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Other Financial Data | 3 Months Ended
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Mar. 29, 2025
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 Ended |  |
| March 29, 2025 |  | March 30, 2024 |  |  |  |
Other charges (income): |  |  |  |  |  |  |
Intangibles amortization (Note 15) | $ | 37 |  |  | $ | 39 |  |  |  |  |
Reorganization of business (Note 14) | 12 |  |  | 7 |  |  |  |  |
Operating lease asset impairments | — |  |  | 3 |  |  |  |  |
Acquisition-related transaction fees | 6 |  |  | 4 |  |  |  |  |
Legal settlements | 4 |  |  | 6 |  |  |  |  |
Gain on Hytera litigation | (10) |  |  | — |  |  |  |  |
Other | — |  |  | (1) |  |  |  |  |
| $ | 49 |  |  | $ | 58 |  |  |  |  |
During the three months ended March 29, 2025, the Company recognized a gain on the Hytera litigation of $10 million for amounts recovered through legal proceedings due to theft of the Company's trade secrets. Refer to "Hytera Civil Litigation" within "Note 12: commitments and Contingencies" in this "Part 1 — Financial Information" of this Form 10-Q. Other Income (Expense) Interest expense, net, and Other, net, both included in Other income (expense), consist of the following:
| Three Months Ended |  |
| March 29, 2025 |  | March 30, 2024 |  |  |  |
Interest, net: |  |  |  |  |  |  |
Interest expense | $ | (69) |  |  | $ | (61) |  |  |  |  |
Interest income | 18 |  |  | 17 |  |  |  |  |
| $ | (51) |  |  | $ | (44) |  |  |  |  |
Other, net: |  |  |  |  |  |  |
Net periodic pension and postretirement benefit (Note 8) | $ | 30 |  |  | $ | 32 |  |  |  |  |
Loss from the extinguishment of Silver Lake Convertible Debt | — |  |  | (585) |  |  |  |  |
Investment impairments | — |  |  | (3) |  |  |  |  |
Foreign currency gain (loss) | (20) |  |  | 1 |  |  |  |  |
Gain (loss) on derivative instruments (Note 6) | 13 |  |  | (10) |  |  |  |  |
Fair value adjustments to equity investments | (5) |  |  | (2) |  |  |  |  |
Other | (2) |  |  | 2 |  |  |  |  |
| $ | 16 |  |  | $ | (565) |  |  |  |  |
Earnings (Loss) Per Common Share Basic and diluted earnings (loss) 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 Ended |  |
| March 29, 2025 |  | March 30, 2024 |  |  |  |
Basic earnings per common share: |  |  |  |  |  |  |
Earnings (loss) | $ | 430 |  |  | $ | (39) |  |  |  |  |
Weighted average common shares outstanding | 166.9 |  |  | 166.3 |  |  |  |  |
Per share amount | $ | 2.58 |  |  | $ | (0.23) |  |  |  |  |
Diluted earnings per common share: |  |  |  |  |  |  |
Earnings (loss) | $ | 430 |  |  | $ | (39) |  |  |  |  |
Weighted average common shares outstanding | 166.9 |  |  | 166.3 |  |  |  |  |
Add effect of dilutive securities: |  |  |  |  |  |  |
Share-based awards | 2.9 |  |  | — |  |  |  |  |
Diluted weighted average common shares outstanding | 169.8 |  |  | 166.3 |  |  |  |  |
Per share amount | $ | 2.53 |  |  | $ | (0.23) |  |  |  |  |
In the computation of diluted earnings per common share for the three months ended March 29, 2025, the assumed exercise of 0.1 million options and 0.1 million awards subject to performance conditions, 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 months ended March 30, 2024, the Company recorded a net loss from continuing operations, which resulted in the presentation of diluted earnings (loss) per common share to be equal to basic earnings (loss) per common share, as any increase to the basic shares would be antidilutive. A total of 5.0 million shares outstanding were excluded from the computation of diluted earnings per common share for three months ended March 30, 2024, because their inclusion would have been antidilutive; these shares included 4.1 million share-based awards and 0.9 million shares related to the 1.75% senior convertible notes issued to Silver Lake Partners ("Silver Lake Convertible Debt"). Balance Sheet Information Accounts Receivable, Net Accounts receivable, net, consists of the following:
| March 29, 2025 |  | December 31, 2024
Accounts receivable | $ | 1,851 |  |  | $ | 2,035 |
Less allowance for credit losses | (81) |  |  | (83) |
| $ | 1,770 |  |  | $ | 1,952 |
Inventories, Net Inventories, net, consist of the following:
| March 29, 2025 |  | December 31, 2024
Finished goods | $ | 411 |  |  | $ | 396 |
Work-in-process and production materials | 550 |  |  | 498 |
| 961 |  |  | 894 |
Less inventory reserves | (128) |  |  | (128) |
| $ | 833 |  |  | $ | 766 |
Other Current Assets Other current assets consist of the following:
| March 29, 2025 |  | December 31, 2024
Current contract cost assets (Note 2) | $ | 69 |  |  | $ | 70 |
Contractor receivables | 42 |  |  | 44 |
Tax-related deposits | 53 |  |  | 54 |
Other | 280 |  |  | 261 |
| $ | 444 |  |  | $ | 429 |
Property, Plant and Equipment, Net Property, plant and equipment, net, consist of the following:
| March 29, 2025 |  | December 31, 2024
Land | $ | 5 |  |  | $ | 5 |
Leasehold improvements | 451 |  |  | 441 |
Machinery and equipment | 2,329 |  |  | 2,243 |
| 2,785 |  |  | 2,689 |
Less accumulated depreciation | (1,746) |  |  | (1,667) |
| $ | 1,039 |  |  | $ | 1,022 |
Depreciation expense was $44 million for the three months ended March 29, 2025 and March 30, 2024. Investments Investments consist of the following:
| March 29, 2025 |  | December 31, 2024 |  |  |  |
Common stock | $ | 18 |  |  | $ | 23 |  |  |  |  |
Strategic investments | 52 |  |  | 26 |  |  |  |  |
Company-owned life insurance policies | 80 |  |  | 75 |  |  |  |  |
Equity method investments | 11 |  |  | 11 |  |  |  |  |
| $ | 161 |  |  | $ | 135 |  |  |  |  |
Other Assets Other assets consist of the following:
| March 29, 2025 |  | December 31, 2024
Defined benefit plan assets | $ | 192 |  |  | $ | 162 |
Non-current contract cost assets (Note 2) | 129 |  |  | 141 |
Other | 62 |  |  | 72 |
| $ | 383 |  |  | $ | 375 |
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 $27 million and $38 million as of March 29, 2025 and December 31, 2024, respectively. Supplier finance program obligations are classified as Accounts payable within the Condensed Consolidated Balance Sheets. Accrued Liabilities Accrued liabilities consist of the following:
| March 29, 2025 |  | December 31, 2024
Compensation | $ | 465 |  |  | $ | 406 |
Tax liabilities | 272 |  |  | 217 |
Dividend payable | 182 |  |  | 182 |
Trade liabilities | 161 |  |  | 160 |
Operating lease liabilities (Note 3) | 114 |  |  | 127 |
Customer reserves | 75 |  |  | 97 |
Other | 503 |  |  | 454 |
| $ | 1,772 |  |  | $ | 1,643 |
Other Liabilities Other liabilities consist of the following:
| March 29, 2025 |  | December 31, 2024
Defined benefit plans (Note 8) | $ | 749 |  |  | $ | 768 |
Non-current contract liabilities (Note 2) | 556 |  |  | 496 |
Unrecognized tax benefits (Note 7) | 39 |  |  | 39 |
Deferred income taxes (Note 7) | 87 |  |  | 87 |
Environmental reserve | 119 |  |  | 119 |
Deferred compensation | 88 |  |  | 89 |
Other | 125 |  |  | 121 |
| $ | 1,763 |  |  | $ | 1,719 |
Stockholders’ Equity Share Repurchase Program: During the three months ended March 29, 2025, the Company repurchased approximately 0.7 million shares at an average price of $437.17 per share for an aggregate amount of $325 million. Payment of Dividends: During the three months ended March 29, 2025 and March 30, 2024, the Company paid $182 million and $163 million, respectively, in cash dividends to holders of its common stock. Subsequent to the quarter, the Company paid an additional $182 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 March 29, 2025 and March 30, 2024:
| Three Months Ended |  |
| March 29, 2025 |  | March 30, 2024 |  |  |  |
Foreign Currency Translation Adjustments: |  |  |  |  |  |  |
Balance at beginning of period | $ | (546) |  |  | $ | (482) |  |  |  |  |
Other comprehensive income (loss) before reclassification adjustment | 38 |  |  | (27) |  |  |  |  |
Tax benefit | 3 |  |  | 3 |  |  |  |  |
Other comprehensive income (loss), net of tax | 41 |  |  | (24) |  |  |  |  |
Balance at end of period | $ | (505) |  |  | $ | (506) |  |  |  |  |
Derivative instruments: |  |  |  |  |  |  |
Balance at beginning of period | $ | (7) |  |  | $ | (12) |  |  |  |  |
Other comprehensive income before reclassification adjustment, net of tax | — |  |  | 4 |  |  |  |  |
Other comprehensive income, net of tax | — |  |  | 4 |  |  |  |  |
Balance at end of period | $ | (7) |  |  | $ | (8) |  |  |  |  |
Defined Benefit Plans: |  |  |  |  |  |  |
Balance at beginning of period | $ | (1,986) |  |  | $ | (2,046) |  |  |  |  |
Other comprehensive loss before reclassification adjustment | (12) |  |  | — |  |  |  |  |
Tax benefit | 3 |  |  | — |  |  |  |  |
Other comprehensive income (loss) before reclassification adjustment, net of tax | (9) |  |  | — |  |  |  |  |
Reclassification adjustment - Actuarial net losses into Other income (Note 8) | 9 |  |  | 9 |  |  |  |  |
Tax benefit (expense) | (2) |  |  | (2) |  |  |  |  |
Reclassification adjustments into Net earnings, net of tax | 7 |  |  | 7 |  |  |  |  |
Other comprehensive income, net of tax | (2) |  |  | 7 |  |  |  |  |
Balance at end of period | $ | (1,988) |  |  | $ | (2,039) |  |  |  |  |
Total Accumulated other comprehensive loss | $ | (2,500) |  |  | $ | (2,553) |  |  |  |  |

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