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Other Financial Data
9 Months Ended
Oct. 03, 2026
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
October 3, 2026September 27, 2025October 3, 2026September 27, 2025
Other charges (income):
Intangibles amortization (Note 15)$97 $66 $282 $142 
Contingent earnout adjustment (Note 10)87 — 178 — 
Acquisition-related transaction fees29 55 42 63 
Reorganization of business (Note 14)10 12 30 33 
Legal settlements1 2 5 7 
Operating lease asset impairments— 1 5 1 
Fixed asset impairments— — 1 — 
Gain on Hytera litigation(13)(74)(73)(94)
$211 $62 $470 $152 
During the nine months ended October 3, 2026, the Company recorded charges of $178 million to increase the fair value of the contingent earnout consideration related to the Silvus acquisition. Refer to "Note 10: Fair Value Measurements," in this "Part I — Financial Information" of this Form 10-Q for more information.
During the nine months ended October 3, 2026 and September 27, 2025, the Company recognized gains on the Hytera litigation of $73 million and $94 million, respectively, for amounts recovered through legal proceedings due to theft of the Company's trade secrets. Refer to "Hytera Civil Litigation" within "Note 12: Commitments and Contingencies" in this "Part I — Financial Information" of this Form 10-Q for more information.
Other Income (Expense)
Interest expense, net, and Other, net, both included in Other income (expense), consist of the following: 
Three Months EndedNine Months Ended
October 3, 2026September 27, 2025October 3, 2026September 27, 2025
Interest, net:
Interest expense$(116)$(103)$(338)$(243)
Interest income9 17 23 51 
$(107)$(86)$(315)$(192)
Other, net:
Net periodic pension and postretirement benefit (Note 8)$25 $31 $76 $92 
Investment impairments— (2)— (2)
Foreign currency gain (loss)(4)4 31 (57)
Gain (loss) on derivative instruments (Note 6)(3)(6)(47)41 
Fair value adjustments to equity investments(9)8 (1)21 
Other(1)6 5 5 
$8 $41 $64 $100 
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
October 3, 2026September 27, 2025October 3, 2026September 27, 2025
Basic earnings per common share:
Earnings$512 $562 $1,435 $1,505 
Weighted average common shares outstanding165.5 166.6 165.7 166.8 
Per share amount$3.09 $3.37 $8.66 $9.02 
Diluted earnings per common share:
Earnings$512 $562 $1,435 $1,505 
Weighted average common shares outstanding165.5 166.6 165.7 166.8 
Add effect of dilutive securities:
Share-based awards1.9 2.4 1.8 2.4 
Diluted weighted average common shares outstanding167.4 169.0 167.5 169.2 
Per share amount$3.06 $3.33 $8.57 $8.89 
In the computation of diluted earnings per common share, share-based awards with an antidilutive impact were excluded.
The antidilutive impact of 0.3 million and 0.5 million share-based awards for the three and nine months ended October 3, 2026, respectively, and 0.2 million share-based awards for each of the three and nine months ended September 27, 2025, were excluded 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 was $214 million as of October 3, 2026. 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: 
October 3, 2026December 31, 2025
Accounts receivable$2,530 $2,283 
Less allowance for credit losses(89)(83)
$2,441 $2,200 
Inventories, Net
Inventories, net, consist of the following: 
October 3, 2026December 31, 2025
Finished goods$623 $455 
Work-in-process and production materials1,051 644 
1,674 1,099 
Less inventory reserves(163)(116)
$1,511 $983 
Other Current Assets
Other current assets consist of the following: 
October 3, 2026December 31, 2025
Current contract cost assets (Note 2)$102 $72 
Contractor receivables12 19 
Tax-related deposits37 41 
Other301 246 
$452 $378 
Property, Plant and Equipment, Net
Property, plant and equipment, net, consist of the following:
October 3, 2026December 31, 2025
Land$5 $5 
Leasehold improvements517 479 
Machinery and equipment2,809 2,655 
3,331 3,139 
Less accumulated depreciation(2,128)(1,974)
$1,203 $1,165 
Depreciation expense was $53 million and $49 million for the three months ended October 3, 2026 and September 27, 2025, respectively. Depreciation expense for the nine months ended October 3, 2026 and September 27, 2025 was $159 million and $140 million, respectively.
Investments
Investments consist of the following:
October 3, 2026December 31, 2025
Common stock$28 $42 
Strategic investments167 54 
Company-owned life insurance policies90 83 
Equity method investments7 8 
$292 $187 
On July 1, 2026, the Company paid $100 million for a strategic investment in equity securities of BRINC Drones, Inc. (“BRINC”). BRINC is a leader in public safety drone technology. Strategic investments do not have readily determinable fair values and are carried at cost; adjustments resulting from observable price changes in orderly transactions for similar securities of the same issuer are recorded in Other, net within Other income (expense). During the nine months ended October 3, 2026, the Company recorded gains of $12 million related to net adjustments from observable price changes associated with BRINC.
Other Assets
 Other assets consist of the following:
October 3, 2026December 31, 2025
Defined benefit plan assets (Note 8)$276 $228 
Non-current contract cost assets (Note 2)157 152 
Non-current long-term receivables (Note 11)46 59 
Other55 52 
$534 $491 
Accounts Payable
The Company utilizes a supplier finance program which provides its 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 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 $61 million and $34 million as of October 3, 2026 and December 31, 2025, respectively. Supplier finance program obligations are classified as Accounts payable within the Condensed Consolidated Balance Sheets.
Accrued Liabilities
Accrued liabilities consist of the following: 
October 3, 2026December 31, 2025
Compensation$403 $479 
Tax liabilities (Note 7)94 225 
Dividend payable201 201 
Trade liabilities203 194 
Operating lease liabilities (Note 3)145 133 
Customer reserves119 125 
External interest liabilities108 113 
Contingent earnout consideration (Note 10)132 — 
Other434 460 
$1,839 $1,930 
Other Liabilities
Other liabilities consist of the following: 
October 3, 2026December 31, 2025
Defined benefit plans (Note 8)$583 $683 
Non-current contract liabilities (Note 2)929 751 
Unrecognized tax benefits (Note 7)35 41 
Deferred income taxes (Note 7)154 124 
Environmental reserve119 119 
Deferred compensation127 111 
Contingent earnout consideration (Note 10)82 37 
Other137 134 
$2,166 $2,000 
Stockholders’ Equity
Share Repurchase Program: During the three and nine months ended October 3, 2026, the Company repurchased approximately 0.2 million and 1.3 million shares at an average price of $457.07 and $426.48 per share for an aggregate amount of $94 million and $538 million, respectively.
Payment of Dividends: During the three months ended October 3, 2026 and September 27, 2025, the Company paid $200 million and $182 million, respectively, in cash dividends to holders of its common stock. Subsequent to the quarter, the Company paid an additional $201 million in cash dividends to holders of its common stock. During the nine months ended October 3, 2026 and September 27, 2025, the Company paid $602 million and $546 million, respectively, in cash dividends to holders of its common stock.
Accumulated Other Comprehensive Loss
The following table displays the changes in Accumulated other comprehensive loss, including amounts reclassified into income, and the affected line items in the Condensed Consolidated Statements of Operations during the three and nine months ended October 3, 2026 and September 27, 2025:
Three Months EndedNine Months Ended
October 3, 2026September 27, 2025October 3, 2026September 27, 2025
Foreign Currency Translation Adjustments:
Balance at beginning of period$(480)$(428)$(445)$(546)
Other comprehensive income (loss) before reclassification adjustment6 (11)(31)104 
Reclassification adjustment into Net earnings(1)(2)$(3)$(4)
Tax benefit (expense)(1)— 3 5 
Other comprehensive income (loss), net of tax4 (13)(31)105 
Balance at end of period$(476)$(441)$(476)$(441)
Derivative Instruments:
Balance at beginning of period$(6)$(7)$(6)$(7)
Other comprehensive income before reclassification adjustment3 — 3 — 
Other comprehensive income before reclassification adjustment, net of tax3 — 3 — 
Other comprehensive income, net of tax3 — $3 $— 
Balance at end of period$(3)$(7)$(3)$(7)
Defined Benefit Plans:
Balance at beginning of period$(1,939)$(1,977)$(1,969)$(1,986)
Other comprehensive income (loss) before reclassification adjustment— — 10 (8)
Tax expense (benefit)— — (3)2 
Other comprehensive income (loss) before reclassification adjustment, net of tax— — 7 (6)
Reclassification adjustment - Actuarial net losses into Other income (Note 8)15 10 44 28 
Reclassification adjustment - Prior service benefits into Other income (Note 8)(1)— — — 
Tax expense(3)(2)(10)(5)
Reclassification adjustments into Net earnings, net of tax11 8 34 23 
Other comprehensive income, net of tax11 8 41 17 
Balance at end of period$(1,928)$(1,969)$(1,928)$(1,969)
Total Accumulated other comprehensive loss$(2,407)$(2,417)$(2,407)$(2,417)