
	Three Months Ended				Nine Months Ended
	October 3, 2026		September 27, 2025		October 3, 2026		September 27, 2025
Share-based compensation expense included in:
Costs of sales	$	22	$	14	$	64	$	42
Selling, general and administrative expenses	56		41		168		116
Research and development expenditures	25		18		75		55
Share-based compensation expense included in Operating earnings	103		73		307		213
Tax benefit	(17)		(16)		(52)		(45)
Share-based compensation expense, net of tax	$	86	$	57	$	255	$	168
Decrease in basic earnings per share	$	(0.52)	$	(0.34)	$	(1.54)	$	(1.01)
Decrease in diluted earnings per share	$	(0.51)	$	(0.34)	$	(1.52)	$	(0.99)

During the nine months ended October 3, 2026, the Company granted 0.5 million restricted stock units (RSUs), 0.1 million performance stock units (PSUs) and 0.04 million market stock units (MSUs) with an aggregate grant-date fair value of $244 million, $40 million and $20 million, respectively, and 0.2 million stock options and 0.1 million performance options (POs) with an aggregate grant-date fair value of $48 million and $20 million, respectively. The share-based compensation expense will generally be recognized over the vesting period of three years.

The Company has various defined contribution plans, in which all eligible employees may participate. In the U.S., the Motorola Solutions 401(k) Plan (the "401(k) Plan") is a contributory plan. Matching contributions are based upon the amount of the employees’ contributions. Beginning January 1, 2026, the Company's matching contribution under the 401(k) Plan was made in Company common stock. During the three and nine months ended October 3, 2026, the Company issued 0.03 million and 0.09 million shares of common stock with an aggregate grant-date fair value of $12 million and $39 million, respectively, to fund the 401(k) Plan Company matching contribution.