Other Financial Data | Other Financial Data Statements of Operations Information Other Charges (Income) Other charges (income) included in Operating earnings consist of the following: Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Other charges (income): Intangibles amortization $ 3 $ 1 $ 4 $ 2 Reorganization of business 13 25 26 34 Legal settlement — 8 — 8 Non-U.S. pension curtailment gain (32 ) — (32 ) — Gain on sale of building and land — — — (21 ) $ (16 ) $ 34 $ (2 ) $ 23 Other Income (Expense) Interest expense, net, and Other, both included in Other income (expense), consist of the following: Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Interest income (expense), net: Interest expense $ (42 ) $ (34 ) $ (86 ) $ (64 ) Interest income 3 5 7 10 $ (39 ) $ (29 ) $ (79 ) $ (54 ) Other: Investment impairments (3 ) — (3 ) — Foreign currency gain (loss) (11 ) (7 ) $ 7 $ (8 ) Gain (loss) on derivative instruments 4 (1 ) (12 ) (2 ) Gains on equity method investments 4 2 4 2 Other 2 (1 ) 3 (1 ) $ (4 ) $ (7 ) $ (1 ) $ (9 ) Earnings Per Common Share The computation of basic and diluted earnings per common share is as follows: Amounts attributable to Motorola Solutions, Inc. common stockholders Earnings from Continuing Operations, net of tax Net Earnings Three Months Ended July 4, June 28, July 4, June 28, Basic earnings per common share: Earnings $ 150 $ 78 $ 142 $ 824 Weighted average common shares outstanding 208.0 253.7 208.0 253.7 Per share amount $ 0.72 $ 0.31 $ 0.68 $ 3.25 Diluted earnings per common share: Earnings $ 150 $ 78 $ 142 $ 824 Weighted average common shares outstanding 208.0 253.7 208.0 253.7 Add effect of dilutive securities: Share-based awards 1.5 2.5 1.5 2.5 Diluted weighted average common shares outstanding 209.5 256.2 209.5 256.2 Per share amount $ 0.72 $ 0.30 $ 0.68 $ 3.22 Amounts attributable to Motorola Solutions, Inc. common stockholders Earnings from Continuing Operations, net of tax Net Earnings Six Months Ended July 4, June 28, July 4, June 28, Basic earnings per common share: Earnings $ 238 $ 163 $ 217 $ 951 Weighted average common shares outstanding 211.7 253.8 211.7 253.8 Per share amount $ 1.12 $ 0.64 $ 1.03 $ 3.75 Diluted earnings per common share: Earnings $ 238 $ 163 $ 217 $ 951 Weighted average common shares outstanding 211.7 253.8 211.7 253.8 Add effect of dilutive securities: Share-based awards 2.1 3.4 2.1 3.4 Diluted weighted average common shares outstanding 213.8 257.2 213.8 257.2 Per share amount $ 1.11 $ 0.63 $ 1.01 $ 3.70 In the computation of diluted earnings per common share from both continuing operations and on a net earnings basis for the three months ended July 4, 2015 , the assumed exercise of 1.7 million options and the assumed vesting of 0.7 million RSUs were excluded because their inclusion would have been antidilutive. For the six months ended July 4, 2015 , the assumed exercise of 3.9 million options and the assumed vesting of 1.2 million RSUs were excluded because their inclusion would have been antidilutive. For the three and six months ended June 28, 2014 , the assumed exercise of 4.6 million and 4.8 million stock options, respectively, were excluded because their inclusion would have been antidilutive. Balance Sheet Information Cash and Cash Equivalents The Company’s cash and cash equivalents were $3.1 billion at July 4, 2015 and $4.0 billion at December 31, 2014 . Of these amounts, $63 million was restricted at both July 4, 2015 and December 31, 2014 . Investments Investments consist of the following: July 4, 2015 Cost Unrealized Investments Available-for-sale securities: Government, agency, and government-sponsored enterprise obligations $ 31 $ — $ 31 Corporate bonds 9 — 9 Common stock — 23 23 40 23 63 Other investments, at cost 208 — 208 Equity method investments 14 — 14 $ 262 $ 23 $ 285 December 31, 2014 Cost Unrealized Investments Available-for-sale securities: Government, agency, and government-sponsored enterprise obligations $ 14 $ — $ 14 Corporate bonds 16 — 16 Mutual funds 2 — 2 Common stock 1 70 71 33 70 103 Other investments, at cost 191 — 191 Equity method investments 22 — 22 $ 246 $ 70 $ 316 During the three months ended July 4, 2015 , the Company recorded investment impairment charges of $3 million related to cost method investments and sold a cost method investment recognizing a gain on sale of $4 million . During the six months ended July 4, 2015 , the Company sold shares of an equity investment realizing cash proceeds of $47 million and a previously unrecognized gain of $46 million . Accounts Receivable, Net Accounts receivable, net, consists of the following: July 4, December 31, Accounts receivable $ 1,168 $ 1,444 Less allowance for doubtful accounts (27 ) (35 ) $ 1,141 $ 1,409 Inventories, Net Inventories, net, consist of the following: July 4, December 31, Finished goods $ 165 $ 163 Work-in-process and production materials 337 313 502 476 Less inventory reserves (138 ) (131 ) $ 364 $ 345 Other Current Assets Other current assets consist of the following: July 4, December 31, Costs and earnings in excess of billings $ 385 $ 417 Tax-related refunds receivable 90 103 Zebra receivable for cash transferred — 49 Other 118 171 $ 593 $ 740 In conjunction with the sale of the Enterprise business to Zebra Technologies, the Company transferred legal entities which maintained cash balances. During the six months ended July 4, 2015 , approximately $49 million of transferred cash balances were reimbursed by Zebra in accordance with the sales agreement. Property, Plant and Equipment, Net Property, plant and equipment, net, consists of the following: July 4, December 31, Land $ 18 $ 18 Building 555 559 Machinery and equipment 1,695 1,672 2,268 2,249 Less accumulated depreciation (1,726 ) (1,700 ) $ 542 $ 549 Depreciation expense for the three months ended July 4, 2015 and June 28, 2014 was $38 million and $45 million , respectively. Depreciation expense for the six months ended July 4, 2015 and June 28, 2014 was $77 million and $84 million , respectively. Other Assets Other assets consist of the following: July 4, December 31, Intangible assets, net $ 52 $ 23 Long-term receivables 18 31 Other 90 91 $ 160 $ 145 Accrued Liabilities Accrued liabilities consist of the following: July 4, December 31, Deferred revenue $ 335 $ 355 Compensation 180 190 Billings in excess of costs and earnings 346 358 Tax liabilities 68 91 Dividend payable 70 75 Other 551 637 $ 1,550 $ 1,706 Other Liabilities Other liabilities consist of the following: July 4, December 31, Defined benefit plans $ 1,600 $ 1,611 Postretirement Health Care Benefit Plan 39 49 Deferred revenue 121 139 Unrecognized tax benefits 51 54 Other 162 158 $ 1,973 $ 2,011 Stockholders’ Equity Share Repurchase Program: Through actions taken on July 28, 2011, January 30, 2012, July 25, 2012, July 22, 2013, and November 3, 2014, the Board of Directors has authorized the Company to repurchase an aggregate amount of up to $12.0 billion of its outstanding shares of common stock (the “share repurchase program”). The share repurchase program does not have an expiration date. The Company paid an aggregate of $285 million during the three months ended July 4, 2015 , including transaction costs, to repurchase approximately 4.6 million shares at an average price of $61.63 per share. The Company paid an aggregate of $938 million during the six months ended July 4, 2015 , including transaction costs, to repurchase approximately 14.5 million shares at an average price of $64.69 per share. As of July 4, 2015 , the Company had used approximately $8.7 billion of the share repurchase authority, including transaction costs, to repurchase shares leaving $3.3 billion of authority available for future repurchases. On August 4, 2015, the Board of Directors authorized the Company to commence a modified "Dutch auction" tender offer to repurchase up to $2 billion of its outstanding shares of common stock. The repurchase of these shares is authorized under the existing share repurchase authority as outlined above and the purchase will be funded with a combination of cash on hand and a portion of the proceeds raised through the issuance of new convertible notes (see Note 4). The Company anticipates commencing the tender offer on or about August 7, 2015. The tender offer is expected to close on or about September 4, 2015. Payment of Dividends: During the three months ended July 4, 2015 and June 28, 2014 , the Company paid $72 million and $79 million , respectively, in cash dividends to holders of its common stock. During the six months ended July 4, 2015 and June 28, 2014 , the Company paid $148 million and $158 million , respectively, in cash dividends to holders of its common stock. Accumulated Other Comprehensive Loss The following table displays the changes in Accumulated other comprehensive loss, including amounts reclassified into income, and the affected line items in the condensed consolidated statements of operations during the three and six months ended July 4, 2015 and June 28, 2014 : Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Foreign Currency Translation Adjustments: Balance at beginning of period $ (230 ) $ (94 ) $ (204 ) $ (96 ) Other comprehensive income (loss) before reclassification adjustment 7 8 (18 ) 11 Tax (expense) benefit — 5 (1 ) 4 Other comprehensive income (loss), net of tax 7 13 (19 ) 15 Balance at end of period $ (223 ) $ (81 ) $ (223 ) $ (81 ) Net loss on derivative instruments: Balance at beginning of period $ — $ (1 ) $ — $ (1 ) Reclassification adjustment into Cost of Sales — 1 — 1 Tax expense — — — — Reclassification adjustment into Cost of Sales, net of tax — 1 — 1 Other comprehensive income, net of tax — 1 — 1 Balance at end of period $ — $ — $ — $ — Unrealized Gains and Losses on Available-for-Sale Securities: Balance at beginning of period $ 11 $ — $ 44 $ (2 ) Other comprehensive income (loss) before reclassification adjustment 6 — (1 ) 2 Tax (expense) benefit (2 ) — 1 — Other comprehensive income before reclassification adjustment, net of tax 4 — — 2 Reclassification adjustment into Gains on Sales of investments and businesses, net — — (46 ) — Tax expense — — 17 — Reclassification adjustment into Gains on sales of investments and businesses, net of tax — — (29 ) — Other comprehensive income (loss), net of tax 4 — (29 ) 2 Balance at end of period $ 15 $ — $ 15 $ — Defined Benefit Plans: Balance at beginning of period (1,694 ) (2,175 ) (1,695 ) (2,188 ) Other comprehensive loss before reclassification adjustment (53 ) — (53 ) — Tax expense — — — — Other comprehensive loss before reclassification adjustment, net of tax (53 ) — (53 ) — Reclassification adjustment - Actuarial net losses into Selling, general, and administrative expenses 18 25 36 53 Reclassification adjustment - Prior service benefits into Selling, general, and administrative expenses (16 ) (9 ) (32 ) (18 ) Reclassification adjustment - Non-U.S. pension curtailment gain into Selling, general, and administrative expenses (32 ) — (32 ) — Tax benefit — (5 ) (1 ) (11 ) Reclassification adjustment into Selling, general, and administrative expenses, net of tax (30 ) 11 (29 ) 24 Other comprehensive income (loss), net of tax (83 ) 11 (82 ) 24 Balance at end of period $ (1,777 ) $ (2,164 ) $ (1,777 ) $ (2,164 ) Total Accumulated other comprehensive loss $ (1,985 ) $ (2,245 ) $ (1,985 ) $ (2,245 ) |