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Other Financial Data
 6 Months Ended
Jul. 01, 2023
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 EndedSix Months Ended
July 1, 2023July 2, 2022July 1, 2023July 2, 2022
Other charges:
Intangibles amortization (Note 15)$43 $65 $98 $131 
Environmental reserve expense15 — 15 — 
Reorganization of business (Note 14)5 5 12 12 
Operating lease asset impairments1 3 4 12 
Acquisition-related transaction fees— 4 2 14 
Legal settlements— — — 11 
Fixed asset impairments1 8 3 11 
Gain on Hytera legal settlement— — — (13)
Other1 — 1 (1)
 $66 $85 $135 $177 
During the three months ended July 1, 2023, the Company revised the estimate for its liability related to ongoing remediation efforts of environmental media such as groundwater, soil, and soil vapor, as well as related legal fees for a designated Superfund site under the Comprehensive Environmental Response, Compensation and Liability Act (commonly known as the "Superfund Act") incurred by a legacy business. It is the Company's policy to re-evaluate the reserve when certain events become known that will impact the future cash payments. During three months ended July 1, 2023, the Company became aware of incremental costs required in its remediation of the Superfund site. As such, the Company recorded a charge of $15 million, increasing the reserve balance to $127 million. The Company discounted the cash flows used in estimating this accrual using a risk-free treasury rate. The current portion of the estimated environmental liability is $4 million and is included in the Accrued liabilities statement line and the non-current portion is included in the "Other liabilities" statement line within the Company's Condensed Consolidated Balance Sheet.
Other Income (Expense)
Interest expense, net, and Other, net, both included in Other income (expense), consist of the following: 
 Three Months EndedSix Months Ended
July 1, 2023July 2, 2022July 1, 2023July 2, 2022
Interest income (expense), net:
Interest expense$(63)$(59)$(126)$(117)
Interest income6 3 15 5 
$(57)$(56)$(111)(112)
Other, net:
Net periodic pension and postretirement benefit (Note 8)$24 $30 $49 $63 
Loss from the extinguishment of long-term debt (Note 5)— (6)— (6)
Investment impairments(3)— (9)(1)
Foreign currency gain (loss)(21)27 (40)50 
Gain (loss) on derivative instruments (Note 6)9 (34)17 (57)
Gain (loss) on equity method investments1 (2)1 (2)
Fair value adjustments to equity investments16 (12)19 (30)
Gain on TETRA Ireland equity method investment— — — 21 
Other— (5)2 (5)
 $26 $(2)$39 $33 
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 EndedSix Months Ended
July 1, 2023July 2, 2022July 1, 2023July 2, 2022
Basic earnings per common share:
Earnings$371 $228 $649 $495 
Weighted average common shares outstanding167.5 167.2 167.4 167.6 
Per share amount$2.21 $1.36 $3.88 $2.95 
Diluted earnings per common share:
Earnings$371 $228 $649 $495 
Weighted average common shares outstanding167.5 167.2 167.4 167.6 
Add effect of dilutive securities:
Share-based awards3.6 3.4 3.8 3.9 
1.75% senior convertible notes
1.5 0.3 1.3 0.5 
Diluted weighted average common shares outstanding172.6 170.9 172.5 172.0 
Per share amount$2.15 $1.33 $3.76 $2.88 
In the computation of diluted earnings per common share for the three months ended July 1, 2023, the assumed exercise of 0.3 million options, inclusive of 0.2 million options subject to market based contingent option agreements, were excluded from the computation of diluted earnings per common share because their inclusion would have been antidilutive. In the computation of diluted earnings per common share for the six months ended July 1, 2023, the assumed exercise of 0.3 million options, inclusive of 0.2 million options subject to market based contingent option agreements, were excluded because their inclusion would have been antidilutive.
In the computation of diluted earnings per common share for the three months ended July 2, 2022, the assumed exercise of 0.2 million options, inclusive of 0.1 million options subject to market based contingent option agreements, were excluded from the computation of diluted earnings per common share because their inclusion would have been antidilutive. In the computation
of diluted earnings per common share for the six months ended July 2, 2022, the assumed exercise of 0.2 million options were excluded because their inclusion would have been antidilutive.
As of July 1, 2023, 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 4.9670 per $1,000 principal amount (which is equal to a conversion price of $201.33 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 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 July 1, 2023. The value by which the Senior Convertible Notes exceeded their principal amount if converted as of July 1, 2023 was $402 million.
Balance Sheet Information
Accounts Receivable, Net
Accounts receivable, net, consists of the following: 
July 1, 2023December 31, 2022
Accounts receivable$1,578 $1,579 
Less allowance for credit losses(65)(61)
 $1,513 $1,518 
Inventories, Net
Inventories, net, consist of the following: 
July 1, 2023December 31, 2022
Finished goods$337 $354 
Work-in-process and production materials821 829 
1,158 1,183 
Less inventory reserves(138)(128)
 $1,020 $1,055 
Other Current Assets
Other current assets consist of the following: 
July 1, 2023December 31, 2022
Current contract cost assets (Note 2)$84 $61 
Tax-related deposits34 33 
Other232 289 
 $350 $383 
Property, Plant and Equipment, Net
Property, plant and equipment, net, consist of the following:
July 1, 2023December 31, 2022
Land$5 $5 
Leasehold improvements460 456 
Machinery and equipment2,282 2,303 
2,747 2,764 
Less accumulated depreciation(1,812)(1,837)
 $935 $927 
Depreciation expense for the three months ended July 1, 2023 and July 2, 2022 was $44 million and $47 million, respectively. Depreciation expense for the six months ended July 1, 2023 and July 2, 2022 was $87 million and $92 million, respectively.
Investments
Investments consist of the following:
July 1, 2023December 31, 2022
Common stock$38 $21 
Strategic investments35 45 
Company-owned life insurance policies76 69 
Equity method investments13 12 
 $162 $147 
During the six months ended July 1, 2023, the Company recognized a gain of $17 million in Other income (expense) within the Condensed Consolidated Statement of Operations related to an increase in the fair value of its investment in Evolv Technologies, Inc. During the six months ended July 1, 2023, the Company recorded a $9 million investment impairment charge, representing an other-than-temporary decline in the value of the Company's strategic equity investment portfolio. The investment impairment charge is classified within Other income (expense) within the Condensed Consolidated Statement of Operations.
Other Assets
 Other assets consist of the following:
July 1, 2023December 31, 2022
Defined benefit plan assets$156 $164 
Non-current contract cost assets (Note 2)105 130 
Other62 16 
 $323 $310 
Accounts Payable
The Company utilizes a supplier finance program which provides our suppliers the ability to accelerate payment on the Company's invoices beyond the stated payment terms. Under the terms of this program, the Company agrees to pay an intermediary the stated amount of confirmed invoices on the stated maturity dates of the invoices, and the supplier is able to negotiate earlier payment terms with the intermediary. The Company or the intermediary may terminate our agreement at any time upon 60 days' notice. The Company does not provide any forms of guarantees under this arrangement. Supplier participation in the program is solely at the supplier's discretion, and the participating suppliers negotiate their arrangements directly with the intermediary. The Company has no economic interest in a supplier's decision to participate in the program, and their participation has no bearing on our payment terms or amounts due. The stated invoice payment terms range from 75 to 120 days from the invoice date and are considered commercially reasonable.
The Company's outstanding amounts related to the suppliers participating in this program was $32 million and $37 million as of July 1, 2023 and December 31, 2022, respectively. Supplier finance program obligations are classified as Accounts payable within the Condensed Consolidated Balance Sheets.
Accrued Liabilities
Accrued liabilities consist of the following: 
July 1, 2023December 31, 2022
Compensation$270 $374 
Tax liabilities270 367 
Dividend payable147 148 
Trade liabilities136 145 
Operating lease liabilities (Note 3)114 118 
Customer reserves67 78 
Other322 408 
 $1,326 $1,638 
Other Liabilities
Other liabilities consist of the following: 
July 1, 2023December 31, 2022
Defined benefit plans$949 $1,004 
Non-current contract liabilities (Note 2)382 363 
Unrecognized tax benefits (Note 7)29 29 
Deferred income taxes (Note 7)71 73 
Environmental reserve123 108 
Other175 114 
 $1,729 $1,691 
Stockholders’ Equity
Share Repurchase Program: During the three and six months ended July 1, 2023, the Company paid an aggregate of $224 million and $364 million, including transaction costs, to repurchase approximately 0.8 million and 1.3 million shares at an average price of $283.39 and $274.66 per share, respectively. As of July 1, 2023, the Company had $921 million of authority available for future repurchases.
Payment of Dividends: During the three months ended July 1, 2023 and July 2, 2022, the Company paid $148 million and $132 million, respectively, in cash dividends to holders of its common stock. During the six months ended July 1, 2023 and July 2, 2022, the Company paid $296 million and $266 million, respectively, in cash dividends to holders of its common stock. Subsequent to the quarter, the Company paid an additional $147 million in cash dividends to holders of its common stock.
Accumulated Other Comprehensive Loss
The following table displays the changes in Accumulated other comprehensive loss, including amounts reclassified into income, and the affected line items in the Condensed Consolidated Statements of Operations during the three and six months ended July 1, 2023 and July 2, 2022:
Three Months EndedSix Months Ended
July 1, 2023July 2, 2022July 1, 2023July 2, 2022
Foreign Currency Translation Adjustments:
Balance at beginning of period$(503)$(404)$  (539)$(384)
Other comprehensive income (loss) before reclassification adjustment27 (132)54 (151)
Tax benefit (expense)— (3)9 (4)
Other comprehensive income (loss), net of tax27 (135)63 (155)
Balance at end of period$(476)$(539)$(476)$(539)
Defined Benefit Plans:
Balance at beginning of period$(1,984)$(1,980)$(1,996)$(1,995)
Other comprehensive income before reclassification adjustment— 17 — 17 
Tax expense— (3)— (3)
Other comprehensive income before reclassification adjustment, net of tax— 14 — 14 
Reclassification adjustment - Actuarial net losses into Other income (Note 8)15 20 30 40 
Reclassification adjustment - Prior service benefits into Other income (Note 8)1 (1)2 (2)
Tax expense(3)(5)(7)(9)
Reclassification adjustments into Net earnings, net of tax13 14 25 29 
Other comprehensive income, net of tax13 28 25 43 
Balance at end of period$(1,971)$(1,952)$(1,971)$(1,952)
Total Accumulated other comprehensive loss$(2,447)$(2,491)$(2,447)$(2,491)