QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||||||||
$0.01 | Par Value |
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company |
TABLE OF CONTENTS | |||||||||||
For the Quarter Ended July 1, 2023 | |||||||||||
PART I. FINANCIAL INFORMATION | Page No. | ||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II. OTHER INFORMATION | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
(In millions, except per share amounts) | Three Months Ended | Six Months Ended | |||||||||||||||||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||
Net sales from products | $ | $ | $ | $ | |||||||||||||||||||
Net sales from services | |||||||||||||||||||||||
Net sales | |||||||||||||||||||||||
Costs of products sales | |||||||||||||||||||||||
Costs of services sales | |||||||||||||||||||||||
Costs of sales | |||||||||||||||||||||||
Gross margin | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Research and development expenditures | |||||||||||||||||||||||
Other charges | |||||||||||||||||||||||
Operating earnings | |||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Gain on sales of investments and businesses, net | |||||||||||||||||||||||
Other, net | ( | ||||||||||||||||||||||
Total other expense | ( | ( | ( | ( | |||||||||||||||||||
Net earnings before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||
Less: Earnings attributable to non-controlling interests | |||||||||||||||||||||||
Net earnings attributable to Motorola Solutions, Inc. | $ | $ | $ | $ | |||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | |||||||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Less: Earnings attributable to non-controlling interests | |||||||||||||||||||||||
Comprehensive income attributable to Motorola Solutions, Inc. common shareholders | $ | $ | $ | $ |
(In millions, except par value) | July 1, 2023 | December 31, 2022 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Contract assets | |||||||||||
Inventories, net | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Operating lease assets | |||||||||||
Investments | |||||||||||
Deferred income taxes | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current portion of long-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Contract liabilities | |||||||||||
Accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Authorized shares: | |||||||||||
Issued shares: 7/1/23— | |||||||||||
Outstanding shares: 7/1/23— | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Motorola Solutions, Inc. stockholders’ equity | |||||||||||
Non-controlling interests | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
(In millions) | Shares | Common Stock and Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interests | ||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||
Issuance of common stock and stock options exercised | |||||||||||||||||||||||||||||
Share repurchase program | ( | ( | |||||||||||||||||||||||||||
Share-based compensation expenses | |||||||||||||||||||||||||||||
Dividends declared $ | ( | ||||||||||||||||||||||||||||
Dividends paid to non-controlling interest on subsidiary common stock | ( | ||||||||||||||||||||||||||||
Balance as of April 1, 2023 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||
Issuance of common stock and stock options exercised | |||||||||||||||||||||||||||||
Share repurchase program | ( | ( | |||||||||||||||||||||||||||
Share-based compensation expenses | |||||||||||||||||||||||||||||
Dividends declared $ | ( | ||||||||||||||||||||||||||||
Dividends paid to non-controlling interest on subsidiary common stock | ( | ||||||||||||||||||||||||||||
Balance as of July 1, 2023 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
(In millions) | Shares | Common Stock and Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interests | ||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||
Other comprehensive loss | ( | ||||||||||||||||||||||||||||
Issuance of common stock and stock options exercised | |||||||||||||||||||||||||||||
Share repurchase program | ( | ( | |||||||||||||||||||||||||||
Share-based compensation expenses | |||||||||||||||||||||||||||||
Dividends declared $ | ( | ||||||||||||||||||||||||||||
( | |||||||||||||||||||||||||||||
Balance as of April 2, 2022 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||
Other comprehensive loss | ( | ||||||||||||||||||||||||||||
Issuance of common stock and stock options exercised | |||||||||||||||||||||||||||||
Share repurchase program | ( | ( | |||||||||||||||||||||||||||
Share-based compensation expenses | |||||||||||||||||||||||||||||
Dividends declared | ( | ||||||||||||||||||||||||||||
Dividends paid to non-controlling interest on subsidiary common stock | ( | ||||||||||||||||||||||||||||
Balance as of July 2, 2022 | $ | $ | ( | $ | $ | ||||||||||||||||||||||||
Six Months Ended | |||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | |||||||||
Operating | |||||||||||
Net earnings | $ | $ | |||||||||
Adjustments to reconcile Net earnings to Net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Non-cash other charges (income) | ( | ||||||||||
Share-based compensation expenses | |||||||||||
Gain on sales of investments and businesses, net | ( | ( | |||||||||
Loss from the extinguishment of long-term debt | |||||||||||
Changes in assets and liabilities, net of effects of acquisitions, dispositions, and foreign currency translation adjustments: | |||||||||||
Accounts receivable | |||||||||||
Inventories | ( | ||||||||||
Other current assets and contract assets | ( | ( | |||||||||
Accounts payable, accrued liabilities and contract liabilities | ( | ( | |||||||||
Other assets and liabilities | ( | ( | |||||||||
Deferred income taxes | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Investing | |||||||||||
Acquisitions and investments, net | ( | ( | |||||||||
Proceeds from sales of investments and businesses, net | |||||||||||
Capital expenditures | ( | ( | |||||||||
Net cash used for investing activities | ( | ( | |||||||||
Financing | |||||||||||
Net proceeds from issuance of debt | |||||||||||
Repayments of debt | ( | ( | |||||||||
Issuances of common stock | |||||||||||
Purchases of common stock | ( | ( | |||||||||
Payments of dividends | ( | ( | |||||||||
Payments of dividends to non-controlling interests | ( | ( | |||||||||
Net cash used for financing activities | ( | ( | |||||||||
Effect of exchange rate changes on total cash and cash equivalents | ( | ||||||||||
Net decrease in total cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Supplemental Cash Flow Information | |||||||||||
Cash paid during the period for: | |||||||||||
Interest paid | $ | $ | |||||||||
Income and withholding taxes, net of refunds | $ | $ |
INDEX FOR NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||||||||
Page No. | ||||||||
Note 1 | ||||||||
Note 2 | ||||||||
Note 3 | ||||||||
Note 4 | ||||||||
Note 5 | ||||||||
Note 6 | ||||||||
Note 7 | ||||||||
Note 8 | ||||||||
Note 9 | ||||||||
Note 10 | ||||||||
Note 11 | ||||||||
Note 12 | ||||||||
Note 13 | ||||||||
Note 14 | ||||||||
Note 15 | ||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||||||||||||||
(In millions) | Products and Systems Integration | Software and Services | Total | Products and Systems Integration | Software and Services | Total | |||||||||||||||||||||||||||||
Regions: | |||||||||||||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
International | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Major Products and Services: | |||||||||||||||||||||||||||||||||||
LMR Communications | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Video | |||||||||||||||||||||||||||||||||||
Command Center | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Customer Types: | |||||||||||||||||||||||||||||||||||
Direct | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Indirect | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Six Months Ended | |||||||||||||||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||||||||||||||
(In millions) | Products and Systems Integration | Software and Services | Total | Products and Systems Integration | Software and Services | Total | |||||||||||||||||||||||||||||
Regions: | |||||||||||||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
International | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Major Products and Services: | |||||||||||||||||||||||||||||||||||
LMR Communications | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Video | |||||||||||||||||||||||||||||||||||
Command Center | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Customer Types: | |||||||||||||||||||||||||||||||||||
Direct | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Indirect | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
(In millions) | July 1, 2023 | December 31, 2022 | |||||||||
Accounts receivable, net | $ | $ | |||||||||
Contract assets | |||||||||||
Contract liabilities | |||||||||||
Non-current contract liabilities |
(In millions) | July 1, 2023 | December 31, 2022 | |||||||||
Current contract cost assets | $ | $ | |||||||||
Non-current contract cost assets |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in millions) | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | |||||||||||||||||||
Lease expense: | |||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Finance lease cost | |||||||||||||||||||||||
Amortization of right-of-use assets | $ | $ | $ | $ | |||||||||||||||||||
Short-term lease cost | $ | $ | $ | $ | |||||||||||||||||||
Variable cost | |||||||||||||||||||||||
Sublease income | ( | ( | ( | ( | |||||||||||||||||||
Net lease expense | $ | $ | $ | $ |
(in millions) | Statement Line Classification | July 1, 2023 | December 31, 2022 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Operating lease assets | Operating lease assets | $ | $ | |||||||||||||||||
Finance lease assets | ||||||||||||||||||||
$ | $ | |||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Operating lease liabilities | $ | $ | ||||||||||||||||||
Finance lease liabilities | ||||||||||||||||||||
$ | $ | |||||||||||||||||||
Non-current liabilities: | ||||||||||||||||||||
Operating lease liabilities | Operating lease liabilities | $ | $ | |||||||||||||||||
Six Months Ended | |||||||||||
(in millions) | July 1, 2023 | July 2, 2022 | |||||||||
Supplemental cash flow information: | |||||||||||
Net cash used for operating activities related to operating leases | $ | $ | |||||||||
Net cash used for financing activities related to finance leases | |||||||||||
Assets obtained in exchange for lease liabilities: | |||||||||||
Operating leases | $ | $ | |||||||||
July 1, 2023 | December 31, 2022 | ||||||||||
Weighted average remaining lease terms (years): | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted average discount rate: | |||||||||||
Operating leases | % | % | |||||||||
Finance leases | % | % |
July 1, 2023 | |||||
(in millions) | Operating Leases | ||||
Remainder of 2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total lease payments | $ | ||||
Less: Interest | |||||
Present value of lease liabilities | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||
Other charges: | |||||||||||||||||||||||
Intangibles amortization (Note 15) | $ | $ | $ | $ | |||||||||||||||||||
Environmental reserve expense | |||||||||||||||||||||||
Reorganization of business (Note 14) | |||||||||||||||||||||||
Operating lease asset impairments | |||||||||||||||||||||||
Acquisition-related transaction fees | |||||||||||||||||||||||
Legal settlements | |||||||||||||||||||||||
Fixed asset impairments | |||||||||||||||||||||||
Gain on Hytera legal settlement | ( | ||||||||||||||||||||||
Other | ( | ||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||
Interest income (expense), net: | |||||||||||||||||||||||
Interest expense | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Interest income | |||||||||||||||||||||||
$ | ( | $ | ( | $ | ( | ( | |||||||||||||||||
Other, net: | |||||||||||||||||||||||
Net periodic pension and postretirement benefit (Note 8) | $ | $ | $ | $ | |||||||||||||||||||
Loss from the extinguishment of long-term debt (Note 5) | ( | ( | |||||||||||||||||||||
Investment impairments | ( | ( | ( | ||||||||||||||||||||
Foreign currency gain (loss) | ( | ( | |||||||||||||||||||||
Gain (loss) on derivative instruments (Note 6) | ( | ( | |||||||||||||||||||||
Gain (loss) on equity method investments | ( | ( | |||||||||||||||||||||
Fair value adjustments to equity investments | ( | ( | |||||||||||||||||||||
Gain on TETRA Ireland equity method investment | |||||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||
$ | $ | ( | $ | $ |
Amounts attributable to Motorola Solutions, Inc. common stockholders | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||
Basic earnings per common share: | |||||||||||||||||||||||
Earnings | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Per share amount | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per common share: | |||||||||||||||||||||||
Earnings | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Add effect of dilutive securities: | |||||||||||||||||||||||
Share-based awards | |||||||||||||||||||||||
Diluted weighted average common shares outstanding | |||||||||||||||||||||||
Per share amount | $ | $ | $ | $ |
July 1, 2023 | December 31, 2022 | ||||||||||
Accounts receivable | $ | $ | |||||||||
Less allowance for credit losses | ( | ( | |||||||||
$ | $ |
July 1, 2023 | December 31, 2022 | ||||||||||
Finished goods | $ | $ | |||||||||
Work-in-process and production materials | |||||||||||
Less inventory reserves | ( | ( | |||||||||
$ | $ |
July 1, 2023 | December 31, 2022 | ||||||||||
Current contract cost assets (Note 2) | $ | $ | |||||||||
Tax-related deposits | |||||||||||
Other | |||||||||||
$ | $ |
July 1, 2023 | December 31, 2022 | ||||||||||
Land | $ | $ | |||||||||
Leasehold improvements | |||||||||||
Machinery and equipment | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
$ | $ |
July 1, 2023 | December 31, 2022 | ||||||||||
Common stock | $ | $ | |||||||||
Strategic investments | |||||||||||
Company-owned life insurance policies | |||||||||||
Equity method investments | |||||||||||
$ | $ | ||||||||||
July 1, 2023 | December 31, 2022 | ||||||||||
Defined benefit plan assets | $ | $ | |||||||||
Non-current contract cost assets (Note 2) | |||||||||||
Other | |||||||||||
$ | $ |
July 1, 2023 | December 31, 2022 | ||||||||||
Compensation | $ | $ | |||||||||
Tax liabilities | |||||||||||
Dividend payable | |||||||||||
Trade liabilities | |||||||||||
Operating lease liabilities (Note 3) | |||||||||||
Customer reserves | |||||||||||
Other | |||||||||||
$ | $ |
July 1, 2023 | December 31, 2022 | ||||||||||
Defined benefit plans | $ | $ | |||||||||
Non-current contract liabilities (Note 2) | |||||||||||
Unrecognized tax benefits (Note 7) | |||||||||||
Deferred income taxes (Note 7) | |||||||||||
Environmental reserve | |||||||||||
Other | |||||||||||
$ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||
Foreign Currency Translation Adjustments: | |||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss) before reclassification adjustment | ( | ( | |||||||||||||||||||||
Tax benefit (expense) | ( | ( | |||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Defined Benefit Plans: | |||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income before reclassification adjustment | |||||||||||||||||||||||
Tax expense | ( | ( | |||||||||||||||||||||
Other comprehensive income before reclassification adjustment, net of tax | |||||||||||||||||||||||
Reclassification adjustment - Actuarial net losses into Other income (Note 8) | |||||||||||||||||||||||
Reclassification adjustment - Prior service benefits into Other income (Note 8) | ( | ( | |||||||||||||||||||||
Tax expense | ( | ( | ( | ( | |||||||||||||||||||
Reclassification adjustments into Net earnings, net of tax | |||||||||||||||||||||||
Other comprehensive income, net of tax | |||||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Total Accumulated other comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( |
Notional Amount | |||||||||||
Net Buy (Sell) by Currency | July 1, 2023 | December 31, 2022 | |||||||||
British pound | $ | $ | |||||||||
Euro | |||||||||||
Australian dollar | ( | ( | |||||||||
Chinese renminbi | ( | ( | |||||||||
Danish krone |
Fair Values of Derivative Instruments | |||||||||||
July 1, 2023 | Other Current Assets | Accrued Liabilities | |||||||||
Derivatives designated as hedging instruments: | |||||||||||
Foreign exchange contracts | $ | $ | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||
Foreign exchange contracts | |||||||||||
Total derivatives | $ | $ |
Fair Values of Derivative Instruments | |||||||||||
December 31, 2022 | Other Current Assets | Accrued Liabilities | |||||||||
Derivatives designated as hedging instruments: | |||||||||||
Foreign exchange contracts | $ | $ | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||
Foreign exchange contracts | |||||||||||
Total derivatives | $ | $ |
Financial Statement Location | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
Foreign Exchange Contracts | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||
Effective portion of derivatives designated | Accumulated other comprehensive gain (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||||
Forward points recognized | Other income (expense) | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Other income (expense) | ( | ( |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||
Net earnings before income taxes | $ | $ | $ | $ | |||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Effective tax rate | % | % | % | % |
U.S. Pension Benefit Plans | Non-U.S. Pension Benefit Plans | Postretirement Health Care Benefits Plan | |||||||||||||||||||||||||||||||||
Three Months Ended | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | |||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||
Unrecognized net loss | |||||||||||||||||||||||||||||||||||
Unrecognized prior service cost (benefit) | ( | ||||||||||||||||||||||||||||||||||
Net periodic pension cost (benefits) | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( |
U.S. Pension Benefit Plans | Non-U.S. Pension Benefit Plans | Postretirement Health Care Benefits Plan | |||||||||||||||||||||||||||||||||
Six Months Ended | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | |||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||
Unrecognized net loss | |||||||||||||||||||||||||||||||||||
Unrecognized prior service cost (benefit) | ( | ||||||||||||||||||||||||||||||||||
Net periodic pension cost (benefits) | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||
Share-based compensation expense included in: | |||||||||||||||||||||||
Costs of sales | $ | $ | $ | $ | |||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Research and development expenditures | |||||||||||||||||||||||
Share-based compensation expense included in Operating earnings | |||||||||||||||||||||||
Tax benefit | ( | ( | ( | ( | |||||||||||||||||||
Share-based compensation expense, net of tax | $ | $ | $ | $ | |||||||||||||||||||
Decrease in basic earnings per share | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Decrease in diluted earnings per share | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
July 1, 2023 | Level 1 | Level 2 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Foreign exchange derivative contracts | $ | $ | $ | ||||||||||||||
Common stock | |||||||||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange derivative contracts | $ | $ | $ | ||||||||||||||
December 31, 2022 | Level 1 | Level 2 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Foreign exchange derivative contracts | $ | $ | $ | ||||||||||||||
Common stock | |||||||||||||||||
Liabilities: | |||||||||||||||||
Foreign exchange derivative contracts | $ | $ | $ | ||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||
Contract-specific discounting facility | $ | $ | $ | $ | |||||||||||||||||||
Accounts receivable sales proceeds | |||||||||||||||||||||||
Long-term receivables sales proceeds | |||||||||||||||||||||||
Total proceeds from receivable sales | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||
Products and Systems Integration | $ | $ | $ | $ | |||||||||||||||||||
Software and Services | |||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||
Products and Systems Integration | $ | $ | $ | $ | |||||||||||||||||||
Software and Services | |||||||||||||||||||||||
Operating earnings | |||||||||||||||||||||||
Total other expense | ( | ( | ( | ( | |||||||||||||||||||
Earnings before income taxes | $ | $ | $ | $ |
July 1, 2023 | Three Months Ended | Six Months Ended | |||||||||
Products and Systems Integration | $ | $ | |||||||||
Software and Services | ( | ( | |||||||||
$ | $ |
January 1, 2023 | Additional Charges | Adjustments | Amount Used | July 1, 2023 | |||||||||||||||||||||||||
Employee separation costs | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
Exit costs | ( | ||||||||||||||||||||||||||||
$ | $ | $ | ( | $ | ( | $ |
July 2, 2022 | Three Months Ended | Six Months Ended | |||||||||
Products and Systems Integration | $ | $ | |||||||||
Software and Services | |||||||||||
$ | $ |
July 1, 2023 | December 31, 2022 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||
Developed technology | $ | $ | $ | $ | |||||||||||||||||||
Customer-related | |||||||||||||||||||||||
Other intangibles | |||||||||||||||||||||||
$ | $ | $ | $ |
July 1, 2023 | December 31, 2022 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||
Products and Systems Integration | $ | $ | $ | $ | |||||||||||||||||||
Software and Services | |||||||||||||||||||||||
$ | $ | $ | $ |
Products and Systems Integration | Software and Services | Total | |||||||||||||||
Balance as of January 1, 2023 | $ | $ | $ | ||||||||||||||
Goodwill acquired | |||||||||||||||||
Purchase accounting adjustments | ( | ( | ( | ||||||||||||||
Foreign currency | |||||||||||||||||
Balance as of July 1, 2023 | $ | $ | $ | ||||||||||||||
Technology | Segment | Acquisition | Description | Purchase Price | Date of Acquisition | ||||||||||||
Command Center | Software and Services | Rave Mobile Safety, Inc. | Provider of mass notification and incident management services. | $553 million and share-based compensation of $2 million | December 14, 2022 | ||||||||||||
LMR Communications | Products and Systems Integration | Futurecom Systems Group, ULC | Provider of radio coverage extension solutions. | $30 million | October 25, 2022 | ||||||||||||
LMR Communications | Products and Systems Integration | Barrett Communications Pty Ltd | Provider of specialized radio communications. | $18 million | August 8, 2022 | ||||||||||||
Video Security and Access Control | Products and Systems Integration | Videotec S.p.A. | Provider of ruggedized video security solutions. | $23 million and share-based compensation of $4 million | May 12, 2022 | ||||||||||||
Video Security and Access Control | Software and Services | Calipsa, Inc. | Provider of cloud-native advanced video analytics. | $39 million and share-based compensation of $4 million | April 19, 2022 | ||||||||||||
LMR Communications | Software and Services | TETRA Ireland Communications Limited | Provider of Ireland's National Digital Radio Service. | $120 million | March 23, 2022 | ||||||||||||
Video Security and Access Control | Products and Systems Integration Software and Services | Ava Security Limited | Provider of cloud-native video security and analytics. | $388 million and share-based awards and compensation of $7 million | March 3, 2022 | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | July 1, 2023 | % of Sales* | July 2, 2022 | % of Sales* | July 1, 2023 | % of Sales* | July 2, 2022 | % of Sales* | |||||||||||||||||||||||||||||||||||||||
Net sales from products | $ | 1,349 | $ | 1,212 | $ | 2,573 | $ | 2,258 | |||||||||||||||||||||||||||||||||||||||
Net sales from services | 1,054 | 928 | 2,001 | 1,774 | |||||||||||||||||||||||||||||||||||||||||||
Net sales | 2,403 | 2,140 | 4,574 | 4,032 | |||||||||||||||||||||||||||||||||||||||||||
Costs of products sales | 636 | 47.1 | % | 637 | 52.6 | % | 1,209 | 47.0 | % | 1,185 | 52.5 | % | |||||||||||||||||||||||||||||||||||
Costs of services sales | 578 | 54.8 | % | 513 | 55.3 | % | 1,130 | 56.5 | % | 1,001 | 56.4 | % | |||||||||||||||||||||||||||||||||||
Costs of sales | 1,214 | 1,150 | 2,339 | 2,186 | |||||||||||||||||||||||||||||||||||||||||||
Gross margin | 1,189 | 49.5 | % | 990 | 46.3 | % | 2,235 | 48.9 | % | 1,846 | 45.8 | % | |||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 390 | 16.2 | % | 356 | 16.6 | % | 757 | 16.6 | % | 692 | 17.2 | % | |||||||||||||||||||||||||||||||||||
Research and development expenditures | 215 | 8.9 | % | 191 | 8.9 | % | 426 | 9.3 | % | 380 | 9.4 | % | |||||||||||||||||||||||||||||||||||
Other charges | 66 | 2.7 | % | 85 | 4.0 | % | 135 | 3.0 | % | 177 | 4.4 | % | |||||||||||||||||||||||||||||||||||
Operating earnings | 518 | 21.6 | % | 358 | 16.7 | % | 917 | 20.0 | % | 597 | 14.8 | % | |||||||||||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | (57) | (2.4) | % | (56) | (2.6) | % | (111) | (2.4) | % | (112) | (2.8) | % | |||||||||||||||||||||||||||||||||||
Gains on sales of investments and businesses, net | — | — | % | — | — | % | 1 | — | % | 2 | — | % | |||||||||||||||||||||||||||||||||||
Other, net | 26 | 1.1 | % | (2) | (0.1) | % | 39 | 0.9 | % | 33 | 0.8 | % | |||||||||||||||||||||||||||||||||||
Total other expense | (31) | (1.3) | % | (58) | (2.7) | % | (71) | (1.6) | % | (77) | (1.9) | % | |||||||||||||||||||||||||||||||||||
Net earnings before income taxes | 487 | 20.3 | % | 300 | 14.0 | % | 846 | 18.5 | % | 520 | 12.9 | % | |||||||||||||||||||||||||||||||||||
Income tax expense | 114 | 4.7 | % | 71 | 3.3 | % | 194 | 4.2 | % | 23 | 0.6 | % | |||||||||||||||||||||||||||||||||||
Net earnings | 373 | 15.5 | % | 229 | 10.7 | % | 652 | 14.3 | % | 497 | 12.3 | % | |||||||||||||||||||||||||||||||||||
Less: Earnings attributable to non-controlling interests | 2 | 0.1 | % | 1 | — | % | 3 | 0.1 | % | 2 | — | % | |||||||||||||||||||||||||||||||||||
Net earnings attributable to Motorola Solutions, Inc. | $ | 371 | 15.4 | % | $ | 228 | 10.7 | % | $ | 649 | 14.2 | % | $ | 495 | 12.3 | % | |||||||||||||||||||||||||||||||
Earnings per diluted common share | $ | 2.15 | $ | 1.33 | $ | 3.76 | $ | 2.88 | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||||||||||||||
(In millions) | Products and Systems Integration | Software and Services | Total | Products and Systems Integration | Software and Services | Total | |||||||||||||||||||||||||||||
Net sales by region | |||||||||||||||||||||||||||||||||||
North America | $ | 1,025 | $ | 616 | $ | 1,641 | $ | 963 | $ | 521 | $ | 1,484 | |||||||||||||||||||||||
International | 412 | 350 | 762 | 322 | 334 | 656 | |||||||||||||||||||||||||||||
$ | 1,437 | $ | 966 | $ | 2,403 | $ | 1,285 | $ | 855 | $ | 2,140 | ||||||||||||||||||||||||
Net sales by major products and services | |||||||||||||||||||||||||||||||||||
LMR Communications | $ | 1,150 | $ | 626 | $ | 1,776 | $ | 1,038 | $ | 570 | $ | 1,608 | |||||||||||||||||||||||
Video | 287 | 146 | 433 | 247 | 123 | 370 | |||||||||||||||||||||||||||||
Command Center | — | 194 | 194 | — | 162 | 162 | |||||||||||||||||||||||||||||
Total | $ | 1,437 | $ | 966 | $ | 2,403 | $ | 1,285 | $ | 855 | $ | 2,140 | |||||||||||||||||||||||
Operating earnings | $ | 212 | $ | 306 | $ | 518 | $ | 118 | $ | 240 | $ | 358 | |||||||||||||||||||||||
Operating margins | 14.8 | % | 31.7 | % | 21.6 | % | 9.2 | % | 28.1 | % | 16.7 | % |
Three Months Ended | |||||||||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | % Change | ||||||||||||||
Gross margin | $ | 1,189 | $ | 990 | 20 | % |
Three Months Ended | |||||||||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | % Change | ||||||||||||||
Selling, general and administrative expenses | $ | 390 | $ | 356 | 10 | % |
Three Months Ended | |||||||||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | % Change | ||||||||||||||
Research and development expenditures | $ | 215 | $ | 191 | 13 | % |
Three Months Ended | |||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | |||||||||
Other charges | $ | 66 | $ | 85 |
Three Months Ended | |||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | |||||||||
Operating earnings from Products and Systems Integration | $ | 212 | $ | 118 | |||||||
Operating earnings from Software and Services | 306 | 240 | |||||||||
Operating earnings | $ | 518 | $ | 358 |
Three Months Ended | |||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | |||||||||
Interest expense, net | $ | (57) | $ | (56) |
Three Months Ended | |||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | |||||||||
Other, net | $ | 26 | $ | (2) |
Three Months Ended | |||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | |||||||||
Income tax expense | $ | 114 | $ | 71 |
Six Months Ended | |||||||||||||||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | ||||||||||||||||||||||||||||||||||
(In millions) | Products and Systems Integration | Software and Services | Total | Products and Systems Integration | Software and Services | Total | |||||||||||||||||||||||||||||
Net sales by region | |||||||||||||||||||||||||||||||||||
North America | $ | 1,975 | $ | 1,158 | $ | 3,133 | $ | 1,794 | $ | 994 | $ | 2,788 | |||||||||||||||||||||||
International | 765 | 676 | 1,441 | 594 | 650 | 1,244 | |||||||||||||||||||||||||||||
$ | 2,740 | $ | 1,834 | $ | 4,574 | $ | 2,388 | $ | 1,644 | $ | 4,032 | ||||||||||||||||||||||||
Net sales by major products and services | |||||||||||||||||||||||||||||||||||
LMR Communications | $ | 2,230 | $ | 1,203 | $ | 3,433 | $ | 1,947 | $ | 1,116 | $ | 3,063 | |||||||||||||||||||||||
Video | 510 | 282 | 792 | 441 | 236 | 677 | |||||||||||||||||||||||||||||
Command Center | — | 349 | 349 | — | 292 | 292 | |||||||||||||||||||||||||||||
Total | $ | 2,740 | $ | 1,834 | $ | 4,574 | $ | 2,388 | $ | 1,644 | $ | 4,032 | |||||||||||||||||||||||
Operating earnings | 388 | 529 | 917 | 157 | 440 | 597 | |||||||||||||||||||||||||||||
Operating margins | 14.2 | % | 28.8 | % | 20.0 | % | 6.6 | % | 26.8 | % | 14.8 | % |
Six Months Ended | |||||||||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | % Change | ||||||||||||||
Gross margin | $ | 2,235 | $ | 1,846 | 21 | % |
Six Months Ended | |||||||||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | % Change | ||||||||||||||
Selling, general and administrative expenses | $ | 757 | $ | 692 | 9 | % |
Six Months Ended | |||||||||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | % Change | ||||||||||||||
Research and development expenditures | $ | 426 | $ | 380 | 12 | % |
Six Months Ended | |||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | |||||||||
Other charges | $ | 135 | $ | 177 |
Six Months Ended | |||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | |||||||||
Operating earnings from Products and Systems Integration | $ | 388 | $ | 157 | |||||||
Operating earnings from Software and Services | 529 | 440 | |||||||||
Operating earnings | $ | 917 | $ | 597 |
Six Months Ended | |||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | |||||||||
Interest expense, net | $ | (111) | $ | (112) |
Six Months Ended | |||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | |||||||||
Other, net | $ | 39 | $ | 33 |
Six Months Ended | |||||||||||
(In millions) | July 1, 2023 | July 2, 2022 | |||||||||
Income tax expense | $ | 194 | $ | 23 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||
Products and Systems Integration | $ | 6 | $ | 6 | $ | 17 | $ | 14 | |||||||||||||||
Software and Services | (3) | 1 | (1) | 3 | |||||||||||||||||||
$ | 3 | $ | 7 | $ | 16 | $ | 17 |
Six Months Ended | |||||||||||
July 1, 2023 | July 2, 2022 | ||||||||||
Cash flows provided by (used for): | |||||||||||
Operating activities | $ | 85 | $ | 162 | |||||||
Investing activities | (111) | (673) | |||||||||
Financing activities | (629) | (564) | |||||||||
Effect of exchange rates on cash and cash equivalents | 40 | (82) | |||||||||
Increase (decrease) in cash and cash equivalents | $ | (615) | $ | (1,157) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 1, 2023 | July 2, 2022 | July 1, 2023 | July 2, 2022 | ||||||||||||||||||||
Contract-specific discounting facility | $ | — | $ | — | $ | — | $ | 49 | |||||||||||||||
Accounts receivable sales proceeds | — | 40 | $ | — | $ | 62 | |||||||||||||||||
Long-term receivables sales proceeds | 26 | 5 | 58 | 22 | |||||||||||||||||||
Total proceeds from receivable sales | $ | 26 | $ | 45 | $ | 58 | $ | 133 | |||||||||||||||
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid per Share (1) | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Program (2) | (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Program(2) | |||||||||||||||||||
03/30/2023 to 04/26/2023 | — | $ | — | — | $ | 1,144,967,204 | |||||||||||||||||
04/27/2023 to 05/24/2023 | 259,123 | $ | 288.39 | 259,123 | $ | 1,070,239,264 | |||||||||||||||||
05/25/2023 to 06/28/2023 | 532,341 | $ | 280.96 | 532,341 | $ | 920,671,906 | |||||||||||||||||
Total | 791,464 | $ | 283.39 | 791,464 |
Exhibit No. | Exhibit | |||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Scheme Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
* | Filed herewith | ||||
** | Furnished herewith | ||||
MOTOROLA, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners. ©2023 Motorola Solutions, Inc. All rights reserved. |
MOTOROLA SOLUTIONS, INC. | |||||||||||
By: | /S/ KATHERINE MAHER | ||||||||||
Katherine Maher Corporate Vice President and Chief Accounting Officer (Principal Accounting Officer & Duly Authorized Officer) |
/s/ GREGORY Q. BROWN | |||||
Gregory Q. Brown | |||||
Chairman and Chief Executive Officer | |||||
Motorola Solutions, Inc. |
/s/ JASON J. WINKLER | |||||
Jason J. Winkler | |||||
Executive Vice President and Chief Financial Officer | |||||
Motorola Solutions, Inc. |
/s/ GREGORY Q. BROWN | |||||
Gregory Q. Brown | |||||
Chairman and Chief Executive Officer | |||||
Motorola Solutions, Inc. |
/s/ JASON J. WINKLER | |||||
Jason J. Winkler | |||||
Executive Vice President and Chief Financial Officer | |||||
Motorola Solutions, Inc. |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Net sales | $ 2,403 | $ 2,140 | $ 4,574 | $ 4,032 |
Costs of sales | 1,214 | 1,150 | 2,339 | 2,186 |
Gross margin | 1,189 | 990 | 2,235 | 1,846 |
Selling, general and administrative expenses | 390 | 356 | 757 | 692 |
Research and development expenditures | 215 | 191 | 426 | 380 |
Other charges | 66 | 85 | 135 | 177 |
Operating earnings | 518 | 358 | 917 | 597 |
Other income (expense): | ||||
Interest expense, net | (57) | (56) | (111) | (112) |
Gain on sales of investments and businesses, net | 0 | 0 | 1 | 2 |
Other, net | 26 | (2) | 39 | 33 |
Total other expense | (31) | (58) | (71) | (77) |
Net earnings before income taxes | 487 | 300 | 846 | 520 |
Income tax expense | 114 | 71 | 194 | 23 |
Net earnings | 373 | 229 | 652 | 497 |
Less: Earnings attributable to non-controlling interests | 2 | 1 | 3 | 2 |
Net earnings attributable to Motorola Solutions, Inc. | $ 371 | $ 228 | $ 649 | $ 495 |
Earnings per common share: | ||||
Basic (in USD per share) | $ 2.21 | $ 1.36 | $ 3.88 | $ 2.95 |
Diluted (in USD per share) | $ 2.15 | $ 1.33 | $ 3.76 | $ 2.88 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 167.5 | 167.2 | 167.4 | 167.6 |
Diluted (in shares) | 172.6 | 170.9 | 172.5 | 172.0 |
Products | ||||
Net sales | $ 1,349 | $ 1,212 | $ 2,573 | $ 2,258 |
Costs of sales | 636 | 637 | 1,209 | 1,185 |
Services | ||||
Net sales | 1,054 | 928 | 2,001 | 1,774 |
Costs of sales | $ 578 | $ 513 | $ 1,130 | $ 1,001 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 373 | $ 229 | $ 652 | $ 497 |
Foreign currency translation adjustments | 27 | (135) | 63 | (155) |
Defined benefit plans | 13 | 28 | 25 | 43 |
Total other comprehensive income (loss), net of tax | 40 | (107) | 88 | (112) |
Comprehensive income | 413 | 122 | 740 | 385 |
Less: Earnings attributable to non-controlling interests | 2 | 1 | 3 | 2 |
Comprehensive income attributable to Motorola Solutions, Inc. common shareholders | $ 411 | $ 121 | $ 737 | $ 383 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Jul. 01, 2023 |
Dec. 31, 2022 |
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Stockholders’ Equity | ||
Preferred stock par value (in USD per share) | $ 100 | $ 100 |
Preferred stock authorized (in shares) | 500,000 | 500,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 600,000,000.0 | 600,000,000.0 |
Common stock issued (in shares) | 168,300,000 | 168,500,000 |
Common stock outstanding (in shares) | 167,100,000 | 167,500,000 |
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |||
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Jul. 01, 2023 |
Apr. 01, 2023 |
Jul. 02, 2022 |
Apr. 02, 2022 |
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Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per share (in USD per share) | $ 0.88 | $ 0.88 | $ 0.79 |
Basis of Presentation |
6 Months Ended |
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Jul. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements as of July 1, 2023 and for the three and six months ended July 1, 2023 and July 2, 2022 include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to state fairly the Condensed Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income, Statements of Stockholders' Equity, and Statements of Cash Flows of Motorola Solutions, Inc. (“Motorola Solutions” or the “Company”) for all periods presented. The Company operates on a 52-week fiscal year, with each fiscal year ending on December 31. With respect to each fiscal quarter, the Company operates on a 13-week fiscal quarter, with all fiscal quarters ending on a Saturday. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2022 (the "Form 10-K"). The results of operations for the three and six months ended July 1, 2023 are not necessarily indicative of the operating results to be expected for the full year. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Business Overview The Company reports net sales in the following three major products and services (which the Company refers to as “technologies” in this Quarterly Report on Form 10-Q (this “Form 10-Q”)): Land Mobile Radio Communications (“LMR” or “LMR Communications”), Video Security and Access Control ("Video"), and Command Center. •LMR Communications: Infrastructure, devices (two-way radio and broadband, including both for public safety and Professional Commercial Radio ("PCR")) and software that enable communications, inclusive of installation and integration, backed by services, to assure availability, security and resiliency. •Video: Cameras (fixed, body-worn, in-vehicle), access control, infrastructure, video management, software and artificial intelligence ("AI")-enabled analytics that enable visibility “on scene” and bring attention to what’s important. •Command Center: Software suite that enables collaboration and shares information throughout the public safety workflow from "911 call to case closure." Recent Acquisitions On December 14, 2022, the Company acquired Rave Mobile Safety, Inc. ("Rave Mobile"), a leader in mass notification and incident management, for $553 million, net of cash acquired. In addition, the Company issued restricted stock at a fair value of $2 million to certain key employees that will be expensed over a service period of two years. This acquisition complements the Company's portfolio with a platform specifically designed to help organizations and public safety agencies communicate and collaborate during emergencies. The business is a part of the Software and Services segment. On October 25, 2022, the Company acquired Futurecom Systems Group, ULC ("Futurecom"), a leading provider of radio coverage extension solutions for public safety agencies, for $30 million, net of cash acquired. Futurecom designs and manufactures radio frequency repeaters. This acquisition further expands the Company's radio network and device portfolios. The business is a part the Products and Systems Integration segment. On August 8, 2022, the Company acquired Barrett Communications Pty Ltd ("Barrett Communications"), a global provider of specialized radio communications, for $18 million, net of cash acquired. This acquisition complements the Company's existing radio portfolio, allowing the Company to use high frequency and very high frequency radio communications to support mission-critical operations. The business is a part of the Products and Systems Integration segment. On May 12, 2022, the Company acquired Videotec S.p.A. ("Videotec"), a global provider of ruggedized video security solutions, for $23 million, net of cash acquired. In addition, the Company issued restricted stock at a fair value of $4 million to certain key employees that will be expensed over a service period of one year. This acquisition extends the Company's breadth of high-performance video products, reinforcing the Company's strategy to be a global leader in video security solutions. The business is a part of the Products and Systems Integration segment. On April 19, 2022, the Company acquired Calipsa, Inc. ("Calipsa"), a technology leader in cloud-native advanced video analytics, for $39 million, net of cash acquired. In addition, the Company issued restricted stock at a fair value of $4 million to certain key employees that will be expensed over a service period of two years. This acquisition extends the Company's intelligent analytics across video security solutions and supports the accelerating trend of enterprises using cloud technologies to enhance safety and security. The business is a part of the Software and Services segment. On March 23, 2022, the Company acquired TETRA Ireland Communications Limited ("TETRA Ireland"), the provider of Ireland's National Digital Radio Service, for $120 million, net of cash acquired. The Company was an initial shareholder of TETRA Ireland and acquired the remaining interest in the entity from the other shareholders. This acquisition expands the Company's portfolio of delivering mission-critical voice and data communications solutions to first responders and frontline workers. The business is part of the Software and Services segment. On March 3, 2022, the Company acquired Ava Security Limited ("Ava"), a global provider of cloud-native video security and analytics, for $388 million, net of cash acquired. In addition, the Company issued restricted stock and restricted stock units at a fair value of $7 million to certain key employees that will be expensed over an average service period of two years. This acquisition expands the Company's portfolio of intelligent video solutions that help to enhance safety and streamline operations. The business is a part of both the Products and Systems Integration segment and the Software and Services segment. Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2022-04, “Liabilities—Supplier Finance Programs" (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which requires disclosures to enhance transparency about an entity’s use of supplier finance programs. The amendments require a buyer that uses supplier finance programs to disclose the program’s key terms, outstanding confirmed amounts as of the end of the period, a rollforward of such amounts during each annual period and a description of where in the financial statements outstanding amounts are presented. Only the amount outstanding at the end of the period must be disclosed in interim periods. The Company adopted ASU 2022-04 on January 1, 2023. Refer to Note 4, "Other Financial Data" to our condensed consolidated financial statements included in this Part I, Item 1 of this Form 10-Q for the related disclosures.
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Revenue from Contracts with Customers |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue The following table summarizes the disaggregation of the Company's revenue by segment, region, major products and services and customer type for the three and six months ended July 1, 2023 and July 2, 2022, consistent with the information reviewed by the Company's chief operating decision maker for evaluating the financial performance of the Company's reportable segments:
Remaining Performance Obligations Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations that are unsatisfied, or partially unsatisfied, as of the end of a period. The transaction values associated with remaining performance obligations which were not yet satisfied as of July 1, 2023 was $9.4 billion. A total of $4.8 billion was from Products and Systems Integration performance obligations that were not yet satisfied as of July 1, 2023, of which $3.0 billion is expected to be recognized in the next twelve months. The remaining amounts will generally be satisfied over time as systems are implemented. Remaining performance obligations from the Products and Systems Integration segment are equal to disclosed backlog for the segment. A total of $4.6 billion was from Software and Services performance obligations that were not yet satisfied as of July 1, 2023. The determination of Software and Services performance obligations that are not satisfied takes into account a contract term that may be limited by the customer’s ability to terminate for convenience. Where termination for convenience exists in the Company's service contracts, its disclosure of the remaining performance obligations that are unsatisfied assumes the contract term is limited until renewal. As a result, remaining performance obligations from the Software and Services segment may be less than disclosed backlog in the Software and Services segment due to multi-year service contracts with termination for convenience clauses. The Company expects to recognize $1.6 billion from unsatisfied Software and Services performance obligations over the next twelve months, with the remaining performance obligations generally to be recognized over time as services are performed and software is implemented. Contract Balances
Revenue recognized during the three months ended July 1, 2023 which was previously included in Contract liabilities as of April 1, 2023 was $502 million, compared to $456 million of revenue recognized during the three months ended July 2, 2022 which was previously included in Contract liabilities as of April 2, 2022. Revenue recognized during the six months ended July 1, 2023 which was previously included in Contract liabilities as of December 31, 2022 was $824 million, compared to $712 million recognized during the six months ended July 2, 2022 which was previously included in Contract liabilities as of December 31, 2021. The Company reversed $10 million of revenue during the three months ended July 1, 2023 related to performance obligations satisfied, or partially satisfied, in previous periods, compared to no reversals for the three months ended July 2, 2022, primarily driven by changes in the estimates of progress on system contracts. Revenue of $15 million was reversed during the six months ended July 1, 2023 related to performance obligations satisfied or partially satisfied, in previous periods, primarily driven by changes in the estimates of progress on system contracts, compared to $22 million of reversals for the six months ended July 2, 2022. There were no material expected credit losses recorded on contract assets during each of the three and six months ended July 1, 2023 and July 2, 2022. Contract Cost Balances
Amortization of non-current contract cost assets was $16 million and $35 million for the three and six months ended July 1, 2023, respectively, and $13 million and $26 million for the three and six months ended July 2, 2022, respectively.
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Leases |
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Leases | Leases Components of Lease Expense
Lease Assets and Liabilities
Other Information Related to Leases
Assets obtained in exchange for lease liabilities for the six months ended July 1, 2023 included $20 million of additional leases due to a renewal of a large managed services contract. Assets obtained in exchange for lease liabilities for the six months ended July 2, 2022 included $34 million of additional leases acquired in connection with the Company's acquisition of TETRA Ireland.
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Leases | Leases Components of Lease Expense
Lease Assets and Liabilities
Other Information Related to Leases
Assets obtained in exchange for lease liabilities for the six months ended July 1, 2023 included $20 million of additional leases due to a renewal of a large managed services contract. Assets obtained in exchange for lease liabilities for the six months ended July 2, 2022 included $34 million of additional leases acquired in connection with the Company's acquisition of TETRA Ireland.
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Other Financial Data |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Financial Data | Other Financial Data Statements of Operations Information Other Charges Other charges (income) included in Operating earnings consist of the following:
During the three months ended July 1, 2023, the Company revised the estimate for its liability related to ongoing remediation efforts of environmental media such as groundwater, soil, and soil vapor, as well as related legal fees for a designated Superfund site under the Comprehensive Environmental Response, Compensation and Liability Act (commonly known as the "Superfund Act") incurred by a legacy business. It is the Company's policy to re-evaluate the reserve when certain events become known that will impact the future cash payments. During three months ended July 1, 2023, the Company became aware of incremental costs required in its remediation of the Superfund site. As such, the Company recorded a charge of $15 million, increasing the reserve balance to $127 million. The Company discounted the cash flows used in estimating this accrual using a risk-free treasury rate. The current portion of the estimated environmental liability is $4 million and is included in the Accrued liabilities statement line and the non-current portion is included in the "Other liabilities" statement line within the Company's Condensed Consolidated Balance Sheet. Other Income (Expense) Interest expense, net, and Other, net, both included in Other income (expense), consist of the following:
Earnings Per Common Share The computation of basic and diluted earnings per common share is as follows:
In the computation of diluted earnings per common share for the three months ended July 1, 2023, 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 July 1, 2023, the assumed exercise of 0.3 million options, inclusive of 0.2 million options subject to market based contingent option agreements, were excluded because their inclusion would have been antidilutive. In the computation of diluted earnings per common share for the three months ended July 2, 2022, the assumed exercise of 0.2 million options, inclusive of 0.1 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 July 2, 2022, the assumed exercise of 0.2 million options were excluded because their inclusion would have been antidilutive. As of July 1, 2023, the Company had $1.0 billion of the Senior Convertible Notes outstanding, which mature on September 15, 2024. The notes are convertible based on a conversion rate of 4.9670 per $1,000 principal amount (which is equal to a conversion price of $201.33 per share), adjusted for dividends declared through the date of settlement. The notes became fully convertible as of September 5, 2021, when the average stock price exceeded the contractual conversion price, providing the holders the option to convert all or any portion of their Senior Convertible Notes. In November 2021, the Company's Board of Directors approved an irrevocable determination requiring the future settlement of the principal amount of the Senior Convertible Notes to be settled in cash. Because the Company has irrevocably decided to settle the principal amount of the Senior Convertible Notes in cash, the Company did not reflect any shares underlying the Senior Convertible Notes in its diluted weighted average shares outstanding until the average stock price per share for the period exceeded the conversion price, which first occurred for the quarter ended October 2, 2021. Upon conversion of the Senior Convertible Notes, the Company has the option to settle the conversion spread in cash or shares. The Company included the number of shares that would be issuable upon conversion in the Company’s computation of diluted earnings per share, based on the amount by which the average stock price exceeded the conversion price for the period ended July 1, 2023. The value by which the Senior Convertible Notes exceeded their principal amount if converted as of July 1, 2023 was $402 million. Balance Sheet Information Accounts Receivable, Net Accounts receivable, net, consists of the following:
Inventories, Net Inventories, net, consist of the following:
Other Current Assets Other current assets consist of the following:
Property, Plant and Equipment, Net Property, plant and equipment, net, consist of the following:
Depreciation expense for the three months ended July 1, 2023 and July 2, 2022 was $44 million and $47 million, respectively. Depreciation expense for the six months ended July 1, 2023 and July 2, 2022 was $87 million and $92 million, respectively. Investments Investments consist of the following:
During the six months ended July 1, 2023, the Company recognized a gain of $17 million in Other income (expense) within the Condensed Consolidated Statement of Operations related to an increase in the fair value of its investment in Evolv Technologies, Inc. During the six months ended July 1, 2023, the Company recorded a $9 million investment impairment charge, representing an other-than-temporary decline in the value of the Company's strategic equity investment portfolio. The investment impairment charge is classified within Other income (expense) within the Condensed Consolidated Statement of Operations. Other Assets Other assets consist of the following:
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 our 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 $32 million and $37 million as of July 1, 2023 and December 31, 2022, respectively. Supplier finance program obligations are classified as Accounts payable within the Condensed Consolidated Balance Sheets. Accrued Liabilities Accrued liabilities consist of the following:
Other Liabilities Other liabilities consist of the following:
Stockholders’ Equity Share Repurchase Program: During the three and six months ended July 1, 2023, the Company paid an aggregate of $224 million and $364 million, including transaction costs, to repurchase approximately 0.8 million and 1.3 million shares at an average price of $283.39 and $274.66 per share, respectively. As of July 1, 2023, the Company had $921 million of authority available for future repurchases. Payment of Dividends: During the three months ended July 1, 2023 and July 2, 2022, the Company paid $148 million and $132 million, respectively, in cash dividends to holders of its common stock. During the six months ended July 1, 2023 and July 2, 2022, the Company paid $296 million and $266 million, respectively, in cash dividends to holders of its common stock. Subsequent to the quarter, the Company paid an additional $147 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 and six months ended July 1, 2023 and July 2, 2022:
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Debt and Credit Facilities |
6 Months Ended |
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Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Debt and Credit Facilities As of July 1, 2023, the Company had a $2.25 billion syndicated, unsecured revolving credit facility scheduled to mature in March 2026 (the "2021 Motorola Solutions Credit Agreement"). The 2021 Motorola Solutions Credit Agreement includes a letter of credit sub-limit and fronting commitments of $450 million. Borrowings under the facility bear interest at the prime rate plus the applicable margin, or at a spread above the Secured Overnight Financing Rate ("SOFR"), at the Company's option. An annual facility fee is payable on the undrawn amount of the credit line. The interest rate and facility fee are subject to adjustment if the Company's credit rating changes. The Company must comply with certain customary covenants including a maximum leverage ratio, as defined in the 2021 Motorola Solutions Credit Agreement. The Company was in compliance with its financial covenants as of July 1, 2023. On February 8, 2023, the Company entered into an amendment to the 2021 Motorola Solutions Credit Agreement to replace the interest rate benchmark from London Interbank Offered Rate (LIBOR) to SOFR. The Company has an unsecured commercial paper program, backed by the 2021 Motorola Solutions Credit Agreement, under which the Company may issue unsecured commercial paper notes up to a maximum aggregate principal amount of $2.2 billion outstanding at any one time. Proceeds from the issuances of the notes are expected to be used for general corporate purposes. The notes are issued at a zero-coupon rate and are issued at a discount which reflects the interest component. At maturity, the notes are paid back in full including the interest component. The notes are not redeemable prior to maturity. As of July 1, 2023 the Company had no outstanding debt under the commercial paper program.
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Risk Management |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Management | Risk Management Foreign Currency Risk The Company had outstanding foreign exchange contracts with notional amounts totaling $1.2 billion and $1.1 billion for periods ended July 1, 2023 and December 31, 2022, respectively. The Company does not believe these financial instruments should subject it to undue risk due to foreign exchange movements because gains and losses on these contracts should generally offset gains and losses on the underlying assets, liabilities and transactions. The following table shows the five largest net notional amounts of the positions to buy or sell foreign currency as of July 1, 2023, and the corresponding positions as of December 31, 2022:
Counterparty Risk The use of derivative financial instruments exposes the Company to counterparty credit risk in the event of non-performance by counterparties. However, the Company’s risk is limited to the fair value of the instruments when the derivative is in an asset position. The Company actively monitors its exposure to credit risk. As of July 1, 2023, all of the counterparties had investment grade credit ratings. As of July 1, 2023, the Company had $6 million of exposure to aggregate credit risk with all counterparties. The following tables summarize the fair values and locations in the Condensed Consolidated Balance Sheets of all derivative financial instruments held by the Company as of July 1, 2023 and December 31, 2022:
The following table summarizes the effect of derivatives on the Company's condensed consolidated financial statements for the three and six months ended July 1, 2023 and July 2, 2022:
Net Investment Hedges The Company uses foreign exchange forward contracts to hedge against the effect of the British pound and the Euro exchange rate fluctuations against the U.S. dollar on a portion of its net investments in certain European operations. The Company recognizes changes in the fair value of the net investment hedges as a component of foreign currency translation adjustments within other comprehensive income to offset a portion of the change in translated value of the net investments being hedged, until the investments are sold or liquidated. As of July 1, 2023, the Company had €100 million of net investment hedges in certain Euro functional subsidiaries and £55 million of net investment hedges in a British pound functional subsidiary. The Company excludes the difference between the spot rate and the forward rate of the forward contract from its assessment of hedge effectiveness. The effect of the excluded components will be amortized on a straight line basis and recognized through interest expense. During the six months ended July 1, 2023 and July 2, 2022, the Company amortized $1 million of income from the excluded components through interest expense.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes At the end of each interim reporting period, the Company makes an estimate of its annual effective income tax rate. Tax expense in interim periods is calculated at the estimated annual effective tax rate plus or minus the tax effects of items of income and expense that are discrete to the period. The estimate used in providing for income taxes on a year-to-date basis may change in subsequent interim periods. The following table provides details of income taxes:
The effective tax rate for the three months ended July 1, 2023 of 23% and the effective tax rate for the six months ended July 1, 2023 of 23% were higher than the U.S. federal statutory tax rate of 21% primarily due to state tax expense, offset by excess tax benefits of share-based compensation. The effective tax rate for the three months ended July 2, 2022 of 24% was higher than the U.S. federal statutory tax rate of 21% primarily due to state tax expense. The effective tax rate for the six months ended July 2, 2022 of 4% was lower than the U.S. federal statutory tax rate of 21% primarily due to a net deferred tax benefit as a result of an intra-group transfer of certain IP rights, higher excess tax benefits of share-based compensation, and a higher foreign derived intangible income deduction in 2022. The effective tax rate for the three months ended July 1, 2023 of 23% was lower than the effective tax rate for the three months ended July 2, 2022 of 24%, primarily due to higher excess tax benefits of share-based compensation in 2023. The effective tax rate for the six months ended July 1, 2023 of 23% was higher than the effective tax rate for the six months ended July 2, 2022 of 4%, primarily due to a net deferred tax benefit as a result of an intra-group transfer of certain IP rights, higher excess tax benefits of share-based compensation, and a higher foreign derived intangible income deduction in 2022.
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Retirement and Other Employee Benefits |
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement and Other Employee Benefits | Retirement and Other Employee Benefits Pension and Postretirement Health Care Benefits Plans The net periodic benefits for Pension and Postretirement Health Care Benefits Plans were as follows:
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Share-Based Compensation Plans |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation Plans | Share-Based Compensation Plans Compensation expense for the Company’s share-based plans was as follows:
During the six months ended July 1, 2023, the Company granted 0.6 million restricted stock units (RSUs) and 0.1 million performance stock units (PSUs) and 0.1 million market stock units (MSUs) with an aggregate grant-date fair value of $166 million, $19 million and $13 million, respectively, and 0.1 million stock options and 0.1 million performance options (POs) with an aggregate grant-date fair value of $7 million and $13 million, respectively. The share-based compensation expense will generally be recognized over the vesting period of three years.
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Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The fair values of the Company’s financial assets and liabilities by level in the fair value hierarchy as of July 1, 2023 and December 31, 2022 were as follows:
The Company had no foreign exchange derivative contracts or common stock investments in Level 3 holdings as of July 1, 2023 or December 31, 2022. At July 1, 2023 and December 31, 2022, the Company had $228 million and $490 million, respectively, of investments in money market government and U.S. treasury funds classified (Level 1) as Cash and cash equivalents in its Condensed Consolidated Balance Sheets. The money market funds had quoted market prices that are equivalent to par. Using quoted market prices and market interest rates, the fair value of the Company's long-term debt as of July 1, 2023 was $6.1 billion, of which the Senior Convertible Notes were $1.4 billion (Level 2). The fair value of long-term debt at December 31, 2022 was $5.9 billion, of which the Senior Convertible Notes were $1.3 billion (Level 2). All other financial instruments are carried at cost, which is not materially different from the instruments’ fair values.
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Sales of Receivables |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales of Receivables | Sales of Receivables Sales of Receivables The following table summarizes the proceeds received from sales of accounts receivable and long-term receivables for the three and six months ended July 1, 2023 and July 2, 2022:
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Commitments and Contingencies |
6 Months Ended |
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Jul. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters Hytera Litigation On March 14, 2017, the Company filed a complaint in the U.S. District Court for the Northern District of Illinois (the "Court") against Hytera Communications Corporation Limited of Shenzhen, China; Hytera America, Inc.; and Hytera Communications America (West), Inc. (collectively, "Hytera"), alleging trade secret theft and copyright infringement and seeking, among other things, injunctive relief, compensatory damages and punitive damages. On February 14, 2020, the Company announced that a jury in the Court decided in the Company's favor in its trade secret theft and copyright infringement case. In connection with this verdict, the jury awarded the Company $345.8 million in compensatory damages and $418.8 million in punitive damages, for a total of $764.6 million. In a series of post-trial rulings in 2021, the Court subsequently reduced the judgment to $543.7 million, but also ordered Hytera to pay the Company $51.1 million in pre-judgment interest and $2.6 million in costs, as well as $34.2 million in attorneys fees. The Company continues to seek collection of the judgment through the ongoing legal process. On December 17, 2020, the Court held that Hytera must pay the Company a forward-looking reasonable royalty on products that use the Company’s stolen trade secrets, and on December 15, 2021, set royalty rates for Hytera's sale of relevant products from July 1, 2019 forward. On July 5, 2022, the Court ordered that Hytera pay into a third-party escrow on July 31, 2022, the royalties owed to the Company based on the sale of relevant products from July 1, 2019 to June 30, 2022. Hytera failed to make the required royalty payment on July 31, 2022. On August 1, 2022, Hytera filed a motion to modify or stay the Court's previous July 5, 2022 royalty order. On August 3, 2022, the Company filed a motion seeking to hold Hytera in civil contempt for violating the royalty order by not making the required royalty payment on July 31, 2022. Hytera made quarterly royalty payments on October 31, 2022, January 31, 2023, April 25, 2023 and July 25, 2023 into a third-party escrow. The amounts paid into escrow were de minimis and will not be recognized until all contingencies are resolved and amounts are released from escrow. On July 11, 2023, the Court denied Hytera's modification and stay motions and stated that it will consider the Company's contempt motion on August 8, 2023, if Hytera has not yet made the deposit previously due on July 31, 2022, into the escrow account. The Court subsequently set the Company's contempt motion for hearing on August 17, 2023. On August 2, 2022, Hytera appealed the Court's judgment to the U.S. Court of Appeals for the Seventh Circuit (the "Court of Appeals"). The Company filed its cross-appeal on August 5, 2022. The parties have now submitted all briefs and responses on Hytera's appeal and the Company's cross-appeal. The Court of Appeals has not set an oral argument date yet. Hytera Bankruptcy Proceedings Separate from the Company's litigation with Hytera, on May 27, 2020, Hytera America, Inc. and Hytera Communications America (West), Inc. each filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Central District of California (the “Bankruptcy Court”). On February 11, 2022, the Court entered an order to confirm the liquidation plan for the two Hytera entities and the distributions were made on February 25, 2022 to the creditors, including a distribution of $13 million to the Company. On December 22, 2022, an additional distribution of $2 million was made to the Company as well as an assignment of various delinquent accounts receivable of the bankrupt Hytera entities. The gains for the two monetary distributions were recorded to Other charges (income) in the Company's Condensed Consolidated Statements of Operations.
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Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Net Sales by Segment
Operating Earnings by Segment
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Reorganization of Business |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reorganization of Business | Reorganization of Business 2023 Charges During the three months ended July 1, 2023, the Company recorded net reorganization of business charges of $3 million, including $5 million of charges in Other charges and $2 million of reversals recorded in Costs of sales in the Company's Condensed Consolidated Statements of Operations. Included in the $3 million were charges of $9 million related to employee separation costs, partially offset by $5 million of reversals for exit cost accruals no longer needed and $1 million of reversals for employee separation accruals no longer needed. During the six months ended July 1, 2023, the Company recorded net reorganization of business charges of $16 million, including $12 million of charges in Other charges and $4 million of charges in Costs of sales in the Company's Condensed Consolidated Statements of Operations. Included in the $16 million were charges of $24 million related to employee separation costs, partially offset by $5 million of reversals for exit cost accruals no longer needed and $3 million of reversals for employee separation accruals no longer needed. The following table displays the net charges incurred by segment:
Reorganization of Businesses Accruals
Exit Costs At January 1, 2023, the Company had an accrual of $10 million for exit costs, related to the Company's exit of the ESN contract with the Home Office in 2022. During the three months ended July 1, 2023, the Company recorded a $5 million reversal for accruals no longer needed. The $5 million of exit costs are recorded in Accrued liabilities in the Company's Condensed Consolidated Balance Sheets at July 1, 2023, and are expected to be paid within one year. Employee Separation Costs At January 1, 2023, the Company had an accrual of $26 million for employee separation costs. The 2023 additional charges of $24 million represent severance costs for approximately 440 employees. The adjustment of $3 million reflects reversals for accruals no longer needed. The $19 million used reflects cash payments to severed employees. The remaining accrual of $28 million, which is included in Accrued liabilities in the Company’s Condensed Consolidated Balance Sheets at July 1, 2023, is expected to be paid, primarily within one year, to approximately 550 employees, who have either been severed or have been notified of their severance and have begun or will begin receiving payments. 2022 Charges During the three months ended July 2, 2022, the Company recorded net reorganization of business charges of $7 million, including $5 million of charges in Other charges and $2 million of charges in Costs of sales in the Company's Condensed Consolidated Statements of Operations. Included in the $7 million were charges of $11 million related to employee separation costs, partially offset by $4 million of reversals for accruals no longer needed. During the six months ended July 2, 2022, the Company recorded net reorganization of business charges of $17 million, including $12 million of charges in Other charges and $5 million of charges in Costs of sales in the Company's Condensed Consolidated Statements of Operations. Included in the $17 million were charges of $24 million related to employee separation costs, partially offset by $7 million of reversals for accruals no longer needed. The following table displays the net charges incurred by segment:
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Intangible Assets and Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill On December 14, 2022, the Company acquired Rave Mobile, a leader in mass notification and incident management, for $553 million net of cash acquired. In addition, the Company issued restricted stock at a fair value of $2 million to certain key employees that will be expensed over a service period of two years. This acquisition complements the Company's portfolio with a platform specifically designed to help organizations and public safety agencies communicate and collaborate during emergencies. The Company recognized $405 million of goodwill, $212 million of identifiable intangible assets and $64 million of net liabilities. The goodwill is not deductible for tax purposes. The identifiable intangible assets were classified as $9 million of trade names, $82 million of developed technology and $121 million of customer relationships and will be amortized over a period of , seventeen years and seventeen years, respectively. The business is a part of the Software and Services segment. The purchase accounting is not yet complete and as such, the final allocation among income tax accounts, net liabilities and goodwill may be subject to change. On October 25, 2022, the Company acquired Futurecom, a leading provider of radio coverage extension solutions for public safety agencies, for $30 million, net of cash acquired. Futurecom designs and manufactures radio frequency repeaters. This acquisition further expands the Company's radio network and device portfolios. The Company recognized $11 million of goodwill, $11 million of identifiable intangible assets, and $8 million of net assets. The goodwill is not deductible for tax purposes. The identifiable intangible asset was classified as developed technology and will be amortized over a period of six years. The business is a part of the Products and Systems Integration segment. The purchase accounting is not yet complete and as such, the final allocation among income tax accounts, net assets and goodwill may be subject to change. On August 8, 2022, the Company acquired Barrett Communications, a global provider of specialized radio communications, for $18 million, net of cash acquired. This acquisition complements the Company's existing radio portfolio, allowing the Company to use high frequency and very high frequency radio communications to support mission-critical operations. The Company recognized $1 million of goodwill, $3 million of identifiable intangible assets, and $14 million of net assets. The identifiable intangible assets were classified as $1 million of trade names and $2 million of developed technology, both of which will be amortized over a period of seven years.The goodwill is not deductible for tax purposes. The business is part of the Products and Systems Integration segment. The purchase accounting is not yet complete and as such, the final allocation among income tax accounts, net assets and goodwill may be subject to change. On May 12, 2022, the Company acquired Videotec, a global provider of ruggedized video security solutions, for $23 million, net of cash acquired. In addition, the Company issued restricted stock at a fair value of $4 million to certain key employees that will be expensed over a service period of one year. This acquisition extends the Company's breadth of high-performance video products, reinforcing the Company's strategy to be a global leader in video security solutions. The Company recognized $9 million of goodwill, $7 million of identifiable intangible assets and $7 million of net assets. The goodwill is not deductible for tax purposes. The identifiable intangible asset was classified as developed technology and will be amortized over a period of four years. The business is part of the Products and Systems Integration segment. The purchase accounting was completed as of the second quarter of 2023. On April 19, 2022, the Company acquired Calipsa, a technology leader in cloud-native advanced video analytics, for $39 million, net of cash acquired. In addition, the Company issued restricted stock at a fair value of $4 million to certain key employees that will be expensed over a service period of two years. This acquisition extends the Company's intelligent analytics across video security solutions and supports the accelerating trend of enterprises using cloud technologies to enhance safety and security. The Company recognized $24 million of goodwill, $21 million of identifiable intangible assets and $6 million of net liabilities. The goodwill is not deductible for tax purposes. The identifiable intangible assets were classified as $20 million of developed technology and $1 million of customer relationships that will be amortized over a period of and three years, respectively. The business is a part of the Software and Services segment. The purchase accounting was completed as of the second quarter of 2023. On March 23, 2022, the Company acquired TETRA Ireland, the provider of Ireland's National Digital Radio Service, for $120 million, net of cash acquired. The Company was an initial shareholder of TETRA Ireland and acquired the remaining interest in the entity from the other shareholders. This acquisition expands the Company's portfolio of delivering mission-critical voice and data communications solutions to first responders and frontline workers. As a result of the acquisition, the Company recognized a $21 million gain recorded within Other income (expense) on the Company's initial minority interest. The Company recognized $47 million of goodwill, $90 million of identifiable intangible assets, and $6 million of net assets. The goodwill is not deductible for tax purposes. The identifiable intangible assets were classified as $83 million of customer relationships and $7 million of trade names that will be amortized over a period of twelve years and fourteen years, respectively. The business is part of the Software and Services segment. The purchase accounting was completed as of the first quarter of 2023. On March 3, 2022, the Company acquired Ava, a global provider of cloud-native video security and analytics, for $388 million, net of cash acquired. In addition, the Company issued restricted stock and restricted stock units at a fair value of $7 million to certain key employees that will be expensed over an average service period of two years. This acquisition expands the Company's portfolio of intelligent video solutions that help to enhance safety and streamline operations. The Company recognized $267 million of goodwill, $165 million of identifiable intangible assets and $44 million of net liabilities. The goodwill is not deductible for tax purposes. The identifiable intangible assets were classified as $144 million of developed technology and $21 million of customer relationships that will be amortized over a period of and two years, respectively. The business is a part of both the Products and Systems Integration segment and the Software and Services segment. The purchase accounting was completed as of the first quarter of 2023. Intangible Assets Amortized intangible assets were comprised of the following:
Amortization expense on intangible assets was $43 million and $98 million for the three and six months ended July 1, 2023, respectively. Amortization expense on intangible assets was $65 million and $131 million for the three and six months ended July 2, 2022, respectively. As of July 1, 2023, annual amortization expense is estimated to be $176 million in 2023, $139 million in 2024, $126 million in 2025, $117 million in 2026, $107 million in 2027 and $107 million in 2028. Amortized intangible assets were comprised of the following by segment:
Goodwill The Company performed its annual assessment of goodwill for impairment as of the last day of the third quarter. The following table displays a roll-forward of the carrying amount of goodwill by segment from January 1, 2023 to July 1, 2023:
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
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Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 371 | $ 228 | $ 649 | $ 495 |
Insider Trading Arrangements |
6 Months Ended |
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Jul. 01, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
6 Months Ended |
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Jul. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The condensed consolidated financial statements as of July 1, 2023 and for the three and six months ended July 1, 2023 and July 2, 2022 include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to state fairly the Condensed Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income, Statements of Stockholders' Equity, and Statements of Cash Flows of Motorola Solutions, Inc. (“Motorola Solutions” or the “Company”) for all periods presented. The Company operates on a 52-week fiscal year, with each fiscal year ending on December 31. With respect to each fiscal quarter, the Company operates on a 13-week fiscal quarter, with all fiscal quarters ending on a Saturday. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2022 (the "Form 10-K"). The results of operations for the three and six months ended July 1, 2023 are not necessarily indicative of the operating results to be expected for the full year. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
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Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2022-04, “Liabilities—Supplier Finance Programs" (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which requires disclosures to enhance transparency about an entity’s use of supplier finance programs. The amendments require a buyer that uses supplier finance programs to disclose the program’s key terms, outstanding confirmed amounts as of the end of the period, a rollforward of such amounts during each annual period and a description of where in the financial statements outstanding amounts are presented. Only the amount outstanding at the end of the period must be disclosed in interim periods. The Company adopted ASU 2022-04 on January 1, 2023. Refer to Note 4, "Other Financial Data" to our condensed consolidated financial statements included in this Part I, Item 1 of this Form 10-Q for the related disclosures.
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Revenue from Contracts with Customers (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table summarizes the disaggregation of the Company's revenue by segment, region, major products and services and customer type for the three and six months ended July 1, 2023 and July 2, 2022, consistent with the information reviewed by the Company's chief operating decision maker for evaluating the financial performance of the Company's reportable segments:
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Contract Balances |
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Contract Cost Balances |
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Leases (Tables) |
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Lease Expense and Other Information |
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Lease Assets and Liabilities |
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Future Lease Payments, Operating |
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Future Lease Payments, Finance |
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Other Financial Data (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Charges (Income) | Other charges (income) included in Operating earnings consist of the following:
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Other Income (Expense) | Interest expense, net, and Other, net, both included in Other income (expense), consist of the following:
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Earnings Per Common Share | The computation of basic and diluted earnings per common share is as follows:
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Accounts Receivable, Net | Accounts receivable, net, consists of the following:
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Inventories, Net | Inventories, net, consist of the following:
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Other Current Assets | Other current assets consist of the following:
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Property, Plant and Equipment, Net | Property, plant and equipment, net, consist of the following:
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Investments | Investments consist of the following:
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Other Assets | Other assets consist of the following:
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Accrued Liabilities | Accrued liabilities consist of the following:
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Other Liabilities | Other liabilities consist of the following:
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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 six months ended July 1, 2023 and July 2, 2022:
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Risk Management (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Largest Net Notional Amounts of the Positions to Buy or Sell Foreign Currency | The following table shows the five largest net notional amounts of the positions to buy or sell foreign currency as of July 1, 2023, and the corresponding positions as of December 31, 2022:
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Summary of Fair Values and Location In Condensed Consolidated Balance Sheet | The following tables summarize the fair values and locations in the Condensed Consolidated Balance Sheets of all derivative financial instruments held by the Company as of July 1, 2023 and December 31, 2022:
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Summary of Derivative Instruments and the Effect on the Condensed Consolidated Statements of Operations | The following table summarizes the effect of derivatives on the Company's condensed consolidated financial statements for the three and six months ended July 1, 2023 and July 2, 2022:
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Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The following table provides details of income taxes:
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Retirement and Other Employee Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Plan Costs | The net periodic benefits for Pension and Postretirement Health Care Benefits Plans were as follows:
|
Share-Based Compensation Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Expense | Compensation expense for the Company’s share-based plans was as follows:
|
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Company's Financial Assets and Liabilities | The fair values of the Company’s financial assets and liabilities by level in the fair value hierarchy as of July 1, 2023 and December 31, 2022 were as follows:
|
Sales of Receivables (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds Received from Non-Recourse Sales of Accounts Receivable and Long-Term Receivables | The following table summarizes the proceeds received from sales of accounts receivable and long-term receivables for the three and six months ended July 1, 2023 and July 2, 2022:
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales and Operating Earnings by Segment | Net Sales by Segment
Operating Earnings by Segment
|
Reorganization of Business (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Reportable Segment | The following table displays the net charges incurred by segment:
The following table displays the net charges incurred by segment:
|
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Reorganization of Businesses Accruals |
|
Intangible Assets and Goodwill (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Amortized intangible assets were comprised of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Intangible Assets | Amortized intangible assets were comprised of the following by segment:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | The following table displays a roll-forward of the carrying amount of goodwill by segment from January 1, 2023 to July 1, 2023:
|
Basis of Presentation - Business Overview (Details) |
6 Months Ended |
---|---|
Jul. 01, 2023
majorProductsAndServices
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of major products and services | 3 |
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
Dec. 31, 2022 |
|
Contract with Customer, Asset and Liability [Abstract] | |||||
Accounts receivable, net | $ 1,513 | $ 1,513 | $ 1,518 | ||
Contract assets | 1,033 | 1,033 | 974 | ||
Contract liabilities | 1,764 | 1,764 | 1,859 | ||
Non-current contract liabilities | 382 | 382 | 363 | ||
Contract with customer, liability, revenue recognized | 502 | $ 456 | $ 712 | $ 824 | |
Contract with customer, performance obligation adjustments | (10) | 0 | (15) | (22) | |
Impairment losses | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue from Contracts with Customers - Contract Cost Balances (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
Dec. 31, 2022 |
|
Revenue from Contract with Customer [Abstract] | |||||
Current contract cost assets | $ 84 | $ 84 | $ 61 | ||
Non-current contract cost assets | 105 | 105 | $ 130 | ||
Contract cost, amortization | $ 16 | $ 13 | $ 35 | $ 26 |
Leases - Operating Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Lease expense: | ||||
Operating lease cost | $ 34 | $ 33 | $ 68 | $ 66 |
Finance lease cost | ||||
Amortization of right-of-use assets | 1 | 2 | 2 | 4 |
Short-term lease cost | 0 | 0 | 1 | 1 |
Variable cost | 8 | 8 | 17 | 17 |
Sublease income | (1) | (2) | (3) | (3) |
Net lease expense | $ 42 | $ 41 | $ 85 | $ 85 |
Leases - Assets and Liabilities (Details) - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Assets: | ||
Operating lease assets | $ 478 | $ 485 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Finance lease assets | $ 9 | $ 9 |
Total lease assets | $ 487 | $ 494 |
Current liabilities: | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Operating lease liabilities | $ 114 | $ 118 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt | Current portion of long-term debt |
Finance lease liabilities | $ 0 | $ 1 |
Total lease liabilities, current | 114 | 119 |
Non-current liabilities: | ||
Operating lease liabilities | $ 391 | $ 419 |
Leases - Cash Flows (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Supplemental cash flow information: | ||
Net cash used for operating activities related to operating leases | $ 81 | $ 93 |
Net cash used for financing activities related to finance leases | 0 | 3 |
Assets obtained in exchange for lease liabilities: | ||
Operating leases | $ 39 | $ 65 |
Leases - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Lessee, Lease, Description [Line Items] | ||
Additional leases acquired | $ 20 | |
TETRA Ireland | ||
Lessee, Lease, Description [Line Items] | ||
Additional leases acquired | $ 34 |
Leases - Terms (Details) |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
Weighted average remaining lease terms, operating leases | 5 years | 5 years |
Weighted average remaining lease terms, finance leases | 1 year | 1 year |
Weighted average discount rate, operating leases | 4.24% | 4.07% |
Weighted average discount rate, finance leases | 2.77% | 3.23% |
Leases - Future Payments (Details) $ in Millions |
Jul. 01, 2023
USD ($)
|
---|---|
Operating Leases | |
Remainder of 2023 | $ 52 |
2024 | 135 |
2025 | 122 |
2026 | 102 |
2027 | 54 |
Thereafter | 96 |
Total lease payments | 561 |
Less: Interest | 56 |
Present value of lease liabilities | $ 505 |
Other Financial Data - Other Charges (Income) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 22, 2022 |
Feb. 11, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Intangibles amortization | $ 43 | $ 65 | $ 98 | $ 131 | ||
Environmental reserve expense | 15 | 0 | 15 | 0 | ||
Reorganization of business | 5 | 5 | 12 | 12 | ||
Operating lease asset impairments | 1 | 3 | 4 | 12 | ||
Acquisition-related transaction fees | 0 | 4 | 2 | 14 | ||
Fixed asset impairments | 1 | 8 | 3 | 11 | ||
Other | 1 | 0 | 1 | (1) | ||
Other charges | 66 | 85 | 135 | 177 | ||
Settlements Other Than Hytera | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Legal settlements | 0 | 0 | 0 | 11 | ||
Hytera Legal Settlement | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Legal settlements | $ (2) | $ (13) | $ 0 | $ 0 | $ 0 | $ (13) |
Other Financial Data - Other Charges (Income) - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Environmental reserve expense | $ 15 | $ 0 | $ 15 | $ 0 |
Environmental reserve, current and noncurrent | 127 | 127 | ||
Environmental Remediation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Current ac for environmental loss contingencies | $ 4 | $ 4 |
Other Financial Data - Other Income (Expense) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Interest income (expense), net: | ||||
Interest expense | $ (63) | $ (59) | $ (126) | $ (117) |
Interest income | 6 | 3 | 15 | 5 |
Interest income (expense), net | (57) | (56) | (111) | (112) |
Other, net: | ||||
Net periodic pension and postretirement benefit | 24 | 30 | 49 | 63 |
Loss from the extinguishment of long-term debt | 0 | (6) | 0 | (6) |
Investment impairments | 3 | 0 | 9 | 1 |
Foreign currency gain (loss) | (21) | 27 | (40) | 50 |
Gain (loss) on derivative instruments | 9 | (34) | 17 | (57) |
Gain (loss) on equity method investments | 1 | (2) | 1 | (2) |
Fair value adjustments to equity investments | 16 | (12) | 19 | (30) |
Gain on TETRA Ireland equity method investment | 0 | 0 | 0 | 21 |
Other | 0 | (5) | 2 | (5) |
Total other income (expense) | $ 26 | $ (2) | $ 39 | $ 33 |
Other Financial Data - Earnings Per Common Share - Additional Information (Details) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023
USD ($)
$ / shares
shares
|
Jul. 02, 2022
shares
|
Jul. 01, 2023
USD ($)
$ / shares
shares
|
Jul. 02, 2022
shares
|
|
Convertible notes | 1.75% senior convertible notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ | $ 1,000 | $ 1,000 | ||
Conversion rate | 0.0049670 | |||
Conversion price (in USD per share) | $ / shares | $ 201.33 | $ 201.33 | ||
Value in excess of principal if converted | $ | $ 402 | |||
Stock Options | ||||
Debt Instrument [Line Items] | ||||
Securities excluded from computation of dilutive shares due to antidilutive nature (in shares) | shares | 0.3 | 0.2 | 0.3 | 0.2 |
Performance Options | ||||
Debt Instrument [Line Items] | ||||
Securities excluded from computation of dilutive shares due to antidilutive nature (in shares) | shares | 0.2 | 0.1 | 0.2 |
Other Financial Data - Accounts Receivable, Net (Details) - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable | $ 1,578 | $ 1,579 |
Less allowance for credit losses | (65) | (61) |
Accounts receivable, net | $ 1,513 | $ 1,518 |
Other Financial Data - Inventories, Net (Details) - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory, Net [Abstract] | ||
Finished goods | $ 337 | $ 354 |
Work-in-process and production materials | 821 | 829 |
Inventories, gross | 1,158 | 1,183 |
Less inventory reserves | (138) | (128) |
Inventories, net | $ 1,020 | $ 1,055 |
Other Financial Data - Other Current Assets (Details) - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Current Assets [Abstract] | ||
Current contract cost assets | $ 84 | $ 61 |
Tax-related deposits | 34 | 33 |
Other | 232 | 289 |
Other current assets | $ 350 | $ 383 |
Other Financial Data - Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, Plant and Equipment, Net [Abstract] | ||
Land | $ 5 | $ 5 |
Leasehold improvements | 460 | 456 |
Machinery and equipment | 2,282 | 2,303 |
Property, plant and equipment, gross | 2,747 | 2,764 |
Less accumulated depreciation | (1,812) | (1,837) |
Property, plant and equipment, net | $ 935 | $ 927 |
Other Financial Data - Property, Plant and Equipment, Net Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Other Income and Expenses [Abstract] | ||||
Depreciation | $ 44 | $ 47 | $ 87 | $ 92 |
Other Financial Data - Investments (Details) - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Common stock | $ 38 | $ 21 |
Strategic investments | 35 | 45 |
Company-owned life insurance policies | 76 | 69 |
Equity method investments | 13 | 12 |
Long-term investments | $ 162 | $ 147 |
Other Financial Data - Investments, Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Gain related in increase in fair value of investment | $ 17 | |||
Investment impairments | $ 3 | $ 0 | $ 9 | $ 1 |
Other Financial Data - Other Assets (Details) - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Assets [Abstract] | ||
Defined benefit plan assets | $ 156 | $ 164 |
Non-current contract cost assets | 105 | 130 |
Other | 62 | 16 |
Other assets, total | $ 323 | $ 310 |
Other Financial Data - Accounts Payable Additional Information (Details) - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Payment timing period | 60 days | |
Supplier finance payables | $ 32 | $ 37 |
Minimum | ||
Debt Instrument [Line Items] | ||
Payment timing period | 75 days | |
Maximum | ||
Debt Instrument [Line Items] | ||
Payment timing period | 120 days |
Other Financial Data - Accrued Liabilities (Details) - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Accrued Liabilities [Abstract] | ||
Compensation | $ 270 | $ 374 |
Tax liabilities | 270 | 367 |
Dividend payable | 147 | 148 |
Trade liabilities | 136 | 145 |
Operating lease liabilities | 114 | 118 |
Customer reserves | 67 | 78 |
Other | 322 | 408 |
Accrued liabilities | $ 1,326 | $ 1,638 |
Other Financial Data - Other Liabilities (Details) - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Liabilities [Abstract] | ||
Defined benefit plans | $ 949 | $ 1,004 |
Non-current contract liabilities | 382 | 363 |
Unrecognized tax benefits | 29 | 29 |
Deferred income taxes | 71 | 73 |
Environmental reserve | 123 | 108 |
Other | 175 | 114 |
Other liabilities | $ 1,729 | $ 1,691 |
Other Financial Data - Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Aug. 03, 2023 |
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payments for repurchased shares | $ 224 | $ 364 | |||
Number of shares repurchased (in shares) | 0.8 | 1.3 | |||
Repurchase of common shares, average cost (in USD per share) | $ 283.39 | $ 274.66 | |||
Amount available for future share repurchase | $ 921 | $ 921 | |||
Payments of dividends | $ 148 | $ 132 | $ 296 | $ 266 | |
Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payments of dividends | $ 147 |
Debt and Credit Facilities (Details) |
Jul. 01, 2023
USD ($)
|
---|---|
Commercial Paper | |
Debt Instrument [Line Items] | |
Line of credit facility borrowing capacity | $ 2,200,000,000 |
Long term debt | 0 |
Line of Credit | Revolving Credit Facility | 2021 Motorola Solutions Credit Agreement | |
Debt Instrument [Line Items] | |
Line of credit facility borrowing capacity | 2,250,000,000 |
Line of Credit | Letter of Credit | 2021 Motorola Solutions Credit Agreement | |
Debt Instrument [Line Items] | |
Line of credit facility borrowing capacity | $ 450,000,000 |
Risk Management - Counterparty Risk (Details) $ in Millions |
Jul. 01, 2023
USD ($)
|
---|---|
Credit Concentration Risk | |
Derivative [Line Items] | |
Aggregate net credit risk | $ 6 |
Risk Management - Summary of Fair Values and Location in Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Current Assets | ||
Fair Value | ||
Other Current Assets | $ 6 | $ 15 |
Accrued Liabilities | ||
Fair Value | ||
Accrued Liabilities | 2 | 5 |
Designated as Hedging Instrument | Foreign exchange contracts | Other Current Assets | ||
Fair Value | ||
Other Current Assets | 0 | 0 |
Designated as Hedging Instrument | Foreign exchange contracts | Accrued Liabilities | ||
Fair Value | ||
Accrued Liabilities | 2 | 5 |
Not Designated As Hedging Instruments | Foreign exchange contracts | Other Current Assets | ||
Fair Value | ||
Other Current Assets | 6 | 15 |
Not Designated As Hedging Instruments | Foreign exchange contracts | Accrued Liabilities | ||
Fair Value | ||
Accrued Liabilities | $ 0 | $ 0 |
Risk Management - Summary of Derivative Instruments and the Effect on the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion of derivatives designated | $ (2) | $ 10 | $ (4) | $ 12 |
Foreign exchange contracts | Not Designated As Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives not designated as hedging instruments | 9 | (34) | 17 | (57) |
Forward points recognized | Not Designated As Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives not designated as hedging instruments | $ 1 | $ 0 | $ 1 | $ 1 |
Risk Management - Net Investment Hedges (Details) - Foreign Exchange Contract € in Millions, £ in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jul. 01, 2023
USD ($)
|
Jul. 02, 2022
USD ($)
|
Jul. 01, 2023
USD ($)
|
Jul. 02, 2022
USD ($)
|
Jul. 01, 2023
EUR (€)
|
Jul. 01, 2023
GBP (£)
|
Dec. 31, 2022
USD ($)
|
|
Derivative [Line Items] | |||||||
Notional amounts of outstanding foreign exchange contracts | $ 1,200 | $ 1,200 | $ 1,100 | ||||
Designated as Hedging Instrument | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Notional amounts of outstanding foreign exchange contracts | € 100 | £ 55 | |||||
Not Designated As Hedging Instruments | |||||||
Derivative [Line Items] | |||||||
Derivatives not designated as hedging instruments | $ 9 | $ (34) | $ 17 | $ (57) |
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Net earnings before income taxes | $ 487 | $ 300 | $ 846 | $ 520 |
Income tax expense | $ 114 | $ 71 | $ 194 | $ 23 |
Effective tax rate | 23.00% | 24.00% | 23.00% | 4.00% |
Income Taxes - Additional Information (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 23.00% | 24.00% | 23.00% | 4.00% |
Fair Value Measurements - Assets and Liabilities (Details) - Recurring basis - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Estimate of Fair Value, Fair Value Disclosure | Common stock | ||
Assets: | ||
Common stock | $ 38 | $ 21 |
Estimate of Fair Value, Fair Value Disclosure | Foreign exchange contracts | ||
Assets: | ||
Foreign exchange derivative contracts | 6 | 15 |
Liabilities: | ||
Foreign exchange derivative contracts | 2 | 5 |
Level 1 | Common stock | ||
Assets: | ||
Common stock | 38 | 21 |
Level 1 | Foreign exchange contracts | ||
Assets: | ||
Foreign exchange derivative contracts | 0 | 0 |
Liabilities: | ||
Foreign exchange derivative contracts | 0 | 0 |
Level 2 | Common stock | ||
Assets: | ||
Common stock | 0 | 0 |
Level 2 | Foreign exchange contracts | ||
Assets: | ||
Foreign exchange derivative contracts | 6 | 15 |
Liabilities: | ||
Foreign exchange derivative contracts | $ 2 | $ 5 |
Sales of Receivables - Sales Receivables (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Receivables [Abstract] | ||||
Contract-specific discounting facility | $ 0 | $ 0 | $ 0 | $ 49 |
Accounts receivable sales proceeds | 0 | 40 | 0 | 62 |
Long-term receivables sales proceeds | 26 | 5 | 58 | 22 |
Total proceeds from receivable sales | $ 26 | $ 45 | $ 58 | $ 133 |
Sales of Receivables - Additional Information (Details) - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Receivables [Abstract] | ||
Servicing obligations for long-term receivables | $ 834 | $ 891 |
Long-term financing | $ 207 | $ 65 |
Commitment and Contingencies (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 22, 2022
USD ($)
|
Feb. 11, 2022
USD ($)
legalEntities
|
Aug. 10, 2021
USD ($)
|
Jan. 08, 2021
USD ($)
|
Feb. 14, 2020
USD ($)
|
Jul. 01, 2023
USD ($)
|
Jul. 02, 2022
USD ($)
|
Jul. 01, 2023
USD ($)
|
Jul. 02, 2022
USD ($)
|
Oct. 15, 2021
USD ($)
|
|
Gain Contingencies [Line Items] | ||||||||||
Compensatory damages | $ 345.8 | |||||||||
Punitive damages | 418.8 | |||||||||
Total damages awarded | $ 543.7 | $ 764.6 | ||||||||
Pre-judgement interest amount | $ 51.1 | |||||||||
Settlement cost | $ 2.6 | |||||||||
Attorneys' fees | $ 34.2 | |||||||||
Hytera Legal Settlement | ||||||||||
Gain Contingencies [Line Items] | ||||||||||
Legal entities, number | legalEntities | 2 | |||||||||
Gain on litigation settlement | $ 2.0 | $ 13.0 | $ 0.0 | $ 0.0 | $ 0.0 | $ 13.0 |
Segment Information - Operating Business Segment (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,403 | $ 2,140 | $ 4,574 | $ 4,032 |
Operating Earnings by Segment | ||||
Operating earnings | 518 | 358 | 917 | 597 |
Total other expense | (31) | (58) | (71) | (77) |
Net earnings before income taxes | 487 | 300 | 846 | 520 |
Products and Systems Integration | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,437 | 1,285 | 2,740 | 2,388 |
Operating Earnings by Segment | ||||
Operating earnings | 212 | 118 | 388 | 157 |
Software and Services | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 966 | 855 | 1,834 | 1,644 |
Operating Earnings by Segment | ||||
Operating earnings | $ 306 | $ 240 | $ 529 | $ 440 |
Reorganization of Business - Net Charges Incurred by Business Segment (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Reorganization of business charges | $ 3 | $ 7 | $ 16 | $ 17 |
Products and Systems Integration | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reorganization of business charges | 6 | 6 | 17 | 14 |
Software and Services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reorganization of business charges | $ (3) | $ 1 | $ (1) | $ 3 |
Reorganization of Business - Reorganization of Businesses Accruals (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
|
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 36 | |||
Additional Charges | 24 | |||
Reversal of accruals | $ (1) | $ (4) | (8) | $ (7) |
Amount Used | (19) | |||
Restructuring reserve, ending balance | 33 | 33 | ||
Employee Separation Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 26 | |||
Additional Charges | 9 | $ 11 | 24 | $ 24 |
Reversal of accruals | (3) | |||
Amount Used | (19) | |||
Restructuring reserve, ending balance | 28 | 28 | ||
Exit Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 10 | |||
Additional Charges | 0 | |||
Reversal of accruals | (5) | (5) | ||
Amount Used | 0 | |||
Restructuring reserve, ending balance | $ 5 | $ 5 |
Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 01, 2023 |
Jul. 02, 2022 |
Jul. 01, 2023 |
Jul. 02, 2022 |
Dec. 31, 2022 |
|
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 2,752 | $ 2,752 | $ 2,701 | ||
Accumulated Amortization | 1,491 | 1,491 | 1,359 | ||
Intangible Assets And Goodwill | |||||
Amortization expense on intangibles | 43 | $ 65 | 98 | $ 131 | |
Finite-Lived Intangible Assets, Future Amortization Expense | |||||
2023 | 176 | 176 | |||
2024 | 139 | 139 | |||
2025 | 126 | 126 | |||
2026 | 117 | 117 | |||
2027 | 107 | 107 | |||
2028 | 107 | 107 | |||
Developed technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 1,097 | 1,097 | 1,083 | ||
Accumulated Amortization | 402 | 402 | 358 | ||
Customer-related | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 1,555 | 1,555 | 1,519 | ||
Accumulated Amortization | 1,019 | 1,019 | 935 | ||
Other intangibles | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 100 | 100 | 99 | ||
Accumulated Amortization | $ 70 | $ 70 | $ 66 |
Intangible Assets and Goodwill - Amortized Intangible Assets, Excluding Goodwill, By Business Segment (Details) - USD ($) $ in Millions |
Jul. 01, 2023 |
Dec. 31, 2022 |
---|---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,752 | $ 2,701 |
Accumulated Amortization | 1,491 | 1,359 |
Products and Systems Integration | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 913 | 913 |
Accumulated Amortization | 301 | 261 |
Software and Services | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,839 | 1,788 |
Accumulated Amortization | $ 1,190 | $ 1,098 |
Intangible Assets and Goodwill - Carrying Amount of Goodwill (Details) $ in Millions |
6 Months Ended |
---|---|
Jul. 01, 2023
USD ($)
| |
Goodwill Activity | |
Goodwill, Beginning Balance | $ 3,312 |
Goodwill acquired | 0 |
Purchase accounting adjustments | (26) |
Foreign currency | 9 |
Goodwill, Ending Balance | 3,295 |
Products and Systems Integration | |
Goodwill Activity | |
Goodwill, Beginning Balance | 1,461 |
Goodwill acquired | 0 |
Purchase accounting adjustments | (1) |
Foreign currency | 1 |
Goodwill, Ending Balance | 1,461 |
Software and Services | |
Goodwill Activity | |
Goodwill, Beginning Balance | 1,851 |
Goodwill acquired | 0 |
Purchase accounting adjustments | (25) |
Foreign currency | 8 |
Goodwill, Ending Balance | $ 1,834 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |
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