Motorola Solutions (MSI) 10-K 16 Feb 10 2009 FY Annual report Financial data

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Consolidated Statements of Operations
Net sales	$22,044	$30,146	$36,622
Costs of sales	14,987	21,751	26,670
Gross margin	7,057	8,395	9,952
Selling, general and administrative expenses	3,381	4,330	5,092
Research and development expenditures	3,183	4,109	4,429
Other charges	641	2,347	984
Operating loss	(148)	(2,391)	(553)
Other income (expense):
Interest income (expense), net	(132)	48	91
Gains on sales of investments and businesses, net	88	82	50
Other	27	(372)	36
Total other income (expense)	(17)	(242)	177
Loss from continuing operations before income taxes	(165)	(2,633)	(376)
Income tax expense (benefit)	(77)	1,607	(285)
Loss from continuing operations	(88)	(4,240)	(91)
Earnings from discontinued operations, net of tax	60		56
Net loss	(28)	(4,240)	(35)
Less: Earnings attributable to noncontrolling interests	23	4	14
Net loss attributable to Motorola, Inc.	(51)	(4,244)	(49)
Amounts attributable to Motorola, Inc. common shareholders:
Loss from continuing operations, net of tax	(111)	(4,244)	(105)
Earnings from discontinued operations, net of tax	60		56
Net loss	($51)	($4,244)	($49)
Basic:
Continuing operations (in dollars per share)	-0.05	-1.87	-0.05
Discontinued operations (in dollars per share)	0.03		0.03
Earnings Per Share, Basic (in dollars per share)	-0.02	-1.87	-0.02
Diluted:
Continuing operations (in dollars per share)	-0.05	-1.87	-0.05
Discontinued operations (in dollars per share)	0.03		0.03
Earnings Per Share, Diluted (in dollars per share)	-0.02	-1.87	-0.02
Weighted average common shares outstanding:
Basic (in shares)	2295.6	2265.4	2312.7
Diluted (in shares)	2295.6	2265.4	2312.7
Dividends paid per share (in dollars per share)	0.05	0.2	0.2

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
ASSETS
Cash and cash equivalents	$2,869	$3,064
Sigma Fund	5,092	3,690
Short-term investments	2	225
Accounts receivable, net	3,495	3,493
Inventories, net	1,308	2,659
Deferred income taxes	1,082	1,092
Other current assets	2,184	3,140
Total current assets	16,032	17,363
Property, plant and equipment, net	2,154	2,442
Sigma Fund	66	466
Investments	459	517
Deferred income taxes	2,284	2,428
Goodwill	2,823	2,837
Other assets	1,785	1,816
Total assets	25,603	27,869
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable and current portion of long-term debt	536	92
Accounts payable	2,429	3,188
Accrued liabilities	5,296	7,340
Total current liabilities	8,261	10,620
Long-term debt	3,365	4,092
Other liabilities	4,094	3,562
Stockholders' Equity
Preferred stock, $100 par value	0	0
Common stock: 12/31/09 - $.01 par value; 12/31/08 - $3 par value Authorized shares: 12/31/09 - 4,200.0; 12/31/08 - 4,200.0 Issued shares: 12/31/09 - 2,314.2; 12/31/08 - 2,276.9 Outstanding shares: 12/31/09 - 2,312.1; 12/31/08 - 2,276.5	23	6,831
Additional paid-in capital	8,211	1,003
Retained earnings	3,827	3,878
Accumulated other comprehensive loss	(2,286)	(2,205)
Total Motorola, Inc. stockholders' equity	9,775	9,507
Noncontrolling interests	108	88
Total stockholders' equity	9,883	9,595
Total liabilities and stockholders' equity	$25,603	$27,869

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
Share data in Millions, except Per Share data	Dec. 31, 2009	Dec. 31, 2008
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$100	$100
Common stock, par value (in dollars per share)	0.01	$3
Common stock, shares authorized	4,200	4,200
Common stock, shares issued	2314.2	2276.9
Common stock, shares outstanding	2312.1	2276.5

Consolidated Statements of Stoc

Consolidated Statements 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	Total
Balances at Dec. 31, 2006	$9,799	$37	($126)	($1,577)	$16	$9,096	$44
Balance (in shares) at Dec. 31, 2006	2399.1
Net earnings (loss)						(49)	14	(35)
Net unrealized gain (losses) on securities, net of tax of $40, $36 and ($58) in 2009, 2008 and 2007, respectively		(96)						(96)
Foreign currency translation adjustments, net of tax of ($17), $39 and $3 in 2009, 2008 and 2007, respectively			142					142
Purchases of a Noncontrolling interest equity							20
Amortization of retirement benefit adjustments, net of tax of ($33), $10 and $39 in 2009, 2008 and 2007, respectively				62				62
Year-end and other retirement adjustments, net of tax of ($22), ($793) and $328 in 2009, 2008 and 2007, respectively				852				852
Issuance of common stock and stock options exercised	443
Issuance of common stock and stock options exercised, shares	36.1
Share repurchase program	(3,035)
Share repurchase program, shares	-171.2
Excess tax benefits (shortfalls) from stock-based compensation	50
Share-based compensation expense	317
Net gain (loss) on derivative instruments, net of tax of $6, ($5) and ($6) during the year 2009, 2008 and 2007, respectively					(16)			(16)
Dividends declared ($0.20 per share)						(468)
Total Comprehensive Earnings (Loss)								909
Balance, as previously reported at Dec. 31, 2007	7,574	(59)	16	(663)		8,579	78
Balance, as previously reported (in shares) at Dec. 31, 2007	2,264
Balances at Dec. 31, 2007	7,574	(59)	16	(704)		8,575	78
Balance (in shares) at Dec. 31, 2007	2,264
Cumulative effect - Postretirement Insurance Plan				(41)		(4)
Net earnings (loss)						(4,244)	4	(4,240)
Net unrealized gain (losses) on securities, net of tax of $40, $36 and ($58) in 2009, 2008 and 2007, respectively		61						61
Foreign currency translation adjustments, net of tax of ($17), $39 and $3 in 2009, 2008 and 2007, respectively			(149)					(149)
Purchases of a Noncontrolling interest equity							6
Amortization of retirement benefit adjustments, net of tax of ($33), $10 and $39 in 2009, 2008 and 2007, respectively				19				19
Effect of U.S. pension plan freeze curtailment, net of tax of ($25)				(42)				(42)
Year-end and other retirement adjustments, net of tax of ($22), ($793) and $328 in 2009, 2008 and 2007, respectively				(1,340)				(1,340)
Issuance of common stock and stock options exercised	134
Issuance of common stock and stock options exercised, shares	21.9
Share repurchase program	(138)
Share repurchase program, shares	(9)
Excess tax benefits (shortfalls) from stock-based compensation	(6)
Share-based compensation expense	270
Net gain (loss) on derivative instruments, net of tax of $6, ($5) and ($6) during the year 2009, 2008 and 2007, respectively					(7)			(7)
Dividends declared ($0.20 per share)						(453)
Total Comprehensive Earnings (Loss)								(5,698)
Balances at Dec. 31, 2008	7,834	2	(133)	(2,067)	(7)	3,878	88	9,595
Balance (in shares) at Dec. 31, 2008	2276.9
Net earnings (loss)						(51)	23	(28)
Net unrealized gain (losses) on securities, net of tax of $40, $36 and ($58) in 2009, 2008 and 2007, respectively		68						68
Foreign currency translation adjustments, net of tax of ($17), $39 and $3 in 2009, 2008 and 2007, respectively			70					70
Amortization of retirement benefit adjustments, net of tax of ($33), $10 and $39 in 2009, 2008 and 2007, respectively				(65)				(65)
Year-end and other retirement adjustments, net of tax of ($22), ($793) and $328 in 2009, 2008 and 2007, respectively				(163)				(163)
Issuance of common stock and stock options exercised	111
Issuance of common stock and stock options exercised, shares	37.3
Excess tax benefits (shortfalls) from stock-based compensation	(12)
Share-based compensation expense	301
Net gain (loss) on derivative instruments, net of tax of $6, ($5) and ($6) during the year 2009, 2008 and 2007, respectively					9			9
Dividends paid to noncontrolling interest on subsidiary common stock							(3)
Total Comprehensive Earnings (Loss)								(109)
Balances at Dec. 31, 2009	$8,234	$70	($63)	($2,295)	$2	$3,827	$108	$9,883
Balance (in shares) at Dec. 31, 2009	2314.2

1_Consolidated Statements of St

Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $)
In Millions, except Per Share data	1/1/2009 - 12/31/2009	1/1/2008 - 12/31/2008	1/1/2007 - 12/31/2007
Consolidated Statements of Stockholders' Equity
Net unrealized gain (losses) on securities, tax	$40	$36	($58)
Foreign currency translation adjustments, tax	(17)	39	3
Amortization of retirement benefits adjustments, tax	33	(10)	(39)
Effect of U.S. pension plan freeze curtailment, tax		(25)
Year-end and other retirement adjustments, tax	(22)	(793)	328
Net loss on derivative instruments, tax	$6	($5)	($6)
Dividends declared per share (in dollars per share)		0.2	0.2

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating
Net loss attributable to Motorola, Inc.	($51)	($4,244)	($49)
Less: Earnings attributable to noncontrolling interests	23	4	14
Net loss	(28)	(4,240)	(35)
Earnings from discontinued operations	60		56
Loss from continuing operations	(88)	(4,240)	(91)
Adjustments to reconcile loss from continuing operations to net cash provided by operating activities:
Depreciation and amortization	751	831	903
Non-cash other charges	38	2,516	213
Share-based compensation expense	296	280	315
Gain on sales of investments and businesses, net	(88)	(82)	(50)
Gain from extinguishment of long-term debt	(67)
Deferred income taxes	50	1,698	(747)
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable	(10)	1,891	2,538
Inventories	1,349	(54)	556
Other current assets	960	466	(705)
Accounts payable and accrued liabilities	(2,618)	(1,631)	(2,303)
Other assets and liabilities	56	(1,433)	156
Net cash provided by operating activities	629	242	785
Investing
Acquisitions and investments, net	(50)	(282)	(4,568)
Proceeds from sales of investments and businesses, net	315	93	411
Distributions from investments		113
Capital expenditures	(275)	(504)	(527)
Proceeds from sales of property, plant and equipment	41	133	166
Proceeds from sales (purchases) of Sigma Fund investments, net	(922)	853	6,889
Proceeds from sales of short-term investments, net	223	388	8
Net cash provided by (used for) investing activities	(668)	794	2,379
Financing
Repayment of short-term borrowings, net	(86)	(50)	(242)
Repayment of debt	(132)	(225)	(1,386)
Proceeds from issuance of debt, net	6	7	1,415
Issuance of common stock	116	145	440
Purchase of common stock		(138)	(3,035)
Proceeds from settlement of financial instruments		158
Payment of dividends	(114)	(453)	(468)
Distributions to discontinued operations		(90)	(75)
Other, net		1	50
Net cash used for financing activities	(210)	(645)	(3,301)
Effect of exchange rate changes on cash and cash equivalents from continuing operations	54	(79)	73
Net increase (decrease) in cash and cash equivalents	(195)	312	(64)
Cash and cash equivalents, beginning of year	3,064	2,752	2,816
Cash and cash equivalents, end of year	2,869	3,064	2,752
Cash paid during the year for:
Interest, net	320	252	312
Income taxes, net of refunds	$159	$407	$440

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Summary of Significant Accounting Policies	1.Summary of Significant Accounting Policies Principles of Consolidation:The consolidated financial statements include the accounts of the Company and all controlled subsidiaries. All intercompany transactions and balances have been eliminated. Revenue Recognition:The Company's material revenue streams are the result of a wide range of activities, from the delivery of stand-alone equipment to custom design and installation over a period of time to bundled sales of equipment, software and services. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectibility of the sales price is reasonably assured. In addition to these general revenue recognition criteria, the following specific revenue recognition policies are followed: Products and Equipment For product and equipment sales, revenue recognition generally occurs when products or equipment have been shipped, risk of loss has transferred to the customer, objective evidence exists that customer acceptance provisions have been met, no significant obligations remain and allowances for discounts, price protection, returns and customer incentives can be reliably estimated. Recorded revenues are reduced by these allowances. The Company bases its estimates on historical experience taking into consideration the type of products sold, the type of customer, and the type of transaction specific in each arrangement. Where customer incentives cannot be reliably estimated, the Company recognizes revenue at the time the product sells through the distribution channel to the end customer. Long-Term Contracts For long-term contracts that involve customization of the Company's equipment or software, the Company generally recognizes revenue using the percentage of completion method based on the percentage of costs incurred to date compared to the total estimated costs to complete the contract. In certain instances, when revenues or costs associated with long-term contracts cannot be reliably estimated or the contract involves unproven technologies or other inherent hazards, revenues and costs are deferred until the project is complete and customer acceptance is obtained. When current estimates of total contract revenue and contract costs indicate a contract loss, the loss is recognized in the period it becomes evident. Services Revenue for services is generally recognized ratably over the contract term as services are performed. Software and Licenses Revenue from pre-paid perpetual licenses is recognized at the inception of the arrangement, presuming all other relevant revenue recognition criteria are met. Revenue from non-perpetual licenses or term licenses is recognized ratably over the period that the licensee uses the license. Revenue from software maintenance, technical support and unspecified upgrades is generally recognized over the period that these services are delivered. Multiple Element Arrangements Arrangements with customers may include multiple deliverables, including any combination of products, equipment, services and software. For multiple element arrangements including

Discontinued Operations

Discontinued Operations
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Discontinued Operations	2.Discontinued Operations During the year ended December31, 2009, the Company completed the sales of: (i)Good Technology, and (ii)the Company's former biometrics business, which included its Printrak trademark. Collectively, the Company received $163million in net cash and recorded a net gain on sale of the businesses of $175million before income taxes. These amounts are included in Earnings from discontinued operations, net of tax, in the Company's consolidated statements of operations. The operating results of these businesses (each of which was formerly included as part of the Enterprise Mobility Solutions segment) through the date of their respective dispositions are reported as discontinued operations in the consolidated financial statements for the period ending December31, 2009. For all other applicable prior periods, the operating results of these businesses have not been reclassified as discontinued operations since the results are not material to the Company's consolidated financial statements. During the year ended December31, 2006, the Company completed the sale of its automotive electronics business to Continental AG. During the year ended December31, 2004, the Company completed the separation and spin-off of Freescale Semiconductor,Inc. ("Freescale Semiconductor"). The financial results of the automotive electronics business and Freescale Semiconductor were reflected as discontinued operations in the consolidated financial statements and related notes thereto. During the year ended December31, 2008, the discontinued operations activity reflected in the consolidated statements of cash flows primarily relates to the resolution and payment of certain indemnifications relating to a divestiture. During the year ended December31, 2007, the discontinued operations activity primarily relates to resolutions of certain matters with the tax authorities and payments of post-retiree medical claims to former employees. The following table displays summarized activity in the Company's consolidated statements of operations for discontinued operations during the years ended December31, 2009, 2008 and 2007. Years Ended December31 2009 2008 2007 Net sales $ 19 $ $ Operating earnings (11 ) 10 Gains on sales of investments and businesses, net 175 Earnings before income taxes 162 10 Income tax expense (benefit) 102 (46 ) Earnings from discontinued operations, net of tax 60 56

Other Financial Data

Other Financial Data
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Other Financial Data	3.Other Financial Data Statement of Operations Information Other Charges Other charges included in Operating earnings (loss) consist of the following: Years Ended December31 2009 2008 2007 Other charges (income): Intangibles amortization $ 278 $ 318 $ 369 Reorganization of businesses 258 248 290 Separation-related transaction costs 42 59 Facility impairment 39 Environmental reserve charge 24 Goodwill impairment 1,619 Intangible asset impairments 136 89 Legal settlements and related insurance matters, net 14 140 In-process research and development charges 1 96 Gain on sale of property, plant and equipment (48 ) $ 641 $ 2,347 $ 984 Other Income (Expense) Interest income, net, and Other both included in Other income (expense) consist of the following: Years Ended December31 2009 2008 2007 Interest income, net: Interest expense $ (213 ) $ (224 ) $ (365 ) Interest income 81 272 456 $ (132 ) $ 48 $ 91 Other: Gain (loss) on Sigma Fund investments $ 80 $ (101 ) $ Gain from the extinguishment of the Company's outstanding long-term debt 67 14 Investment impairments (77 ) (365 ) (44 ) Foreign currency gain (loss) (52 ) (84 ) 97 Impairment charges on Sigma Fund investments (186 ) (18 ) U.S. pension plan freeze curtailment gain 237 Liability extinguishment gain 56 Gain on interest rate swaps 24 Other 9 33 1 $ 27 $ (372 ) $ 36 Loss Per Common Share Basic and diluted loss per common share from both continuing operations and net loss attributable to Motorola, Inc., including discontinued operations, is computed as follows: Continuing Operations Net Loss attributable to Motorola, Inc. Years Ended December31 2009 2008 2007 2009 2008 2007 Basic loss per common share: Loss $ (111 ) $ (4,244 ) $ (105 ) $ (51 ) $ (4,244 ) $ (49 ) Weighted average common shares outstanding 2,295.6 2,265.4 2,312.7 2,295.6 2,265.4 2,312.7 Per share amount $ (0.05 ) $ (1.87 ) $ (0.05 ) $ (0.02 ) $ (1.87 ) $ (0.02 ) Diluted loss per common share: Loss $ (111 ) $ (4,244 ) $ (105 ) $ (51 ) $ (4,244 ) $ (49 ) Diluted weighted average common shares outstanding 2,295.6 2,265.4 2,312.7 2,295.6 2,265.4 2,312.7 Per share amount $ (0.05 ) $ (1.87 ) $ (0.05 ) $ (0.02 ) $ (1.87 ) $ (0.02 ) For the years ended December31, 2009, 2008 and 2007, the Company was in a net loss position and, accordingly, the basic and diluted

Debt and Credit Facilities

Debt and Credit Facilities
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Debt and Credit Facilities	4.Debt and Credit Facilities Long-Term Debt December31 2009 2008 7.625% notes due 2010 $ 527 $ 527 8.0% notes due 2011 600 599 5.375% senior notes due 2012 400 400 6.0% senior notes due 2017 399 399 6.5% debentures due 2025 377 397 7.5% debentures due 2025 346 356 6.5% debentures due 2028 283 297 6.625% senior notes due 2037 444 596 5.22% debentures due 2097 196 195 Other long-term debt 214 178 3,786 3,944 Adjustments, primarily unamortized gain on interest rate swap termination 110 151 Less: current portion (531 ) (3 ) Long-term debt $ 3,365 $ 4,092 Other Short-Term Debt December31 2009 2008 Notes to banks $ 5 $ 89 Add: current portion of long-term debt 531 3 Notes payable and current portion of long-term debt $ 536 $ 92 Weighted average interest rates on short-term borrowings throughout the year 3.1% 4.2% During 2009, the Company repurchased $199million of its outstanding long-term debt for an aggregate purchase price of $133million, including $4million of accrued interest, all of which occurred during the three months ended April4, 2009. The $199million of long-term debt repurchased included principal amounts of: (i)$11million of the $358million then outstanding of the 7.50% Debentures due 2025 (the "2025 Debentures"), (ii)$20million of the $399million then outstanding of the 6.50% Debentures due 2025, (iii)$14million of the $299million then outstanding of the 6.50% Debentures due 2028, and (iv)$154million of the $600million then outstanding of the 6.625% Senior Notes due 2037. The Company recognized a gain of approximately $67million related to these open market purchases in Other within Other income (expense) in the consolidated statements of operations. In December 2008, the Company completed the open market purchase of $42million of the $400million then aggregate principal amount outstanding of its 2025 Debentures. The $42million principal amount of 2025 Debentures was purchased for an aggregate purchase price of approximately $28million, including accrued interest as of the redemption date. During the year ended December31, 2008, the Company recognized a gain of approximately $14million related to this open market purchase in Other within Other income (expense) in the consolidated statements of operations. In October 2008, the Company repaid, at maturity, the entire $84million aggregate principal amount outstanding of its 5.80% Notes due October15, 2008. In March 2008, the Company repaid at maturity, the entire $114million aggregate principal amount outstanding of its 6.50% Notes due March1, 2008. Aggregate requirements for long-term debt maturities during the next five years are as follows: 2010$531million; 2011$604million; 2012$405million; 2013$5million; and 2014$4million. Credit Facilities In June 2009, the Company elected to amend its domestic syndicated revolving credit facility (as amended from time to time, the

Risk Management

Risk Management
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Risk Management	5.Risk Management Derivative Financial Instruments Foreign Currency Risk The Company uses financial instruments to reduce its overall exposure to the effects of currency fluctuations on cash flows. The Company's policy prohibits speculation in financial instruments for profit on the exchange rate price fluctuation, trading in currencies for which there are no underlying exposures, or entering into transactions for any currency to intentionally increase the underlying exposure. Instruments that are designated as part of a hedging relationship must be effective at reducing the risk associated with the exposure being hedged and are designated as part of a hedging relationship at the inception of the contract. Accordingly, changes in the market values of hedge instruments must be highly correlated with changes in market values of the underlying hedged items both at the inception of the hedge and over the life of the hedge contract. The Company's strategy related to foreign exchange exposure management is to offset the gains or losses on the financial instruments against losses or gains on the underlying operational cash flows or investments based on the operating business units' assessment of risk. The Company enters into derivative contracts for some of the Company's non-functional currency receivables and payables, which are primarily denominated in major currencies that can be traded on open markets. The Company typically uses forward contracts and options to hedge these currency exposures. In addition, the Company enters into derivative contracts for some firm commitments and some forecasted transactions, which are designated as part of a hedging relationship if it is determined that the transaction qualifies for hedge accounting under the provisions of the authoritative accounting guidance for derivative instruments and hedging activities. A portion of the Company's exposure is from currencies that are not traded in liquid markets and these are addressed, to the extent reasonably possible, by managing net asset positions, product pricing and component sourcing. At December31, 2009, the Company had outstanding foreign exchange contracts totaling $1.7billion, compared to $2.2billion outstanding at December31, 2008. 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 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 December31, 2009 and the corresponding positions as of December31, 2008: Notional Amount Net Buy (Sell) by Currency December31, 2009 December31, 2008 Euro $ (377 ) $ (445 ) Brazilian Real (342 ) (356 ) Chinese Renminbi (297 ) (481 ) Japanese Yen (236 ) 111 British Pound 143 122

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Income Taxes	6.Income Taxes Components of earnings (loss) from continuing operations before income taxes are as follows: Years Ended December31 2009 2008 2007 United States $ (882 ) $ (3,880 ) $ (2,540 ) Other nations 717 1,247 2,164 $ (165 ) $ (2,633 ) $ (376 ) Components of income tax expense (benefit) are as follows: Years Ended December31 2009 2008 2007 United States $ (314 ) $ (618 ) $ 40 Other nations 181 532 402 States (U.S.) 6 (5 ) 20 Current income tax expense (127 ) (91 ) 462 United States 4 1,702 (633 ) Other nations 97 49 (50 ) States (U.S.) (51 ) (53 ) (64 ) Deferred income tax expense (benefit) 50 1,698 (747 ) Total income tax expense (benefit) $ (77 ) $ 1,607 $ (285 ) Deferred tax charges (benefits) that were recorded within Accumulated other comprehensive income (loss) in the Company's consolidated balance sheets resulted from retirement benefit adjustments, currency translation adjustments, net gains (losses) on derivative instruments and fair value adjustments to available-for-sale securities. The adjustments were ($25) million, ($738) million and $306million for the years ended December31, 2009, 2008 and 2007, respectively. Except for certain earnings that the Company intends to reinvest indefinitely, provisions have been made for the estimated U.S. federal income taxes applicable to undistributed earnings of non-U.S. subsidiaries. Undistributed earnings that the Company intends to reinvest indefinitely, and for which no U.S. federal income taxes have been provided, aggregate to $2.4 billion, $2.9billion and $4.1billion at December31, 2009, 2008 and 2007, respectively. The portion of earnings not reinvested indefinitely may be distributed without an additional U.S. federal income tax charge given the U.S. federal tax accrued on undistributed earnings and the utilization of available foreign tax credits. Differences between income tax expense (benefit) computed at the U.S. federal statutory tax rate of 35% and income tax expense (benefit) are as follows: Years Ended December31 2009 2008 2007 Income tax expense (benefit) at statutory rate $ (58 ) $ (921 ) $ (131 ) Taxes on non-U.S. earnings (15 ) 123 (212 ) State income taxes (29 ) (38 ) (28 ) Valuation allowances (28 ) 2,321 (97 ) Goodwill impairment 555 Tax on undistributed non-U.S. earnings 96 119 72 Other provisions (48 ) (541 ) 119 Research credits (18 ) (13 ) (46 ) Non-deductible acquisition charges 13 34 Taxes on sale of businesses 15 Other non-deductible costs 11 Section199 deduction (8 ) Other 7 2 (11 ) $ (77 ) $ 1,607 $ (285 ) Gross deferred tax assets were $8.9 billion and $9.8billion at December31, 2009 and 2008, respectively.

Retirement Benefits

Retirement Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Retirement Benefits	7.Retirement Benefits Pension Benefit Plans The Company's noncontributory pension plan (the "Regular Pension Plan") covers U.S. employees who became eligible after one year of service. The benefit formula is dependent upon employee earnings and years of service. Effective January1, 2005, newly-hired employees were not eligible to participate in the Regular Pension Plan. The Company also provides defined benefit plans which cover non-U.S. employees in certain jurisdictions, principally the United Kingdom, Germany, Ireland, Japan and Korea (the "Non-U.S. Plans"). Other pension plans are not material to the Company either individually or in the aggregate. The Company has a noncontributory supplemental retirement benefit plan (the "Officers' Plan") for its officers elected prior to December31, 1999. The Officers' Plan contains provisions for vesting and funding the participants' expected retirement benefits when the participants meet the minimum age and years of service requirements. Elected officers who were not yet vested in the Officers' Plan as of December31, 1999 had the option to remain in the Officers' Plan or elect to have their benefit bought out in restricted stock units. Effective December31, 1999, newly elected officers are not eligible to participate in the Officers' Plan. Effective June30, 2005, salaries were frozen for this plan. The Company has an additional noncontributory supplemental retirement benefit plan, the Motorola Supplemental Pension Plan ("MSPP"), which provides supplemental benefits to individuals by replacing the Regular Pension Plan benefits that are lost by such individuals under the retirement formula due to application of the limitations imposed by the Internal Revenue Code. However, elected officers who are covered under the Officers' Plan or who participated in the restricted stock buy-out are not eligible to participate in MSPP. Effective January1, 2007, eligible compensation was capped at the IRS limit plus $175,000 (the "Cap") or, for those already in excess of the Cap as of January1, 2007, the eligible compensation used to compute such employee's MSPP benefit for all future years will be the greater of: (i)such employee's eligible compensation as of January1, 2007 (frozen at that amount), or (ii)the relevant Cap for the given year. Additionally, effective January1, 2009, the MSPP was closed to new participants unless such participation was required under a prior contractual entitlement. In February 2007, the Company amended the Regular Pension Plan and the MSPP, modifying the definition of average earnings. For the years ended prior to December31, 2007, benefits were calculated using the rolling average of the highest annual earnings in any five years within the previous ten calendar year period. Beginning in January 2008, the benefit calculation was based on the set of the five highest years of earnings within the ten calendar years prior to December31, 2007, averaged with earnings from each year after 2007. In addition, effective January 2008, the Company amended the Regular Pension Plan, modifying the vesting period from five years to three years. In December 2008, the Company amended

Share-Based Compensation Plans

Share-Based Compensation Plans and Other Incentive Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Share-Based Compensation Plans and Other Incentive Plans	8.Share-Based Compensation Plans and Other Incentive Plans Stock Options, Stock Appreciation Rights and Employee Stock Purchase Plan The Company grants options to acquire shares of common stock to certain employees, and existing option holders in connection with the merging of option plans following an acquisition. Each option granted and stock appreciation right has an exercise price of no less than 100% of the fair market value of the common stock on the date of the grant. The awards have a contractual life of five to ten years and vest over two to four years. Stock options and stock appreciation rights assumed or replaced with comparable stock options or stock appreciation rights in conjunction with a change in control only become exercisable if the holder is also involuntarily terminated (for a reason other than cause) or quits for good reason within 24months of a change in control. The employee stock purchase plan allows eligible participants to purchase shares of the Company's common stock through payroll deductions of up to 10% of eligible compensation on an after-tax basis. Plan participants cannot purchase more than $25,000 of stock in any calendar year. The price an employee pays per share is 85% of the lower of the fair market value of the Company's stock on the close of the first trading day or last trading day of the purchase period. The plan has two purchase periods, the first one from October1 through March31 and the second one from April1 through September30. For the years ended December31, 2009, 2008 and 2007, employees purchased 29.4million, 18.9million and 10.2million shares, respectively, at purchase prices of $3.60 and $3.68, $7.91 and $6.07, and $14.93 and $15.02, respectively. The Company calculates the value of each employee stock option, estimated on the date of grant, using the Black-Scholes option pricing model. The weighted-average estimated fair value of employee stock options granted during 2009, 2008 and 2007 was $2.78, $3.47 and $5.95, respectively, using the following weighted-average assumptions: 2009 2008 2007 Expected volatility 57.1 % 56.4 % 28.3 % Risk-free interest rate 1.9 % 2.4 % 4.5 % Dividend yield 0.0 % 2.7 % 1.1 % Expected life (years) 3.9 5.5 6.5 The Company uses the implied volatility for traded options on the Company's stock as the expected volatility assumption required in the Black-Scholes model. The selection of the implied volatility approach was based upon the availability of actively traded options on the Company's stock and the Company's assessment that implied volatility is more representative of future stock price trends than historical volatility. The risk-free interest rate assumption is based upon the average daily closing rates during the year for U.S. treasury notes that have a life which approximates the expected life of the option. The dividend yield assumption is based on the Company's future expectation of dividend payouts. The expected life of employee stock options represents the average of the contractual term of the options and the weighted-average vesti

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Fair Value Measurements	9.Fair Value Measurements The Company adopted new accounting guidance on measuring fair value on January1, 2008 for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. This does not change the accounting for those instruments that were, under previous U.S. GAAP, accounted for at cost or contract value. The Company has no non-financial assets and liabilities that are required to be measured at fair value on a recurring basis as of December31, 2009. The Company holds certain fixed income securities, equity securities and derivatives, which must be measured using the authoritative accounting guidance for 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: Level1 Quoted prices for identical instruments in active markets. Level2 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. Level3 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 December31, 2009 and 2008 were as follows: December31, 2009 Level1 Level2 Level3 Total Assets: Sigma Fund securities: U.S. government and agency obligations $ $ 4,408 $ $ 4,408 Corporate bonds 411 19 430 Asset-backed securities 66 66 Mortgage-backed securities 52 52 Available-for-sale securities: U.S. government and agency obligations 23 23 Corporate bonds 10 10 Mortgage-backed securities 3 3 Common stock and equivalents 136 11 147 Derivative assets 15 15 Liabilities: Derivative liabilities 21 21 December31, 2008 Level1 Level2 Level3 Total Assets: Sigma Fund securities: U.S. government and agency obligations $ $ 752 $ $ 752 Corporate bonds 1,880 102 1,982 Asset-backed securities 170 2 172 Mortgage-backed securities 92 30 122 Available-for-sale securities: U.S. government and agency obligations 28 28 Corporate bonds 11 11 Asset-backed

Long-term Customer Financing an

Long-term Customer Financing and Sales of Receivables
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
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: December31 2009 2008 Long-term receivables $ 154 $ 169 Less allowance for losses (9 ) (7 ) 145 162 Less current portion (28 ) (110 ) Non-current long-term receivables, net $ 117 $ 52 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 consolidated balance sheets. Interest income recognized on long-term receivables for the years ended December31, 2009, 2008 and 2007 was $2million, $3million and $7million, respectively. Certain purchasers of the Company's infrastructure equipment may request that the Company provide long-term financing (defined as financing with terms greater than one year) in connection with the sale of equipment. These requests may include all or a portion of the purchase price of the equipment. The Company's obligation to provide long-term financing may be conditioned on the issuance of a letter of credit in favor of the Company by a reputable bank to support the purchaser's credit or a pre-existing commitment from a reputable bank to purchase the long-term receivables from the Company. The Company had outstanding commitments to provide long-term financing to third parties totaling $406million at December31, 2009, compared to $370million at December31, 2008. Of these amounts, $13million was supported by letters of credit or by bank commitments to purchase long-term receivables at December31, 2009, compared to $266 supported at December31, 2008. The majority of the outstanding commitments at December31, 2009 are to a small number of network operators in the Middle East region. In response to the recent tightening in the credit markets, certain customers of the Company have requested financing in connection with equipment purchases, and these types of requests have increased in volume and scope. In addition to providing direct financing to certain equipment customers, the Company also assists customers in obtaining financing directly from banks and other sources to fund equipment purchases. The Company had committed to provide financial guarantees relating to customer financing totaling $31million at December31, 2009, compared to $43million at December31, 2008 (including $27million and $23million at December31, 2009 and 2008, respectively, relating to the sale of short-term receivables). Customer financing guarantees outstanding were $4million at December31, 2009, compared to $6million at December 31, 2008 (including $2million and $4million at December31, 2009 and 2008, respectively, relating to the sale of short-term receivables). Sales of Receivables From time to time, the Company sells accounts receivable and long-term receivables in transactions that qualify as "true-sales." Certain of thes

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Commitments and Contingencies	11.Commitments and Contingencies Legal Iridium Program: The Company was named as one of several defendants in putative class action securities lawsuits arising out of alleged misrepresentations or omissions regarding the Iridium satellite communications business which, on March15, 2001, were consolidated in the federal district court in the District of Columbia under Freeland v. Iridium World Communications,Inc., et al., originally filed on April22, 1999. In April 2008, the parties reached an agreement in principle, subject to court approval, to settle all claims against Motorola in exchange for Motorola's payment of $20million. During the three months ended March29, 2008, the Company recorded a charge associated with this settlement. On October23, 2008, the court granted final approval of the settlement and dismissed the claims with prejudice. The Company was sued by the Official Committee of the Unsecured Creditors of Iridium (the "Committee") in the United States Bankruptcy Court for the Southern District of New York (the "Iridium Bankruptcy Court") on July19, 2001. In re Iridium OperatingLLC, et al. v. Motorola, plaintiffs asserted claims for breach of contract, warranty and fiduciary duty and fraudulent transfer and preferences, and sought in excess of $4billion in damages. On May20, 2008, the Bankruptcy Court approved a settlement in which Motorola is not required to pay anything, but released its administrative, priority and unsecured claims against the Iridium estate and withdrew its objection to the 2001 settlement between the unsecured creditors of the Iridium Debtors and the Iridium Debtors' pre-petition secured lenders. This settlement, and its approval by the Bankruptcy Court, extinguished Motorola's financial exposure and concluded Motorola's involvement in the Iridium bankruptcy proceedings. Telsim Class Action Securities: In April 2007, the Company entered into a settlement agreement in regards to In re Motorola Securities Litigation, a class action lawsuit relating to the Company's disclosure of its relationship with Telsim Mobil Telekomunikasyon Hizmetleri A.S. Pursuant to the settlement, Motorola paid $190million to the class and all claims against Motorola by the class have been dismissed and released. During the three months ended March31, 2007, the Company recorded a charge of $190million for the legal settlement, partially offset by $75million of estimated insurance recoveries, of which $50million had been tendered by certain insurance carriers. During the three months ended June30, 2007, the Company commenced actions against the non-tendering insurance carriers. In response to these actions, each insurance carrier who has responded denied coverage citing various policy provisions. As a result of this denial of coverage and related actions, the Company recorded a reserve of $25million in the three months ended June30, 2007 against the receivable from insurance carriers. During the three months ended September27, 2008, the Company received the $50million tendered by the insurance carriers. During the three months ended December31, 2008, the Company received a net $43million tendered by other insurance c

Information by Segment and Geog

Information by Segment and Geographic Region
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Information by Segment and Geographic Region	12.Information by Segment and Geographic Region The Company reports financial results for the following business segments: The Mobile Devices segment designs, manufactures, sells and services wireless handsets, including smartphones, with integrated software and accessory products, and licenses intellectual property. The Home and Networks Mobility segment designs, manufactures, sells, installs and services: (i)digital video, Internet Protocol ("IP") video and broadcast network interactive set-tops ("digital entertainment devices"), end-to-end video distribution systems, broadband access infrastructure platforms, and associated data and voice customer premise equipment ("broadband gateways") to cable television and telecom service providers (collectively, referred to as the "home business"), and (ii)wireless access systems ("wireless networks"), including cellular infrastructure systems and wireless broadband systems, to wireless service providers (collectively, referred to as the "networks business"). The Enterprise Mobility Solutions segment designs, manufactures, sells, installs and services analog and digital two-way radios, wireless LAN and security products, voice and data communications products and systems for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of customers, including government and public safety agencies (which, together with all sales to distributors of two-way communication products, are referred to as the "government and public safety market"), as well as retail, energy and utilities, transportation, manufacturing, healthcare and other commercial customers (which, collectively, are referred to as the "commercial enterprise market"). Segment operating results are measured based on operating earnings adjusted, if necessary, for certain segment-specific items and corporate allocations. Intersegment and intergeographic sales are accounted for on an arm's-length pricing basis. Intersegment sales included in other and eliminations were: Years Ended December31 2009 2008 2007 Mobile Devices $ 45 $ 53 $ 56 Home and Networks Mobility 4 2 14 Enterprise Mobility Solutions 35 86 58 $ 84 $ 141 $ 128 Identifiable assets (excluding intersegment receivables) are the Company's assets that are identified with classes of similar products or operations in each geographic region. For the year ended December31, 2009, approximately 11% of net sales were to one customer. No single customer accounted for more than 10% of net sales for the years ended December31, 2008 and 2007. Segment information Net Sales Operating Earnings (Loss) Years Ended December31 2009 2008 2007 2009 2008 2007 Mobile Devices $ 7,146 $ 12,099 $ 18,988 $ (1,077 ) $ (2,199 ) $ (1,201 ) Home and Networks Mobility 7,963 10,086 10,014 558 918 709 Enterprise Mobility Solutions 7,008 8,093 7,729 1,057 1,496 1,213 22,117

Reorganization of Businesses

Reorganization of Businesses
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
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. Effective August1, 2009, the Company amended and restated the Severance Plan. Under the amended Severance Plan, severance benefits will be paid in bi-weekly installments to impacted employees rather than in lump sum payments. 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 consolidated statements of operations where the original charges were recorded when it is determined they are no longer needed. 2009 Charges During the year ended December31, 2009, in light of the macroeconomic decline that adversely affected sales, the Company continued to implement various productivity improvement plans aimed at achieving long-term, sustainable profitability by driving efficiencies and reducing operating costs. All three of the Company's business segments, as well as corporate functions, are impacted by these plans, with the majority of the impact in the Mobile Devices segment. The employees affected are located in all geographic regions. During the year ended December31, 2009, the Company recorded net reorganization of business charges of $336million, including $78million of charges in Costs of sales and $258million of charges under Other charges in the Company's consolidated statements of operations. Included in the aggregate $336million are charges of $363million for employee separation costs, $36million for exit costs and $20million for fixed asset impairment charges, partially offset by $83million of reversals for accruals no longer needed. The following table displays the net charges incurred by business segment: Year Ended December31 2009 Mobile Devices $ 184 Home and Networks Mobility 52 Enterprise Mobility Solutions 70 306 Corporate 30 $ 336 The following table displays a rollforward of the reorganization of businesses accruals established for exit costs and employee separation costs from January1, 2009 to December31, 2009: 2009 Accruals at January1

Intangible Assets and Goodwill

Intangible Assets and Goodwill
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Intangible Assets and Goodwill	14.Intangible Assets and Goodwill The Company accounts for acquisitions using purchase accounting with the results of operations for each acquiree included in the Company's consolidated financial statements for the period subsequent to the date of acquisition. The pro forma effects of these acquisitions on the Company's consolidated financial statements were not significant individually nor in the aggregate. The allocation of value to in-process research and development was determined using expected future cash flows discounted at average risk adjusted rates reflecting both technological and market risk as well as the time value of money. Historical pricing, margins and expense levels, where applicable, were used in the valuation of the in-process products. The in-process research and development acquired will have no alternative future uses if the products are not feasible. The developmental products for the companies acquired have varying degrees of timing, technology, costs-to-complete and market risks throughout final development. If the products fail to become viable, the Company will unlikely be able to realize any value from the sale of incomplete technology to another party or through internal re-use. The risks of market acceptance for the products under development and potential reductions in projected sales volumes and related profits in the event of delayed market availability for any of the products exist. Efforts to complete all developmental products continue and there are no known delays to forecasted plans except as disclosed. The Company did not have any significant acquisitions during the years ended December31, 2009 and 2008. The following is a summary of significant acquisitions during the year ended December31, 2007: Quarter Acquired Consideration, net Form of Consideration In-Process Research and Development Charge 2007 Acquisitions Symbol Technologies,Inc. Q1 $ 3,528 Cash $ 95 Good Technology,Inc. Q1 $ 438 Cash Netopia,Inc. Q1 $ 183 Cash Terayon Communication Systems,Inc. Q3 $ 137 Cash The following table summarizes net tangible and intangible assets acquired and the consideration paid for the acquisitions identified above: Years Ended December31 2007 Tangible net assets $ 83 Goodwill 2,793 Other intangibles 1,315 In-process research and development 95 $ 4,286 Consideration, net: Cash $ 4,286 Stock $ 4,286 Symbol Technologies,Inc. In January 2007, the Company acquired, for $3.5billion in net cash, the outstanding common stock of Symbol Technologies,Inc. ("Symbol"), a leader in designing, developing, manufacturing and servicing products and systems used in end-to-end enterprise mobility solutions featuring rugged mobile computing, advanced data capture, radio frequency identification ("RFID"), wireless infrastructure and mobility management. The fair value of acquired in-process research and development was $95million. The acquired in-process research and development w

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Valuation and Qualifying Accounts	15.Valuation and Qualifying Accounts The following table presents the valuation and qualifying account activity for the years ended December31, 2009, 2008 and 2007: Balance at January1 Charged to Earnings Used Adjustments Balance at December31 2009 Reorganization of Businesses $ 250 $ 399 $ (432 ) $ (79 ) $ 138 Allowance for Doubtful Accounts 182 32 (52 ) (20 ) 142 Allowance for Losses on Long-term Receivables 7 6 (4 ) 9 Inventory Reserves 760 421 (300 ) (65 ) 816 Warranty Reserves 285 301 (311 ) (49 ) 226 Customer Reserves 599 1,115 (1,094 ) (196 ) 424 2008 Reorganization of Businesses 235 390 (316 ) (59 ) 250 Allowance for Doubtful Accounts 184 63 (35 ) (30 ) 182 Allowance for Losses on Long-term Receivables 5 5 (3 ) 7 Inventory Reserves 371 735 (366 ) 20 760 Warranty Reserves 416 452 (488 ) (95 ) 285 Customer Reserves 972 1,587 (1,544 ) (416 ) 599 2007 Reorganization of Businesses 158 420 (281 ) (62 ) 235 Allowance for Doubtful Accounts 78 130 (3 ) (21 ) 184 Allowance for Losses on Long-term Receivables 10 2 (7 ) 5 Inventory Reserves 416 546 (524 ) (67 ) 371 Warranty Reserves 530 756 (735 ) (135 ) 416 Customer Reserves 1,305 2,809 (2,205 ) (937 ) 972 Adjustments include translation adjustments.

Quarterly and Other Financial D

Quarterly and Other Financial Data (unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Quarterly and Other Financial Data (unaudited)	16.Quarterly and Other Financial Data (unaudited)* 2009 2008 1st 2nd 3rd 4th 1st 2nd 3rd 4th Operating Results Net sales $ 5,371 $ 5,497 $ 5,453 $ 5,723 $ 7,448 $ 8,082 $ 7,480 $ 7,136 Costs of sales 3,875 3,787 3,645 3,680 5,303 5,757 5,677 5,014 Gross margin 1,496 1,710 1,808 2,043 2,145 2,325 1,803 2,122 Selling, general and administrative expenses 869 822 800 890 1,183 1,115 1,044 988 Research and development expenditures 847 775 768 793 1,054 1,048 999 1,008 Other charges 229 103 112 197 177 157 212 1,801 Operating earnings (loss) (449 ) 10 128 163 (269 ) 5 (452 ) (1,675 ) Earnings (loss) from continuing operations** (291 ) 26 12 142 (194 ) 4 (397 ) (3,657 ) Net earnings (loss)** (231 ) 26 12 142 (194 ) 4 (397 ) (3,657 ) Per Share Data (in dollars) Continuing Operations: Basic earnings (loss) per common share $ (0.13 ) $ 0.01 $ 0.01 $ 0.06 $ (0.09 ) $ 0.00 $ (0.18 ) $ (1.61 ) Diluted earnings (loss) per common share (0.13 ) 0.01 0.01 0.06 (0.09 ) 0.00 (0.18 ) (1.61 ) Net Earnings: Basic earnings (loss) per common share (0.10 ) 0.01 0.01 0.06 (0.09 ) 0.00 (0.18 ) (1.61 ) Diluted earnings (loss) per common share (0.10 ) 0.01 0.01 0.06 (0.09 ) 0.00 (0.18 ) (1.61 ) Dividends declared 0.05 0.05 0.05 0.05 Dividends paid 0.05 0.05 0.05 0.05 0.05 Stock prices High 4.95 6.95 9.45 9.36 16.20 10.38 10.50 7.52 Low 2.98 4.25 5.91 7.67 8.98 7.20 6.52 3.00 Operating results for the fourth quarter of 2008 include: (i)a $2.1billion charge related to increase the U.S. deferred tax asset valuation allowance, as described in Note6, "Income Taxes," (ii)a $1.6billion charge related to the impairment of goodwill, as described in Note14, "Acquisitions and Related Intangibles," and (iii)accumulated temporary unrealized losses in Sigma Fund investments, as described in Note3, "Other Financial Data." * Certain amounts in prior years' financial statements and related notes have been reclassified to conform to the 2009 presentation. ** Amounts attributable to Motorola,Inc. common shareholders.

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jul. 04, 2009
Document and Entity Information
Entity Registrant Name	MOTOROLA INC
Entity Central Index Key	0000068505
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			14.2
Entity Common Stock, Shares Outstanding		2,312,879,064