Motorola 2012 Annual Report Download - page 89

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81
Restricted stock and restricted stock unit activity was as follows (in thousands, except fair value and employee data):
2012 2011 2010
Years ended December 31
RS and
RSU
Wtd. Avg.
Grant
Date Fair
Val ue RS and RSU
Wtd Avg.
Grant
Date Fair
Value RS and RSU
Wtd Avg.
Grant
Date Fair
Val ue
RS and RSU outstanding at
January 1 8,990 $ 40 9,559 $ 51 8,061 $ 55
Granted 1,657 49 5,150 44 4,772 49
Adjustments to RSUs
outstanding to reflect Motorola
Mobility distribution ——
3,638 20 — —
Vested (3,845) 41 (3,230)31
(2,407)58
Terminated or canceled (503) 33 (6,127)44(867)56
RS and RSU outstanding at
December 31 6,299 41 8,990 40 9,559 51
Approx. number of employees
granted RSUs 2,355 12,351 29,973
At December 31, 2012, the Company had unrecognized compensation expense related to RS and RSUs of $144 million,
net of estimated forfeitures, expected to be recognized over the weighted average period of approximately two years. The total
fair value of RS and RSU shares vested during the years ended December 31, 2012, 2011 and 2010 was $144 million, $146
million and $114 million, respectively. The aggregate fair value of outstanding RSUs as of December 31, 2012 was $351
million. Pursuant to the completion of the distribution of Motorola Mobility on January 4, 2011, approximately 3.8 million
unvested RSUs held by the employees of Motorola Mobility were cancelled. Upon the completed divestiture of certain assets
of the Networks business on April 29, 2011, approximately 1.4 million unvested RSUs were cancelled.
Total Share-Based Compensation Expense
Compensation expense for the Company’s employee stock options, stock appreciation rights, employee stock purchase
plans, RS and RSUs was as follows:
Years ended December 31 2012 2011 2010
Share-based compensation expense included in:
Costs of sales $25
$20$19
Selling, general and administrative expenses 112 112 82
Research and development expenditures 47 36 43
Share-based compensation expense included in Operating earnings 184 168 144
Tax benefit 62 51 43
Share-based compensation expense, net of tax $ 122 $ 117 $ 101
Decrease in basic earnings per share $(0.42)$(0.34)$ (0.30)
Decrease in diluted earnings per share $(0.41)$(0.34)$ (0.30)
Share-based compensation expense in discontinued operations $—
$ 13 $ 164
At December 31, 2012 and 2011, 22.2 million shares and 23.7 million shares, respectively, were available for future
share-based award grants under the current share-based compensation plan, covering all equity awards to employees and non-
employee directors.
Motorola Solutions Incentive Plans
The Company's incentive plans provide eligible employees with an annual payment, calculated as a percentage of an
employee’s eligible earnings, in the year after the close of the current calendar year if specified business goals and individual
performance targets are met. The expense for awards under this incentive plan for the years ended December 31, 2012, 2011
and 2010 was $201 million, $203 million and $201 million, respectively.