Exhibit 99.1

Motorola Mobility Announces Fourth Quarter and Full-Year Financial Results

Fourth Quarter Financial Highlights

 

•

Net revenues of $3.4 billion

 

•

Non-GAAP net earnings of $0.20 per share compared to net earnings of $0.37 per share in fourth quarter 2010; GAAP net loss of $0.27 per share compared to net earnings of $0.27 per share in fourth quarter 2010

 

•

Mobile Devices net revenues of $2.5 billion, up 5 percent from fourth quarter 2010; Non-GAAP operating loss of $19 million; GAAP operating loss of $70 million

 

•

Shipped 10.5 million mobile devices, including 5.3 million smartphones

 

•

Home net revenues of $897 million, down 11 percent from fourth quarter 2010; Non-GAAP operating earnings of $84 million; GAAP operating earnings of $57 million

Click here for printable press release and financial tables.

LIBERTYVILLE, Ill. – Jan. 26, 2012 – Motorola Mobility Holdings, Inc. (NYSE: MMI) today reported net revenues of $3.4 billion in the fourth quarter of 2011, comparable to the fourth quarter of 2010. The GAAP net loss in the fourth quarter of 2011 was $80 million, or $0.27 per share, compared to net earnings of $80 million, or $0.27 per share, in the fourth quarter of 2010. On a non-GAAP basis, net earnings in the fourth quarter 2011 were $61 million, or $0.20 per share, compared to net earnings of $108 million, or $0.37 per share, in the fourth quarter of 2010.

For the full year, 2011 net revenues were $13.1 billion, up 14 percent compared to 2010. For the full year, the GAAP net loss was $0.84 per share compared to a loss of $0.29 per share in 2010. On a non-GAAP basis, net earnings were $0.33 per share compared to a loss of $0.28 per share in 2010.

The Company generated positive operating cash flow of $225 million and $357 million in the fourth quarter and full year, respectively. Total cash at the end of the quarter was $3.6 billion and includes cash, cash equivalents, and cash deposits.

Details on non-GAAP adjustments and the use of non-GAAP measures are included later in this press release and in the financial tables.

“In the fourth quarter, we received very positive consumer response to Motorola RAZR, which combined an iconic brand with ultra-thin in an innovative smartphone. Our Home business continues to be a leader in the industry’s transformation to all IP, with unique solutions that enable rich media experiences across any screen,” said Sanjay Jha, chairman and chief executive officer, Motorola Mobility. “We remain energized by the proposed merger with Google and continue to focus on creating innovative technologies.”

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Operating Results

Mobile Devices net revenues in the fourth quarter, impacted by the increased competitive environment, were $2.5 billion, up 5 percent compared with the year-ago quarter. The GAAP operating loss was $70 million compared to operating earnings of $72 million in the year-ago quarter. The non-GAAP operating loss was $19 million compared to operating earnings of $56 million in the year-ago quarter. For the full year 2011, net revenues were $9.5 billion, an increase of 22 percent compared to 2010. The 2011 GAAP operating loss was $285 million compared to an operating loss of $76 million in 2010. The 2011 non-GAAP operating loss was $126 million compared to an operating loss of $198 million in 2010.

The Company shipped a total of 10.5 million and 42.4 million mobile devices in the fourth quarter and full year 2011, respectively. This included 5.3 million and 18.7 million smartphones and approximately 200 thousand and 1 million tablets in the fourth quarter and full year, respectively.

Mobile Devices highlights:

 

•

Launched Motorola RAZR™ extending the iconic RAZR brand around the world

 

•

Announced DROID RAZR MAXX™, featuring twice as much battery life as the leading competitor and measuring only 8.99 millimeters

 

•

Unveiled the award-winning DROID 4 by Motorola, the thinnest and most powerful 4G LTE QWERTY smartphone featuring a five-row keyboard and edge-lit keys

 

•

Introduced two new 4G LTE tablets, the DROID XYBOARD 10.1™ and XYBOARD 8.2™.

 

•

Announced the “life proof” Motorola DEFY™ MINI and slim MOTOLUXE™, two new value priced additions to Motorola’s growing budget-friendly portfolio

 

•

Shipped award-winning MOTOACTV™, the world’s first combined GPS fitness tracker and MP3 player

 

•

Launched two flagship devices in China – the TD-SCDMA Motorola MT917 and the Motorola XT928, a dual-core, dual-mode, dual-standby smartphone

Home segment net revenues in the fourth quarter were $897 million, down 11 percent compared with the year-ago quarter. GAAP operating earnings were $57 million, compared to $54 million in the year-ago quarter. Non-GAAP operating earnings were $84 million compared to $90 million in the year-ago quarter. Fourth quarter set-top shipments were down 3 percent compared to the year-ago quarter. For the full year 2011, net revenues were $3.5 billion, compared to $3.6 billion in 2010. GAAP operating earnings increased to $226 million from $152 million in 2010. The 2011 non-GAAP operating earnings increased to $332 million from $272 million in 2010. Full year set-top shipments were up 6 percent compared to 2010.

Home highlights:

 

•

Launched DreamGallery next-generation HTML-5 video navigation software in North America with Shaw Communications

 

•

Expanded video leadership and paved the way for Canada’s move to all-MPEG-4 broadcast and On-Demand HD services with Eastlink

 

•

Demonstrated market leadership with introduction of new carrier Ethernet product line for the deployment of cost-effective commercial services

 

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Introduced Motorola APEX3000, which delivers market-leading density to cost-effectively add greater demand for narrowcast services such as VOD and DVR

 

•

Selected by Altibox AS in Norway to provide VAP 2400 HD wireless video bridge to enable multi-room TV services

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Merger Update

As previously announced on August 15, 2011, Motorola Mobility and Google Inc. (“Google”) (NASDAQ: GOOG) entered into a definitive agreement for Google to acquire Motorola Mobility for $40.00 per share in cash, or a total of approximately $12.5 billion. On November 17, 2011, Motorola Mobility stockholders voted overwhelmingly to approve the proposed merger with Google at the Company’s Special Meeting of Stockholders. The Company continues to work closely with Google to complete the proposed acquisition of Motorola Mobility as expeditiously as possible.

The Company notes that the transaction remains subject to various closing conditions. Antitrust clearances, or waiting period expirations, are required by the U.S. Department of Justice (DOJ), by the European Commission, and in Canada, China, Israel, Russia, Taiwan and Turkey. Requisite filings have been submitted to the appropriate regulatory body in each of these jurisdictions. Clearances have been received in Turkey and Russia. In Canada and the United States, the statutory waiting period for the transaction has expired although the parties have been informed that the reviewing agencies have not closed their respective investigations. In December 2011, the Chinese Ministry of Commerce proceeded to phase two of its investigation. In February, the European Commission is expected to announce whether it will close its investigation or proceed to a phase two investigation.

The Company currently expects the transaction to close in early 2012 once all conditions have been satisfied and reminds stockholders that it is possible that the failure to timely meet such conditions or other factors outside of the Company’s control could delay or prevent completion of the transaction altogether.

For more information on the proposed merger, please visit http://investors.motorola.com.

Conference Call and Webcast

In light of the pending acquisition of the Company by Google, the Company does not conduct a financial analyst conference call or webcast following the release of its earnings information nor provide financial guidance. To access the fourth quarter results and other financial information, please visit http://investors.motorola.com.

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Consolidated GAAP Results

A comparison of results from operations is as follows:

 

		Fourth Quarter								Full Year
(In millions, except per share amounts)		2011				2010				2011				2010
Net revenues		$	3,436			$	3,425			$	13,064			$	11,460
Gross margin			854				915				3,317				2,965
Operating earnings (loss)			(78	)			126				(142	)			76
Earnings (loss) before income taxes			(78	)			110				(148	)			(4	)
Net earnings (loss) attributable to Motorola Mobility Holdings, Inc.		($	80	)		$	80			($	249	)		($	86	)
Basic earnings (loss) per common share *		($	0.27	)		$	0.27			($	0.84	)		($	0.29	)
Diluted loss per common share*		($	0.27	)			N/A			($	0.84	)			N/A
Weighted average common shares outstanding
Basic			300.2				294.3				297.1				294.3
Diluted			300.2				N/A				297.1				N/A

Non-GAAP Adjustments for fourth quarter and full year 2011 and 2010

 

		Fourth Quarter
Per Share Impact		2011				2010
GAAP Earnings (Loss) per Common Share *		($	0.27	)		$	0.27
Merger-related costs**			0.22				—
Reorganization of business charges			0.09				0.06
Stock-based compensation expense			0.12				0.14
Intangible assets amortization expense			0.04				0.05
Joint venture wind-down costs			—				0.03
IP settlement			—				(0.19	)
Total Non-GAAP Adjustments ***			0.47				0.10
Non-GAAP Earnings per Common Share *		$	0.20			$	0.37
		Full Year
Per Share Impact		2011				2010
GAAP Loss per Common Share *		($	0.84	)		($	0.29	)
Merger-related costs**			0.28				—
Reorganization of business charges			0.09				0.20
Stock-based compensation expense			0.52				0.55
Intangible assets amortization expense			0.20				0.19
Legal claim provision			0.07				—
Joint venture wind-down costs			—				0.03
Legal settlement			—				(0.77	)
IP settlement			—				(0.19	)
Total Non-GAAP Adjustments ***			1.16				0.01
Non-GAAP Earnings (Loss) per Common Share *		$	0.33			($	0.28	)

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Definitions

* The computation of basic earnings (loss) per share for all periods through December 31, 2010 is calculated using the number of shares of Motorola Mobility Holdings, Inc. common stock outstanding on January 4, 2011, following the distribution of Motorola Mobility Holdings, Inc. common stock. No measure of diluted earnings (loss) per share is presented for all periods through December 31, 2010.

** Merger-related costs primarily consisting of compensation costs as a result of an incentive plan adjustment and legal and banking fees

*** Earnings or loss per share (EPS) impact may not add up due to rounding.

Use of Non-GAAP Financial Information

In addition to the GAAP results included in this presentation, Motorola Mobility also has included non-GAAP measurements of results. Motorola Mobility has provided these non-GAAP measurements to help investors better understand Motorola Mobility’s core operating performance, enhance comparisons of Motorola Mobility’s core operating performance from period to period, and allow better comparisons of Motorola Mobility’s operating performance to that of its competitors. Among other things, the Company’s management uses these operating results, excluding the identified items, to evaluate the performance of its businesses and to evaluate results relative to certain incentive compensation targets. Management uses operating results, excluding these items, because it believes this measurement enables it to make better period-to-period evaluations of the financial performance of its core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and the Company compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP.

Non-GAAP adjustments are comprised of the following items:

Reorganization of business charges and merger-related costs: The Company has excluded the effects of reorganization of business charges and merger-related costs from its non-GAAP operating expenses and net income measurements because the Company believes that these items do not reflect expected future operating earnings or expenses and do not contribute to a meaningful evaluation of the Company’s current operating performance or comparisons to the Company’s past operating performance.

Stock-based compensation expense: The Company has excluded stock-based compensation expense from its non-GAAP operating expenses and net income measurements. Although stock-based compensation is a key incentive offered to our employees and the Company believes such compensation contributed to the revenue earned during the periods presented and also believes it will contribute to the generation of future period revenues – the Company continues to evaluate its performance excluding stock-based compensation expense primarily because it represents a significant non-cash expense. Stock-based compensation expense will recur in future periods.

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Intangible assets amortization expense: The Company has excluded intangible assets amortization expense from its non-GAAP operating expenses and net income measurements, primarily because it represents a significant non-cash expense and because the Company evaluates its performance excluding intangible assets amortization expense. Amortization of intangible assets is consistent in amount and frequency but is significantly affected by the timing and size of the Company’s acquisitions. Investors should note that the use of intangible assets contributed to the Company’s revenues earned during the periods presented and will contribute to the Company’s future period revenues as well. Intangible assets amortization expense will recur in future periods.

Details of the above non-GAAP adjustments and reconciliations of the non-GAAP measurements to the corresponding GAAP measurements can be found in the financial tables.

Business Risks

Motorola Mobility cautions the reader that this communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include, but are not limited to, the expected closing date of the proposed Google transaction and the expected timeframe for regulatory decisions. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements including, but not limited to, the ability of the parties to consummate the proposed transaction and the satisfaction of the conditions precedent to consummation of the proposed transaction, including the ability to secure regulatory and other approvals at all or in a timely manner; and the other risks and uncertainties contained and identified in Motorola Mobility’s filings with the Securities and Exchange Commission (the “SEC”), any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. Motorola Mobility undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances or update the reasons that actual results could differ materially from those anticipated in forward-looking statements, except as required by law.

About Motorola Mobility

Motorola Mobility Holdings, Inc. (NYSE: MMI) fuses innovative technology with human insights to create experiences that simplify, connect and enrich people’s lives. Our portfolio includes converged mobile devices such as smartphones and tablets; wireless accessories; end-to-end video and data delivery; and management solutions, including set-tops and data-access devices. For more information, visit motorola.com/mobility.

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# # #

MOTOROLA and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC. DROID is a trademark of Lucasfilm Ltd. and its related companies. Used under license. All other trademarks are the property of their respective owners. © 2012 Motorola Mobility, Inc. All rights reserved.

CONTACTS:

Media:

Jennifer Erickson

Motorola Mobility Holdings, Inc.

+1 (847) 772-1217

jennifer.erickson@motorola.com

Investors:

Dean Lindroth

Motorola Mobility Holdings, Inc.

+1 (847) 523-2858

dean.lindroth@motorola.com

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Motorola Mobility Holdings, Inc.

Condensed Consolidated Statements of Operations

(In millions, except per share amounts)

 

		Three Months Ended
		December 31, 2011				October 1, 2011				December 31, 2010
Net revenues		$	3,436			$	3,259			$	3,425
Costs of sales			2,582				2,415				2,510
Gross margin			854				844				915
Selling, general and administrative expenses			446				426				451
Research and development expenditures			384				390				367
Other charges (income)			90				18				(43	)
Intangibles amortization			12				15				14
Operating earnings (loss)			(78	)			(5	)			126
Other income (expense):
Interest income (expense), net *			—				7				(12	)
Gains on sales of investments			5				2				—
Other, net			(5	)			(6	)			(4	)
Total other income (expense)			—				3				(16	)
Earnings (loss) before income taxes			(78	)			(2	)			110
Income tax expense **			2				30				20
Net earnings (loss)			(80	)			(32	)			90
Less: Earnings attributable to non-controlling interests			—				—				10
Net earnings (loss) attributable to Motorola Mobility Holdings, Inc.		$	(80	)		$	(32	)		$	80
Basic earnings (loss) per common share ***		$	(0.27	)		$	(0.11	)		$	0.27
Diluted loss per common share ***		$	(0.27	)		$	(0.11	)			N/A
Weighted average common shares outstanding
Basic			300.2				297.7				294.3
Diluted			300.2				297.7				N/A
		Percentage of Net Revenues ****
Net revenues			100.0	%			100.0	%			100.0	%
Costs of sales			75.1	%			74.1	%			73.3	%
Gross margin			24.9	%			25.9	%			26.7	%
Selling, general and administrative expenses			13.0	%			13.1	%			13.2	%
Research and development expenditures			11.2	%			12.0	%			10.7	%
Other charges (income)			2.6	%			0.6	%			-1.3	%
Intangibles amortization			0.3	%			0.5	%			0.4	%
Operating earnings (loss)			-2.3	%			-0.2	%			3.7	%
Other income (expense):
Interest income (expense), net *			0.0	%			0.2	%			-0.4	%
Gains on sales of investments			0.1	%			0.1	%			0.0	%
Other, net			-0.1	%			-0.2	%			-0.1	%
Total other income (expense)			0.0	%			0.1	%			-0.5	%
Earnings (loss) before income taxes			-2.3	%			-0.1	%			3.2	%
Income tax expense **			0.1	%			0.9	%			0.6	%
Net earnings (loss)			-2.3	%			-1.0	%			2.6	%
Less: Earnings attributable to non-controlling interests			0.0	%			0.0	%			0.3	%
Net earnings (loss) attributable to Motorola Mobility Holdings, Inc.			-2.3	%			-1.0	%			2.3	%

 

*	For periods prior to separation on January 4, 2011, interest expense, net represents an allocation to Motorola Mobility Holdings, Inc. of the interest income and interest expense recognized by Motorola, Inc.

**	For periods prior to separation on January 4, 2011, income tax expense was computed as if Motorola Mobility Holdings, Inc. had filed tax returns on a stand-alone basis separate from Motorola, Inc.

***

The computation of basic earnings (loss) per common share for all periods through December 31, 2010, is calculated using the number of shares of Motorola Mobility Holdings, Inc. common stock outstanding on January 4, 2011, following the distribution of Motorola Mobility Holdings, Inc. common stock. No measure of diluted earnings (loss) per share is presented for periods prior to separation.

****	Percentages may not add up due to rounding.

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Motorola Mobility Holdings, Inc.

Condensed Consolidated Statements of Operations

(In millions, except per share amounts)

 

		Year Ended
		December 31, 2011				December 31, 2010
Net revenues		$	13,064			$	11,460
Costs of sales			9,747				8,495
Gross margin			3,317				2,965
Selling, general and administrative expenses			1,745				1,592
Research and development expenditures			1,526				1,479
Other charges (income)			129				(237	)
Intangibles amortization			59				55
Operating earnings (loss)			(142	)			76
Other income (expense):
Interest income (expense), net *			10				(52	)
Gains on sales of investments			17				—
Other, net			(33	)			(28	)
Total other income (expense)			(6	)			(80	)
Loss before income taxes			(148	)			(4	)
Income tax expense **			101				75
Net loss			(249	)			(79	)
Less: Earnings attributable to non-controlling interests			—				7
Net loss attributable to Motorola Mobility Holdings, Inc.		$	(249	)		$	(86	)
Basic loss per common share ***		$	(0.84	)		$	(0.29	)
Diluted loss per common share ***		$	(0.84	)			N/A
Weighted average common shares outstanding
Basic			297.1				294.3
Diluted			297.1				N/A
		Percentage of Net Revenues ****
Net revenues			100.0	%			100.0	%
Costs of sales			74.6	%			74.1	%
Gross margin			25.4	%			25.9	%
Selling, general and administrative expenses			13.4	%			13.9	%
Research and development expenditures			11.7	%			12.9	%
Other charges (income)			1.0	%			-2.1	%
Intangibles amortization			0.5	%			0.5	%
Operating earnings (loss)			-1.1	%			0.7	%
Other income (expense):
Interest income (expense), net *			0.1	%			-0.5	%
Gains on sales of investments			0.1	%			0.0	%
Other, net			-0.3	%			-0.2	%
Total other income (expense)			0.0	%			-0.7	%
Loss before income taxes			-1.1	%			0.0	%
Income tax expense **			0.8	%			0.7	%
Net loss			-1.9	%			-0.7	%
Less: Earnings attributable to non-controlling interests			0.0	%			0.1	%
Net loss attributable to Motorola Mobility Holdings, Inc.			-1.9	%			-0.8	%

 

*	For periods prior to separation on January 4, 2011, interest expense, net represents an allocation to Motorola Mobility Holdings, Inc. of the interest income and interest expense recognized by Motorola, Inc.

**	For periods prior to separation on January 4, 2011, income tax expense was computed as if Motorola Mobility Holdings, Inc. had filed tax returns on a stand-alone basis separate from Motorola, Inc.

***

The computation of basic earnings (loss) per common share for all periods through December 31, 2010, is calculated using the number of shares of Motorola Mobility Holdings, Inc. common stock outstanding on January 4, 2011, following the distribution of Motorola Mobility Holdings, Inc. common stock. No measure of diluted earnings (loss) per share is presented for periods prior to separation.

****	Percentages may not add up due to rounding.

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Motorola Mobility Holdings, Inc.

Condensed Consolidated Balance Sheets

(In millions)

 

		December 31, 2011				October 1, 2011				December 31, 2010
Assets
Cash and cash equivalents *		$	3,451			$	3,078			$	—
Accounts receivable, net			1,780				1,774				1,571
Inventories, net			701				746				843
Deferred income taxes **			95				147				110
Other current assets			585				605				595
Total current assets			6,612				6,350				3,119
Cash deposits			155				160				—
Property, plant and equipment, net			805				803				806
Investments			119				125				137
Deferred income taxes **			93				50				49
Goodwill			1,433				1,431				1,396
Other assets			513				558				697
Total assets		$	9,730			$	9,477			$	6,204
Liabilities and Stockholders’ Equity
Accounts payable		$	1,666			$	1,708			$	1,731
Accrued liabilities			2,408				2,234				2,115
Total current liabilities			4,074				3,942				3,846
Other liabilities			568				587				603
Stockholders’ Equity:
Common stock			3				3				—
Additional paid-in capital			5,452				5,217				—
Accumulated other comprehensive loss			(118	)			(103	)			(345	)
Retained earnings (accumulated deficit)			(249	)			(169	)			—
Owner’s net investment, prior to Separation			—				—				2,077
Total Motorola Mobility Holdings, Inc. stockholders’ equity			5,088				4,948				1,732
Non-controlling interests			—				—				23
Total stockholders’ equity			5,088				4,948				1,755
Total liabilities and stockholders’ equity		$	9,730			$	9,477			$	6,204

 

*

Until separation, the Company participated in Motorola, Inc.’s centralized cash management program. Accordingly, no cash and cash equivalents are presented on the Motorola Mobility Holdings, Inc. Condensed Consolidated Balance Sheet as of any reporting period prior to separation. On January 3, 2011, the Company received a cash contribution of $3.2 billion from Motorola, Inc., which included approximately $168 million of cash deposits.

**	For periods prior to separation on January 4, 2011, income taxes were computed as if Motorola Mobility Holdings, Inc. had filed tax returns on a stand-alone basis separate from Motorola, Inc.

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Motorola Mobility Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions)

 

		Three Months Ended
		December 31, 2011				October 1, 2011				December 31, 2010
Operating
Net earnings (loss) attributable to Motorola Mobility Holdings, Inc.		$	(80	)		$	(32	)		$	80
Less: Earnings attributable to non-controlling interests			—				—				10
Net earnings (loss)			(80	)			(32	)			90
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization			54				57				61
Share-based compensation expense			36				34				43
Other non-cash charges (income)			—				—				(37	)
Gains on sales of investments			(5	)			(2	)			—
Deferred income taxes			—				(31	)			(9	)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net			(17	)			17				(3	)
Inventories			42				(19	)			12
Other current assets			4				(45	)			96
Accounts payable and accrued liabilities			155				30				(57	)
Other assets and liabilities			36				16				29
Net cash provided by operating activities			225				25				225
Investing
Acquisitions and investments			(7	)			(21	)			(82	)
Proceeds from sales of investments			10				12				1
Capital expenditures			(64	)			(40	)			(75	)
Cash deposits			20				(1	)			—
Other, net			1				4				—
Net cash used for investing activities			(40	)			(46	)			(156	)
Financing
Share-based compensation activity			45				46				—
Capital contribution from Former Parent			150				75				—
Other, net			—				(1	)			—
Net transfers to Former Parent			—				—				(90	)
Net cash provided by (used for) financing activities			195				120				(90	)
Effect of exchange rate changes on cash and cash equivalents			(7	)			(47	)			21
Net increase in cash and cash equivalents			373				52				—
Cash and cash equivalents, beginning of period			3,078				3,026				—
Cash and cash equivalents, end of period		$	3,451			$	3,078			$	—

Until separation, the Company participated in Motorola, Inc.’s (Former Parent) centralized cash management program. Accordingly, no cash and cash equivalents are presented on the Motorola Mobility Holdings, Inc. Condensed Consolidated Balance Sheet as of any reporting period prior to separation. On January 3, 2011, the Company received a cash contribution of $3.2 billion from Motorola, Inc., which included approximately $168 million of cash deposits. On July 22, 2011, the Company received its first Deferred Contribution of $75 million from the Former Parent. On November 7, 2011, the Company received its second Deferred Contribution of $75 million from the Former Parent. On December 14, 2011, the Company received an additional Deferred Contribution of $75 million from the Former Parent.

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Motorola Mobility Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions)

 

		Full Year Ended
		December 31, 2011				December 31, 2010
Operating
Net loss attributable to Motorola Mobility Holdings, Inc.		$	(249	)		$	(86	)
Less: Earnings attributable to non-controlling interests			—				7
Net loss			(249	)			(79	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			221				230
Share-based compensation expense			156				163
Other non-cash charges (income)			17				(36	)
Gains on sales of investments			(17	)			—
Deferred income taxes			(46	)			5
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net			(263	)			(228	)
Inventories			122				(154	)
Other current assets			4				89
Accounts payable and accrued liabilities			280				629
Other assets and liabilities			132				(13	)
Net cash provided by operating activities			357				606
Investing
Acquisitions and investments			(72	)			(148	)
Proceeds from sales of investments			39				13
Capital expenditures			(200	)			(143	)
Cash deposits			(4	)			—
Other, net			6				1
Net cash used for investing activities			(231	)			(277	)
Financing
Share-based compensation activity			93				—
Capital contributions from Former Parent			3,257				—
Other, net			14				—
Net transfers to Former Parent			—				(383	)
Net cash provided by (used for) financing activities			3,364				(383	)
Effect of exchange rate changes on cash and cash equivalents			(39	)			54
Net increase in cash and cash equivalents			3,451				—
Cash and cash equivalents, beginning of period			—				—
Cash and cash equivalents, end of period		$	3,451			$	—

Until separation, the Company participated in Motorola, Inc.’s (Former Parent) centralized cash management program. Accordingly, no cash and cash equivalents are presented on the Motorola Mobility Holdings, Inc. Condensed Consolidated Balance Sheet as of any reporting period prior to separation. On January 3, 2011, the Company received a cash contribution of $3.2 billion from Motorola, Inc., which included approximately $168 million of cash deposits. On July 22, 2011, the Company received its first Deferred Contribution of $75 million from the Former Parent. On November 7, 2011, the Company received its second Deferred Contribution of $75 million from the Former Parent. On December 14, 2011, the Company received an additional Deferred Contribution of $75 million from the Former Parent.

---

Motorola Mobility Holdings, Inc.

Segment Information

(In millions)

Summarized below are the Company’s Net revenues and Operating earnings (loss) by reportable segment for the three months and year ended December 31, 2011 and December 31, 2010.

 

		Net Revenues
		Three Months Ended December 31, 2011				Three Months Ended December 31, 2010				% Change from 2010
Mobile Devices		$	2,539			$	2,420				5	%
Home			897				1,005				(11	)%
Company Totals		$	3,436			$	3,425				—
		Year Ended December 31, 2011				Year Ended December 31, 2010				% Change from 2010
Mobile Devices		$	9,531			$	7,819				22	%
Home			3,533				3,641				(3	)%
Company Totals		$	13,064			$	11,460				14	%
		Operating Earnings (Loss)
		Three Months Ended December 31, 2011				Three Months Ended December 31, 2010				% Change from 2010
Mobile Devices		$	(70	)		$	72				(197	)%
Home			57				54				6	%
Merger-related costs *			(65	)			—				—
Company Totals		$	(78	)		$	126				(162	)%
		Year Ended December 31, 2011				Year Ended December 31, 2010				% Change from 2010
Mobile Devices		$	(285	)		$	(76	)			275	%
Home			226				152				49	%
Merger-related costs *			(83	)			—				—
Company Totals		$	(142	)		$	76				(287	)%

 

*	Represents costs incurred at the corporate level related to the Company’s proposed merger with Google Inc., primarily consisting of compensation costs as a result of an incentive plan adjustment and legal and banking fees.

---

Motorola Mobility Holdings, Inc.

GAAP to Non-GAAP Bridge

(In millions, except per share amounts)

 

		Three Months Ended December 31, 2011												Three Months Ended October 1, 2011
		GAAP Results				Non-GAAP Adjustments				Non-GAAP Results				GAAP Results				Non-GAAP Adjustments				Non-GAAP Results
Net revenues		$	3,436			$	—			$	3,436			$	3,259			$	—			$	3,259
Costs of sales			2,582				9				2,573				2,415				3				2,412
Gross margin			854				(9	)			863				844				(3	)			847
Selling, general and administrative expenses			446				18				428				426				19				407
Research and development expenditures			384				14				370				390				12				378
Other charges			90				90				—				18				18				—
Intangibles amortization			12				12				—				15				15				—
Operating earnings (loss)			(78	)			(143	)			65				(5	)			(67	)			62
Other income (expense):
Interest income, net			—				—				—				7				—				7
Gains on sales of investments			5				—				5				2				—				2
Other, net			(5	)			—				(5	)			(6	)			—				(6	)
Total other income (expense)			—				—				—				3				—				3
Earnings (loss) before income taxes			(78	)			(143	)			65				(2	)			(67	)			65
Income tax expense			2				(2	)			4				30				—				30
Net earnings (loss)			(80	)			(141	)			61				(32	)			(67	)			35
Less: Earnings attributable to non-controlling interests			—				—				—				—				—				—
Net earnings (loss) attributable to Motorola Mobility Holdings, Inc.		$	(80	)		$	(141	)		$	61			$	(32	)		$	(67	)		$	35
Basic earnings (loss) per common share		$	(0.27	)		$	(0.47	)		$	0.20			$	(0.11	)		$	(0.23	)		$	0.12
Diluted earnings (loss) per common share		$	(0.27	)		$	(0.47	)		$	0.20			$	(0.11	)		$	(0.23	)		$	0.12
Weighted average common shares outstanding
Basic			300.2				300.2				300.2				297.7				297.7				297.7
Diluted			300.2				300.2				300.2				297.7				297.7				297.7
		Percentage of Net Revenues *
Net revenues			100.0	%							100.0	%			100.0	%							100.0	%
Costs of sales			75.1	%							74.9	%			74.1	%							74.0	%
Gross margin			24.9	%							25.1	%			25.9	%							26.0	%
Selling, general and administrative expenses			13.0	%							12.5	%			13.1	%							12.5	%
Research and development expenditures			11.2	%							10.8	%			12.0	%							11.6	%
Other charges			2.6	%							0.0	%			0.6	%							0.0	%
Intangibles amortization			0.3	%							0.0	%			0.5	%							0.0	%
Operating earnings (loss)			-2.3	%							1.9	%			-0.2	%							1.9	%
Other income (expense):
Interest income, net			0.0	%							0.0	%			0.2	%							0.2	%
Gains on sales of investments			0.1	%							0.1	%			0.1	%							0.1	%
Other, net			-0.1	%							-0.1	%			-0.2	%							-0.2	%
Total other income (expense)			0.0	%							0.0	%			0.1	%							0.1	%
Earnings (loss) before income taxes			-2.3	%							1.9	%			-0.1	%							2.0	%
Income tax expense			0.1	%							0.1	%			0.9	%							0.9	%
Net earnings (loss)			-2.3	%							1.8	%			-1.0	%							1.1	%
Less: Earnings attributable to non-controlling interests			0.0	%							0.0	%			0.0	%							0.0	%
Net earnings (loss) attributable to Motorola Mobility Holdings, Inc.			-2.3	%							1.8	%			-1.0	%							1.1	%

 

*	Percentages may not add up due to rounding.

---

Motorola Mobility Holdings, Inc.

GAAP to Non-GAAP Bridge

(In millions, except per share amounts)

 

		Three Months Ended												Three Months Ended
		December 31, 2011												December 31, 2010
		GAAP Results				Non-GAAP Adjustments				Non-GAAP Results				GAAP Results				Non-GAAP Adjustments				Non-GAAP Results
Net revenues		$	3,436			$	—			$	3,436			$	3,425			$	—			$	3,425
Costs of sales			2,582				9				2,573				2,510				10				2,500
Gross margin			854				(9	)			863				915				(10	)			925
Selling, general and administrative expenses			446				18				428				451				25				426
Research and development expenditures			384				14				370				367				14				353
Other charges			90				90				—				(43	)			(43	)			—
Intangibles amortization			12				12				—				14				14				—
Operating earnings (loss)			(78	)			(143	)			65				126				(20	)			146
Other income (expense):
Interest income (expense), net *			—				—				—				(12	)			—				(12	)
Gains on sales of investments			5				—				5				—				—				—
Other, net			(5	)			—				(5	)			(4	)			—				(4	)
Total other income (expense)			—				—				—				(16	)			—				(16	)
Earnings (loss) before income taxes			(78	)			(143	)			65				110				(20	)			130
Income tax expense **			2				(2	)			4				20				(2	)			22
Net earnings (loss)			(80	)			(141	)			61				90				(18	)			108
Less: Earnings attributable to non-controlling interests			—				—				—				10				10				—
Net earnings (loss) attributable to Motorola Mobility Holdings, Inc.		$	(80	)		$	(141	)		$	61			$	80			$	(28	)		$	108
Basic earnings (loss) per common share ***		$	(0.27	)		$	(0.47	)		$	0.20			$	0.27			$	(0.10	)		$	0.37
Diluted earnings (loss) per common share ***		$	(0.27	)		$	(0.47	)		$	0.20				N/A				N/A				N/A
Weighted average common shares outstanding***
Basic			300.2				300.2				300.2				294.3				294.3				294.3
Diluted			300.2				300.2				300.2				N/A				N/A				N/A
		Percentage of Net Revenues ****
Net revenues			100.0	%							100.0	%			100.0	%							100.0	%
Costs of sales			75.1	%							74.9	%			73.3	%							73.0	%
Gross margin			24.9	%							25.1	%			26.7	%							27.0	%
Selling, general and administrative expenses			13.0	%							12.5	%			13.2	%							12.4	%
Research and development expenditures			11.2	%							10.8	%			10.7	%							10.3	%
Other charges			2.6	%							0.0	%			-1.3	%							0.0	%
Intangibles amortization			0.3	%							0.0	%			0.4	%							0.0	%
Operating earnings (loss)			-2.3	%							1.9	%			3.7	%							4.3	%
Other income (expense):
Interest income (expense), net *			0.0	%							0.0	%			-0.4	%							-0.4	%
Gains on sales of investments			0.1	%							0.1	%			0.0	%							0.0	%
Other, net			-0.1	%							-0.1	%			-0.1	%							-0.1	%
Total other income (expense)			0.0	%							0.0	%			-0.5	%							-0.5	%
Earnings (loss) before income taxes			-2.3	%							1.9	%			3.2	%							3.8	%
Income tax expense **			0.1	%							0.1	%			0.6	%							0.6	%
Net earnings (loss)			-2.3	%							1.8	%			2.6	%							3.2	%
Less: Earnings attributable to non-controlling interests			0.0	%							0.0	%			0.3	%							0.0	%
Net earnings (loss) attributable to Motorola Mobility Holdings, Inc.			-2.3	%							1.8	%			2.3	%							3.2	%

 

*	For periods prior to separation on January 4, 2011, interest expense, net represents an allocation to Motorola Mobility Holdings, Inc. of the interest income and interest expense recognized by Motorola, Inc.

**	For periods prior to separation on January 4, 2011, income tax expense was computed as if Motorola Mobility Holdings, Inc. had filed tax returns on a stand-alone basis separate from Motorola, Inc.

***

The computation of basic earnings (loss) per common share for all periods through December 31, 2010, is calculated using the number of shares of Motorola Mobility Holdings, Inc. common stock outstanding on January 4, 2011, following the distribution of Motorola Mobility Holdings, Inc. common stock. No measure of diluted earnings (loss) per share is presented for periods prior to separation.

****	Percentages may not add up due to rounding.

---

Motorola Mobility Holdings, Inc.

GAAP to Non-GAAP Bridge

(In millions, except per share amounts)

 

		Year Ended												Year Ended
		December 31, 2011												December 31, 2010
		GAAP Results				Non-GAAP Adjustments				Non-GAAP Results				GAAP Results				Non-GAAP Adjustments				Non-GAAP Results
Net revenues		$	13,064			$	—			$	13,064			$	11,460			$	—			$	11,460
Costs of sales			9,747				20				9,727				8,495				32				8,463
Gross margin			3,317				(20	)			3,337				2,965				(32	)			2,997
Selling, general and administrative expenses			1,745				86				1,659				1,592				94				1,498
Research and development expenditures			1,526				55				1,471				1,479				54				1,425
Other charges			129				128				1				(237	)			(237	)			—
Intangibles amortization			59				59				—				55				55				—
Operating earnings (loss)			(142	)			(348	)			206				76				2				74
Other income (expense):
Interest income (expense), net *			10				—				10				(52	)			—				(52	)
Gains on sales of investments			17				—				17				—				—				—
Other, net			(33	)			—				(33	)			(28	)			—				(28	)
Total other income (expense)			(6	)			—				(6	)			(80	)			—				(80	)
Earnings (loss) before income taxes			(148	)			(348	)			200				(4	)			2				(6	)
Income tax expense **			101				(2	)			103				75				(5	)			80
Net earnings (loss)			(249	)			(346	)			97				(79	)			7				(86	)
Less: Earnings attributable to non-controlling interests			—				—				—				7				10				(3	)
Net earnings (loss) attributable to Motorola Mobility Holdings, Inc.		$	(249	)		$	(346	)		$	97			$	(86	)		$	(3	)		$	(83	)
Basic earnings (loss) per common share ***		$	(0.84	)		$	(1.16	)		$	0.33			$	(0.29	)		$	(0.01	)		$	(0.28	)
Diluted earnings (loss) per common share ***		$	(0.84	)		$	(1.16	)		$	0.33				N/A				N/A				N/A
Weighted average common shares outstanding***
Basic			297.1				297.1				297.1				294.3				294.3				294.3
Diluted			297.1				297.1				297.1				N/A				N/A				N/A
		Percentage of Net Revenues ****
Net revenues			100.0	%							100.0	%			100.0	%							100.0	%
Costs of sales			74.6	%							74.5	%			74.1	%							73.8	%
Gross margin			25.4	%							25.5	%			25.9	%							26.2	%
Selling, general and administrative expenses			13.4	%							12.7	%			13.9	%							13.1	%
Research and development expenditures			11.7	%							11.3	%			12.9	%							12.4	%
Other charges			1.0	%							0.0	%			-2.1	%							0.0	%
Intangibles amortization			0.5	%							0.0	%			0.5	%							0.0	%
Operating earnings (loss)			-1.1	%							1.6	%			0.7	%							0.6	%
Other income (expense):
Interest income (expense), net *			0.1	%							0.1	%			-0.5	%							-0.5	%
Gains on sales of investments			0.1	%							0.1	%			0.0	%							0.0	%
Other, net			-0.3	%							-0.3	%			-0.2	%							-0.2	%
Total other income (expense)			0.0	%							0.0	%			-0.7	%							-0.7	%
Earnings (loss) before income taxes			-1.1	%							1.5	%			0.0	%							-0.1	%
Income tax expense **			0.8	%							0.8	%			0.7	%							0.7	%
Net earnings (loss)			-1.9	%							0.7	%			-0.7	%							-0.8	%
Less: Earnings attributable to non-controlling interests			0.0	%							0.0	%			0.1	%							0.0	%
Net earnings (loss) attributable to Motorola Mobility Holdings, Inc.			-1.9	%							0.7	%			-0.8	%							-0.7	%

 

*	For periods prior to separation on January 4, 2011, interest expense, net represents an allocation to Motorola Mobility Holdings, Inc. of the interest income and interest expense recognized by Motorola, Inc.

**	For periods prior to separation on January 4, 2011, income tax expense was computed as if Motorola Mobility Holdings, Inc. had filed tax returns on a stand-alone basis separate from Motorola, Inc.

***

The computation of basic earnings (loss) per common share for all periods through December 31, 2010, is calculated using the number of shares of Motorola Mobility Holdings, Inc. common stock outstanding on January 4, 2011, following the distribution of Motorola Mobility Holdings, Inc. common stock. No measure of diluted earnings (loss) per share is presented for periods prior to separation.

****	Percentages may not add up due to rounding.

---

Motorola Mobility Holdings, Inc.

Operating Earnings (Loss) after Non-GAAP Adjustments

(In millions)

 

Q1 2011
				TOTAL				Mobile Devices				Home				Other
Net revenues				$	3,032			$	2,128			$	904			$	—
Operating earnings (loss)				$	(36	)		$	(89	)		$	53			$	—
Non-GAAP adjustments by P&L statement line:		Statement Line
Stock-based compensation expense		Cost of sales			4				2				2				—
Stock-based compensation expense		SG&A and R&D			36				23				13				—
Intangible assets amortization expense		Intangibles amortization			16				3				13				—
Less: Total non-GAAP adjustments					56				28				28				—
Operating earnings (loss) after non-GAAP adjustments				$	20			$	(61	)		$	81			$	—
Operating earnings (loss) as a percentage of net revenues - GAAP					-1.2	%			-4.2	%			5.9	%			0.0	%
Operating earnings (loss) as a percentage of net revenues - after non-GAAP adjustments					0.7	%			-2.9	%			9.0	%			0.0	%
Q2 2011
				TOTAL				Mobile Devices				Home				Other
Net revenues				$	3,337			$	2,430			$	907			$	—
Operating earnings (loss)				$	(23	)		$	(85	)		$	62			$	—
Non-GAAP adjustments by P&L statement line:		Statement Line
Stock-based compensation expense		Cost of sales			4				3				1				—
Stock-based compensation expense		SG&A and R&D			42				29				13				—
Intangible assets amortization expense		Intangibles amortization			16				2				14				—
Legal claim provision		Other charges (income)			20				20				—				—
Less: Total non-GAAP adjustments					82				54				28				—
Operating earnings (loss) after non-GAAP adjustments				$	59			$	(31	)		$	90			$	—
Operating earnings (loss) as a percentage of net revenues - GAAP					-0.7	%			-3.5	%			6.8	%			0.0	%
Operating earnings (loss) as a percentage of net revenues - after non-GAAP adjustments					1.8	%			-1.3	%			9.9	%			0.0	%
Q3 2011
				TOTAL				Mobile Devices				Home				Other
Net revenues				$	3,259			$	2,434			$	825			$	—
Operating earnings (loss)				$	(5	)		$	(41	)		$	54			$	(18	)
Non-GAAP adjustments by P&L statement line:		Statement Line
Merger-related costs *		Other charges (income)			18				—				—				18
Stock-based compensation expense		Cost of sales			3				2				1				—
Stock-based compensation expense		SG&A and R&D			31				21				10				—
Intangible assets amortization expense		Intangibles amortization			15				3				12				—
Less: Total Non-GAAP adjustments					67				26				23				18
Operating earnings (loss) after non-GAAP adjustments				$	62			$	(15	)		$	77			$	—
Operating earnings (loss) as a percentage of net revenues - GAAP					-0.2	%			-1.7	%			6.5	%			0.0	%
Operating earnings (loss) as a percentage of net revenues - after non-GAAP adjustments					1.9	%			-0.6	%			9.3	%			0.0	%
Q4 2011
				TOTAL				Mobile Devices				Home				Other
Net revenues				$	3,436			$	2,539			$	897			$	—
Operating earnings (loss)				$	(78	)		$	(70	)		$	57			$	(65	)
Non-GAAP adjustments by P&L statement line:		Statement Line
Merger-related costs *		Other charges (income)			65				—				—				65
Reorganization of business charges		Cost of sales			5				3				2				—
Reorganization of business charges		Other charges (income)			25				21				4				—
Stock-based compensation expense		Cost of sales			4				2				2				—
Stock-based compensation expense		SG&A and R&D			32				22				10				—
Intangible assets amortization expense		Intangibles amortization			12				3				9				—
Less: Total Non-GAAP adjustments					143				51				27				65
Operating earnings (loss) after non-GAAP adjustments				$	65			$	(19	)		$	84			$	—
Operating earnings (loss) as a percentage of net revenues - GAAP					-2.3	%			-2.8	%			6.4	%			0.0	%
Operating earnings (loss) as a percentage of net revenues - after non-GAAP adjustments					1.9	%			-0.7	%			9.4	%			0.0	%
Full Year 2011
				TOTAL				Mobile Devices				Home				Other
Net revenues				$	13,064			$	9,531			$	3,533			$	—
Operating earnings (loss)				$	(142	)		$	(285	)		$	226			$	(83	)
Non-GAAP adjustments by P&L statement line:		Statement Line
Merger-related costs *		Other charges (income)			83				—				—				83
Reorganization of business charges		Cost of sales			5				3				2				—
Reorganization of business charges		Other charges (income)			25				21				4				—
Stock-based compensation expense		Cost of sales			15				9				6				—
Stock-based compensation expense		SG&A and R&D			141				95				46				—
Intangible assets amortization expense		Intangibles amortization			59				11				48				—
Legal claim provision		Other charges (income)			20				20				—				—
Less: Total Non-GAAP adjustments					348				159				106				83
Operating earnings (loss) after non-GAAP adjustments				$	206			$	(126	)		$	332			$	—
Operating earnings (loss) as a percentage of net revenues - GAAP					-1.1	%			-3.0	%			6.4	%			0.0	%
Operating earnings (loss) as a percentage of net revenues - after non-GAAP adjustments					1.6	%			-1.3	%			9.4	%			0.0	%

 

*	Represents costs incurred at the corporate level related to the Company’s proposed merger with Google Inc., primarily consisting of compensation costs as a result of an incentive plan adjustment and legal and banking fees.

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Motorola Mobility Holdings, Inc.

Non-GAAP Adjustments

(In millions, except per share amounts)

 

Q1 2011
Non-GAAP Adjustments		Statement Line		Q1 2011 PBT (Inc)/Exp				Q1 2011 Tax Inc/(Exp)				Q1 2011 PAT (Inc)/Exp				EPS Impact (Incr)/Decr *
GAAP Results				$	(51	)		$	30			$	(81	)		$	(0.27	)
Stock-based compensation expense		Cost of sales, SG&A and R&D			40				—				40				(0.14	)
Intangible assets amortization expense		Intangibles amortization			16				—				16				(0.05	)
Total Impact					56				—				56				(0.19	)
Non-GAAP Results				$	5			$	30			$	(25	)		$	(0.08	)
Q2 2011
Non-GAAP Adjustments		Statement Line		Q2 2011 PBT (Inc)/Exp				Q2 2011 Tax Inc/(Exp)				Q2 2011 PAT (Inc)/Exp				EPS Impact (Incr)/Decr *
GAAP Results				$	(17	)		$	39			$	(56	)		$	(0.19	)
Stock-based compensation expense		Cost of sales, SG&A and R&D			46				—				46				(0.16	)
Intangible assets amortization expense		Intangibles amortization			16				—				16				(0.05	)
Legal claim provision		Other charges (income)			20				—				20				(0.07	)
Total Impact					82				—				82				(0.28	)
Non-GAAP Results				$	65			$	39			$	26			$	0.09
Q3 2011
Non-GAAP Adjustments		Statement Line		Q3 2011 PBT (Inc)/Exp				Q3 2011 Tax Inc/(Exp)				Q3 2011 PAT (Inc)/Exp				EPS Impact (Incr)/Decr *
GAAP Results				$	(2	)		$	30			$	(32	)		$	(0.11	)
Merger-related costs **		Other charges (income)			18				—				18				(0.06	)
Stock-based compensation expense		Cost of sales, SG&A and R&D			34				—				34				(0.11	)
Intangible assets amortization expense		Intangibles amortization			15				—				15				(0.05	)
Total Impact					67				—				67				(0.23	)
Non-GAAP Results				$	65			$	30			$	35			$	0.12
Q4 2011
Non-GAAP Adjustments		Statement Line		Q4 2011 PBT (Inc)/Exp				Q4 2011 Tax Inc/(Exp)				Q4 2011 PAT (Inc)/Exp				EPS Impact (Incr)/Decr *
GAAP Results				$	(78	)		$	2			$	(80	)		$	(0.27	)
Merger-related costs **		Other charges (income)			65				—				65				(0.22	)
Reorganization of business charges		Cost of sales, Other charges (income)			30				2				28				(0.09	)
Stock-based compensation expense		Cost of sales, SG&A and R&D			36				—				36				(0.12	)
Intangible assets amortization expense		Intangibles amortization			12				—				12				(0.04	)
Total Impact					143				2				141				(0.47	)
Non-GAAP Results				$	65			$	4			$	61			$	0.20
Full Year 2011
Non-GAAP Adjustments		Statement Line		FY 2011 PBT (Inc)/Exp				FY 2011 Tax Inc/(Exp)				FY 2011 PAT (Inc)/Exp				EPS Impact (Incr)/Decr *
GAAP Results				$	(148	)		$	101			$	(249	)		$	(0.84	)
Merger-related costs **		Other charges (income)			83				—				83				(0.28	)
Reorganization of business charges		Cost of sales, Other charges (income)			30				2				28				(0.09	)
Stock-based compensation expense		Cost of sales, SG&A and R&D			156				—				156				(0.52	)
Intangible assets amortization expense		Intangibles amortization			59				—				59				(0.20	)
Legal claim provision		Other charges (income)			20				—				20				(0.07	)
Total Impact					348				2				346				(1.16	)
Non-GAAP Results				$	200			$	103			$	97			$	0.33

 

*	EPS impact may not add up due to rounding.

**	Represents costs incurred at the corporate level related to the Company’s proposed merger with Google Inc., primarily consisting of compensation costs as a result of an incentive plan adjustment and legal and banking fees.

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Motorola Mobility Holdings, Inc.

Revenue Mix by Region

(In millions)

 

Q1 2011
		TOTAL				Mobile Devices				Home
North America			62	%			56	%			77	%
Latin America			17	%			20	%			11	%
Greater China			11	%			15	%			2	%
EMEA			6	%			5	%			8	%
Rest of Asia			4	%			4	%			2	%
Total			100	%			100	%			100	%
Q2 2011
		TOTAL				Mobile Devices				Home
North America			51	%			43	%			73	%
Latin America			21	%			24	%			13	%
Greater China			11	%			14	%			2	%
EMEA			9	%			9	%			9	%
Rest of Asia			8	%			10	%			3	%
Total			100	%			100	%			100	%
Q3 2011
		TOTAL				Mobile Devices				Home
North America			54	%			48	%			73	%
Latin America			23	%			26	%			13	%
Greater China			12	%			15	%			2	%
EMEA			7	%			6	%			10	%
Rest of Asia			4	%			5	%			2	%
Total			100	%			100	%			100	%
Q4 2011
		TOTAL				Mobile Devices				Home
North America			55	%			48	%			74	%
Latin America			18	%			22	%			9	%
Greater China			12	%			15	%			3	%
EMEA			10	%			9	%			13	%
Rest of Asia			5	%			6	%			1	%
Total			100	%			100	%			100	%
Full Year 2011
		TOTAL				Mobile Devices				Home
North America			55	%			48	%			74	%
Latin America			20	%			23	%			12	%
Greater China			12	%			15	%			2	%
EMEA			8	%			7	%			10	%
Rest of Asia			5	%			7	%			2	%
Total			100	%			100	%			100	%