized prior service cost		—		(1)		—		(1)
Net postretirement health care expense		$6		$6		$12		$12

The Company made no contributions to its postretirement healthcare fund during the three and six months ended July 2, 2011.

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Share-Based Compensation Plans

6 Months Ended

Jul. 02, 2011

Share-Based Compensation Plans

Share-Based Compensation Plans

8. Share-Based Compensation Plans

Compensation expense for the Company's employee stock options, stock appreciation rights, employee stock purchase plans, restricted stock and restricted stock units ("RSUs") was as follows:

	Three Months Ended				Six Months Ended
	July 2,   2011		July 3,   2010		July 2,   2011		July 3,   2010
Share-based compensation expense included in:
Costs of sales		$5		$5		$8		$9
Selling, general and administrative expenses		25		20		54		40
Research and development expenditures		9		11		16		20
Share-based compensation expense included in Operating earnings		39		36		78		69
Tax benefit		13		11		25		21
Share-based compensation expense, net of tax		$26		$25		$53		$48
Decrease in basic earnings per share		$(0.08)		$(0.08)		$(0.16)		$(0.15)
Decrease in diluted earning per share		$(0.08)		$(0.08)		$(0.15)		$(0.14)
Share-based compensation expense in discontinued operations		$5		$40		$13		$79

For the three months ended July 2, 2011, the Company granted 4.4 million and 0.5 million RSUs and stock options, respectively. The total compensation expense, net of estimated forfeitures, for these RSUs and stock options was $161 million and $6 million, respectively. For the six months ended July 2, 2011, the Company granted 4.9 million, 3.1 million, and 0.1 million RSUs, stock options and shares of restricted stock, respectively. The total compensation expense, net of estimated forfeitures, for these RSUs, stock options and shares of restricted stock was $180 million, $35 million and $4 million, respectively. The expense will be recognized over a weighted average vesting period of 3 years.

Following the completion of the Distribution on January 4, 2011, 3.8 million unvested RSUs and 8.0 million stock options held by the employees of Motorola Mobility were cancelled.

All RSUs and stock options remaining with Motorola Solutions after the Distribution were adjusted to reflect the Distribution and the Reverse Stock Split. The number of shares covered by, and the exercise price of, all vested and unvested stock options was adjusted to reflect the change in the Company's stock price immediately following the Distribution and Reverse Stock Split by:

• Multiplying the number of shares subject to each stock option grant by .238089 ("the Motorola Adjustment Factor") and rounding down to the next whole share; and

• Dividing the exercise price per share for each such stock option grant by the Motorola Adjustment Factor and rounding up to the penny.

The number of RSUs immediately following the Distribution and Reverse Stock Split was calculated by multiplying the number of shares subject to each such grant by the Motorola Adjustment Factor and rounding down to the next whole share.

In April 2011, the vesting terms of certain awards, granted to Networks employees, were modified to allow for pro rata vesting. These awards were within a few days of vesting at the time of the closing of the sale. This modification resulted in the vesting of 0.3 million RSUs and a de minimus amount of options which would not have otherwise vested, resulting in an additional compensation expense of $5.0 million for the three and six months ended July 2, 2011. Upon the completion of the Networks Transaction on April 29, 2011, approximately 1.3 million unvested RSUs and 0.2 million unvested stock options were cancelled.

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Fair Value Measurements

6 Months Ended

Jul. 02, 2011

Fair Value Measurements

Fair Value Measurements

9. Fair Value Measurements

The Company holds certain fixed income securities, equity securities and derivatives, which must be measured using the fair value hierarchy and related valuation methodologies. The guidance specifies a hierarchy of valuation techniques based on whether the inputs to each measurement are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's assumptions about current market conditions. The prescribed fair value hierarchy and related valuation methodologies are as follows:

Level 1—Quoted prices for identical instruments in active markets.

Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets.

Level 3—Valuations derived from valuation techniques, in which one or more significant inputs are unobservable.

The fair values of the Company's financial assets and liabilities by level in the fair value hierarchy as of July 2, 2011 and December 31, 2010 were as follows:

July 2, 2011	Level 1		Level 2		Level 3		Total
Assets:
Sigma Fund securities:
U.S. government, agency and government-sponsored enterprise obligations		$—		$2,434		$—		$2,434
Corporate bonds		—		—		21		21
Asset-backed securities		—		0		—		0
Mortgage-backed securities		—		7		—		7
Available-for-sale securities:
U.S. government, agency and government-sponsored enterprise obligations		—		17		—		17
Corporate bonds		—		11		—		11
Mortgage-backed securities		—		3		—		3
Common stock and equivalents		21		9		—		30
Foreign exchange derivative contracts*		—		3		—		3
Liabilities:
Foreign exchange derivative contracts*		—		1		—		1
Interest agreement derivative contracts		—		3		—		3

* Includes amounts included in held for disposition.

December 31, 2010	Level 1		Level 2		Level 3		Total
Assets:
Sigma Fund securities:
U.S. government, agency and government-sponsored enterprise obligations		$—		$2,291		$—		$2,291
Corporate bonds		—		43		15		58
Asset-backed securities		—		1		—		1
Mortgage-backed securities		—		11		—		11
Available-for-sale securities:
U.S. government, agency and government-sponsored enterprise obligations		—		17		—		17
Corporate bonds		—		11		—		11
Mortgage-backed securities		—		3		—		3
Common stock and equivalents		2		10		—		12
Foreign exchange derivative contracts*		—		5		—		5
Liabilities:
Foreign exchange derivative contracts*		—		15		—		15
Interest agreement derivative contracts		—		3		—		3

* Includes amounts included in held for disposition.

The following table summarizes the changes in fair value of our Level 3 assets:

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Beginning balance		$21		$22		$15		$19
Transfers to Level 3		—		3		21		3
Payments received and securities sold		—		(4)		(18)		(5)
Mark-to-market on Sigma Fund investments included in Other income (expense)		—		1		3		5
Ending balance		$21		$22		$21		$22

At July 2, 2011, the Company had $388 million of investments in money market mutual funds classified as Cash and cash equivalents in its condensed consolidated balance sheet, compared to $1.0 billion at December 31, 2010. The money market funds have quoted market prices that are generally equivalent to par.

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Long-Term Customer Financing And Sales Of Receivables

6 Months Ended

Jul. 02, 2011

Long-Term Customer Financing And Sales Of Receivables

Long-Term Customer Financing And Sales Of Receivables

10. Long-term Customer Financing and Sales of Receivables

Long-term Customer Financing

Long-term receivables consist of trade receivables with payment terms greater than twelve months, long-term loans and lease receivables under sales-type leases. Long-term receivables consist of the following:

	July 2, 2011		December 31, 2010
Long-term receivables		$307		$265
Less allowance for losses		(6)		(1)
		301		264
Less current portion		(29)		(13)
Non-current long-term receivables, net		$272		$251

The current portion of long-term receivables is included in Accounts receivable and the non-current portion of long-term receivables is included in Other assets in the Company's condensed consolidated balance sheets.

The Company had outstanding commitments to provide long-term financing to third parties totaling $135 million at July 2, 2011, compared to $333 million at December 31, 2010 (including $168 million at December 31, 2010 relating to the Networks business). Of these amounts, $1 million was supported by letters of credit or by bank commitments to purchase long-term receivables at July 2, 2011, compared to $27 million at December 31, 2010. The Company retained the funded portion of the financing arrangements related to the Networks business following the sale to NSN, which totaled approximately $286 million at July 2, 2011 and is included in Long-term receivables reported in the table above.

The Company had committed to provide financial guarantees relating to customer financing facilities totaling $1 million at July 2, 2011, compared to $10 million at December 31, 2010 (including $6 million at December 31, 2010 relating to the sale of short-term receivables). Customer financing guarantees outstanding were $1 million at both July 2, 2011 and December 31, 2010 (all relating to the sale of long-term receivables).

Sales of Receivables

As of July 2, 2011 and December 31, 2010, the Company had a $200 million committed revolving receivable sales facility, maturing December 2011, for the sale of accounts receivable, which was fully available at both periods. The initial cash proceeds received by the Company for the sale of these receivables is capped at the lower of $200 million or eligible receivables less reserves. The Company had no significant committed facilities for the sale of long-term receivables at July 2, 2011 or at December 31, 2010.

The following table summarizes the proceeds received from non-recourse sales of accounts receivable and long-term receivables for the three and six months ended July 2, 2011 and July 3, 2010:

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Cumulative quarterly proceeds received from one-time sales:
Accounts receivable sales proceeds		$—		$5		$1		$28
Long-term receivables sales proceeds		17		6		23		9
Total proceeds from one-time sales		17		11		24		37
Cumulative quarterly proceeds received from sales under committed facilities		—		16		—		70
Total proceeds from receivables sales		$17		$27		$24		$107

At July 2, 2011, the Company retained no servicing obligations for sold accounts receivable and $266 million of long-term receivables, compared to $329 million of sold accounts receivable and $277 million of long-term receivables at December 31, 2010.

Credit Quality of Customer Financing Receivables and Allowance for Credit Losses

An aging analysis of financing receivables at July 2, 2011 and December 31, 2010 is as follows:

July 2, 2011	Total Long-term Receivable		Current Billed Due	Past Due Under 90 Days
Municipal leases secured tax exempt		$11	$—	$—
Commercial loans and leases secured		80	—	6
Commercial loans unsecured		216	—	—
Total long-term receivables		$307	$—	$6

December 31, 2010	Total Long-term Receivable		Current Billed Due	Past Due Under 90 Days
Municipal leases secured tax exempt		$16	$—	$—
Commercial loans and leases secured		67	1	—
Commercial loans unsecured		182	—	—
Total long-term receivables		$265	$1	$—

The Company uses an internally developed credit risk rating system for establishing customer credit limits. This system is aligned with and comparable to the rating systems utilized by independent rating agencies.

The Company policy for valuing the allowance for credit losses is on an individual review basis. All customer financing receivables with past due balances greater than 90 days are reviewed for collectability. The value of impairment is calculated based on the net present value of anticipated future cash streams from the customer. The Company did not have any financing receivables past due over 90 days as of July 2, 2011 or December 31, 2010.

At July 2, 2011, long-term receivables included an impaired loan of $49 million with a related reserve for credit losses of $5 million. The Company recognizes interest income on impaired loans on a cash basis with cash receipts recorded as interest income when received. The average recorded investment in this impaired loan during both the three and six months ended July 2, 2011 was $48 million. Interest income recognized during the period the loan was impaired was de minimus.

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Commitments And Contingencies

6 Months Ended

Jul. 02, 2011

Commitments And Contingencies

Commitments And Contingencies

11. Commitments and Contingencies

Legal

The Company is a defendant in various suits, claims and investigations that arise in the normal course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company's consolidated financial position, liquidity or results of operations. However, an unfavorable resolution could have a material adverse effect on the Company's results of operations in the periods in which the matters are ultimately resolved.

Other

The Company is a party to a variety of agreements pursuant to which it is obligated to indemnify the other party with respect to certain matters. Some of these obligations arise as a result of divestitures of the Company's assets or businesses and require the Company to hold the other party harmless against losses arising from the settlement of these pending obligations. The total amount of indemnification under these types of provisions is $251 million, of which the Company accrued $8 million at July 2, 2011 for potential claims under these provisions.

In addition, the Company may provide indemnifications for losses that result from the breach of general warranties contained in certain commercial and intellectual property agreements. Historically, the Company has not made significant payments under these agreements. However, there is an increasing risk in relation to patent indemnities given the current legal climate.

In indemnification cases, payment by the Company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party's claims. Further, the Company's obligations under these agreements for indemnification based on breach of representations and warranties are generally limited in terms of duration, and for amounts not in excess of the contract value, and, in some instances, the Company may have recourse against second parties for certain payments made by the Company.

In addition, pursuant to the Master Separation and Distribution Agreement and certain other agreements with Motorola Mobility, Motorola Mobility agreed to indemnify the Company for certain liabilities, and the Company agreed to indemnify Motorola Mobility for certain liabilities, in each case for uncapped amounts.

During the three months ended July 2, 2011, the Company recorded $48 million of net charges related to legal matters to Other charges in the Company's condensed consolidated statements of operations. The net charges primarily related to a contingent reserve for a suit in which the Company has assessed the likelihood of having to pay as probable.

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Segment Information

6 Months Ended

Jul. 02, 2011

Segment Information

Segment Information

12. Segment Information

The following table summarizes the Net sales by segment:

	Three Months Ended				Six Months Ended
	July 2,     2011		July 3,     2010		July 2,     2011		July 3,     2010
Government		$1,308		$1,262		$2,497		$2,394
Enterprise		747		674		1,442		1,282
		$2,055		$1,936		$3,939		$3,676

The following table summarizes the Operating earnings by segment:

	Three Months Ended				Six Months Ended
	July 2,   2011		July 3,     2010		July 2,     2011		July 3,     2010
Government		$111		$117		$215		$209
Enterprise		59		44		125		72
Operating earnings		170		161		340		281
Total other income (expense)		(97)		(32)		(94)		(43)
Earnings from continuing operations before income taxes		$73		$129		$246		$238

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Condensed Consolidated Statements Of Operations (USD $) In Millions, except Per Share data	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Condensed Consolidated Statements Of Operations
Net sales from products	$ 1,524	$ 1,438	$ 2,948	$ 2,729
Net sales from services	531	498	991	947
Net sales	2,055	1,936	3,939	3,676
Costs of product sales	685	656	1,341	1,250
Costs of services sales	331	315	617	608
Costs of sales	1,016	971	1,958	1,858
Gross margin	1,039	965	1,981	1,818
Selling, general and administrative expenses	492	471	960	925
Research and development expenditures	271	269	520	527
Other charges	106	64	161	85
Operating earnings	170	161	340	281
Other income (expense):
Interest expense, net	(21)	(35)	(41)	(68)
Gain on sales of investments and businesses, net	1	33	19	40
Other	(77)	(30)	(72)	(15)
Total other income (expense)	(97)	(32)	(94)	(43)
Earnings from continuing operations before income taxes	73	129	246	238
Income tax expense (benefit)	17	122	(169)	135
Earnings from continuing operations	56	7	415	103
Earnings from discontinued operations, net of tax	291	159	423	131
Net earnings	347	166	838	234
Less: Earnings (loss) attributable to noncontrolling interests	(2)	4	(8)	3
Net earnings attributable to Motorola Solutions, Inc.	349	162	846	231
Amounts attributable to Motorola Solutions, Inc. common stockholders:
Earnings from continuing operations, net of tax	58	3	423	100
Earnings from discontinued operations, net of tax	291	159	423	131
Net earnings attributable to Motorola Solutions, Inc.	$ 349	$ 162	$ 846	$ 231
Basic:
Continuing operations	$ 0.17	$ 0.01	$ 1.24	$ 0.30
Discontinued operations	$ 0.85	$ 0.48	$ 1.25	$ 0.40
Earnings (loss) per common share	$ 1.02	$ 0.49	$ 2.49	$ 0.70
Diluted:
Continuing operations	$ 0.17	$ 0.01	$ 1.22	$ 0.30
Discontinued operations	$ 0.83	$ 0.47	$ 1.22	$ 0.39
Earnings (loss) per common share	$ 1.00	$ 0.48	$ 2.44	$ 0.69
Weighted average common shares outstanding:
Basic	341.2	332.7	339.3	331.7
Diluted	348.5	337.9	346.3	336.1

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Reorganization Of Businesses

6 Months Ended

Jul. 02, 2011

Reorganization Of Businesses

Reorganization Of Businesses

13. Reorganization of Businesses

The Company maintains a formal Involuntary Severance Plan (the "Severance Plan"), which permits the Company to offer eligible employees severance benefits based on years of service and employment grade level in the event that employment is involuntarily terminated as a result of a reduction-in-force or restructuring. The Company recognizes termination benefits based on formulas per the Severance Plan at the point in time that future settlement is probable and can be reasonably estimated based on estimates prepared at the time a restructuring plan is approved by management. Exit costs consist of future minimum lease payments on vacated facilities and other contractual terminations. At each reporting date, the Company evaluates its accruals for employee separation and exit costs to ensure the accruals are still appropriate. In certain circumstances, accruals are no longer needed because of efficiencies in carrying out the plans or because employees previously identified for separation resigned from the Company and did not receive severance or were redeployed due to circumstances not foreseen when the original plans were initiated. In these cases, the Company reverses accruals through the condensed consolidated statements of operations where the original charges were recorded when it is determined they are no longer needed.

2011 Charges

During the three months ended July 2, 2011, the Company recorded net reorganization of business charges of $17 million, primarily under Other charges in the Company's condensed consolidated statements of operations. Included in the aggregate $17 million are charges of $13 million for exit costs and $5 million for employee separation costs, partially offset by $1 million of reversals for accruals no longer needed.

During the six months ended July 2, 2011, the Company recorded net reorganization of business charges of $25 million, including $3 million of charges in Costs of sales and $22 million of charges under Other charges in the Company's condensed consolidated statements of operations. Included in the aggregate $25 million are charges of $14 million for employee separation costs and $13 million for exit costs, partially offset by $2 million of reversals for accruals no longer needed.

The following table displays the net charges incurred by segment:

July 2, 2011	Three Months Ended		Six Months Ended
Government		$10		$18
Enterprise		7		7
		$17		$25

The following table displays a rollforward of the reorganization of businesses accruals established for exit costs and employee separation costs from January 1, 2011 to July 2, 2011:

	Accruals at January 1, 2011		Additional Charges		Adjustments		Amount Used		Accruals at July 2, 2011
Exit costs		$17		$13		$—		$(16)		$14
Employee separation costs		50		14		(2)		(36)		26
		$67		$27		$(2)		$(52)		$40

Exit Costs

At January 1, 2011, the Company had an accrual of $17 million for exit costs attributable to lease terminations. During the first half of 2011, the additional 2011 charges were $13 million primarily related to the exit of leased facilities. The $16 million used reflects cash payments. The remaining accrual of $14 million, which is included in Accrued liabilities in the Company's condensed consolidated balance sheets at July 2, 2011, primarily represents future cash payments for lease termination obligations that are expected to be paid over a number of years.

Employee Separation Costs

At January 1, 2011, the Company had an accrual of $50 million for employee separation costs, representing the severance costs for: (i) severed employees who began receiving payments in 2010, and (ii) approximately 1,000 employees who began receiving payments in 2011. The 2011 additional charges of $14 million represent severance costs for approximately an additional 200 employees, of whom substantially all were indirect employees. The adjustment of $2 million reflects reversals of accruals no longer needed. The $36 million used reflects cash payments. The remaining accrual of $26 million, which is included in Accrued liabilities in the Company's condensed consolidated balance sheets at July 2, 2011, is expected to be paid, generally, within one year to approximately 1,000 employees, who have either been severed or notified to be severed and have begun or will begin receiving payments.

2010 Charges

During the three months ended July 3, 2010, the Company recorded net reorganization of business charges of $20 million, including $6 million of charges in Costs of sales and $14 million of charges under Other charges in the Company's condensed consolidated statements of operations. Included in the aggregate $20 million are charges of $21 million for employee separation costs, partially offset by $1 million of reversals for accruals no longer needed.

During the six months ended July 3, 2010, the Company recorded net reorganization of business charges of $20 million, including $7 million of charges in Costs of sales and $13 million of charges under Other charges in the Company's condensed consolidated statements of operations. Included in the aggregate $20 million are charges of $27 million for employee separation costs, partially offset by $7 million of reversals for accruals no longer needed.

The following table displays the net charges incurred by segment:

July 3, 2010	Three Months Ended		Six Months Ended
Government		$15		$15
Enterprise		5		5
		$20		$20

The following table displays a rollforward of the reorganization of businesses accruals established for exit costs and employee separation costs from January 1, 2010 to July 3, 2010:

	Accruals at January 1, 2010		Additional Charges		Adjustments		Amount Used		Accruals at July 3, 2010
Exit costs		$16		$—		$(2)		$(7)		$7
Employee separation costs		31		27		(5)		(27)		26
		$47		$27		$(7)		$(34)		$33

During the first half of 2010, approximately 500 employees, of whom substantially all were indirect employees, were separated from the Company, resulting in charges of $27 million. These charges were offset by adjustments of $5 million, reflecting reversals of accruals no longer needed, and $27 million used for cash payments. At July 3, 2010, the Company had accruals of $7 million and $26 million, for exit costs attributable to lease terminations and employee separation costs, respectively.

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Intangible Assets And Goodwill

6 Months Ended

Jul. 02, 2011

Intangible Assets And Goodwill

Intangible Assets And Goodwill

14. Intangible Assets and Goodwill

Intangible Assets

Amortized intangible assets were comprised of the following:

	July 2, 2011				December 31, 2010
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Completed technology		$642		$596		$642		$532
Patents		277		237		277		211
Customer-related		148		100		148		90
Licensed technology		25		18		25		18
Other intangibles		101		96		101		96
		$1,193		$1,047		$1,193		$947

Amortization expense on intangible assets was $50 million for both the three months ended July 2, 2011 and July 3, 2010. Amortization expense on intangible assets was $100 million and $101 million for the six months ended July 2, 2011 and July 3, 2010, respectively. As of July 2, 2011, annual amortization expense is estimated to be $200 million in 2011, $25 million in 2012, $9 million in 2013, $7 million in 2014 and $2 million in 2015.

Amortized intangible assets, excluding goodwill, by segment:

	July 2, 2011				December 31, 2010
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Government		$   140		$   133		$   140		$130
Enterprise		1,053		914		1,053		817
		$1,193		$1,047		$1,193		$947

Goodwill

The following table displays a rollforward of the carrying amount of goodwill by segment from January 1, 2011 to July 2, 2011:

	Government		Enterprise		Total
Balances as of January 1, 2011:
Aggregate goodwill acquired		$350		$2,643		$2,993
Accumulated impairment losses		—		(1,564)		(1,564)
Goodwill, net of impairment losses		$350		$1,079		$1,429
Goodwill acquired		—		—		—
Balances as of July 2, 2011:
Aggregate goodwill acquired		$350		$2,643		$2,993
Accumulated impairment losses		—		(1,564)		(1,564)
Goodwill, net of impairment losses		$350		$1,079		$1,429

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Discontinued Operations (Tables)

6 Months Ended

Jul. 02, 2011

Discontinued Operations

Summarized Activity Of Discontinued Operations

The following table displays summarized activity in the Company's condensed consolidated statements of operations for discontinued operations during the three and six months ended July 2, 2011 and July 3, 2010.

	Three Months Ended				Six Months Ended
	July 2,     2011		July 3,     2010		July 2,     2011		July 3,     2010
Net sales		$260		$3,491		$1,108		$6,821
Operating earnings (loss)		(14)		202		190		158
Gains on sales of investments and businesses, net		488		20		488		21
Earnings before income taxes		467		217		666		171
Income tax expense		176		58		243		40
Earnings from discontinued operations, net of tax		291		159		423		131

The following table displays a summary of the assets and liabilities held for disposition as of July 2, 2011 and December 31, 2010.

	July 2, 2011		December 31, 2010
Assets
Accounts receivable, net		$60		$2,072
Inventories, net		24		1,040
Other current assets		32		1,492
Property, plant and equipment, net		10		1,013
Investments		—		145
Goodwill		—		1,504
Other assets		83		514
		$209		$7,780
Liabilities
Accounts payable		$27		$2,060
Accrued liabilities		83		2,740
Other liabilities		79		737
		$189		$5,537

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Other Financial Data (Tables)

3 Months Ended

6 Months Ended

Apr. 02, 2011

Jul. 02, 2011

Other Financial Data

Other Charges

	Three Month Ended				Six Months Ended
	July 2,     2011		July 3,     2010		July 2,     2011		July 3,     2010
Other charges:
Amortization of intangible assets		$50		$50		$100		$101
Legal matters and settlements, net		48		—		48		(29)
Reorganization of business charges		17		14		22		13
Pension plan adjustments, net		(9)		—		(9)		—
		$106		$64		$161		$85

Other Income (Expense)

	Three Month Ended				Six Months Ended
	July 2,     2011		July 3,     2010		July 2,     2011		July 3,     2010
Interest income (expense), net:
Interest expense		$(40)		$(56)		$(74)		$(116)
Interest income		19		21		33		48
		$(21)		$(35)		$(41)		$(68)
Other:
Loss from the extinguishment of the Company's outstanding long-term debt		$(81)		$(12)		$(81)		$(12)
Investment impairments		—		(9)		(3)		(18)
Foreign currency gain (loss)		6		(4)		11		3
Gain (loss) on Sigma Fund investments		—		(4)		—		12
Other		(2)		(1)		1		—
		$(77)		$(30)		$(72)		$(15)

Earnings (Loss) Per Common Share

	Amounts attributable to Motorola Solutions, Inc. common stockholders
	Earnings from Continuing Operations				Net Earnings
Three Months Ended	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Basic earnings per common share:
Earnings		$58		$3		$349		$162
Weighted average common shares outstanding		341.2		332.7		341.2		332.7
Per share amount		$0.17		$0.01		$1.02		$0.49
Diluted earnings per common share:
Earnings		$58		$3		$349		$162
Weighted average common shares outstanding		341.2		332.7		341.2		332.7
Add effect of dilutive securities:
Share-based awards and other		7.3		5.2		7.3		5.2
Diluted weighted average common shares outstanding		348.5		337.9		348.5		337.9
Per share amount		$0.17		$0.01		$1.00		$0.48

	Amounts attributable to Motorola Solutions, Inc. common stockholders
	Earnings from Continuing Operations				Net Earnings
Six Months Ended	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Basic earnings per common share:
Earnings		$423		$100		$846		$231
Weighted average common shares outstanding		339.3		331.7		339.3		331.7
Per share amount		$1.24		$0.30		$2.49		$0.70
Diluted earnings per common share:
Earnings		$423		$100		$846		$231
Weighted average common shares outstanding		339.3		331.7		339.3		331.7
Add effect of dilutive securities:
Share-based awards and other		7.0		4.4		7.0		4.4
Diluted weighted average common shares outstanding		346.3		336.1		346.3		336.1
Per share amount		$1.22		$0.30		$2.44		$0.69

Sigma Fund

	July 2, 2011				December 31, 2010
Fair Value	Current		Non-current		Current		Non-Current
Cash		$1,988		$—		$2,355		$—
Securities:
U.S. government and agency obligations		2,434		—		2,291		—
Corporate bonds		—		21		—		58
Asset-backed securities		—		—		—		1
Mortgage-backed securities		—		7		—		11
		$4,422		$28		$4,646		$70

Investments

	Recorded Value				Less
July 2, 2011	Short-term   Investments		Investments		Unrealized   Gains		Cost   Basis
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		—		30		19		11
		2		61		19		44
Other securities, at cost		—		104		—		104
Equity method investments		—		10		—		10
		$2		$175		$19		$158
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

	July 2, 2011		December 31, 2010
Accounts receivable		$1,596		$1,596
Less allowance for doubtful accounts		(50)		(49)
		$1,546		$1,547

Inventories, Net

	July 2, 2011		December 31, 2010
Finished goods		$398		$386
Work-in-process and production materials		284		292
		682		678
Less inventory reserves		(160)		(157)
		$522		$521

Other Current Assets

	July 2, 2011		December 31, 2010
Costs and earnings in excess of billings		$314		$291
Contract-related deferred costs		163		160
Tax-related refunds receivable		105		116
Other		147		181
		$729		$748

Property, Plant And Equipment, Net

	July 2, 2011		December 31, 2010
Land		$70		$71
Building		769		804
Machinery and equipment		2,115		2,094
		2,954		2,969
Less accumulated depreciation		(2,055)		(2,047)
		$899		$922

Other Assets

	July 2, 2011		December 31, 2010
Long-term receivables, net of allowances of $6 and $1		$272		$251
Intangible assets, net of accumulated amortization of $1,047 and $947		146		246
Other		223		237
		$641		$734

Accrued Liabilities

	July 2, 2011		December 31, 2010
Deferred revenue		$760		$746
Compensation		336		558
Distribution-related obligation		300		—
Billings in excess of costs and earnings		251		226
Tax liabilities		146		179
Customer reserves		112		117
Other		885		748
		$2,790		$2,574

Other Liabilities

	July 2, 2011		December 31, 2010
Defined benefit plans, including split dollar life insurance policies		$2,025		$2,113
Deferred revenue		293		274
Postretirement health care benefit plan		286		277
Unrecognized tax benefits		102		70
Other		309		311
		$3,015		$3,045

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Risk Management (Tables)

6 Months Ended

Jul. 02, 2011

Risk Management

Schedule Of Largest Notional Amounts Of The Positions To Buy Or Sell Foreign Currency

	Notional Amount
Net Buy (Sell) by Currency	July 2, 2011		December 31, 2010
Chinese Renminbi		$(424)		$(423)
Malaysian Ringgit		45		64
Euro		42		(195)
British Pound		24		187
Israeli Shekel		24		(5)

Summary Of Fair Values And Location In Condensed Consolidated Balance Sheet

Fair Values of Derivative Instruments
	Assets				Liabilities
July 2, 2011	Fair Value		Balance Sheet Location		Fair Value		Balance Sheet Location
Derivatives designated as hedging instruments:
Foreign exchange contracts		$2		Other assets		$—		Other liabilities
Derivatives not designated as hedging instruments:
Foreign exchange contracts		1		Other assets		1		Other liabilities
Interest agreement contracts		—		Other assets		3		Other liabilities
Total derivatives not designated as hedging instruments		1				4
Total derivatives		$3				$4

	Fair Values of Derivative Instruments
	Assets				Liabilities
December 31, 2010	Fair Value		Balance Sheet Location		Fair Value		Balance Sheet Location
Derivatives designated as hedging instruments:
Foreign exchange contracts		$1		Other assets		$—		Other liabilities
Derivatives not designated as hedging instruments:
Foreign exchange contracts		4		Other assets		15		Other liabilities
Interest agreement contracts		—		Other assets		3		Other liabilities
Total derivatives not designated as hedging instruments		4				18
Total derivatives		$5				$18

Summary Of Derivative Instruments And The Effect On The Condensed Consolidated Statements Of Operations

	Three Months Ended				Statement of Operations Location
Gain (Loss) on Derivative Instruments	July 2, 2011		July 3, 2010
Derivatives not designated as hedging instruments:
Interest rate contracts		$(3)		$(4)		Other income (expense)
Foreign exchange contracts		(8)		22		Other income (expense)
Total derivatives not designated as hedging instruments		$(11)		$18

	Six Months Ended					Statement of Operations Location
Gain (Loss) on Derivative Instruments	July 2, 2011			July 3, 2010
Derivatives not designated as hedging instruments:
Interest rate contracts		$(5	)		$(8)		Other income (expense)
Foreign exchange contracts		(15	)		31		Other income (expense)
Total derivatives not designated as hedging instruments		$(20	)		$23

The following table summarizes the gains and losses recognized in the condensed consolidated financial statements, including amounts related to discontinued operations, for the three months ended July 2, 2011 and July 3, 2010:

	Three Months Ended					Financial Statement Location
Foreign Exchange Contracts	July 2, 2011		July 3, 2010
Derivatives in cash flow hedging relationships:
Gain recognized in Accumulated other comprehensive loss (effective portion)		$—		$(6	)		Accumulated other comprehensive loss
Gain reclassified from Accumulated other comprehensive loss into Net earnings (effective portion)		2		3			Cost of sales/Sales

	Six Months Ended					Financial Statement Location
Foreign Exchange Contracts	July 2, 2011		July 3, 2010
Derivatives in cash flow hedging relationships:
Gain recognized in Accumulated other comprehensive loss (effective portion)		$3		$(3	)		Accumulated other comprehensive loss
Gain reclassified from Accumulated other comprehensive loss into Net earnings (effective portion)		3		3			Cost of sales/Sales

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Retirement Benefits (Tables)

6 Months Ended

Jul. 02, 2011

Pension Benefit Plans [Member]

Net Benefit Plan Costs

	July 2, 2011						July 3, 2010
Three Months Ended	U.S. Regular Pension		Officers' and MSPP		Non U.S.		U.S. Regular Pension		Officers' and MSPP		Non U.S.
Service cost		$—		$—		$8		$—		$—		$6
Interest cost		83		—		31		85		1		21
Expected return on plan assets		(96)		—		(35)		(94)		—		(20)
Amortization of:
Unrecognized net loss		46		1		5		36		—		4
Unrecognized prior service cost		—		—		(5)		—		—		(1)
Settlement/curtailment loss		—		3		(9)		—		1		—
Net periodic pension cost		$33		$4		$(5)		$27		$2		$10
	July 2, 2011						July 3, 2010
Six Months Ended	U.S. Regular Pension		Officers' and MSPP		Non U.S.		U.S. Regular Pension		Officers' and MSPP		Non U.S.
Service cost		$—		$—		$14		$—		$—		$13
Interest cost		170		1		49		171		1		49
Expected return on plan assets		(194)		—		(55)		(189)		—		(48)
Amortization of:
Unrecognized net loss		93		2		8		74		1		10
Unrecognized prior service cost		—		—		(7)		—		—		(2)
Settlement/curtailment loss		—		4		(9)		—		2		—
Net periodic pension cost		$69		$7		$—		$56		$4		$22

Postretirement Health Care Benefit Plans [Member]

Net Benefit Plan Costs

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 3, 2010		July 3, 2010
Service cost		$1		$2		$2		$3
Interest cost		6		6		12		13
Expected return on plan assets		(4)		(4)		(8)		(8)
Amortization of:
Unrecognized net loss		3		3		6		5
Unrecognized prior service cost		—		(1)		—		(1)
Net postretirement health care expense		$6		$6		$12		$12

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Share-Based Compensation Plans (Tables)

6 Months Ended

Jul. 02, 2011

Share-Based Compensation Plans

Schedule Of Compensation Expense

	Three Months Ended				Six Months Ended
	July 2,   2011		July 3,   2010		July 2,   2011		July 3,   2010
Share-based compensation expense included in:
Costs of sales		$5		$5		$8		$9
Selling, general and administrative expenses		25		20		54		40
Research and development expenditures		9		11		16		20
Share-based compensation expense included in Operating earnings		39		36		78		69
Tax benefit		13		11		25		21
Share-based compensation expense, net of tax		$26		$25		$53		$48
Decrease in basic earnings per share		$(0.08)		$(0.08)		$(0.16)		$(0.15)
Decrease in diluted earning per share		$(0.08)		$(0.08)		$(0.15)		$(0.14)
Share-based compensation expense in discontinued operations		$5		$40		$13		$79

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Fair Value Measurements (Tables)

6 Months Ended

Jul. 02, 2011

Fair Value Measurements

Fair Value Of Assets And Liabilities

July 2, 2011	Level 1		Level 2		Level 3		Total
Assets:
Sigma Fund securities:
U.S. government, agency and government-sponsored enterprise obligations		$—		$2,434		$—		$2,434
Corporate bonds		—		—		21		21
Asset-backed securities		—		0		—		0
Mortgage-backed securities		—		7		—		7
Available-for-sale securities:
U.S. government, agency and government-sponsored enterprise obligations		—		17		—		17
Corporate bonds		—		11		—		11
Mortgage-backed securities		—		3		—		3
Common stock and equivalents		21		9		—		30
Foreign exchange derivative contracts*		—		3		—		3
Liabilities:
Foreign exchange derivative contracts*		—		1		—		1
Interest agreement derivative contracts		—		3		—		3

* Includes amounts included in held for disposition.

December 31, 2010	Level 1		Level 2		Level 3		Total
Assets:
Sigma Fund securities:
U.S. government, agency and government-sponsored enterprise obligations		$—		$2,291		$—		$2,291
Corporate bonds		—		43		15		58
Asset-backed securities		—		1		—		1
Mortgage-backed securities		—		11		—		11
Available-for-sale securities:
U.S. government, agency and government-sponsored enterprise obligations		—		17		—		17
Corporate bonds		—		11		—		11
Mortgage-backed securities		—		3		—		3
Common stock and equivalents		2		10		—		12
Foreign exchange derivative contracts*		—		5		—		5
Liabilities:
Foreign exchange derivative contracts*		—		15		—		15
Interest agreement derivative contracts		—		3		—		3

* Includes amounts included in held for disposition.

Changes In Fair Value Of Level 3 Assets

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Beginning balance		$21		$22		$15		$19
Transfers to Level 3		—		3		21		3
Payments received and securities sold		—		(4)		(18)		(5)
Mark-to-market on Sigma Fund investments included in Other income (expense)		—		1		3		5
Ending balance		$21		$22		$21		$22

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Long-Term Customer Financing And Sales Of Receivables (Tables)

6 Months Ended

Jul. 02, 2011

Long-Term Customer Financing And Sales Of Receivables

Long-Term Customer Financing

	July 2, 2011		December 31, 2010
Long-term receivables		$307		$265
Less allowance for losses		(6)		(1)
		301		264
Less current portion		(29)		(13)
Non-current long-term receivables, net		$272		$251

Proceeds Received From Non-Recourse Sales Of Accounts Receivable And Long-Term Receivables

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Cumulative quarterly proceeds received from one-time sales:
Accounts receivable sales proceeds		$—		$5		$1		$28
Long-term receivables sales proceeds		17		6		23		9
Total proceeds from one-time sales		17		11		24		37
Cumulative quarterly proceeds received from sales under committed facilities		—		16		—		70
Total proceeds from receivables sales		$17		$27		$24		$107

Financing Receivables Aging Analysis

July 2, 2011	Total Long-term Receivable		Current Billed Due	Past Due Under 90 Days
Municipal leases secured tax exempt		$11	$—	$—
Commercial loans and leases secured		75	—	6
Commercial loans unsecured		217	—	—
Total long-term receivables		$302	$—	$6

December 31, 2010	Total Long-term Receivable		Current Billed Due	Past Due Under 90 Days
Municipal leases secured tax exempt		$16	$—	$—
Commercial loans and leases secured		67	1	—
Commercial loans unsecured		182	—	—
Total long-term receivables		$265	$1	$—

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Segment Information (Tables)

6 Months Ended

Jul. 02, 2011

Segment Information

Operating Business Segment

The following table summarizes the Net sales by segment:

	Three Months Ended				Six Months Ended
	July 2,     2011		July 3,     2010		July 2,     2011		July 3,     2010
Government		$1,308		$1,262		$2,497		$2,394
Enterprise		747		674		1,442		1,282
		$2,055		$1,936		$3,939		$3,676

The following table summarizes the Operating earnings by segment:

	Three Months Ended				Six Months Ended
	July 2,   2011		July 3,     2010		July 2,     2011		July 3,     2010
Government		$111		$117		$215		$209
Enterprise		59		44		125		72
Operating earnings		170		161		340		281
Total other income (expense)		(97)		(32)		(94)		(43)
Earnings from continuing operations before income taxes		$73		$129		$246		$238

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Condensed Consolidated Balance Sheets (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 2,203	$ 4,208
Sigma Fund and short-term investments	4,424	4,655
Accounts receivable, net	1,546	1,547
Inventories, net	522	521
Deferred income taxes	729	871
Other current assets	729	748
Current assets held for disposition	116	4,604
Total current assets	10,269	17,154
Property, plant and equipment, net	899	922
Sigma Fund	28	70
Investments	175	172
Deferred income taxes	2,063	1,920
Goodwill	1,429	1,429
Other assets	641	734
Non-current assets held for disposition	93	3,176
Total assets	15,597	25,577
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable and current portion of long-term debt	606	605
Accounts payable	625	731
Accrued liabilities	2,790	2,574
Current liabilities held for disposition	110	4,800
Total current liabilities	4,131	8,710
Long-term debt	1,548	2,098
Other liabilities	3,015	3,045
Non-current liabilities held for disposition	79	737
Stockholders' Equity
Preferred stock, $100 par value
Common stock, $.01 par value; Authorized shares: 600.0 Issued shares: 7/02/11-344.9; 12/31/10-337.2 Outstanding shares: 7/02/11-343.1; 12/31/10-336.3	3	3
Additional paid-in capital	8,030	8,644
Retained earnings	846	4,460
Accumulated other comprehensive loss	(2,140)	(2,222)
Total Motorola Solutions, Inc. stockholders' equity	6,739	10,885
Noncontrolling interests	85	102
Total stockholders' equity	6,824	10,987
Total liabilities and stockholders' equity	$ 15,597	$ 25,577

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Reorganization Of Businesses (Tables)

6 Months Ended

Jul. 02, 2011

2011 Charges [Member]

Net Charges Incurred By Business Segment

July 2, 2011	Three Months Ended		Six Months Ended
Government		$10		$18
Enterprise		7		7
		$17		$25

Reorganization Of Businesses Accruals

	Accruals at January 1, 2011		Additional Charges		Adjustments		Amount Used		Accruals at July 2, 2011
Exit costs		$17		$13		$—		$(16)		$14
Employee separation costs		50		14		(2)		(36)		26
		$67		$27		$(2)		$(52)		$40

2010 Charges [Member]

Net Charges Incurred By Business Segment

July 3, 2010	Three Months Ended		Six Months Ended
Government		$15		$15
Enterprise		5		5
		$20		$20

Reorganization Of Businesses Accruals

	Accruals at January 1, 2010		Additional Charges		Adjustments		Amount Used		Accruals at July 3, 2010
Exit costs		$16		$—		$(2)		$(7)		$7
Employee separation costs		31		27		(5)		(27)		26
		$47		$27		$(7)		$(34)		$33

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Intangible Assets And Goodwill (Tables)

6 Months Ended

Jul. 02, 2011

Intangible Assets And Goodwill

Intangible Assets

	July 2, 2011				December 31, 2010
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Completed technology		$642		$596		$642		$532
Patents		277		237		277		211
Customer-related		148		100		148		90
Licensed technology		25		18		25		18
Other intangibles		101		96		101		96
		$1,193		$1,047		$1,193		$947

Amortized Intangible Assets, Excluding Goodwill, By Business Segment

	July 2, 2011				December 31, 2010
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Government		$   140		$   133		$   140		$130
Enterprise		1,053		914		1,053		817
		$1,193		$1,047		$1,193		$947

Goodwill

	Government		Enterprise		Total
Balances as of January 1, 2011:
Aggregate goodwill acquired		$350		$2,643		$2,993
Accumulated impairment losses		—		(1,564)		(1,564)
Goodwill, net of impairment losses		$350		$1,079		$1,429
Goodwill acquired		—		—		—
Balances as of July 2, 2011:
Aggregate goodwill acquired		$350		$2,643		$2,993
Accumulated impairment losses		—		(1,564)		(1,564)
Goodwill, net of impairment losses		$350		$1,079		$1,429

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Basis Of Presentation (Narrative) (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended	3 Months Ended
	Jan. 04, 2011	Jul. 02, 2011	Apr. 29, 2011 Nokia Siemens Networks B.V. [Member]
Gain related to the completion of the transaction		$ 488
Accounts receivable excluded from NSN transaction			$ 150
Common stock exchange, received	1
Common stock exchange, exchanged	8
Reverse stock split numerator	1
Reverse stock split denominator	7

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Discontinued Operations (Summarized Activity Of Discontinued Operations) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010	Dec. 31, 2010
Discontinued Operations
Net sales	$ 260	$ 3,491	$ 1,108	$ 6,821
Operating earnings (loss)	(14)	202	190	158
Gains on sales of investments and businesses, net	488	20	488	21
Earnings before income taxes	467	217	666	171
Income tax expense	176	58	243	40
Earnings from discontinued operations, net of tax	291	159	423	131
Assets
Accounts receivable, net	60		60		2,072
Inventories, net	24		24		1,040
Other current assets	32		32		1,492
Property, plant and equipment, net	10		10		1,013
Investments					145
Goodwill					1,504
Other assets	83		83		514
Total assets	209		209		7,780
Liabilities
Accounts payable	27		27		2,060
Accrued liabilities	83		83		2,740
Other liabilities	79		79		737
Total liabilities	$ 189		$ 189		$ 5,537

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Other Financial Data (Narrative) (Details) (USD $) Share data in Millions, except Per Share data	0 Months Ended		3 Months Ended		6 Months Ended				0 Months Ended
	Jul. 28, 2011	Jan. 04, 2011	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010	Dec. 31, 2010	Dec. 31, 2009	Jul. 22, 2011 Motorola Mobility [Member]	Jan. 04, 2011 Motorola Mobility [Member]	Jul. 02, 2011 Motorola Mobility [Member]
Stock options excluded from computation of dilutive shares due to antidilutive nature			8.0	19.1	8.8	18.9
Exclusion of assumed vesting securities from computation of earning per share amount			0.3	1.2	0.2	0.7
Cash and cash equivalents			$ 2,203,000,000	$ 2,893,000,000	$ 2,203,000,000	$ 2,893,000,000	$ 4,208,000,000	$ 2,869,000,000			$ 3,200,000,000
Cash and cash equivalents, restricted			63,000,000		63,000,000		226,000,000				160,000,000
Gain (loss) on Sigma Fund investments				(4,000,000)		12,000,000
Investment impairments				9,000,000	3,000,000	18,000,000
Depreciation expense			40,000,000	35,000,000	81,000,000	71,000,000
Distribution-related obligation			300,000,000		300,000,000						300,000,000
Proceeds from capital reduction									75,000,000
Foreign currency translation adjustments										1,000,000
Fair value adjustments to available for sale securities										9,000,000
Fair value adjustments to available for sale securities, tax										5,000,000
Retirement benefit adjustments										8,000,000
Retirement benefit adjustments, tax										4,000,000
Reduction in retained earnings and additional paid in capital		5,300,000,000
Share repurchase program, maximum amount	$ 2,000,000,000
Dividend per share of common stock	$ 0.22
Dividend declaration date	Jul. 28, 2011
Dividend date of record	Sep. 15, 2011
Dividend date to be paid	Oct. 14, 2011

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Other Financial Data (Other Charges) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Other charges (income):
Amortization of intangible assets	$ 50	$ 50	$ 100	$ 101
Legal matters and settlements, net	48		48	(29)
Reorganization of business charges	17	14	22	13
Pension plan adjustments, net	(9)		(9)
Other charges, total	$ 106	$ 64	$ 161	$ 85

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Other Financial Data (Other Income (Expense)) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Interest income (expense), net:
Interest expense	$ (40)	$ (56)	$ (74)	$ (116)
Interest income	19	21	33	48
Interest income (expense), net	(21)	(35)	(41)	(68)
Other:
Loss from the extinguishment of the Company's outstanding long-term debt	(81)	(12)	(81)	(12)
Investment impairments		(9)	(3)	(18)
Foreign currency gain (loss)	6	(4)	11	3
Gain (loss) on Sigma Fund investments		(4)		12
Other	(2)	(1)	1
Other income expenses	$ (77)	$ (30)	$ (72)	$ (15)

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Other Financial Data (Earnings Per Common Share) (Details) (USD $) In Millions, except Per Share data	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Basic:
Earnings from continuing operations	$ 58	$ 3	$ 423	$ 100
Net earnings	349	162	846	231
Weighted average common shares outstanding, basic	341.2	332.7	339.3	331.7
Earnings per share from continuing operations, basic	$ 0.17	$ 0.01	$ 1.24	$ 0.30
Net earnings per share, basic	$ 1.02	$ 0.49	$ 2.49	$ 0.70
Diluted:
Earnings from continuing operations	58	3	423	100
Net earnings	$ 349	$ 162	$ 846	$ 231
Weighted average common shares outstanding, basic	341.2	332.7	339.3	331.7
Add effect of dilutive securities:
Share-based awards and other (in shares)	7.3	5.2	7.0	4.4
Weighted average common shares outstanding, diluted	348.5	337.9	346.3	336.1
Earnings per share from continuing operations, diluted	$ 0.17	$ 0.01	$ 1.22	$ 0.30
Net earnings per share, diluted	$ 1.00	$ 0.48	$ 2.44	$ 0.69

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Other Financial Data (Sigma Fund) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Sigma Fund
Sigma Fund, Current	$ 4,422	$ 4,646
Sigma Fund, Non-Current	28	70
Cash [Member]
Sigma Fund
Sigma Fund, Current	1,988	2,355
Sigma Fund, Non-Current
U.S. Government And Agency Obligations [Member]
Sigma Fund
Sigma Fund, Current	2,434	2,291
Sigma Fund, Non-Current
Corporate Bonds [Member]
Sigma Fund
Sigma Fund, Current
Sigma Fund, Non-Current	21	58
Asset-Backed Securities [Member]
Sigma Fund
Sigma Fund, Current
Sigma Fund, Non-Current		1
Mortgage-Backed Securities [Member]
Sigma Fund
Sigma Fund, Current
Sigma Fund, Non-Current	$ 7	$ 11

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Other Financial Data (Investments) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Investments
Short-term Investments	$ 2	$ 9
Investments	175	172
Unrealized Gains	19	4
Investment, Cost Basis	158	177
U.S. Government And Agency Obligations [Member] | Available-For-Sale Securities [Member]
Investments
Short-term Investments
Investments	17	17
Unrealized Gains
Investment, Cost Basis	17	17
Corporate Bonds [Member] | Available-For-Sale Securities [Member]
Investments
Short-term Investments	2	2
Investments	11	11
Unrealized Gains
Investment, Cost Basis	13	13
Mortgage-Backed Securities [Member] | Available-For-Sale Securities [Member]
Investments
Short-term Investments
Investments	3	3
Unrealized Gains
Investment, Cost Basis	3	3
Certificates of Deposit
Investments
Short-term Investments		7
Investment, Cost Basis		7
Common Stock And Equivalents [Member] | Available-For-Sale Securities [Member]
Investments
Short-term Investments
Investments	30	12
Unrealized Gains	19	4
Investment, Cost Basis	11	8
Other Securities, At Cost [Member]
Investments
Short-term Investments
Investments	104	113
Unrealized Gains
Investment, Cost Basis	104	113
Equity Method Investments
Investments
Short-term Investments
Investments	10	16
Unrealized Gains
Investment, Cost Basis	10	16
Available-For-Sale Securities [Member]
Investments
Short-term Investments	2	9
Investments	61	43
Unrealized Gains	19	4
Investment, Cost Basis	$ 44	$ 48

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Per Share data	Jul. 02, 2011	Dec. 31, 2010
Condensed Consolidated Balance Sheets
Preferred stock, par value	$ 100	$ 100
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	600.0	600.0
Common stock, issued shares	344.9	337.2
Common stock, outstanding shares	343.1	336.3

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Other Financial Data (Accounts Receivable, Net) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Accounts receivable
Accounts receivable	$ 1,596	$ 1,596
Less allowance for doubtful accounts	(50)	(49)
Accounts receivable, net	$ 1,546	$ 1,547

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Other Financial Data (Inventories, Net) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Inventories
Finished goods	$ 398	$ 386
Work-in-process and production materials	284	292
Inventories, gross	682	678
Less inventory reserves	(160)	(157)
Inventories, net	$ 522	$ 521

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Other Financial Data (Other Current Assets) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Other Current Assets
Costs and earnings in excess of billings	$ 314	$ 291
Contract-related deferred costs	163	160
Tax-related refunds receivable	105	116
Other	147	181
Other current assets	$ 729	$ 748

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Other Financial Data (Property, Plant And Equipment, Net) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Property, Plant and Equipment
Land	$ 70	$ 71
Building	769	804
Machinery and equipment	2,115	2,094
Property, plant and equipment, gross	2,954	2,969
Less accumulated depreciation	(2,055)	(2,047)
Property, plant and equipment, net	$ 899	$ 922

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Other Financial Data (Other Assets) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Other Assets
Long-term receivables, net of allowances of $6 and $1	$ 272	$ 251
Intangible assets, net of accumulated amortization of $1,047 and $947	146	246
Other	223	237
Other assets, total	641	734
Long-term receivables, allowances	6	1
Intangible assets, accumulated amortization	$ 1,047	$ 947

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Other Financial Data (Accrued Liabilities) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Accrued Liabilities
Deferred revenue	$ 760	$ 746
Compensation	336	558
Distribution-related obligation	300
Billings in excess of costs and earnings	251	226
Tax liabilities	146	179
Customer reserves	112	117
Other	885	748
Accrued liabilities	$ 2,790	$ 2,574

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Other Financial Data (Other Liabilities) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Other Liabilities
Defined benefit plans, including split dollar life insurance policies	$ 2,025	$ 2,113
Deferred revenue	293	274
Postretirement health care benefit plan	286	277
Unrecognized tax benefits	102	70
Other	309	311
Other liabilities	$ 3,015	$ 3,045

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Debt and Credit Facilities (Details) (USD $)	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011 6.5% Debentures Due 2025 [Member]	Jul. 03, 2010 6.5% Debentures Due 2025 [Member]	Jul. 02, 2011 6.5% Debentures Due 2028 [Member]	Jul. 03, 2010 6.5% Debentures Due 2028 [Member]	Jul. 03, 2010 5.22% Debentures Due 2097 [Member]	Jul. 02, 2011 Senior Notes 6.625% Due 2037 [Member]	Jul. 03, 2010 Senior Notes 6.625% Due 2037 [Member]	Apr. 02, 2011 Scheduled To Mature On December 2011 [Member]	Apr. 02, 2011 Scheduled To Mature On June 30, 2014 [Member]
Repurchase of outstanding long-term debt			$ 540,000,000	$ 500,000,000
Purchase price of long-term debt			615,000,000	477,000,000
Accrued interest payment for long-term debt purchased	6,000,000	5,000,000
Reduction in principal amount					196,000,000	65,000,000	174,000,000	75,000,000	138,000,000	170,000,000	222,000,000
Principal amount outstanding before open market purchases					314,000,000	379,000,000	210,000,000	286,000,000	252,000,000	225,000,000	446,000,000
Debt maturity date					2025	2025	2028	2028	2097	2037	2037
Interest rate on debt					6.50%	6.50%	6.50%	6.50%	5.22%	6.625%	6.625%
Gains (Losses) on Extinguishment of Debt	(81,000,000)	(12,000,000)	(81,000,000)	(12,000,000)
Syndicated revolving credit facility												1,500,000,000	1,500,000,000
Aggregate credit facility size up to a maximum	2,000,000,000		2,000,000,000
Outstanding borrowings	$ 0		$ 0

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Risk Management (Narrative) (Details) (USD $)	Jul. 02, 2011	Dec. 31, 2010
Notional amount of foreign currency derivatives	$ 665,000,000	$ 1,500,000,000
Number of net notional positions to buy or sell foreign currency disclosed (in number of positions)	5	5
Principal amount outstanding	2,200,000,000
Fair value of derivative liabilities	4,000,000	18,000,000
Aggregate credit risk with all counterparties	3,000,000
Long-term debt, fair value	2,300,000,000
Long-term debt, face value	2,200,000,000
Not Designated As Hedging Instrument [Member]
Fair value of derivative liabilities	4,000,000	18,000,000
Not Designated As Hedging Instrument [Member] | Interest Rate Contracts [Member] | Other Liabilities [Member]
Fair value of derivative liabilities	$ 3,000,000	$ 3,000,000

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Risk Management (Notional Amounts Of The Positions To Buy Or Sell Foreign Currency) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Foreign Currency Contracts
Notional amount of foreign currency derivatives	$ 665	$ 1,500
Chinese Renminbi [Member]
Foreign Currency Contracts
Notional amount of foreign currency derivatives	(424)	(423)
Euro [Member]
Foreign Currency Contracts
Notional amount of foreign currency derivatives	42	(195)
Israeli Shekel [Member]
Foreign Currency Contracts
Notional amount of foreign currency derivatives	24	(5)
Malaysian Ringgit [Member]
Foreign Currency Contracts
Notional amount of foreign currency derivatives	45	64
British Pound [Member]
Foreign Currency Contracts
Notional amount of foreign currency derivatives	$ 24	$ 187

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Condensed Consolidated Statement Of Stockholders' Equity (USD $) In Millions	Common Stock And Additional Paid-In Capital	Fair Value Adjustment To Available For Sale Securities, Net Of Tax	Foreign Currency Translation Adjustments, Net Of Tax	Retirement Benefits Adjustments, Net Of Tax	Other Items, Net Of Tax	Retained Earnings	NonControlling Interests	Comprehensive Earnings	Total
Balance at Dec. 31, 2010	$ 8,647	$ 12	$ (126)	$ (2,108)		$ 4,460	$ 102		$ 10,987
Balance (in shares) at Dec. 31, 2010	337.2
Net earnings (loss)						846	(8)	838	838
Net unrealized gain on securities, net of tax of $6		9						9
Foreign currency translation adjustments, net of tax of $(5)			83					83
Amortization of retirement benefit adjustments, net of tax of $36				65				65
Remeasurement of retirement benefits, net of tax of $9				(77)				(77)
Issuance of common stock and stock options exercised	92
Issuance of common stock and stock options exercised (in shares)	7.7
Excess tax benefit from stock-based compensation	36
Share-based compensation expense	91
Net gain on derivative instruments, net of tax of $0					2			2
Distribution of Motorola Mobility	(831)	(9)	1	8		(4,460)			3,200
Dividends paid to noncontrolling interest on subsidiary common stock							(8)
Purchase of noncontrolling interest in subsidiary							(1)
Reclassification of share-based awards from equity to liability	(2)
Balance at Jul. 02, 2011	$ 8,033	$ 12	$ (42)	$ (2,112)	$ 2	$ 846	$ 85	$ 920	$ 6,824
Balance (in shares) at Jul. 02, 2011	344.9

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Risk Management (Fair Values And Location In Condensed Consolidated Balance Sheet Of All Derivatives) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Derivatives, Fair Value
Total derivatives assets	$ 3	$ 5
Fair value of derivative liabilities	4	18
Fair value of derivative liabilities not designated as hedging instruments	4	18
Designated As Hedging Instrument [Member] | Other Liabilities [Member] | Foreign Exchange Contracts [Member]
Derivatives, Fair Value
Fair value of derivative liabilities
Fair value of derivative liabilities not designated as hedging instruments
Designated As Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | Other Assets [Member]
Derivatives, Fair Value
Total derivatives assets	2	1
Not Designated As Hedging Instrument [Member]
Derivatives, Fair Value
Total derivatives assets	1	4
Fair value of derivative liabilities	4	18
Fair value of derivative liabilities not designated as hedging instruments	4	18
Not Designated As Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | Other Assets [Member]
Derivatives, Fair Value
Total derivatives assets	1	4
Not Designated As Hedging Instrument [Member] | Interest Rate Contracts [Member] | Other Assets [Member]
Derivatives, Fair Value
Total derivatives assets
Not Designated As Hedging Instrument [Member] | Interest Rate Contracts [Member] | Other Liabilities [Member]
Derivatives, Fair Value
Fair value of derivative liabilities	3	3
Fair value of derivative liabilities not designated as hedging instruments	3	3
Not Designated As Hedging Instrument [Member] | Other Liabilities [Member] | Foreign Exchange Contracts [Member]
Derivatives, Fair Value
Fair value of derivative liabilities	1	15
Fair value of derivative liabilities not designated as hedging instruments	$ 1	$ 15

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Risk Management (Effect Of Derivative Instruments In Condensed Consolidated Statements Of Operations) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Gain (Loss) on Derivative Instruments
Derivatives not designated as hedging instruments	$ (11)	$ 18	$ (20)	$ 23
Foreign Exchange Contracts [Member] | Accumulated Other Comprehensive Loss [Member]
Gain (Loss) on Derivative Instruments
Gain recognized in Accumulated other comprehensive loss (effective portion)		(6)	3	(3)
Foreign Exchange Contracts [Member] | Other Income (Expense) [Member]
Gain (Loss) on Derivative Instruments
Derivatives not designated as hedging instruments	(8)	22	(15)	31
Foreign Exchange Contracts [Member] | Cost Of Sales [Member]
Gain (Loss) on Derivative Instruments
Gain reclassified from Accumulated other comprehensive loss into Net earnings (effective portion)	2	3	2	3
Interest Rate Contracts [Member] | Other Income (Expense) [Member]
Gain (Loss) on Derivative Instruments
Derivatives not designated as hedging instruments	$ (3)	$ (4)	$ (5)	$ (8)

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Income Taxes (Details) (USD $) In Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jul. 02, 2011	Jul. 02, 2011	Dec. 31, 2010
Valuation allowance	$ 283	$ 283	$ 502
Valuation allowance - deferred tax assets relating to non-U.S subsidiaries		258	187
Tax benefit related to the reversal of the valuation allowance	244	244
Increase decrease in valuation allowance	34
Unrecognized tax benefits	233	233	198
Unrecognized tax benefits that would impact effective tax rate if recognized	175	175	20
Unrecognized tax benefits with potential to be recognized in next 12 months, lower end of range		50
Unrecognized tax benefits with potential to be recognized in next 12 months, higher end of range		125
Change in cash payment of unrecognized tax benefits, lower end of range		0
Change in cash payment of unrecognized tax benefits, upper end of range		100
Non-U.S Subsidiaries [Member]
Increase decrease in valuation allowance	$ 34

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Retirement Benefits (Net Periodic Pension Costs) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Defined Benefit Plan Disclosure
Net curtailment gain recorded in other charges	$ 9
U.S. Regular Pension Plan [Member]
Defined Benefit Plan Disclosure
Interest cost	83	85	170	171
Expected return on plan assets	(96)	(94)	(194)	(189)
Unrecognized net loss	46	36	93	74
Net periodic pension cost	33	27	69	56
Contributions			110
Officers' and MSPP [Member]
Defined Benefit Plan Disclosure
Interest cost		1	1	1
Unrecognized net loss	1		2	1
Settlement/curtailment loss	3	1	4	2
Net periodic pension cost	4	2	7	4
Contributions			6
Non- U.S. Plans [Member]
Defined Benefit Plan Disclosure
Service cost	8	6	14	13
Interest cost	31	21	49	49
Expected return on plan assets	(35)	(20)	(55)	(48)
Unrecognized net loss	5	4	8	10
Unrecognized prior service cost	(5)	(1)	(7)	(2)
Settlement/curtailment loss	(9)		(9)
Net periodic pension cost	(5)	10		22
Contributions			$ 23

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Retirement Benefits (Net Postretirement Health Care Benefit Plans) (Details) (Postretirement Health Care Benefit Plans [Member], USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Postretirement Health Care Benefit Plans [Member]
Defined Benefit Plan Disclosure
Service cost	$ 1	$ 2	$ 2	$ 3
Interest cost	6	6	12	13
Expected return on plan assets	(4)	(4)	(8)	(8)
Unrecognized net loss	3	3	6	5
Unrecognized prior service cost		(1)		(1)
Net postretirement health care expense	6	6	12	12
Contributions	$ 0		$ 0

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Share-Based Compensation Plans (Narrative) (Details) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended		6 Months Ended		0 Months Ended		6 Months Ended	0 Months Ended		3 Months Ended	6 Months Ended
	Apr. 30, 2011	Jul. 02, 2011	Apr. 02, 2011 years	Jul. 02, 2011	Jul. 02, 2011 RSU [Member]	Apr. 29, 2011 Restricted Stock [Member]	Jan. 04, 2011 Restricted Stock [Member]	Jul. 02, 2011 Restricted Stock [Member]	Apr. 29, 2011 Stock Option [Member]	Jan. 04, 2011 Stock Option [Member]	Jul. 02, 2011 Restricted Stock And Restricted Stock Units [Member]	Jul. 02, 2011 Restricted Stock And Restricted Stock Units [Member]
Stock issued during period, shares, share-based compensation					4.9			0.1			4.4	0.5
Stock options granted in period				3.1
Stock granted during period, value, share-based compensation		$ 161
Share based compensation expense related to stock options		6		35
Weighted average vesting period for recognized RSUs and stock options, years			3
Stock options subject to cancellation						1.3			0.2
Unvested RSUs cancelled							3.8			8.0
RSUs vested in period	0.3
Additional compensation expense		$ 5.0		$ 5.0	$ 180.0			$ 4.0

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Share-Based Compensation Plans (Schedule Of Compensation Expense) (Details) (USD $) In Millions, except Per Share data	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Share-based compensation expense included in Operating earnings	$ 39	$ 36	$ 78	$ 69
Tax benefit	13	11	25	21
Share-based compensation expense, net of tax	26	25	53	48
Decrease in basic earnings per share	$ (0.08)	$ (0.08)	$ (0.16)	$ (0.15)
Decrease in diluted earning per share	$ (0.08)	$ (0.08)	$ (0.15)	$ (0.14)
Share-based compensation expense in discontinued operations	5	40	13	79
Cost Of Sales [Member]
Share-based compensation expense included in Operating earnings	5	5	8	9
Selling, General And Administrative Expenses [Member]
Share-based compensation expense included in Operating earnings	25	20	54	40
Research And Development Expenditures [Member]
Share-based compensation expense included in Operating earnings	$ 9	$ 11	$ 16	$ 20

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Fair Value Measurements (Narrative) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Fair Value Measurements
Investments in money market mutual funds classified as cash and cash equivalents	$ 388	$ 1,000

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Fair Value Measurements (Financial Assets And Liabilities) (Details) (USD $) In Millions	Jul. 02, 2011		Dec. 31, 2010
Assets:
Available-for-sale securities, fair value	$ 175		$ 172
Foreign exchange derivative contracts	3	[1]	5	[1]
Liabilities:
Foreign exchange derivative contracts	1	[1]	15	[1]
Interest agreement derivative contracts	3		3
U.S. Government And Agency Obligations [Member] | Sigma Fund Securities [Member]
Assets:
Sigma Fund securities, fair value	2,434		2,291
U.S. Government And Agency Obligations [Member] | Sigma Fund Securities [Member] | Level 1 [Member]
Assets:
Sigma Fund securities, fair value
U.S. Government And Agency Obligations [Member] | Sigma Fund Securities [Member] | Level 2 [Member]
Assets:
Sigma Fund securities, fair value	2,434		2,291
U.S. Government And Agency Obligations [Member] | Sigma Fund Securities [Member] | Level 3 [Member]
Assets:
Sigma Fund securities, fair value
Corporate Bonds [Member] | Sigma Fund Securities [Member]
Assets:
Sigma Fund securities, fair value	21		58
Corporate Bonds [Member] | Sigma Fund Securities [Member] | Level 1 [Member]
Assets:
Sigma Fund securities, fair value
Corporate Bonds [Member] | Sigma Fund Securities [Member] | Level 2 [Member]
Assets:
Sigma Fund securities, fair value			43
Corporate Bonds [Member] | Sigma Fund Securities [Member] | Level 3 [Member]
Assets:
Sigma Fund securities, fair value	21		15
Asset-Backed Securities [Member] | Sigma Fund Securities [Member]
Assets:
Sigma Fund securities, fair value	0		1
Asset-Backed Securities [Member] | Sigma Fund Securities [Member] | Level 1 [Member]
Assets:
Sigma Fund securities, fair value
Asset-Backed Securities [Member] | Sigma Fund Securities [Member] | Level 2 [Member]
Assets:
Sigma Fund securities, fair value	0		1
Asset-Backed Securities [Member] | Sigma Fund Securities [Member] | Level 3 [Member]
Assets:
Sigma Fund securities, fair value
Mortgage-Backed Securities [Member] | Sigma Fund Securities [Member]
Assets:
Sigma Fund securities, fair value	7		11
Mortgage-Backed Securities [Member] | Sigma Fund Securities [Member] | Level 1 [Member]
Assets:
Sigma Fund securities, fair value
Mortgage-Backed Securities [Member] | Sigma Fund Securities [Member] | Level 2 [Member]
Assets:
Sigma Fund securities, fair value	7		11
Mortgage-Backed Securities [Member] | Sigma Fund Securities [Member] | Level 3 [Member]
Assets:
Sigma Fund securities, fair value
U.S. Government And Agency Obligations [Member] | Available-For-Sale Securities [Member]
Assets:
Available-for-sale securities, fair value	17		17
U.S. Government And Agency Obligations [Member] | Available-For-Sale Securities [Member] | Level 1 [Member]
Assets:
Available-for-sale securities, fair value
U.S. Government And Agency Obligations [Member] | Available-For-Sale Securities [Member] | Level 2 [Member]
Assets:
Available-for-sale securities, fair value	17		17
U.S. Government And Agency Obligations [Member] | Available-For-Sale Securities [Member] | Level 3 [Member]
Assets:
Available-for-sale securities, fair value
Corporate Bonds [Member] | Available-For-Sale Securities [Member]
Assets:
Available-for-sale securities, fair value	11		11
Corporate Bonds [Member] | Available-For-Sale Securities [Member] | Level 1 [Member]
Assets:
Available-for-sale securities, fair value
Corporate Bonds [Member] | Available-For-Sale Securities [Member] | Level 2 [Member]
Assets:
Available-for-sale securities, fair value	11		11
Corporate Bonds [Member] | Available-For-Sale Securities [Member] | Level 3 [Member]
Assets:
Available-for-sale securities, fair value
Common Stock And Equivalents [Member] | Available-For-Sale Securities [Member]
Assets:
Available-for-sale securities, fair value	30		12
Common Stock And Equivalents [Member] | Available-For-Sale Securities [Member] | Level 1 [Member]
Assets:
Available-for-sale securities, fair value	21		2
Common Stock And Equivalents [Member] | Available-For-Sale Securities [Member] | Level 2 [Member]
Assets:
Available-for-sale securities, fair value	9		10
Common Stock And Equivalents [Member] | Available-For-Sale Securities [Member] | Level 3 [Member]
Assets:
Available-for-sale securities, fair value
Mortgage-Backed Securities [Member] | Available-For-Sale Securities [Member]
Assets:
Available-for-sale securities, fair value	3		3
Mortgage-Backed Securities [Member] | Available-For-Sale Securities [Member] | Level 1 [Member]
Assets:
Available-for-sale securities, fair value
Mortgage-Backed Securities [Member] | Available-For-Sale Securities [Member] | Level 2 [Member]
Assets:
Available-for-sale securities, fair value	3		3
Mortgage-Backed Securities [Member] | Available-For-Sale Securities [Member] | Level 3 [Member]
Assets:
Available-for-sale securities, fair value
Level 1 [Member]
Assets:
Foreign exchange derivative contracts		[1]		[1]
Liabilities:
Foreign exchange derivative contracts		[1]		[1]
Interest agreement derivative contracts
Level 2 [Member]
Assets:
Foreign exchange derivative contracts	3	[1]	5	[1]
Liabilities:
Foreign exchange derivative contracts	1	[1]	15	[1]
Interest agreement derivative contracts	3		3
Level 3 [Member]
Assets:
Foreign exchange derivative contracts		[1]		[1]
Liabilities:
Foreign exchange derivative contracts		[1]		[1]
Interest agreement derivative contracts

[1] Includes amounts included in held for disposition.

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Fair Value Measurements (Changes In Fair Value Of Level 3 Assets) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Fair Value Measurements
Beginning balance	$ 21	$ 22	$ 15	$ 19
Transfers to Level 3		3	21	3
Payments received and securities sold		(4)	(18)	(5)
Mark-to-market on Sigma Fund investments included in Other income (expense)		1	3	5
Ending balance	$ 21	$ 22	$ 21	$ 22

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Condensed Consolidated Statement Of Stockholders' Equity (Parenthetical) (USD $) In Millions	6 Months Ended
	Jul. 02, 2011
Condensed Consolidated Statement Of Stockholders' Equity
Net unrealized gain (losses) on securities, tax	$ 6
Foreign currency translation adjustments, tax	(5)
Amortization of retirement benefit adjustments, tax	36
Remeasurement of retirement benefits, tax	9
Net gain on derivative instruments, net of tax	$ 0

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Long-Term Customer Financing And Sales Of Receivables (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended	12 Months Ended
	Apr. 02, 2011	Jul. 02, 2011	Dec. 31, 2010
Commitments to provide long-term financing		$ 135	$ 333
Portion of long-term financing commitment supported by letters of credit or bank commitments		1	27
Funded portion of the financing arrangements related to the Networks segment		286
Commitment to provide guarantees for customer financing		1	10
Customer financing guarantees outstanding		1	1
Guarantees outstanding relating the sale of short-term receivables			6
Committed facilities for sale of long-term receivables		0	0
Servicing obligations for sold accounts receivables		0	329
Servicing obligations for long-term receivables		266	277
Receivables with past due balances greater than period reviewed for collectability, in days		90
Long-term receivables, impaired loan		49
Reserve for credit losses		5
Average investment in impaired loan	48	48
Receivable Sales Facility [Member]
Committed revolving facilities for the sale of accounts receivable		200	200
Network Business [Member]
Commitments to provide long-term financing			$ 168

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Long-Term Customer Financing And Sales Of Receivables (Long-Term Customer Financing) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Long-Term Customer Financing And Sales Of Receivables
Long-term receivables	$ 307	$ 265
Less allowance for losses	(6)	(1)
Long-term receivables, net	301	264
Less current portion	(29)	(13)
Non-current long-term receivables, net	$ 272	$ 251

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Long-Term Customer Financing And Sales Of Receivables (Proceeds Received From Non-Recourse Sales Of Accounts Receivable And Long-Term Receivables) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Long-Term Customer Financing And Sales Of Receivables
Accounts receivable sales proceeds		$ 5	$ 1	$ 28
Long-term receivables sales proceeds	17	6	23	9
Total proceeds from one-time sales	17	11	24	37
Cumulative quarterly proceeds received from sales under committed facilities		16		70
Total proceeds from receivables sales	$ 17	$ 27	$ 24	$ 107

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Long-Term Customer Financing And Sales Of Receivables (Credit Quality Of Customer Financing Receivables And Allowance For Credit Losses) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Total Long-term Receivable	$ 307	$ 265
Current Billed Due		1
Past Due Under 90 Days	6
Municipal Leases Secured Tax Exempt [Member]
Total Long-term Receivable	11	16
Current Billed Due
Past Due Under 90 Days
Commercial Loans And Leases Secured [Member]
Total Long-term Receivable	80	67
Current Billed Due		1
Past Due Under 90 Days	6
Commercial Loans Unsecured [Member]
Total Long-term Receivable	216	182
Current Billed Due
Past Due Under 90 Days

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Commitments And Contingencies (Details) (USD $) In Millions	3 Months Ended
	Jul. 02, 2011
Commitments And Contingencies
Indemnification provided in connection with divestiture of assets or businesses	$ 251
Accrued portion of the amount of indemnification under agreements	8
Charges related to legal matters	$ 48

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Segment Information (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Net sales	$ 2,055	$ 1,936	$ 3,939	$ 3,676
Operating earnings	170	161	340	281
Total other income (expense)	(97)	(32)	(94)	(43)
Earnings from continuing operations before income taxes	73	129	246	238
Government [Member]
Net sales	1,308	1,262	2,497	2,394
Operating earnings	111	117	215	209
Enterprise [Member]
Net sales	747	674	1,442	1,282
Operating earnings	$ 59	$ 44	$ 125	$ 72

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Reorganization Of Businesses (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended			3 Months Ended	6 Months Ended		3 Months Ended			6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended		3 Months Ended	6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010	Dec. 31, 2010	Jul. 02, 2011 Exit Costs [Member]	Jul. 02, 2011 Exit Costs [Member]	Jul. 03, 2010 Exit Costs [Member]	Jul. 02, 2011 Employee Separation Costs [Member]	Apr. 02, 2011 Employee Separation Costs [Member]	Jul. 03, 2010 Employee Separation Costs [Member]	Jul. 02, 2011 Employee Separation Costs [Member]	Jul. 03, 2010 Employee Separation Costs [Member]	Jul. 02, 2011 Restructuring Reversal [Member]	Jul. 03, 2010 Restructuring Reversal [Member]	Jul. 02, 2011 Restructuring Reversal [Member]	Jul. 03, 2010 Restructuring Reversal [Member]	Jul. 03, 2010 Cost Of Sales [Member]	Jul. 02, 2011 Cost Of Sales [Member]	Jul. 03, 2010 Cost Of Sales [Member]	Jul. 03, 2010 Other Charges [Member]	Jul. 02, 2011 Other Charges [Member]	Jul. 03, 2010 Other Charges [Member]
Number of Employees Impacted By Reorganization of Business
Accrual for employee severance, initial payment in current year (in number of employees)					1,000
Restructuring charges in the period for total employee severance (in number of employees)				500
Restructuring charges in the period for indirect employees' severance (in number of employees)			200
Indirect employees charges													$ 27
Restructuring Reserve Activity
Reorganization of business charges	17	20	25	20		13	13		5		21	14	27	1	1	2	7	6	3	7	14	22	13
Beginning balance			67	47			17	16		50		50	31
Severance costs										14			26
Adjustments offset for accruals				5
Amount used			52	34			16	7				36	27
Ending balance	40	33	40	33		14	14	7	26		26	26	26
Exit costs attributable to lease terminations							13	7
Accrued liability	$ 2,790		$ 2,790		$ 2,574	$ 14	$ 14		$ (2)			$ (2)

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Reorganization Of Businesses (Net Charges Incurred By Business Segment) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Reorganization of business charges	$ 17	$ 20	$ 25	$ 20
Government [Member]
Reorganization of business charges	10	15	18	15
Enterprise [Member]
Reorganization of business charges	$ 7	$ 5	$ 7	$ 5

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Reorganization Of Businesses (Reorganization Of Businesses Accruals) (Details) (USD $) In Millions	6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010
Restructuring Reserve Activity
Beginning balance	$ 67	$ 47
Additional Charges	27	27
Adjustments	(2)	(7)
Amount Used	(52)	(34)
Ending balance	40	33
Exit Costs [Member]
Restructuring Reserve Activity
Beginning balance	17	16
Additional Charges	13
Adjustments		(2)
Amount Used	(16)	(7)
Ending balance	14	7
Employee Separation Costs [Member]
Restructuring Reserve Activity
Beginning balance	50	31
Additional Charges	14	27
Adjustments	(2)	(5)
Amount Used	(36)	(27)
Ending balance	$ 26	$ 26

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Intangible Assets And Goodwill (Narrative) (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Intangible Assets And Goodwill
Amortization of intangible assets	$ 50	$ 50	$ 100	$ 101
Finite-Lived Intangible Assets, Future Amortization Expense
2011			200
2012			25
2013			9
2014			7
2015			$ 2

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Condensed Consolidated Statements Of Cash Flows (USD $) In Millions	6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010
Operating
Net earnings attributable to Motorola Solutions, Inc.	$ 846	$ 231
Earnings (loss) attributable to noncontrolling interests	(8)	3
Net earnings	838	234
Earnings from discontinued operations, net of tax	423	131
Earnings from continuing operations	415	103
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities:
Depreciation and amortization	181	172
Non-cash other charges (income)	45	(37)
Share-based compensation expense	78	69
Gain on sales of investments and businesses, net	(19)	(40)
Loss from the extinguishment of long-term debt	81	12
Deferred income taxes	(10)	255
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable	88	(32)
Inventories	(12)	(36)
Other current assets	9	10
Accounts payable and accrued liabilities	(338)	(144)
Other assets and liabilities	(185)	(170)
Net cash provided by operating activities from continuing operations	333	162
Investing
Acquisitions and investments, net	(2)	(6)
Proceeds from sales of investments and businesses, net	1,078	239
Capital expenditures	(60)	(74)
Proceeds from sales of property, plant and equipment	4	27
Proceeds from sales (purchases) of Sigma Fund investments, net	266	(248)
Proceeds from sales (purchases) of short-term investments, net	6	(23)
Net cash provided by (used for) investing activities from continuing operations	1,292	(85)
Financing
Repayment of short-term borrowings, net		(5)
Repayment of debt	(616)	(481)
Contribution to Motorola Mobility	(3,200)
Issuance of common stock	128	68
Distribution from discontinued operations	75	531
Net cash provided by (used for) financing activities from continuing operations	(3,613)	113
Discontinued Operations
Net cash provided by operating activities from discontinued operations	38	567
Net cash used for investing activities from discontinued operations	(8)	(88)
Net cash used for financing activities from discontinued operations	(75)	(531)
Effect of exchange rate changes on cash and cash equivalents from discontinued operations	45	52
Net cash provided by (used for) discontinued operations
Effect of exchange rate changes on cash and cash equivalents from continuing operations	(17)	(166)
Net increase (decrease) in cash and cash equivalents	(2,005)	24
Cash and cash equivalents, beginning of period	4,208	2,869
Cash and cash equivalents, end of period	2,203	2,893
Cash paid during the period for:
Interest, net	105	130
Income taxes, net of refunds	$ 39	$ 34

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Intangible Assets And Goodwill (Intangible Assets) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Gross Carrying Amount	$ 1,193	$ 1,193
Accumulated Amortization	1,047	947
Completed Technology [Member]
Gross Carrying Amount	642	642
Accumulated Amortization	596	532
Patents [Member]
Gross Carrying Amount	277	277
Accumulated Amortization	237	211
Customer-Related [Member]
Gross Carrying Amount	148	148
Accumulated Amortization	100	90
Licensed Technology [Member]
Gross Carrying Amount	25	25
Accumulated Amortization	18	18
Other Intangibles [Member]
Gross Carrying Amount	101	101
Accumulated Amortization	$ 96	$ 96

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Intangible Assets And Goodwill (Amortized Intangible Assets, Excluding Goodwill, By Business Segment) (Details) (USD $) In Millions	Jul. 02, 2011	Dec. 31, 2010
Gross Carrying Amount	$ 1,193	$ 1,193
Accumulated Amortization	1,047	947
Government [Member]
Gross Carrying Amount	140	140
Accumulated Amortization	133	130
Enterprise [Member]
Gross Carrying Amount	1,053	1,053
Accumulated Amortization	$ 914	$ 817

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Intangible Assets And Goodwill (Goodwill) (Details) (USD $) In Millions	12 Months Ended
	Dec. 31, 2010	Jul. 02, 2011
Goodwill Activity
Aggregate goodwill acquired	$ 2,993	$ 2,993
Accumulated impairment losses	(1,564)	(1,564)
Goodwill, net of impairment losses	1,429	1,429
Goodwill acquired
Government [Member]
Goodwill Activity
Aggregate goodwill acquired	350	350
Goodwill, net of impairment losses	350	350
Goodwill acquired
Enterprise [Member]
Goodwill Activity
Aggregate goodwill acquired	2,643	2,643
Accumulated impairment losses	(1,564)	(1,564)
Goodwill, net of impairment losses	1,079	1,079
Goodwill acquired

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Basis Of Presentation

6 Months Ended

Jul. 02, 2011

Basis Of Presentation

Basis Of Presentation

1. Basis of Presentation

The condensed consolidated financial statements as of July 2, 2011 and for the three and six months ended July 2, 2011 and July 3, 2010, include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the consolidated financial position, results of operations and cash flows of Motorola Solutions, Inc. ("Motorola Solutions" or the "Company") for all periods presented.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Form 10-K for the year ended December 31, 2010, as well as the Company's Form 8-K filed on May 12, 2011 to reflect: (i) the revised presentation of the Company's segments as a result of the realignment of its operations into two segments: Government and Enterprise, and (ii) the reclassification of the historical financial results of Motorola Mobility Holdings, Inc. ("Motorola Mobility") as discontinued operations. The results of operations for the three and six months ended July 2, 2011 are not necessarily indicative of the operating results to be expected for the full year. Certain amounts in prior period financial statements and related notes have been reclassified to conform to the 2011 presentation.

The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Changes in Presentation

Networks Transaction

On July 19, 2010, the Company announced an agreement to sell certain assets and liabilities of its Networks business to Nokia Siemens Networks B.V. ("NSN") (the "Transaction"). On April 12, 2011, the Company announced certain amendments to the Transaction. On April 29, 2011, the Company completed the Transaction, as amended. Based on the terms and conditions of the amended sale agreement, certain assets including $150 million of accounts receivable and the Company's iDEN infrastructure business were excluded from the Transaction. During the three months ended July 2, 2011, the Company recorded a pre-tax gain related to the completion of the Transaction of $488 million, net of closing costs and an expected purchase price adjustment, to Gains on sales of investments and business, net, within the discontinued operations in the Company's condensed consolidated statements of operations. As of July 2, 2011, regulatory approvals required to complete the Transaction in certain countries are still in-process and are expected to be completed in the second half of 2011. Until these approvals are received, the Company will maintain the assets and liabilities associated with these countries in assets and liabilities held for disposition in the Company's condensed consolidated balance sheets.

The results of operations of the portions of the Networks business included in the Transaction are reported as discontinued operations for all periods presented. Certain Corporate and general costs which have historically been allocated to the Networks business remain with the Company after the sale of the Networks business.

Motorola Mobility Distribution

On January 4, 2011, the distribution by the Company of all the common stock of Motorola Mobility was completed (the "Distribution"). The stockholders of record as of the close of business on December 21, 2010 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 structured to be tax-free to Motorola Solutions and its stockholders for U.S. tax purposes (other than with respect to any cash received in lieu of fractional shares). The historical financial results of Motorola Mobility are reflected in the Company's condensed consolidated financial statements as discontinued operations for all periods presented.

Reverse Stock Split and Name Change

On January 4, 2011, immediately following the Distribution, the Company completed a 1-for-7 reverse stock split ("the Reverse Stock Split") and changed its name to Motorola Solutions, Inc. All consolidated per share information presented gives effect to the Reverse Stock Split.

Change in Segmentation

Following the Distribution, the Company reports financial results for the following two segments:

• Government: Our Government segment includes sales of two-way radios and public safety systems. Service revenues included in the Government segment are primarily those associated with the design, installation, maintenance and optimization of equipment for public safety networks.

• Enterprise: Our Enterprise segment includes sales of enterprise mobile computing devices, scanning devices, wireless broadband systems, RFID data capture solutions and iDEN infrastructure. Service revenues included in the Enterprise segment are primarily maintenance contracts associated with the above products.

Recent Accounting Pronouncements

In May 2011, the FASB issued Accounting Standards Update No. 2011-04, "Fair Value Measurements (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs," ("ASU 2011-04"). ASU 2011-04 expands the disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. This new guidance is to be applied prospectively. This guidance will be effective for the Company beginning January 1, 2012. The Company anticipates that the adoption of this standard will not materially affect its financial statements.

In June 2011, the FASB issued Accounting Standards Update No. 2011-05, "Comprehensive Income (Topic 220): Presentation of Comprehensive Income," ("ASU 2011-05"). ASU 2011-05 eliminates the option to report other comprehensive income and its components in the statement of changes in equity. ASU 2011-05 requires that all non-owner changes in stockholders' equity be presented in either a single continuous statement of comprehensive income or in two separate but consecutive statements. This new guidance is to be applied retrospectively. This guidance will be effective for the Company beginning January 1, 2012. The Company anticipates that the adoption of this standard will change the presentation of its consolidated financial statements.

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Discontinued Operations

6 Months Ended

Jul. 02, 2011

Discontinued Operations

Discontinued Operations

2. Discontinued Operations

During the three and six months ended July 2, 2011, the activity from discontinued operations substantially relates to the operations of the Networks business. During the three and six months ended July 3, 2010, the activity from discontinued operations substantially relates to the operations of Motorola Mobility and the Networks business. The following table displays summarized activity in the Company's condensed consolidated statements of operations for discontinued operations during the three and six months ended July 2, 2011 and July 3, 2010.

	Three Months Ended				Six Months Ended
	July 2,     2011		July 3,     2010		July 2,     2011		July 3,     2010
Net sales		$260		$3,491		$1,108		$6,821
Operating earnings (loss)		(14)		202		190		158
Gains on sales of investments and businesses, net		488		20		488		21
Earnings before income taxes		467		217		666		171
Income tax expense		176		58		243		40
Earnings from discontinued operations, net of tax		291		159		423		131

At July 2, 2011, the assets and liabilities held for disposition relate to the assets and liabilities of the Networks business in the certain countries that are yet to receive regulatory approvals. At December 31, 2010, the assets and liabilities held for disposition relate to the assets and liabilities of Motorola Mobility and the Networks business. The following table displays a summary of the assets and liabilities held for disposition as of July 2, 2011 and December 31, 2010.

	July 2, 2011		December 31, 2010
Assets
Accounts receivable, net		$60		$2,072
Inventories, net		24		1,040
Other current assets		32		1,492
Property, plant and equipment, net		10		1,013
Investments		—		145
Goodwill		—		1,504
Other assets		83		514
		$209		$7,780
Liabilities
Accounts payable		$27		$2,060
Accrued liabilities		83		2,740
Other liabilities		79		737
		$189		$5,537