v3.25.2
Other Financial Data
 6 Months Ended
Jun. 28, 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 EndedSix Months Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Other charges (income):
Intangibles amortization (Note 15)$39 $36 $76 $76 
Reorganization of business (Note 14)8 4 20 11 
Operating lease asset impairments— 1 — 4 
Acquisition-related transaction fees2 4 8 7 
Legal settlements1 — 5 6 
Gain on Hytera litigation(10)— (20)— 
 $40 $45 $89 $104 
During the six months ended June 28, 2025, the Company recognized a gain on the Hytera litigation of $20 million for amounts recovered through legal proceedings due to theft of the Company's trade secrets. Refer to "Hytera Civil Litigation" within "Note 12: Commitments and Contingencies" in this "Part 1 — Financial Information" of this Form 10-Q.
Other Income (Expense)
Interest expense, net, and Other, net, both included in Other income (expense), consist of the following: 
 Three Months EndedSix Months Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Interest, net:
Interest expense$(71)$(87)$(140)$(149)
Interest income16 18 34 36 
$(55)$(69)$(106)$(113)
Other, net:
Net periodic pension and postretirement benefit (Note 8)$30 $31 $61 $63 
Loss from the extinguishment of Silver Lake Convertible Debt— — — (585)
Investment impairments— — — (3)
Foreign currency gain (loss)(42)3 (62)4 
Gain (loss) on derivative instruments (Note 6)34 (5)48 (15)
Fair value adjustments to equity investments18 (11)13 (13)
Assessments on uncertain tax positions— (11)— (11)
Other3 (2)(1)— 
 $43 $5 $59 $(560)
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 28, 2025June 29, 2024June 28, 2025June 29, 2024
Basic earnings per common share:
Earnings$513 $443 $943 $404 
Weighted average common shares outstanding166.8 166.9 166.8 166.5 
Per share amount$3.08 $2.65 $5.65 $2.43 
Diluted earnings per common share:
Earnings$513 $443 $943 $404 
Weighted average common shares outstanding166.8 166.9 166.8 166.5 
Add effect of dilutive securities:
Share-based awards2.0 3.4 2.6 3.8 
Diluted weighted average common shares outstanding168.8 170.3 169.4 170.3 
Per share amount$3.04 $2.60 $5.57 $2.37 
In the computation of diluted earnings per common share for the three months ended June 28, 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 six months ended June 28, 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 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 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 0.3 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 28, 2025December 31, 2024
Accounts receivable$1,927 $2,035 
Less allowance for credit losses(75)(83)
 $1,852 $1,952 
Inventories, Net
Inventories, net, consist of the following: 
June 28, 2025December 31, 2024
Finished goods$442 $396 
Work-in-process and production materials544 498 
986 894 
Less inventory reserves(125)(128)
 $861 $766 
Other Current Assets
Other current assets consist of the following: 
June 28, 2025December 31, 2024
Current contract cost assets (Note 2)$69 $70 
Contractor receivables34 44 
Tax-related deposits38 54 
Other274 261 
 $415 $429 
Property, Plant and Equipment, Net
Property, plant and equipment, net, consist of the following:
June 28, 2025December 31, 2024
Land$5 $5 
Leasehold improvements458 441 
Machinery and equipment2,447 2,243 
2,910 2,689 
Less accumulated depreciation(1,840)(1,667)
 $1,070 $1,022 
Depreciation expense was $47 million for both the three months ended June 28, 2025 and June 29, 2024. Depreciation expense for the six months ended June 28, 2025 and June 29, 2024 was $91 million and $90 million, respectively.
Investments
Investments consist of the following:
June 28, 2025December 31, 2024
Common stock$36 $23 
Strategic investments57 26 
Company-owned life insurance policies77 75 
Equity method investments10 11 
 $180 $135 
Other Assets
 Other assets consist of the following:
June 28, 2025December 31, 2024
Defined benefit plan assets$201 $162 
Non-current contract cost assets (Note 2)130 141 
Other96 72 
 $427 $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 June 28, 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: 
June 28, 2025December 31, 2024
Compensation$304 $406 
Tax liabilities161 217 
Dividend payable182 182 
Trade liabilities168 160 
Operating lease liabilities (Note 3)129 127 
Customer reserves90 97 
Other431 454 
 $1,465 $1,643 
Other Liabilities
Other liabilities consist of the following: 
June 28, 2025December 31, 2024
Defined benefit plans (Note 8)$739 $768 
Non-current contract liabilities (Note 2)616 496 
Unrecognized tax benefits (Note 7)38 39 
Deferred income taxes (Note 7)91 87 
Environmental reserve119 119 
Deferred compensation99 89 
Other129 121 
 $1,831 $1,719 
Stockholders’ Equity
Share Repurchase Program: During the three and six months ended June 28, 2025, the Company repurchased approximately 0.6 million and 1.3 million shares at an average price of $414.42 and $427.74 per share for an aggregate amount of $218 million and $543 million, respectively.
Payment of Dividends: During the three months ended June 28, 2025 and June 29, 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. During the six months ended June 28, 2025 and June 29, 2024, the Company paid $364 million and $326 million, respectively, in cash dividends to holders of its common stock.
Accumulated Other Comprehensive Loss
The following table displays the changes in Accumulated other comprehensive loss, including amounts reclassified into income, and the affected line items in the Condensed Consolidated Statements of Operations during the three and six months ended June 28, 2025 and June 29, 2024:
Three Months EndedSix Months Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Foreign Currency Translation Adjustments:
Balance at beginning of period$(505)$(506)$(546)$(482)
Other comprehensive income (loss) before reclassification adjustment75 (2)113 (29)
Tax benefit (expense)2 (1)5 2 
Other comprehensive income (loss), net of tax77 (3)118 (27)
Balance at end of period$(428)$(509)$(428)$(509)
Derivative Instruments:
Balance at beginning of period$(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)$(8)
Defined Benefit Plans:
Balance at beginning of period$(1,988)$(2,039)$(1,986)$(2,046)
Other comprehensive income (loss) before reclassification adjustment4 — (8)— 
Tax expense (benefit)(1)— 2 — 
Other comprehensive income (loss) before reclassification adjustment, net of tax3 — (6)— 
Reclassification adjustment - Actuarial net losses into Other income (Note 8)9 8 18 17 
Reclassification adjustment - Prior service benefits into Other income (Note 8)— 1 — 1 
Tax expense(1)(2)(3)(4)
Reclassification adjustments into Net earnings, net of tax8 7 15 14 
Other comprehensive income, net of tax11 7 9 14 
Balance at end of period$(1,977)$(2,032)$(1,977)$(2,032)
Total Accumulated other comprehensive loss$(2,412)$(2,549)$(2,412)$(2,549)