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Other Financial Data
 3 Months Ended
Apr. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Other Financial Data Other Financial Data
Statements of Operations Information
Other Charges
Other charges (income) included in Operating earnings consist of the following:
 Three Months Ended
April 2, 2022April 3, 2021
Other charges (income):
Intangibles amortization (Note 15)$66 $58 
Reorganization of business (Note 14)7 14 
Operating lease asset impairments9 7 
Acquisition-related transaction fees10 1 
Legal settlements11 — 
Fixed asset impairment3 — 
Gain on Hytera legal settlement(13)— 
Other(1)(1)
 $92 $79 
In February 2022, the Company recognized a gain of $13 million related to the recovery, through legal proceedings to seize and liquidate assets, of financial receivables owed to the Company by the bankruptcy estate of the two U.S. subsidiaries of Hytera Communications Corporation Limited of Shenzhen, China. Refer also to "Hytera Bankruptcy Proceedings" in Note 12, "Commitments and Contingencies" to our condensed consolidated financial statements included in this Part I, Item 1 of this Form 10-Q for additional information related to these proceedings.
Other Income (Expense)
Interest expense, net, and Other, net, both included in Other income (expense), consist of the following: 
 Three Months Ended
April 2, 2022April 3, 2021
Interest income (expense), net:
Interest expense$(58)$(56)
Interest income2 2 
$(56)$(54)
Other, net:
Net periodic pension and postretirement benefit (Note 8)$32 $30 
Investment impairments(1)— 
Foreign currency gain23 14 
Loss on derivative instruments (Note 6)(23)(8)
Gain on equity method investments— 2 
Fair value adjustments to equity investments(18)5 
Gain on TETRA Ireland equity method investment21 — 
Other— 2 
 $34 $45 
The Company previously held a minority ownership interest in TETRA Ireland, and, upon acquisition of 100% of the equity of TETRA Ireland in the first quarter of 2022, recorded a $21 million gain to adjust the Company's initial equity method investment to fair value during the three months ended April 2, 2022. Refer to Note 15, "Intangible Assets and Goodwill" to our condensed consolidated financial statements included in this Part I, Item 1 of this Form 10-Q for further information related to this acquisition.
Earnings Per Common Share
The computation of basic and diluted earnings per common share is as follows:
Amounts attributable to Motorola Solutions, Inc. common stockholders
 Three Months Ended
April 2, 2022April 3, 2021
Basic earnings per common share:
Earnings$267 $244 
Weighted average common shares outstanding168.0 169.3 
Per share amount$1.59 $1.44 
Diluted earnings per common share:
Earnings$267 $244 
Weighted average common shares outstanding168.0 169.3 
Add effect of dilutive securities:
Share-based awards4.5 3.9 
1.75% senior convertible notes
0.6 — 
Diluted weighted average common shares outstanding173.1 173.2 
Per share amount$1.54 $1.41 
In the computation of diluted earnings per common share for the three months ended April 2, 2022, the assumed exercise of 0.2 million options were excluded because their inclusion would have been antidilutive. For the three months ended April 3, 2021, 0.3 million options were excluded from the computation of diluted earnings per common share because their inclusion would have been antidilutive.
As of April 2, 2022, the Company had $1.0 billion of the Senior Convertible Notes outstanding, which mature on September 15, 2024. The notes are convertible based on a conversion rate of 4.9140 per $1,000 principal amount (which is equal to an initial conversion price of $203.50 per share), adjusted for dividends declared through the date of settlement. The notes became fully convertible as of September 5, 2021, when the average stock price exceeded the contractual conversion price, providing the holders the option to convert all or any portion of their Senior Convertible Notes. In November 2021, the Company's Board of Directors approved an irrevocable determination requiring the future settlement of the principal amount of the Senior Convertible Notes to be settled in cash. Because the Company has irrevocably decided to settle the principal amount of the Senior Convertible Notes in cash, the Company did not reflect any shares underlying the Senior Convertible Notes in its diluted weighted average shares outstanding until the average stock price per share for the period exceeded the conversion price, which first occurred for the quarter ended October 2, 2021. Upon conversion of the Senior Convertible Notes, the Company has the option to settle the conversion spread in cash or shares. The Company included the number of shares that would be issuable upon conversion (under the if-converted method of accounting for share dilution) in the Company’s computation of diluted earnings per share, based on the amount by which the average stock price exceeded the conversion price for the period ended April 2, 2022. The value by which the Senior Convertible Notes exceeded their principal amount if converted as of April 2, 2022 was $124 million. For the period ended April 3, 2021, there was no dilutive effect of the Senior Convertible Notes on diluted earnings per share attributable to Motorola Solutions, Inc. as the average stock price for the period outstanding was below the conversion price.
Balance Sheet Information
Accounts Receivable, Net
Accounts receivable, net, consists of the following: 
April 2, 2022December 31, 2021
Accounts receivable$1,221 $1,456 
Less allowance for credit losses(70)(70)
 $1,151 $1,386 
Inventories, Net
Inventories, net, consist of the following: 
April 2, 2022December 31, 2021
Finished goods$309 $268 
Work-in-process and production materials766 643 
1,075 911 
Less inventory reserves(123)(123)
 $952 $788 
Other Current Assets
Other current assets consist of the following: 
April 2, 2022December 31, 2021
Current contract cost assets (Note 2)$39 $30 
Tax-related deposits42 41 
Other219 188 
 $300 $259 
Property, Plant and Equipment, Net
Property, plant and equipment, net, consist of the following:
April 2, 2022December 31, 2021
Land$5 $5 
Leasehold improvements473 474 
Machinery and equipment2,494 2,439 
2,972 2,918 
Less accumulated depreciation(1,892)(1,876)
 $1,080 $1,042 
Depreciation expense for the three months ended April 2, 2022 and April 3, 2021 was $45 million and $52 million, respectively.
Investments
Investments consist of the following:
April 2, 2022December 31, 2021
Common stock$50 $69 
Strategic investments40 35 
Company-owned life insurance policies78 81 
Equity method investments15 24 
 $183 $209 
On July 16, 2021, the Company paid $50 million for equity securities of NewHold Investment Corp. ("NHIC"), a special purpose acquisition company (SPAC) that completed a business combination with Evolv Technologies, Inc. After the business combination, NHIC was renamed “Evolv Technologies Holdings, Inc.” (together with its subsidiaries, “Evolv”). During the three months ended April 2, 2022, the Company recognized a loss of $12 million in Other income (expense) related to a decrease in the fair value of the investment.
Other Assets
 Other assets consist of the following:
April 2, 2022December 31, 2021
Defined benefit plan assets$380 $365 
Non-current contract cost assets (Note 2)118 124 
Other54 69 
 $552 $558 
Accrued Liabilities
Accrued liabilities consist of the following: 
April 2, 2022December 31, 2021
Compensation$310 $360 
Tax liabilities262 183 
Dividend payable132 134 
Trade liabilities166 235 
Operating lease liabilities (Note 3)102 124 
Other493 521 
 $1,465 $1,557 

Other Liabilities
Other liabilities consist of the following: 
April 2, 2022December 31, 2021
Defined benefit plans$1,341 $1,390 
Non-current contract liabilities (Note 2)299 306 
Unrecognized tax benefits (Note 7)36 36 
Deferred income taxes (Note 7)143 183 
Environmental reserve108 108 
Other125 125 
 $2,052 $2,148 
Stockholders’ Equity (Deficit)
Share Repurchase Program: During the three months ended April 2, 2022, the Company repurchased approximately 2.2 million shares at an average price of $224.41 per share for an aggregate of $493 million, including transaction costs. As of April 2, 2022, the Company had $1.6 billion of authority available for future repurchases.
Payment of Dividends: During the three months ended April 2, 2022 and April 3, 2021, the Company paid $134 million and $121 million, respectively, in cash dividends to holders of its common stock. Subsequent to the quarter, the Company paid an additional $132 million in cash dividends to holders of its common stock.
Accumulated Other Comprehensive Loss
The following table displays the changes in Accumulated other comprehensive loss, including amounts reclassified into income, and the affected line items in the Condensed Consolidated Statements of Operations during the three months ended April 2, 2022 and April 3, 2021:
Three Months Ended
April 2, 2022April 3, 2021
Foreign Currency Translation Adjustments:
Balance at beginning of period$  (384)$(360)
Other comprehensive income (loss) before reclassification adjustment(18)17 
Tax benefit (expense)(2)2 
Other comprehensive income (loss), net of tax(20)19 
Balance at end of period$(404)$(341)
Defined Benefit Plans:
Balance at beginning of period$(1,995)$(2,086)
Reclassification adjustment - Actuarial net losses into Other income (Note 8)20 22 
Reclassification adjustment - Prior service benefits into Other income (Note 8)(1)(2)
Tax expense(4)(3)
Other comprehensive income, net of tax15 17 
Balance at end of period$(1,980)$(2,069)
Total Accumulated other comprehensive loss$(2,384)$(2,410)