Motorola 2015 Annual Report Download - page 59

Download and view the complete annual report

Please find page 59 of the 2015 Motorola annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 103

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103

58
Other Income (Expense)
Interest expense, net, and Other both included in Other income (expense) consist of the following:
Years ended December 31 2015 2014 2013
Interest expense, net:
Interest expense $(186)$ (147) $ (132)
Interest income 13 21 19
$(173)$ (126) $ (113)
Other:
Loss from the extinguishment of long-term debt $—$(37)$ —
Investment impairments (6) —(3)
Foreign currency loss (23) (3) (17)
Gain (loss) on derivative instruments 7(4) 8
Gains on equity method investments 616 10
Other 5(6) 11
$(11)$(34)$ 9
Earnings Per Common Share
Basic and diluted earnings per common share from both continuing operations and net earnings attributable to Motorola
Solutions, Inc. is computed as follows:
Amounts attributable to Motorola Solutions, Inc. common stockholders
Earnings (loss) from Continuing Operations Net Earnings
Years ended December 31 2015 2014 2013 2015 2014 2013
Basic earnings per common
share:
Earnings (loss) $ 640 $ (697) $ 933 $ 610 $1,299$1,099
Weighted average common
shares outstanding 199.6 245.6 266.0 199.6 245.6 266.0
Per share amount $3.21$ (2.84) $ 3.51 $3.06$5.29$4.13
Diluted earnings per
common share:
Earnings (loss) $ 640 $ (697) $ 933 $ 610 $1,299$1,099
Weighted average common
shares outstanding 199.6 245.6 266.0 199.6 245.6 266.0
Add effect of dilutive securities:
Share-based awards 2.1 —4.52.1 —4.5
Senior Convertible Notes 0.1 ——0.1 ——
Diluted weighted average
common shares outstanding 201.8 245.6 270.5 201.8 245.6 270.5
Per share amount $3.17$ (2.84) $ 3.45 $3.02$5.29$4.06
In the computation of diluted earnings per common share from continuing operations and on a net earnings basis for the
year ended December 31, 2015, the assumed exercise of 2.7 million options and the assumed vesting of 0.3 million RSUs were
excluded because their inclusion would have been antidilutive. For the year ended December 31, 2014, the Company recorded
a net loss from continuing operations and, accordingly, the basic and diluted weighted average shares outstanding are equal
because any increase to the basic shares would be antidilutive, including the assumed exercise of 6.3 million stock options and
the assumed vesting of 1.1 million RSUs. In the computation of diluted earnings per common share from continuing operations
and on a net earnings basis for the year ended December 31, 2013, the assumed exercise of 5.6 million stock options and the
assumed vesting of 0.2 million RSUs were excluded because their inclusion would have been antidilutive.
On August 25, 2015, the Company issued $1.0 billion of 2% Senior Convertible Notes (the "Senior Convertible Notes")
which mature in September 2020. The notes are convertible based on a conversion rate of 14.5985 per $1,000 principal amount
(which is equal to an initial conversion price of $68.50 per share). See discussion in Note 4. In the event of conversion, the
Company intends to settle the principal amount of the Senior Convertible Notes in cash.