XML 38 R21.htm IDEA: XBRL DOCUMENT v3.25.0.1
Information by Segment and Geographic Region
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Information by Segment and Geographic Region Information by Segment and Geographic Region
The Company conducts its business globally and manages it through the following two segments:
Products and Systems Integration: The Products and Systems Integration segment offers an extensive portfolio of infrastructure, devices, accessories, video security devices and infrastructure, and the implementation and integration of such systems, devices, and applications. Within LMR Communications, the Company is a global leader in the two-way radio category, including the Company’s Project 25 ("P25"), Terrestrial Trunked Radio (TETRA), Digital Mobile Radio (DMR), as well as other professional and commercial radio (“PCR”) solutions. The Company provides LTE solutions for public safety, government and commercial users, including devices operating in 700 MHz, 900 MHz and Citizens' Broadband Radio Service (CBRS) frequencies. The Company's Video technology includes network video management infrastructure, fixed security, certain mobile video equipment and access control solutions. The primary customers of the Products and Systems Integration segment are government, public safety and commercial customers who operate private communications systems and video security solutions and typically manage a mobile workforce. In 2024, the segment’s net sales were $6.9 billion, representing 64% of the Company's consolidated net sales.
Software and Services: The Software and Services segment provides a broad range of solution offerings for government, public safety and commercial customers. Software includes public safety and enterprise Command Center, unified communications applications, certain mobile video equipment, and video software solutions, delivered both on-premise and “as-a-service.” Services includes a continuum of service offerings beginning with repair, technical support and maintenance. More advanced technologies include monitoring, software updates and cybersecurity services. Managed services range from partial to full operation of customer-owned or Motorola Solutions-owned communications systems. In 2024, the segment’s net sales were $3.9 billion, representing 36% of the Company's consolidated net sales.
For the years ended December 31, 2024, 2023 and 2022, no single customer accounted for more than 10% of the Company's net sales.

Segment Information
The Company's chief operating decision maker, the chief executive officer, uses both segment gross margin and segment operating earnings to assess performance and allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances on a monthly basis for both profit measures when making decisions about allocating capital and personnel to the segments.
The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. See “Note 1: Summary of Significant Accounting Policies” to our consolidated financial statements in this “Part II. Item 8: Financial Statements and Supplementary Data” of this Form 10-K.
The following table summarizes Net sales, significant expenses, Gross margin and Operating earnings by segment: 
202420232022
Years ended December 31Products and Systems IntegrationSoftware and Services
Total
Products and Systems IntegrationSoftware and ServicesTotalProducts and Systems IntegrationSoftware and ServicesTotal
Net sales$6,883 $3,934 $10,817 $6,242 $3,736 $9,978 $5,728 $3,384 $9,112 
Costs of sales3,215 2,090 5,305 3,115 1,893 5,008 3,060 1,823 4,883 
Gross margin3,668 1,844 5,512 3,127 1,843 4,970 2,668 1,561 4,229 
Selling, general and administrative expenses1,392 3601,752 1,239 322 1,561 1,156 294 1,450 
Research and development expenditures575342917551 307 858 503 276 779 
Other charges2513015594 163 257 96 243 339 
Operating earnings$1,676 $1,012 $2,688 $1,244 $1,050 $2,294 $913 $748 $1,661 
Total other expense
(716)(148)(146)
Net earnings before income taxes
$1,972 $2,146 $1,515 
The following table summarizes the Company's capital expenditures and depreciation expense by segment: 
 Capital ExpendituresDepreciation Expense
Years ended December 31202420232022202420232022
Products and Systems Integration$103 $97 $77 $90 $83 $79 
Software and Services154 156 179 94 96 104 
$257 $253 $256 $184 $179 $183 
The Company's chief operating decision maker does not review or allocate resources based on segment assets.

Geographic Area Information 
Net SalesAssets
Years ended December 31202420232022202420232022
United States$7,432 $6,559 $6,008 $11,456 $10,207 $9,227 
United Kingdom572 769 789 2,190 2,034 2,321 
Canada388 373 366 383 362 394 
Other2,425 2,277 1,949 566 733 872 
 $10,817 $9,978 $9,112 $14,595 $13,336 $12,814 
Net sales attributed to geographic area are predominately based on the ultimate destination of the Company's products and services.