Motorola 2011 Annual Report Download - page 82

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Stockholders’ Equity Information
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. On January 30, 2012, the Company announced that its Board of Directors
authorized up to $1.0 billion in additional funds for use under the existing share repurchase program through the
end of 2012.
During the year ended December 31, 2011, the Company repurchased 26.6 million of its common shares at an
aggregate cost of $1.1 billion, or an average cost of $41.77 per share. All repurchased shares have been retired.
During the years ended December 31, 2010 and 2009, the Company did not repurchase any of its common shares.
Payment of Dividends: During the year ended December 31, 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 Company paid $72 million in cash dividends to holders of its common stock in 2011. During the year ended
December 31, 2010, the Company did not pay cash dividends to holders of its common stock. During the year
ended December 31, 2009, the Company paid $114 million in cash dividends to holders of its common stock, all of
which was paid during the first quarter of 2009, related to the payment of a dividend declared in November 2008.
In February 2009, the Company announced that its Board of Directors suspended the declaration of quarterly cash
dividends on the Company’s common stock.
During the years ended December 31, 2011, 2010, and 2009, the Company paid $8 million, $23 million, and
$3 million, respectively, in dividends to minority shareholders in connection with subsidiary common stock.
Par Value Change: On May 4, 2009, the Company’s stockholders approved a change in the par value of
Motorola Solutions common stock from $3.00 per share to $.01 per share. The change did not have an impact on
the amount of the Company’s total stockholders’ equity, but it did result in a reclassification of $6.9 billion between
Common stock and Additional paid-in capital.
Motorola Mobility Distribution: On January 4, 2011, the Distribution of Motorola Mobility from Motorola
Solutions was completed. On January 4, 2011, the stockholders of record as of the close of business on
December 21, 2010 received one (1) share of Motorola Mobility common stock for each eight (8) shares of
Motorola, Inc. common stock held.
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, (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.
Reverse Stock Split: On November 30, 2010, the Company announced the timing and details regarding the
Separation and the approval of a reverse stock split at a ratio of 1-for-7. Immediately following the Distribution of
Motorola Mobility common stock, the Company completed a 1-for-7 reverse stock split. All consolidated per share
information presented gives effect to the Reverse Stock Split.