XML 23 R12.htm IDEA: XBRL DOCUMENT v3.25.3
Other Financial Data
 9 Months Ended
Sep. 27, 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 EndedNine Months Ended
September 27, 2025September 28, 2024September 27, 2025September 28, 2024
Other charges (income):
Intangibles amortization (Note 15)$66 $38 $142 $114 
Reorganization of business (Note 14)12 5 33 16 
Operating lease asset impairments1 1 1 5 
Acquisition-related transaction fees55 4 63 11 
Legal settlements2 1 7 7 
Gain on Hytera litigation(74)— (94)— 
 $62 $49 $152 $153 
During the three and nine months ended September 27, 2025, the Company recognized a gain on the Hytera litigation of $74 million and $94 million, respectively, for amounts recovered through legal proceedings due to theft of the Company's trade secrets. Refer to "Hytera Civil Litigation" within "Note 12: Commitments and Contingencies" in this "Part 1 — Financial Information" of this Form 10-Q.
Other Income (Expense)
Interest expense, net, and Other, net, both included in Other income (expense), consist of the following: 
 Three Months EndedNine Months Ended
September 27, 2025September 28, 2024September 27, 2025September 28, 2024
Interest, net:
Interest expense$(103)$(73)$(243)$(221)
Interest income17 15 51 50 
$(86)$(58)$(192)$(171)
Other, net:
Net periodic pension and postretirement benefit (Note 8)$31 $32 $92 $95 
Loss from the extinguishment of Silver Lake Convertible Debt— — — (585)
Investment impairments(2)— (2)(3)
Foreign currency gain (loss)4 (26)(57)(22)
Gain (loss) on derivative instruments (Note 6)(6)22 41 7 
Fair value adjustments to equity investments8 9 21 (4)
Assessments on uncertain tax positions— — — (11)
Other6 5 5 4 
 $41 $42 $100 $(519)
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 EndedNine Months Ended
September 27, 2025September 28, 2024September 27, 2025September 28, 2024
Basic earnings per common share:
Earnings$562 $562 $1,505 $966 
Weighted average common shares outstanding166.6 167.1 166.8 166.7 
Per share amount$3.37 $3.36 $9.02 $5.79 
Diluted earnings per common share:
Earnings$562 $562 $1,505 $966 
Weighted average common shares outstanding166.6 167.1 166.8 166.7 
Add effect of dilutive securities:
Share-based awards2.4 3.8 2.4 3.9 
Diluted weighted average common shares outstanding169.0 170.9 169.2 170.6 
Per share amount$3.33 $3.29 $8.89 $5.66 
In the computation of diluted earnings per common share for the three months ended September 27, 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 nine months ended September 27, 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 September 28, 2024, the assumed exercise of 0.1 million options 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 nine months ended September 28, 2024, a total of 0.3 million shares related to the 1.75% senior convertible notes issued to Silver Lake Partners ("Silver Lake Convertible Debt") were excluded from the computation of diluted earnings per common share because their inclusion would have been antidilutive. In addition, the assumed exercise of 0.1 million options were excluded from the computation of diluted earnings per common share because their inclusion would have been antidilutive.
In connection with the acquisition of Silvus, the Seller will have the potential to earn contingent earnout consideration upon the achievement of certain financial targets payable in shares of common stock of up to $600 million in total, comprised of up to $150 million for the annual period from July 5, 2026 through July 3, 2027 and up to $450 million for the annual period from July 4, 2027 through July 1, 2028 (with the potential to earn catch-up earnout consideration based on performance in the annual period from July 4, 2027 through July 1, 2028 if the maximum earnout for the annual period from July 5, 2026 through July 3, 2027 is not earned). The estimated fair value of the total contingent earnout consideration at the acquisition date was $38 million. The shares required to settle the contingent earnout consideration will only be reflected within diluted earnings per share when and if the earnout financial targets have been achieved, in each of the two respective periods.
Balance Sheet Information
Accounts Receivable, Net
Accounts receivable, net, consists of the following: 
September 27, 2025December 31, 2024
Accounts receivable$2,101 $2,035 
Less allowance for credit losses(83)(83)
 $2,018 $1,952 
Inventories, Net
Inventories, net, consist of the following: 
September 27, 2025December 31, 2024
Finished goods$474 $396 
Work-in-process and production materials591 498 
1,065 894 
Less inventory reserves(122)(128)
 $943 $766 
Other Current Assets
Other current assets consist of the following: 
September 27, 2025December 31, 2024
Current contract cost assets (Note 2)$77 $70 
Contractor receivables43 44 
Tax-related deposits36 54 
Other285 261 
 $441 $429 
Property, Plant and Equipment, Net
Property, plant and equipment, net, consist of the following:
September 27, 2025December 31, 2024
Land$5 $5 
Leasehold improvements465 441 
Machinery and equipment2,528 2,243 
2,998 2,689 
Less accumulated depreciation(1,899)(1,667)
 $1,099 $1,022 
Depreciation expense was $49 million and $46 million for the three months ended September 27, 2025 and September 28, 2024, respectively. Depreciation expense for the nine months ended September 27, 2025 and September 28, 2024 was $140 million and $136 million, respectively.
Investments
Investments consist of the following:
September 27, 2025December 31, 2024
Common stock$45 $23 
Strategic investments54 26 
Company-owned life insurance policies83 75 
Equity method investments10 11 
 $192 $135 
Other Assets
 Other assets consist of the following:
September 27, 2025December 31, 2024
Defined benefit plan assets$216 $162 
Non-current contract cost assets (Note 2)134 141 
Other96 72 
 $446 $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 $38 million as of both September 27, 2025 and December 31, 2024. Supplier finance program obligations are classified as Accounts payable within the Condensed Consolidated Balance Sheets.
Accrued Liabilities
Accrued liabilities consist of the following: 
September 27, 2025December 31, 2024
Compensation$425 $406 
Tax liabilities144 217 
Dividend payable182 182 
Trade liabilities187 160 
Operating lease liabilities (Note 3)128 127 
Customer reserves98 97 
Other553 454 
 $1,717 $1,643 
Other Liabilities
Other liabilities consist of the following: 
September 27, 2025December 31, 2024
Defined benefit plans (Note 8)$711 $768 
Non-current contract liabilities (Note 2)670 496 
Unrecognized tax benefits (Note 7)38 39 
Deferred income taxes (Note 7)106 87 
Environmental reserve119 119 
Deferred compensation107 89 
Other165 121 
 $1,916 $1,719 
Stockholders’ Equity
Share Repurchase Program: During the three and nine months ended September 27, 2025, the Company repurchased approximately 0.3 million and 1.5 million shares at an average price of $467.10 and $434.41 per share for an aggregate amount of $121 million and $664 million, respectively.
Payment of Dividends: During the three months ended September 27, 2025 and September 28, 2024, the Company paid $182 million and $164 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. During the nine months ended September 27, 2025 and September 28, 2024, the Company paid $546 million and $490 million, respectively, in cash dividends to holders of its common stock.
Accumulated Other Comprehensive Loss
The following table displays the changes in Accumulated other comprehensive loss, including amounts reclassified into income, and the affected line items in the Condensed Consolidated Statements of Operations during the three and nine months ended September 27, 2025 and September 28, 2024:
Three Months EndedNine Months Ended
September 27, 2025September 28, 2024September 27, 2025September 28, 2024
Foreign Currency Translation Adjustments:
Balance at beginning of period$(428)$(509)$(546)$(482)
Other comprehensive income (loss) before reclassification adjustment(13)73 100 44 
Tax benefit (expense)— (1)5 1 
Other comprehensive income (loss), net of tax(13)72 105 45 
Balance at end of period$(441)$(437)$(441)$(437)
Derivative Instruments:
Balance at beginning of period$(7)$(8)$(7)$(12)
Other comprehensive income before reclassification adjustment— — — 4 
Other comprehensive income before reclassification adjustment, net of tax— — — 4 
Other comprehensive income, net of tax— — $— $4 
Balance at end of period$(7)$(8)$(7)$(8)
Defined Benefit Plans:
Balance at beginning of period$(1,977)$(2,032)$(1,986)$(2,046)
Other comprehensive loss before reclassification adjustment— — (8)— 
Tax benefit— — 2 — 
Other comprehensive loss before reclassification adjustment, net of tax— — (6)— 
Reclassification adjustment - Actuarial net losses into Other income (Note 8)10 9 28 25 
Reclassification adjustment - Prior service benefits into Other income (Note 8)— — — 2 
Tax expense(2)(2)(5)(6)
Reclassification adjustments into Net earnings, net of tax8 7 23 21 
Other comprehensive income, net of tax8 7 17 21 
Balance at end of period$(1,969)$(2,025)$(1,969)$(2,025)
Total Accumulated other comprehensive loss$(2,417)$(2,470)$(2,417)$(2,470)