Other Financial Data (Tables)
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9 Months Ended |
Sep. 28, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
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Other Charges (Income) |
Other charges (income) included in Operating earnings consist of the following: | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | September 28, 2019 | | September 29, 2018 | | September 28, 2019 | | September 29, 2018 | Other charges (income): | | | | | | | | Intangibles amortization (Note 15) | $ | 52 |
| | $ | 46 |
| | $ | 154 |
| | $ | 140 |
| Reorganization of business (Note 14) | 15 |
| | 21 |
| | 27 |
| | 46 |
| Environmental reserve expense | — |
| | 57 |
| | — |
| | 57 |
| Loss (gain) on legal settlements | (5 | ) |
| 2 |
|
| (5 | ) |
| 3 |
| Acquisition-related transaction fees | 1 |
| | — |
| | 4 |
| | 17 |
| | $ | 63 |
| | $ | 126 |
| | $ | 180 |
| | $ | 263 |
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Other Income (Expense) |
Interest expense, net, and Other, net, both included in Other income (expense), consist of the following: | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | September 28, 2019 | | September 29, 2018 | | September 28, 2019 | | September 29, 2018 | Interest income (expense), net: | | | | | | | | Interest expense | $ | (60 | ) | | $ | (62 | ) | | $ | (178 | ) | | $ | (178 | ) | Interest income | 6 |
| | 3 |
| | 13 |
| | 15 |
| | $ | (54 | ) | | $ | (59 | ) | | $ | (165 | ) | | $ | (163 | ) | Other,net: | | | | | | | | Net periodic pension and postretirement benefit (Note 8) | $ | 17 |
| | $ | 18 |
| | $ | 50 |
| | $ | 58 |
| Gain from the extinguishment of 2.00% senior convertible notes (Note 5) | 4 |
| | 6 |
| | 4 |
| | 6 |
| Loss from the extinguishment of long-term debt (Note 5) | (7 | ) | | — |
| | (50 | ) | | — |
| Investment impairments (Note 4) | (5 | ) | | — |
| | (16 | ) | | — |
| Foreign currency gain (loss) | 3 |
| | (14 | ) | | (7 | ) | | (14 | ) | Gain (loss) on derivative instruments | (9 | ) | | 8 |
| | (16 | ) | | (15 | ) | Gains on equity method investments | 2 |
| | 1 |
| | 3 |
| | 2 |
| Fair value adjustments to equity investments (Note 4) | (18 | ) | | 7 |
| | (3 | ) | | 7 |
| Other | 2 |
| | 3 |
| | 13 |
| | 1 |
| | $ | (11 | ) | | $ | 29 |
| | $ | (22 | ) | | $ | 45 |
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Earnings Per Common Share |
The computation of basic and diluted earnings per common share is as follows: | | | | | | | | | | | | | | | | | | Amounts attributable to Motorola Solutions, Inc. common stockholders | | Three Months Ended | | Nine Months Ended | | September 28, 2019 | | September 29, 2018 | | September 28, 2019 | | September 29, 2018 | Basic earnings per common share: | | | | | | | | Earnings | $ | 267 |
| | $ | 247 |
| | $ | 625 |
| | $ | 544 |
| Weighted average common shares outstanding | 166.7 |
| | 162.6 |
| | 165.3 |
| | 162.0 |
| Per share amount | $ | 1.60 |
| | $ | 1.52 |
| | $ | 3.78 |
| | $ | 3.36 |
| Diluted earnings per common share: | | | | | | | | Earnings | $ | 267 |
| | $ | 247 |
| | $ | 625 |
| | $ | 544 |
| Weighted average common shares outstanding | 166.7 |
| | 162.6 |
| | 165.3 |
| | 162.0 |
| Add effect of dilutive securities: | | | | | | | | Share-based awards | 4.8 |
| | 4.6 |
| | 4.7 |
| | 4.2 |
| 2.00% senior convertible notes | 4.9 |
| | 5.4 |
| | 5.7 |
| | 5.4 |
| 1.75% senior convertible notes | — |
| | — |
| | — |
| | — |
| Diluted weighted average common shares outstanding | 176.4 |
| | 172.6 |
| | 175.7 |
| | 171.6 |
| Per share amount | $ | 1.51 |
| | $ | 1.43 |
| | $ | 3.56 |
| | $ | 3.17 |
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Accounts Receivable, Net |
Accounts receivable, net, consists of the following: | | | | | | | | | | September 28, 2019 | | December 31, 2018 | Accounts receivable | $ | 1,345 |
| | $ | 1,344 |
| Less allowance for doubtful accounts | (50 | ) | | (51 | ) | | $ | 1,295 |
| | $ | 1,293 |
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Inventories, Net |
Inventories, net, consist of the following: | | | | | | | | | | September 28, 2019 | | December 31, 2018 | Finished goods | $ | 221 |
| | $ | 206 |
| Work-in-process and production materials | 380 |
| | 293 |
| | 601 |
| | 499 |
| Less inventory reserves | (141 | ) | | (143 | ) | | $ | 460 |
| | $ | 356 |
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Other Current Assets |
Other current assets consist of the following: | | | | | | | | | | September 28, 2019 | | December 31, 2018 | Current contract cost assets (Note 2) | $ | 28 |
| | $ | 30 |
| Tax-related deposits | 111 |
| | 138 |
| Other | 199 |
| | 186 |
| | $ | 338 |
| | $ | 354 |
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Property, Plant and Equipment, Net |
Property, plant and equipment, net, consists of the following: | | | | | | | | | | September 28, 2019 | | December 31, 2018 | Land | $ | 15 |
| | $ | 10 |
| Leasehold improvements | 404 |
| | 362 |
| Machinery and equipment | 1,961 |
| | 1,886 |
| | 2,380 |
| | 2,258 |
| Less accumulated depreciation | (1,417 | ) | | (1,363 | ) | | $ | 963 |
| | $ | 895 |
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Investments |
Investments consist of the following: | | | | | | | | | | September 28, 2019 | | December 31, 2018 | Corporate bonds | $ | — |
| | $ | 1 |
| Common stock | 22 |
| | 19 |
| Strategic investments, at cost | 40 |
| | 62 |
| Company-owned life insurance policies | 78 |
| | 75 |
| Equity method investments | 19 |
| | 12 |
| | $ | 159 |
| | $ | 169 |
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Other Assets |
Other assets consist of the following: | | | | | | | | | | September 28, 2019 | | December 31, 2018 | Defined benefit plan assets | $ | 175 |
| | $ | 135 |
| Tax receivable | — |
| | 39 |
| Non-current contract cost assets (Note 2) | 102 |
| | 98 |
| Other | 56 |
| | 72 |
| | $ | 333 |
| | $ | 344 |
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Accrued Liabilities |
Accrued liabilities consist of the following: | | | | | | | | | | September 28, 2019 | | December 31, 2018 | Compensation | $ | 313 |
| | $ | 324 |
| Tax liabilities | 86 |
| | 111 |
| Dividend payable | 98 |
| | 93 |
| Trade liabilities | 156 |
| | 185 |
| Operating lease liabilities (Note 3) | 118 |
| | — |
| Other | 488 |
| | 497 |
| | $ | 1,259 |
| | $ | 1,210 |
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Other Liabilities |
Other liabilities consist of the following: | | | | | | | | | | September 28, 2019 | | December 31, 2018 | Defined benefit plans | $ | 1,480 |
| | $ | 1,557 |
| Non-current contract liabilities (Note 2) | 253 |
| | 214 |
| Unrecognized tax benefits | 52 |
| | 51 |
| Deferred income taxes | 172 |
| | 201 |
| Other | 233 |
| | 277 |
| | $ | 2,190 |
| | $ | 2,300 |
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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 28, 2019 and September 29, 2018: | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | September 28, 2019 | | September 29, 2018 | | September 28, 2019 | | September 29, 2018 | Foreign Currency Translation Adjustments: | | | | | | | | Balance at beginning of period | $ | (437 | ) | | $ | (391 | ) | | $ | (444 | ) | | $ | (353 | ) | Other comprehensive loss before reclassification adjustment | (33 | ) | | (3 | ) | | (23 | ) | | (33 | ) | Tax expense | — |
| | (1 | ) | | (3 | ) | | (9 | ) | Other comprehensive loss, net of tax | (33 | ) | | (4 | ) | | (26 | ) | | (42 | ) | Balance at end of period | $ | (470 | ) | | $ | (395 | ) | | $ | (470 | ) | | $ | (395 | ) | Available-for-Sale Securities: | | | | | | | | Balance at beginning of period | $ | — |
| | $ | — |
| | $ | — |
| | $ | 6 |
| Reclassification adjustment into Gains on sales of investments and businesses, net | — |
| | — |
| | — |
| | (8 | ) | Tax benefit | — |
| | — |
| | — |
| | 2 |
| Other comprehensive loss, net of tax | — |
| | — |
| | — |
| | (6 | ) | Balance at end of period | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Defined Benefit Plans: | | | | | | | | Balance at beginning of period | $ | (2,300 | ) | | $ | (2,189 | ) | | $ | (2,321 | ) | | $ | (2,215 | ) | Reclassification adjustment - Actuarial net losses into Other income (expense) | 16 |
| | 20 |
| | 50 |
| | 57 |
| Reclassification adjustment - Prior service benefits into Other income (expense) | (4 | ) | | (4 | ) | | (11 | ) | | (11 | ) | Tax expense | (1 | ) | | (3 | ) | | (7 | ) | | (7 | ) | Other comprehensive income, net of tax | 11 |
| | 13 |
| | 32 |
| | 39 |
| Balance at end of period | $ | (2,289 | ) | | $ | (2,176 | ) | | $ | (2,289 | ) | | $ | (2,176 | ) | Total Accumulated other comprehensive loss | $ | (2,759 | ) | | $ | (2,571 | ) | | $ | (2,759 | ) | | $ | (2,571 | ) |
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