XML 27 R12.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Other Financial Data
 6 Months Ended
Jun. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Other Financial Data Other Financial Data
Statements of Operations Information
Other Charges
Other charges included in Operating earnings consist of the following:
 Three Months EndedSix Months Ended
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
Other charges:
Intangibles amortization (Note 15)$36 $43 $76 $98 
Reorganization of business (Note 14)4 5 11 12 
Operating lease asset impairments1 1 4 4 
Acquisition-related transaction fees4 — 7 2 
Environmental reserve expense— 15 — 15 
Legal settlements— — 6 — 
Fixed asset impairments— 1 — 3 
Other— 1 — 1 
 $45 $66 $104 135 
Other Income (Expense)
Interest expense, net, and Other both included in Other income (expense), consist of the following: 
 Three Months EndedSix Months Ended
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
Interest income (expense), net:
Interest expense$(87)$(63)$(149)$(126)
Interest income18 6 36 15 
$(69)$(57)$(113)$(111)
Other, net:
Net periodic pension and postretirement benefit (Note 8)$31 $24 $63 $49 
Loss from the extinguishment of Silver Lake Convertible Debt (Note 5)— — (585)— 
Investment impairments— (3)(3)(9)
Foreign currency gain (loss)3 (21)4 (40)
Gain (loss) on derivative instruments (Note 6)(5)9 (15)17 
Gain on equity method investments— 1 — 1 
Fair value adjustments to equity investments(11)16 (13)19 
Assessments on uncertain tax positions(11)— (11)— 
Other(2)— — 2 
 $5 $26 (560)39 
Earnings Per Common Share
Basic and diluted earnings per common share from net earnings attributable to Motorola Solutions, Inc. are computed as follows:
 Amounts attributable to Motorola Solutions, Inc. common stockholders
Three Months EndedSix Months Ended
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
Basic earnings per common share:
Earnings
$443 $371 $404 $649 
Weighted average common shares outstanding166.9 167.5 166.5 167.4 
Per share amount$2.65 $2.21 $2.43 $3.88 
Diluted earnings per common share:
Earnings
$443 $371 $404 $649 
Weighted average common shares outstanding166.9 167.5 166.5 167.4 
Add effect of dilutive securities:
Share-based awards3.4 3.6 3.8 3.8 
Silver Lake Convertible Debt
— 1.5 — 1.3 
Diluted weighted average common shares outstanding170.3 172.6 170.3 172.5 
Per share amount$2.60 $2.15 $2.37 $3.76 
In the computation of diluted earnings per common share for the three months ended June 29, 2024, 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 June 29, 2024, a total of 0.5 million shares related to the Silver Lake Convertible Debt (as defined in Note 5, "Debt and Credit Facilities" in this "Part 1 - Financial Information" of this Form 10-Q) were excluded from the computation of diluted earnings per common share because their inclusion would have been antidilutive. In addition, 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 three and 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 from the computation of diluted earnings per common share because their inclusion would have been antidilutive.
Balance Sheet Information
Accounts Receivable, Net
Accounts receivable, net, consists of the following: 
June 29, 2024December 31, 2023
Accounts receivable$1,838 $1,779 
Less allowance for credit losses(76)(69)
 $1,762 $1,710 
Inventories, Net
Inventories, net, consist of the following: 
June 29, 2024December 31, 2023
Finished goods$339 $328 
Work-in-process and production materials602 640 
941 968 
Less inventory reserves(138)(141)
 $803 $827 
Other Current Assets
Other current assets consist of the following: 
June 29, 2024December 31, 2023
Current contract cost assets (Note 2)$54 $56 
Contractor receivables66 40 
Tax-related deposits43 32 
Other252 229 
 $415 $357 
Property, Plant and Equipment, Net
Property, plant and equipment, net, consist of the following:
June 29, 2024December 31, 2023
Land$5 $5 
Leasehold improvements439 448 
Machinery and equipment2,506 2,396 
2,950 2,849 
Less accumulated depreciation(1,963)(1,885)
 $987 $964 
During the year ended December 31, 2023, the Company entered into an arrangement to sell its Richmond, British Columbia and Richardson, Texas video manufacturing operations, including the machinery and equipment, inventory, transfer of employees and related facility lease to a contract manufacturer. During the year ended December 31, 2023, the Company presented the assets and liabilities as held for sale in its Consolidated Balance Sheet and recognized an impairment loss of $24 million on the exit of these video manufacturing operations within Other charges in the Consolidated Statement of Operations, as the carrying value of the asset group was below the expected selling price. The transaction closed on February 1, 2024 resulting in a gain on the sale of these video manufacturing operations, which was de minimis.
Depreciation expense for the three months ended June 29, 2024 and July 1, 2023 was $47 million and $44 million, respectively. Depreciation expense for the six months ended June 29, 2024 and July 1, 2023 was $90 million and $87 million, respectively.
Investments
Investments consist of the following:
June 29, 2024December 31, 2023
Common stock$15 $28 
Strategic investments26 28 
Company-owned life insurance policies75 74 
Equity method investments11 13 
 $127 $143 
During the six months ended June 29, 2024, the Company recognized a loss of $13 million in Other income (expense) within the Condensed Consolidated Statement of Operations related to a decrease in the fair value of its investment in Evolv Technologies, Inc. During the six months ended June 29, 2024, the Company recorded a $3 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:
June 29, 2024December 31, 2023
Defined benefit plan assets$128 $98 
Non-current contract cost assets (Note 2)119 119 
Other53 57 
 $300 $274 
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 their 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 $30 million and $35 million as of June 29, 2024 and December 31, 2023, respectively. Supplier finance program obligations are classified as Accounts payable within the Condensed Consolidated Balance Sheets.
Accrued Liabilities
Accrued liabilities consist of the following: 
June 29, 2024December 31, 2023
Compensation$274 $407 
Tax liabilities145 231 
Dividend payable164 163 
Trade liabilities155 140 
Operating lease liabilities (Note 3)124 125 
Customer reserves84 89 
Other420 349 
 $1,366 $1,504 
Other Liabilities
Other liabilities consist of the following: 
June 29, 2024December 31, 2023
Defined benefit plans (Note 8)$875 $939 
Non-current contract liabilities (Note 2)446 424 
Unrecognized tax benefits (Note 7)22 26 
Deferred income taxes (Note 7)57 55 
Environmental reserve119 119 
Other201 178 
 $1,720 $1,741 
Stockholders’ Equity
Share Repurchase Program: During the three and six months ended June 29, 2024, the Company repurchased approximately 0.2 million and 0.3 million shares at an average price of $348.19 and $336.57 per share for an aggregate amount of $71 million and $110 million, respectively.
Payment of Dividends: During the three months ended June 29, 2024 and July 1, 2023, the Company paid $163 million and $148 million, respectively, in cash dividends to holders of its common stock. Subsequent to the quarter, the Company paid an additional $164 million in cash dividends to holders of its common stock. During the six months ended June 29, 2024 and July 1, 2023, the Company paid $326 million and $296 million, respectively, in cash dividends to holders of its common stock.
Accumulated Other Comprehensive Loss
The following table displays the changes in Accumulated other comprehensive loss, including amounts reclassified into income, and the affected line items in the Condensed Consolidated Statements of Operations during the three and six months ended June 29, 2024 and July 1, 2023:
Three Months EndedSix Months Ended
June 29, 2024July 1, 2023June 29, 2024July 1, 2023
Foreign Currency Translation Adjustments:
Balance at beginning of period$(506)$(503)$(482)$(539)
Other comprehensive income (loss) before reclassification adjustment(2)27 (29)54 
Tax benefit (expense)(1)— 2 9 
Other comprehensive income (loss), net of tax(3)27 (27)63 
Other comprehensive income attributable to noncontrolling interests, net of tax— — — — 
Balance at end of period$(509)$(476)$(509)$(476)
Derivative instruments:
Balance at beginning of period$(8)$— $(12)$— 
Other comprehensive income before reclassification adjustment— — 4 — 
Other comprehensive income before reclassification adjustment, net of tax— — 4 — 
Other comprehensive income, net of tax$— $— $4 $— 
Balance at end of period$(8)$— $(8)$— 
Defined Benefit Plans:
Balance at beginning of period$(2,039)$(1,984)$(2,046)$(1,996)
Reclassification adjustment - Actuarial net losses into Other income (Note 8)8 15 17 30 
Reclassification adjustment - Prior service benefits into Other income (Note 8)1 1 1 2 
Tax expense(2)(3)(4)(7)
Reclassification adjustments into Net earnings, net of tax7 13 14 25 
Other comprehensive income, net of tax7 13 14 25 
Balance at end of period$(2,032)$(1,971)$(2,032)$(1,971)
Total Accumulated other comprehensive loss$(2,549)$(2,447)$(2,549)$(2,447)