☒ | ANNUAL 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 |
Delaware | 36-1115800 | |||||||
(State of Incorporation) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||||||||
Common Stock | $0.01 | Par Value | MSI | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer |
☐
|
Non-accelerated filer |
☐
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Smaller reporting company |
☐
|
Emerging growth company |
☐
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TABLE OF CONTENTS | |||||
Page | |||||
PART I
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Item 1. Business
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Other Information
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Backlog
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Research and Development
|
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Intellectual Property Matters
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Available Information
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Item 1A. Risk Factors
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Item 1B. Unresolved Staff Comments
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Item 2. Properties
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Item 3. Legal Proceedings
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Item 4. Mine Safety Disclosures
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Technology | Competitor | ||||
LMR | L3Harris Technologies, Inc., Hytera, Airbus SE, Kenwood Corporation | ||||
Command Center Software | Central Square Technologies, Axon Enterprise, Inc., Tyler Technologies, Inc., West Corporation, Intergraph Corporation, Zetron, ComTech | ||||
Video Security and Analytics | Axis Communications, Hikvision, Dahua Technology Company, Hanwha Group, Genetec Inc., Axon Enterprise, Inc. |
December 31 | |||||||||||
(In millions) | 2020 | 2019 | |||||||||
Products and Systems Integration | $ | 3,120 | $ | 3,158 | |||||||
Software and Services | 8,314 | 8,101 | |||||||||
$ | 11,434 | $ | 11,259 |
Technology | Segment | Acquisition | Description | Purchase Price | Date of Acquisition | ||||||||||||
Command Center Software | Software and Services | Callyo | Provider of cloud-based mobile applications for law enforcement in North America, including critical mobile technological capabilities that enable information to flow seamlessly from the field to the command center. | $63 million, inclusive of share-based compensation of $3 million | August 28, 2020 | ||||||||||||
Video Security and Analytics |
Products and Systems Integration
Software and Services
|
Pelco, Inc. | Global provider of video security solutions, adding a broad range of products for a variety of commercial and industrial environments and use cases. | $110 million | July 31, 2020 | ||||||||||||
Video Security and Analytics |
Products and Systems Integration
Software and Services
|
IndigoVision Group plc | Provider of video security solutions to enhance geographical reach across a wider customer base. | $37 million | June 16, 2020 | ||||||||||||
LMR | Software and Services | Unnamed cybersecurity services business | Provider of vulnerability assessments, cybersecurity consulting, and managed services, including security monitoring of network operations. | $32 million | April 30, 2020 | ||||||||||||
LMR | Software and Services | Unnamed cybersecurity services business | Provider of vulnerability assessments, cybersecurity consulting, managed services, and remediation and response capabilities. | $40 million, inclusive of share-based compensation of $6 million | March 3, 2020 | ||||||||||||
Video Security and Analytics | Software and Services | Unnamed data solutions business for vehicle location information | Provider of additional data to our existing license plate recognition database. | $85 million | October 16, 2019 | ||||||||||||
Video Security and Analytics |
Products and Systems Integration
Software and Services
|
WatchGuard, Inc. | Provider of in-car and body-worn video solutions. | $271 million, inclusive of share-based compensation of $16 million | July 11, 2019 | ||||||||||||
LMR |
Products and Systems Integration
Software and Services
|
Avtec, Inc. | Provider of dispatch communications for U.S. public safety and commercial customers to communicate, coordinate resources, and secure their facilities. | $136 million | March 11, 2019 | ||||||||||||
Video Security and Analytics |
Products and Systems Integration
Software and Services
|
VaaS International Holdings | Global provider of data and image analytics for vehicle location. | $445 million, inclusive of share-based compensation of $38 million | January 7, 2019 | ||||||||||||
Video Security and Analytics |
Products and Systems Integration
Software and Services
|
Avigilon Corporation | Provider of advanced security and video solutions including video analytics, network video management hardware and software, video cameras, and access control solutions. | $974 million | March 28, 2018 | ||||||||||||
Command Center Software | Software and Services | Plant Holdings, Inc. | Provider of next generation 911 solutions. | $237 million | March 7, 2018 |
Location |
Approximate Size in Sq. Ft.
(In thousands) |
Owned vs. Leased | Purpose | ||||||||
Schaumburg, Illinois, U.S. | 345 | Leased | Research & development and customer support | ||||||||
Elgin, Illinois, U.S. | 301 | Leased | Manufacturing and distribution | ||||||||
Krakow, Poland | 301 | Leased | Research & development and corporate administrative | ||||||||
Penang, Malaysia | 300 | Leased | Manufacturing and distribution, research & development and corporate administrative | ||||||||
Plantation, Florida, U.S. | 209 | Leased | Corporate administrative | ||||||||
Chicago, Illinois, U.S. | 206 | Leased | Corporate administrative (global headquarters) | ||||||||
Tel Aviv, Israel | 202 | Leased | Research & development and corporate administrative | ||||||||
Basingstoke, UK | 167 | Owned | Corporate administrative | ||||||||
British Columbia, Canada | 152 | Leased | Manufacturing and distribution and corporate administrative | ||||||||
Allen, Texas, U.S. | 138 | Owned | Manufacturing and distribution and corporate administrative | ||||||||
Richardson, Texas, U.S. | 136 | Leased | Manufacturing and distribution |
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) |
|||||||||||||||||||
09/24/20 to 10/21/20 | 248,983 | $ | 156.39 | 248,983 | $ | 780,660,139 | |||||||||||||||||
10/22/20 to 11/18/20 | 243,631 | $ | 165.48 | 243,631 | $ | 740,343,034 | |||||||||||||||||
11/19/20 to 12/29/20 | 545,846 | $ | 168.10 | 545,846 | $ | 648,585,495 | |||||||||||||||||
Total | 1,038,460 | $ | 164.68 | 1,038,460 |
(1) | Average price paid per share of common stock repurchased is the execution price, including commissions paid to brokers. | ||||
(2) |
As originally announced on July 28, 2011, and subsequently amended, the board of directors has authorized the Company to repurchase an aggregate amount of up to $14.0 billion of its outstanding shares of common stock (the “share repurchase program”). The share repurchase program does not have an expiration date. As of December 31, 2020, the Company had used approximately $13.4 billion, including transaction costs, to repurchase shares.
|
Years Ended | December 31, 2015 | December 31, 2016 | December 31, 2017 | December 31, 2018 | December 31, 2019 | December 31, 2020 | ||||||||||||||
Motorola Solutions | $ | 100.00 | $ | 123.90 | $ | 138.08 | $ | 179.00 | $ | 254.52 | $ | 273.33 | ||||||||
S&P 500 | $ | 100.00 | $ | 111.95 | $ | 136.38 | $ | 130.39 | $ | 171.44 | $ | 202.96 | ||||||||
S&P Communications | $ | 100.00 | $ | 118.92 | $ | 151.16 | $ | 173.96 | $ | 197.28 | $ | 198.53 |
Years Ended December 31 | |||||||||||||||||||||||||||||
(In millions, except per share amounts) | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
Operating Results | |||||||||||||||||||||||||||||
Net sales | $ | 7,414 | $ | 7,887 | $ | 7,343 | $ | 6,380 | $ | 6,038 | |||||||||||||||||||
Operating earnings | 1,383 | 1,581 | 1,255 | 1,284 | 1,048 | ||||||||||||||||||||||||
Earnings (loss) attributable to Motorola Solutions, Inc. | 949 | 868 | 966 | (155) | 560 | ||||||||||||||||||||||||
Per Share Data (in dollars) | |||||||||||||||||||||||||||||
Earnings (loss) per diluted common share* | $ | 5.45 | $ | 4.95 | $ | 5.62 | $ | (0.95) | $ | 3.24 | |||||||||||||||||||
Diluted weighted average common shares outstanding (in millions) | 174.1 | 175.6 | 172.0 | 162.9 | 173.1 | ||||||||||||||||||||||||
Dividends declared per share | $ | 2.63 | $ | 2.35 | $ | 2.13 | $ | 1.93 | $ | 1.70 | |||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||
Total assets | $ | 10,876 | $ | 10,642 | $ | 9,409 | $ | 8,208 | $ | 8,463 | |||||||||||||||||||
Total debt | 5,175 | 5,129 | 5,320 | 4,471 | 4,396 | ||||||||||||||||||||||||
Other Data | |||||||||||||||||||||||||||||
Capital expenditures | $ | 217 | $ | 248 | $ | 197 | $ | 227 | $ | 271 | |||||||||||||||||||
% of sales | 2.9 | % | 3.1 | % | 2.7 | % | 3.6 | % | 4.5 | % | |||||||||||||||||||
Research and development expenditures | $ | 686 | $ | 687 | $ | 637 | $ | 568 | $ | 553 | |||||||||||||||||||
% of sales | 9.3 | % | 8.7 | % | 8.7 | % | 8.9 | % | 9.2 | % | |||||||||||||||||||
Technology | Segment | Acquisition | Description | Purchase Price | Date of Acquisition | ||||||||||||
Command Center Software | Software and Services | Callyo | Provider of cloud-based mobile applications for law enforcement in North America, including critical mobile technological capabilities that enable information to flow seamlessly from the field to the command center. | $63 million, inclusive of share-based compensation of $3 million | August 28, 2020 | ||||||||||||
Video Security and Analytics |
Products and Systems Integration
Software and Services
|
Pelco, Inc. | Global provider of video security solutions, adding a broad range of products for a variety of commercial and industrial environments and use cases. | $110 million | July 31, 2020 | ||||||||||||
Video Security and Analytics |
Products and Systems Integration
Software and Services
|
IndigoVision Group plc | Provider of video security solutions to enhance geographical reach across a wider customer base. | $37 million | June 16, 2020 | ||||||||||||
LMR | Software and Services | Unnamed cybersecurity services business |
Provider of vulnerability assessments, cybersecurity consulting, and managed services, including security monitoring of network operations.
|
$32 million
|
April 30, 2020 | ||||||||||||
LMR | Software and Services | Unnamed cybersecurity services business |
Provider of vulnerability assessments, cybersecurity consulting, managed services, and remediation and response capabilities.
|
$40 million, inclusive of share-based compensation of $6 million
|
March 3, 2020 | ||||||||||||
Video Security and Analytics | Software and Services |
Unnamed data solutions business for vehicle location information
|
Provider of additional data to our existing license plate recognition database.
|
$85 million
|
October 16, 2019 | ||||||||||||
Video Security and Analytics |
Products and Systems Integration
Software and Services
|
WatchGuard, Inc. | Provider of in-car and body-worn video solutions. | $271 million, inclusive of share-based compensation of $16 million | July 11, 2019 | ||||||||||||
LMR |
Products and Systems Integration
Software and Services
|
Avtec, Inc. | Provider of dispatch communications for U.S. public safety and commercial customers to communicate, coordinate resources, and secure their facilities. | $136 million | March 11, 2019 | ||||||||||||
Video Security and Analytics |
Products and Systems Integration
Software and Services
|
VaaS International Holdings | Global provider of data and image analytics for vehicle location. | $445 million, inclusive of share-based compensation of $38 million | January 7, 2019 | ||||||||||||
Video Security and Analytics |
Products and Systems Integration
Software and Services
|
Avigilon Corporation | Provider of advanced security and video solutions including video analytics, network video management hardware and software, video cameras, and access control solutions. | $974 million | March 28, 2018 | ||||||||||||
Command Center Software | Software and Services | Plant Holdings, Inc. | Provider of next generation 911 solutions. | $237 million | March 7, 2018 |
Years ended December 31 | |||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | 2020 |
% of
Sales ** |
2019 |
% of
Sales ** |
2018 |
% of
Sales ** |
|||||||||||||||||||||||||||||
Net sales from products | $ | 4,087 | $ | 4,746 | $ | 4,463 | |||||||||||||||||||||||||||||
Net sales from services | 3,327 | 3,141 | 2,880 | ||||||||||||||||||||||||||||||||
Net sales | 7,414 | 7,887 | 7,343 | ||||||||||||||||||||||||||||||||
Costs of product sales | 1,872 | 45.8 | % | 2,049 | 43.2 | % | 2,035 | 45.6 | % | ||||||||||||||||||||||||||
Costs of services sales | 1,934 | 58.1 | % | 1,907 | 60.7 | % | 1,828 | 63.5 | % | ||||||||||||||||||||||||||
Costs of sales | 3,806 | 51.3 | % | 3,956 | 50.2 | % | 3,863 | 52.6 | % | ||||||||||||||||||||||||||
Gross margin | 3,608 | 48.7 | % | 3,931 | 49.8 | % | 3,480 | 47.4 | % | ||||||||||||||||||||||||||
Selling, general and administrative expenses | 1,293 | 17.4 | % | 1,403 | 17.8 | % | 1,254 | 17.1 | % | ||||||||||||||||||||||||||
Research and development expenditures | 686 | 9.3 | % | 687 | 8.7 | % | 637 | 8.7 | % | ||||||||||||||||||||||||||
Other charges | 246 | 3.3 | % | 260 | 3.3 | % | 334 | 4.5 | % | ||||||||||||||||||||||||||
Operating earnings | 1,383 | 18.7 | % | 1,581 | 20.0 | % | 1,255 | 17.1 | % | ||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||||||||
Interest expense, net | (220) | (3.0) | % | (220) | (2.8) | % | (222) | (3.0) | % | ||||||||||||||||||||||||||
Gains (losses) on sales of investments and businesses, net | (2) | — | % | 5 | 0.1 | % | 16 | 0.2 | % | ||||||||||||||||||||||||||
Other | 13 | 0.2 | % | (365) | (4.6) | % | 53 | 0.7 | % | ||||||||||||||||||||||||||
Total other expense | (209) | (2.8) | % | (580) | (7.4) | % | (153) | (2.1) | % | ||||||||||||||||||||||||||
Net earnings before income taxes | 1,174 | 15.8 | % | 1,001 | 12.7 | % | 1,102 | 15.0 | % | ||||||||||||||||||||||||||
Income tax expense | 221 | 3.0 | % | 130 | 1.6 | % | 133 | 1.8 | % | ||||||||||||||||||||||||||
Net earnings | 953 | 12.9 | % | 871 | 11.0 | % | 969 | 13.2 | % | ||||||||||||||||||||||||||
Less: Earnings attributable to noncontrolling interests | 4 | 0.1 | % | 3 | — | % | 3 | — | % | ||||||||||||||||||||||||||
Net earnings* | $ | 949 | 12.8 | % | $ | 868 | 11.0 | % | $ | 966 | 13.2 | % | |||||||||||||||||||||||
Earnings per diluted common share* | $ | 5.45 | $ | 4.95 | $ | 5.62 |
2020 | 2019 | 2018 | |||||||||||||||
North America | 68 | % | 67 | % | 64 | % | |||||||||||
International | 32 | % | 33 | % | 36 | % | |||||||||||
100 | % | 100 | % | 100 | % |
Years ended December 31 | |||||||||||||||||
(In millions) | 2020 | 2019 | % Change | ||||||||||||||
Net sales from Products and Systems Integration | $ | 4,634 | $ | 5,329 | (13) | % | |||||||||||
Net sales from Software and Services | 2,780 | 2,558 | 9 | % | |||||||||||||
Net sales | $ | 7,414 | $ | 7,887 | (6) | % |
Years ended December 31 | |||||||||||||||||
(In millions) | 2020 | 2019 | % Change | ||||||||||||||
Gross margin | $ | 3,608 | $ | 3,931 | (8) | % |
Years ended December 31 | |||||||||||||||||
(In millions) | 2020 | 2019 | % Change | ||||||||||||||
Selling, general and administrative expenses | $ | 1,293 | $ | 1,403 | (8) | % |
Years ended December 31 | |||||||||||||||||
(In millions) | 2020 | 2019 | % Change | ||||||||||||||
Research and development expenditures | $ | 686 | $ | 687 | — | % |
Years ended December 31 | |||||||||||||||||
(In millions) | 2020 | 2019 | |||||||||||||||
Other charges | $ | 246 | $ | 260 |
Years ended December 31 | |||||||||||||||||
(In millions) | 2020 | 2019 | |||||||||||||||
Operating earnings from Products and Systems Integration | $ | 656 | $ | 994 | |||||||||||||
Operating earnings from Software and Services | 727 | 587 | |||||||||||||||
Operating earnings | $ | 1,383 | $ | 1,581 |
Years ended December 31 | |||||||||||||||||
(In millions) | 2020 | 2019 | |||||||||||||||
Interest expense, net | $ | (220) | $ | (220) |
Years ended December 31 | ||||||||||||||
(In millions) | 2020 | 2019 | ||||||||||||
Gains (losses) on sales of investments and businesses, net | $ | (2) | $ | 5 |
Years ended December 31 | |||||||||||
(In millions) | 2020 | 2019 | |||||||||
Other, net | $ | 13 | $ | (365) |
Years ended December 31 | ||||||||||||||
(In millions) | 2020 | 2019 | ||||||||||||
Income tax expense | $ | 221 | $ | 130 |
Years ended December 31 | |||||||||||||||||
(In millions) | 2019 | 2018 | % Change | ||||||||||||||
Net sales from Products and Systems Integration | $ | 5,329 | $ | 5,100 | 5 | % | |||||||||||
Net sales from Software and Services | 2,558 | 2,243 | 14 | % | |||||||||||||
Net sales | $ | 7,887 | $ | 7,343 | 7 | % |
Years ended December 31 | |||||||||||||||||
(In millions) | 2019 | 2018 | % Change | ||||||||||||||
Gross margin | $ | 3,931 | $ | 3,480 | 13 | % |
Years ended December 31 | |||||||||||||||||
(In millions) | 2019 | 2018 | % Change | ||||||||||||||
Selling, general and administrative expenses | $ | 1,403 | $ | 1,254 | 12 | % |
Years ended December 31 | |||||||||||||||||
(In millions) | 2019 | 2018 | % Change | ||||||||||||||
Research and development expenditures | $ | 687 | $ | 637 | 8 | % |
Years ended December 31 | ||||||||||||||
(In millions) | 2019 | 2018 | ||||||||||||
Other charges | $ | 260 | $ | 334 |
Years ended December 31 | |||||||||||||||||
(In millions) | 2019 | 2018 | |||||||||||||||
Operating earnings from Products and Systems Integration | $ | 994 | $ | 854 | |||||||||||||
Operating earnings from Software and Services | 587 | 401 | |||||||||||||||
Operating earnings | $ | 1,581 | $ | 1,255 |
Years ended December 31 | |||||||||||||||||
(In millions) | 2019 | 2018 | |||||||||||||||
Interest expense, net | $ | (220) | $ | (222) |
Years ended December 31 | ||||||||||||||
(In millions) | 2019 | 2018 | ||||||||||||
Gains on sales of investments and businesses, net | $ | 5 | $ | 16 |
Years ended December 31 | ||||||||||||||
(In millions) | 2019 | 2018 | ||||||||||||
Other, net | $ | (365) | $ | 53 |
Years ended December 31 | |||||||||||||||||
(In millions) | 2019 | 2018 | |||||||||||||||
Income tax expense | $ | 130 | $ | 133 |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Products and Systems Integration | $ | 69 | $ | 45 | $ | 101 | |||||||||||
Software and Services | 17 | 12 | 19 | ||||||||||||||
86 | $ | 57 | $ | 120 |
Years Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash flows provided by (used for): | |||||||||||||||||
Operating activities | $ | 1,613 | $ | 1,823 | $ | 1,075 | |||||||||||
Investing activities | (437) | (934) | (1,266) | ||||||||||||||
Financing activities | (966) | (1,144) | 220 | ||||||||||||||
Effect of exchange rates on cash and cash equivalents
|
43 | (1) | (40) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | $ | 253 | $ | (256) | $ | (11) |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Contract-specific discounting facility | $ | 228 | $ | — | $ | — | |||||||||||
Accounts receivable sales proceeds | 74 | 34 | 77 | ||||||||||||||
Long-term receivables sales proceeds | 181 | 265 | 270 | ||||||||||||||
Total proceeds from receivable sales | $ | 483 | $ | 299 | $ | 347 | |||||||||||
Year | Shares Repurchased (in millions) | Average Price | Amount (in millions) | ||||||||||||||
2020 | 3.9 | $ | 155.93 | $ | 612 | ||||||||||||
2019 | 2.3 | 137.35 | 315 | ||||||||||||||
2018 | 1.2 | 112.42 | 132 |
Payments Due by Period | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Total | 2021 | 2022 | 2023 | 2024 | 2025 |
Uncertain
Timeframe |
Thereafter | |||||||||||||||||||||||||||||||||||||||
Long-term debt obligations, gross | $ | 5,228 | $ | 12 | $ | 4 | $ | 326 | $ | 1,588 | $ | 322 | $ | — | $ | 2,976 | |||||||||||||||||||||||||||||||
Lease obligations | 586 | 141 | 127 | 73 | 59 | 47 | — | 139 | |||||||||||||||||||||||||||||||||||||||
Purchase obligations* | 209 | 50 | 52 | 50 | 51 | 6 | — | — | |||||||||||||||||||||||||||||||||||||||
Tax obligations | 64 | — | — | — | — | — | 64 | — | |||||||||||||||||||||||||||||||||||||||
Total contractual obligations | $ | 6,087 | $ | 203 | $ | 183 | $ | 449 | $ | 1,698 | $ | 375 | $ | 64 | $ | 3,115 |
Notional Amount | |||||||||||
Net Buy (Sell) by Currency | 2020 | 2019 | |||||||||
Euro | $ | 177 | $ | 134 | |||||||
British pound | 86 | 107 | |||||||||
Canadian dollar | 61 | 8 | |||||||||
Chinese renminbi | (90) | (79) | |||||||||
Australian dollar | (88) | (123) |
Years ended December 31 | |||||||||||||||||
(In millions, except per share amounts) | 2020 | 2019 | 2018 | ||||||||||||||
Net sales from products | $ | 4,087 | $ | 4,746 | $ | 4,463 | |||||||||||
Net sales from services | 3,327 | 3,141 | 2,880 | ||||||||||||||
Net sales | 7,414 | 7,887 | 7,343 | ||||||||||||||
Costs of products sales | 1,872 | 2,049 | 2,035 | ||||||||||||||
Costs of services sales | 1,934 | 1,907 | 1,828 | ||||||||||||||
Costs of sales | 3,806 | 3,956 | 3,863 | ||||||||||||||
Gross margin | 3,608 | 3,931 | 3,480 | ||||||||||||||
Selling, general and administrative expenses | 1,293 | 1,403 | 1,254 | ||||||||||||||
Research and development expenditures | 686 | 687 | 637 | ||||||||||||||
Other charges | 246 | 260 | 334 | ||||||||||||||
Operating earnings | 1,383 | 1,581 | 1,255 | ||||||||||||||
Other income (expense): | |||||||||||||||||
Interest expense, net | (220) | (220) | (222) | ||||||||||||||
Gains (losses) on sales of investments and businesses, net | (2) | 5 | 16 | ||||||||||||||
Other, net | 13 | (365) | 53 | ||||||||||||||
Total other expense | (209) | (580) | (153) | ||||||||||||||
Net earnings before income taxes | 1,174 | 1,001 | 1,102 | ||||||||||||||
Income tax expense | 221 | 130 | 133 | ||||||||||||||
Net earnings | 953 | 871 | 969 | ||||||||||||||
Less: Earnings attributable to noncontrolling interests | 4 | 3 | 3 | ||||||||||||||
Net earnings attributable to Motorola Solutions, Inc. | $ | 949 | $ | 868 | $ | 966 | |||||||||||
Earnings per common share: | |||||||||||||||||
Basic: | $ | 5.58 | $ | 5.21 | $ | 5.95 | |||||||||||
Diluted: | 5.45 | 4.95 | 5.62 | ||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 170.0 | 166.6 | 162.4 | ||||||||||||||
Diluted | 174.1 | 175.6 | 172.0 | ||||||||||||||
Dividends declared per share | $ | 2.63 | $ | 2.35 | $ | 2.13 |
Years ended December 31 | |||||||||||||||||
(In millions) | 2020 | 2019 | 2018 | ||||||||||||||
Net earnings | $ | 953 | $ | 871 | $ | 969 | |||||||||||
Other comprehensive income (loss), net of tax (Note 4): | |||||||||||||||||
Foreign currency translation adjustments | 50 | 34 | (91) | ||||||||||||||
Marketable securities | — | — | (6) | ||||||||||||||
Defined benefit plans | (56) | 291 | (106) | ||||||||||||||
Total other comprehensive income (loss), net of tax | (6) | 325 | (203) | ||||||||||||||
Comprehensive income | 947 | 1,196 | 766 | ||||||||||||||
Less: Earnings attributable to noncontrolling interests | 4 | 3 | 3 | ||||||||||||||
Comprehensive income attributable to Motorola Solutions, Inc. | $ | 943 | $ | 1,193 | $ | 763 |
December 31 | |||||||||||
(In millions, except par value) | 2020 | 2019 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 1,254 | $ | 1,001 | |||||||
Accounts receivable, net | 1,390 | 1,412 | |||||||||
Contract assets | 933 | 1,046 | |||||||||
Inventories, net | 508 | 447 | |||||||||
Other current assets | 242 | 272 | |||||||||
Total current assets | 4,327 | 4,178 | |||||||||
Property, plant and equipment, net | 1,022 | 992 | |||||||||
Operating lease assets | 468 | 554 | |||||||||
Investments | 158 | 159 | |||||||||
Deferred income taxes | 966 | 943 | |||||||||
Goodwill | 2,219 | 2,067 | |||||||||
Intangible assets, net | 1,234 | 1,327 | |||||||||
Other assets | 482 | 422 | |||||||||
Total assets | $ | 10,876 | $ | 10,642 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||||
Current portion of long-term debt | $ | 12 | $ | 16 | |||||||
Accounts payable | 612 | 618 | |||||||||
Contract liabilities | 1,554 | 1,449 | |||||||||
Accrued liabilities | 1,311 | 1,356 | |||||||||
Total current liabilities | 3,489 | 3,439 | |||||||||
Long-term debt | 5,163 | 5,113 | |||||||||
Operating lease liabilities | 402 | 497 | |||||||||
Other liabilities | 2,363 | 2,276 | |||||||||
Preferred stock, $100 par value
|
— | — | |||||||||
Common stock, $0.01 par value:
|
2 | 2 | |||||||||
Authorized shares: 600.0
|
|||||||||||
Issued shares: 12/31/20—170.2; 12/31/19—171.0
|
|||||||||||
Outstanding shares: 12/31/20—169.4; 12/31/19—170.5
|
|||||||||||
Additional paid-in capital | 759 | 499 | |||||||||
Retained earnings | 1,127 | 1,239 | |||||||||
Accumulated other comprehensive loss | (2,446) | (2,440) | |||||||||
Total Motorola Solutions, Inc. stockholders’ equity (deficit) | (558) | (700) | |||||||||
Noncontrolling interests | 17 | 17 | |||||||||
Total stockholders’ equity (deficit) | (541) | (683) | |||||||||
Total liabilities and stockholders’ equity (deficit) | $ | 10,876 | $ | 10,642 |
(In millions, except per share amounts) | Shares | Common Stock and Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interests | ||||||||||||||||||||||||
Balance as of January 1, 2018 | 161.6 | $ | 353 | $ | (2,562) | $ | 467 | $ | 15 | ||||||||||||||||||||
Net earnings | 966 | 3 | |||||||||||||||||||||||||||
Other comprehensive loss | (203) | ||||||||||||||||||||||||||||
Issuance of common stock and stock options exercised | 3.6 | 168 | |||||||||||||||||||||||||||
Share repurchase program | (1.2) | (132) | |||||||||||||||||||||||||||
ASU 2016-16 modified retrospective adoption | (31) | ||||||||||||||||||||||||||||
Share-based compensation expense | 73 | ||||||||||||||||||||||||||||
ASU 2014-09 modified retrospective adoption | 127 | ||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest in subsidiary common stock | (1) | ||||||||||||||||||||||||||||
Dividends declared | (346) | ||||||||||||||||||||||||||||
Repurchase of senior convertible notes | (173) | ||||||||||||||||||||||||||||
Balance as of December 31, 2018 | 164.0 | $ | 421 | $ | (2,765) | $ | 1,051 | $ | 17 | ||||||||||||||||||||
Net earnings | 868 | 3 | |||||||||||||||||||||||||||
ASU 2016-16 beginning balance adjustment | 30 | ||||||||||||||||||||||||||||
Other comprehensive income | 325 | ||||||||||||||||||||||||||||
Issuance of common stock and stock options exercised | 2.4 | 122 | |||||||||||||||||||||||||||
Share repurchase program | (2.3) | (315) | |||||||||||||||||||||||||||
Issuances of common stock for acquisition | 1.4 | 160 | |||||||||||||||||||||||||||
Share-based compensation expense | 118 | ||||||||||||||||||||||||||||
Issuance of common stock for 2.00% senior convertible notes
|
5.5 | 988 | |||||||||||||||||||||||||||
Dividends paid to noncontrolling interest in subsidiary common stock | (3) | ||||||||||||||||||||||||||||
Equity component of 1.75% senior convertible notes
|
10 | ||||||||||||||||||||||||||||
Dividends declared | (395) | ||||||||||||||||||||||||||||
Repurchase of 2.00% senior convertible notes
|
(1,318) | ||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 171.0 | $ | 501 | $ | (2,440) | $ | 1,239 | $ | 17 | ||||||||||||||||||||
Net earnings | 949 | 4 | |||||||||||||||||||||||||||
Other comprehensive loss | (6) | ||||||||||||||||||||||||||||
Issuance of common stock and stock options exercised | 3.1 | 131 | |||||||||||||||||||||||||||
Share repurchase program | (3.9) | (612) | |||||||||||||||||||||||||||
Share-based compensation expense | 129 | ||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest in subsidiary common stock | (4) | ||||||||||||||||||||||||||||
Dividends declared | (449) | ||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 170.2 | $ | 761 | $ | (2,446) | $ | 1,127 | $ | 17 |
Years ended December 31 | |||||||||||||||||
(In millions) | 2020 | 2019 | 2018 | ||||||||||||||
Operating | |||||||||||||||||
Net earnings | $ | 953 | $ | 871 | $ | 969 | |||||||||||
Adjustments to reconcile Net earnings (loss) to Net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 409 | 394 | 360 | ||||||||||||||
Non-cash other charges (income) | (13) | 35 | 56 | ||||||||||||||
U.S. pension settlement loss | — | 359 | — | ||||||||||||||
Gain from the extinguishment of 2.00% senior convertible notes
|
— | (4) | (6) | ||||||||||||||
Share-based compensation expense | 129 | 118 | 73 | ||||||||||||||
Losses (gains) on sales of investments and businesses, net | 2 | (5) | (16) | ||||||||||||||
Losses from the extinguishment of long-term debt | 56 | 50 | — | ||||||||||||||
Changes in assets and liabilities, net of effects of acquisitions, dispositions, and foreign currency translation adjustments: | |||||||||||||||||
Accounts receivable | 90 | (79) | 62 | ||||||||||||||
Inventories | (14) | (74) | 71 | ||||||||||||||
Other current assets and contract assets | 167 | 49 | (251) | ||||||||||||||
Accounts payable, accrued liabilities, and contract liabilities | (116) | 198 | 271 | ||||||||||||||
Other assets and liabilities | (25) | (5) | (523) | ||||||||||||||
Deferred income taxes | (25) | (84) | 9 | ||||||||||||||
Net cash provided by operating activities | 1,613 | 1,823 | 1,075 | ||||||||||||||
Investing | |||||||||||||||||
Acquisitions and investments, net | (287) | (709) | (1,164) | ||||||||||||||
Proceeds from sales of investments | 11 | 16 | 95 | ||||||||||||||
Capital expenditures | (217) | (248) | (197) | ||||||||||||||
Proceeds from sales of property, plant and equipment | 56 | 7 | — | ||||||||||||||
Net cash used for investing activities | (437) | (934) | (1,266) | ||||||||||||||
Financing | |||||||||||||||||
Net proceeds from issuance of debt | 892 | 1,804 | 1,090 | ||||||||||||||
Repayment of debt | (914) | (2,039) | (323) | ||||||||||||||
Repayment of unsecured revolving credit facility draw | (800) | — | (400) | ||||||||||||||
Proceeds from unsecured revolving credit facility draw | 800 | — | 400 | ||||||||||||||
Issuances of common stock | 108 | 114 | 168 | ||||||||||||||
Purchases of common stock | (612) | (315) | (132) | ||||||||||||||
Settlement of conversion premium on 2.00% senior convertible notes
|
— | (326) | (169) | ||||||||||||||
Payment of dividends | (436) | (379) | (337) | ||||||||||||||
Payment of dividends to noncontrolling interest | (4) | (3) | (1) | ||||||||||||||
Deferred acquisition costs | — | — | (76) | ||||||||||||||
Net cash provided by (used for) financing activities | (966) | (1,144) | 220 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 43 | (1) | (40) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 253 | (256) | (11) | ||||||||||||||
Cash and cash equivalents, beginning of period | 1,001 | 1,257 | 1,268 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 1,254 | $ | 1,001 | $ | 1,257 | |||||||||||
Supplemental Cash Flow Information | |||||||||||||||||
Cash paid during the period for: | |||||||||||||||||
Interest, net | $ | 217 | $ | 221 | $ | 204 | |||||||||||
Income and withholding taxes, net of refunds | 181 | 138 | 119 |
Balance at
January 1, 2020 |
Charged to
Earnings |
Used | Adjustments* |
Balance at
December 31, 2020 |
|||||||||||||||||||||||||
Allowance for credit losses | $ | 63 | $ | 47 | $ | (34) | $ | (1) | $ | 75 |
Years Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Products and Systems Integration | Software and Services | Total | Products and Systems Integration | Software and Services | Total | Products and Systems Integration | Software and Services | Total | ||||||||||||||||||||||||||||||||||||||||||||
Regions | |||||||||||||||||||||||||||||||||||||||||||||||||||||
North America | $ | 3,418 | $ | 1,606 | $ | 5,024 | $ | 3,846 | $ | 1,430 | $ | 5,276 | $ | 3,488 | $ | 1,176 | $ | 4,664 | |||||||||||||||||||||||||||||||||||
International | 1,216 | 1,174 | 2,390 | 1,483 | 1,128 | 2,611 | 1,612 | 1,067 | 2,679 | ||||||||||||||||||||||||||||||||||||||||||||
$ | 4,634 | $ | 2,780 | $ | 7,414 | $ | 5,329 | $ | 2,558 | $ | 7,887 | $ | 5,100 | $ | 2,243 | $ | 7,343 | ||||||||||||||||||||||||||||||||||||
Major Products and Services | |||||||||||||||||||||||||||||||||||||||||||||||||||||
LMR | $ | 3,992 | $ | 2,008 | $ | 6,000 | $ | 4,830 | $ | 1,891 | $ | 6,721 | $ | 4,783 | $ | 1,815 | $ | 6,598 | |||||||||||||||||||||||||||||||||||
Video Security and Analytics | 642 | 285 | 927 | 499 | 210 | 709 | 317 | 65 | 382 | ||||||||||||||||||||||||||||||||||||||||||||
Command Center Software | — | 487 | 487 | — | 457 | 457 | — | 363 | 363 | ||||||||||||||||||||||||||||||||||||||||||||
$ | 4,634 | $ | 2,780 | $ | 7,414 | $ | 5,329 | $ | 2,558 | $ | 7,887 | $ | 5,100 | $ | 2,243 | $ | 7,343 | ||||||||||||||||||||||||||||||||||||
Customer Type | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct | $ | 2,991 | $ | 2,558 | $ | 5,549 | $ | 3,441 | $ | 2,395 | $ | 5,836 | $ | 3,317 | $ | 2,134 | $ | 5,451 | |||||||||||||||||||||||||||||||||||
Indirect | 1,643 | 222 | 1,865 | 1,888 | 163 | 2,051 | 1,783 | 109 | 1,892 | ||||||||||||||||||||||||||||||||||||||||||||
$ | 4,634 | $ | 2,780 | $ | 7,414 | $ | 5,329 | $ | 2,558 | $ | 7,887 | $ | 5,100 | $ | 2,243 | $ | 7,343 |
(in millions) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Accounts receivable, net | $ | 1,390 | $ | 1,412 | $ | 1,293 | |||||||||||||||||||||||
Contract assets | 933 | 1,046 | 1,012 | ||||||||||||||||||||||||||
Contract liabilities | 1,554 | 1,449 | 1,263 | ||||||||||||||||||||||||||
Non-current contract liabilities | 283 | 274 | 214 | ||||||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Current contract cost assets | $ | 23 | $ | 24 | $ | 30 | |||||||||||||||||||||||
Non-current contract cost assets | 105 | 107 | 98 |
(in millions) | December 31, 2020 | December 31, 2019 | |||||||||
Lease expense: | |||||||||||
Operating lease cost | $ | 130 | $ | 133 | |||||||
Finance lease cost | |||||||||||
Amortization of right-of-use assets | 11 | 12 | |||||||||
Interest on lease liabilities | 1 | 2 | |||||||||
Total finance lease cost | 12 | 14 | |||||||||
Short-term lease cost | 3 | 4 | |||||||||
Variable cost | 37 | 35 | |||||||||
Sublease income | (5) | (4) | |||||||||
Net lease expense | $ | 177 | $ | 182 |
(in millions) | Statement Line Classification | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Operating lease assets | Operating lease assets | $ | 468 | $ | 554 | |||||||||||||||||||||
Finance lease assets | Property, plant, and equipment, net | 30 | 41 | |||||||||||||||||||||||
$ | 498 | $ | 595 | |||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||
Operating lease liabilities | Accrued liabilities | $ | 126 | $ | 122 | |||||||||||||||||||||
Finance lease liabilities | Current portion of long-term debt | 11 | 13 | |||||||||||||||||||||||
$ | 137 | $ | 135 | |||||||||||||||||||||||
Non-current liabilities: | ||||||||||||||||||||||||||
Operating lease liabilities | Operating lease liabilities | $ | 402 | $ | 497 | |||||||||||||||||||||
Finance lease liabilities | Long-term debt | 5 | 16 | |||||||||||||||||||||||
$ | 407 | $ | 513 |
(in millions) | December 31, 2020 | December 31, 2019 | |||||||||||||||
Supplemental cash flow information: | |||||||||||||||||
Net cash used for operating activities related to operating leases | $ | 144 | $ | 140 | |||||||||||||
Net cash used for operating activities related to finance leases | 1 | 2 | |||||||||||||||
Net cash used for financing activities related to finance leases | 12 | 14 | |||||||||||||||
Assets obtained in exchange for lease liabilities: | |||||||||||||||||
Operating leases | $ | 84 | $ | 86 | |||||||||||||
(in millions) | December 31, 2020 | December 31, 2019 | |||||||||||||||
Weighted average remaining lease terms (years): | |||||||||||||||||
Operating leases | 6 | 7 | |||||||||||||||
Finance leases | 2 | 2 | |||||||||||||||
Weighted average discount rate: | |||||||||||||||||
Operating leases | 3.30 | % | 3.61 | % | |||||||||||||
Finance leases | 4.21 | % | 4.28 | % |
As of December 31, 2020 (in millions) | Operating Leases | Finance Leases | Total | ||||||||||||||
2021 | $ | 141 | $ | 12 | $ | 153 | |||||||||||
2022 | 127 | 5 | 132 | ||||||||||||||
2023 | 73 | — | 73 | ||||||||||||||
2024 | 59 | — | 59 | ||||||||||||||
2025 | 47 | — | 47 | ||||||||||||||
Thereafter | 139 | — | 139 | ||||||||||||||
Total lease payments | $ | 586 | $ | 17 | $ | 603 | |||||||||||
Less: Interest | 58 | 1 | 59 | ||||||||||||||
Present value of lease liabilities | $ | 528 | $ | 16 | $ | 544 |
Years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Other charges (income): | |||||||||||||||||
Intangibles amortization (Note 15) | $ | 215 | $ | 208 | $ | 188 | |||||||||||
Reorganization of businesses (Note 14) | 57 | 40 | 61 | ||||||||||||||
Losses on legal settlements | 9 | 3 | 3 | ||||||||||||||
Asset impairments | 5 | — | 1 | ||||||||||||||
Gain on sale of property, plant, and equipment | (50) | — | — | ||||||||||||||
Environmental reserve expense | — | — | 57 | ||||||||||||||
Operating lease ROU asset impairment | — | 5 | — | ||||||||||||||
Acquisition-related transaction fees | 9 | 3 | 24 | ||||||||||||||
Other | 1 | 1 | — | ||||||||||||||
$ | 246 | $ | 260 | $ | 334 |
Years ended December 31 (in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Interest expense, net: | |||||||||||||||||
Interest expense | $ | (233) | $ | (237) | $ | (240) | |||||||||||
Interest income | 13 | 17 | 18 | ||||||||||||||
$ | (220) | $ | (220) | $ | (222) | ||||||||||||
Other: | |||||||||||||||||
Net periodic pension and postretirement benefit (Note 8) | $ | 81 | $ | 78 | $ | 75 | |||||||||||
Losses from the extinguishment of long-term debt (Note 5) | (56) | (50) | — | ||||||||||||||
Gains from the extinguishment of 2.00% senior convertible notes (Note 5)
|
— | 4 | 6 | ||||||||||||||
Investment impairments | (4) | (18) | (5) | ||||||||||||||
Foreign currency loss | (44) | (22) | (24) | ||||||||||||||
Gain (loss) on derivative instruments | 25 | (8) | (14) | ||||||||||||||
Gains on equity method investments | 3 | 3 | 1 | ||||||||||||||
Fair value adjustments to equity investments | 6 | (3) | 11 | ||||||||||||||
U.S. pension settlement (Note 8) | — | (359) | — | ||||||||||||||
Other | 2 | 10 | 3 | ||||||||||||||
$ | 13 | $ | (365) | $ | 53 |
Amounts attributable to Motorola Solutions, Inc. common stockholders | |||||||||||||||||||||||||||||||||||
Net Earnings | |||||||||||||||||||||||||||||||||||
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
Basic earnings per common share: | |||||||||||||||||||||||||||||||||||
Earnings | $ | 949 | $ | 868 | $ | 966 | |||||||||||||||||||||||||||||
Weighted average common shares outstanding | 170.0 | 166.6 | 162.4 | ||||||||||||||||||||||||||||||||
Per share amount | $ | 5.58 | $ | 5.21 | $ | 5.95 | |||||||||||||||||||||||||||||
Diluted earnings per common share: | |||||||||||||||||||||||||||||||||||
Earnings | $ | 949 | $ | 868 | $ | 966 | |||||||||||||||||||||||||||||
Weighted average common shares outstanding | 170.0 | 166.6 | 162.4 | ||||||||||||||||||||||||||||||||
Add effect of dilutive securities: | |||||||||||||||||||||||||||||||||||
Share-based awards | 4.1 | 4.7 | 4.2 | ||||||||||||||||||||||||||||||||
2.00% senior convertible notes
|
— | 4.3 | 5.4 | ||||||||||||||||||||||||||||||||
1.75% senior convertible notes
|
— | — | — | ||||||||||||||||||||||||||||||||
Diluted weighted average common shares outstanding | 174.1 | 175.6 | 172.0 | ||||||||||||||||||||||||||||||||
Per share amount | $ | 5.45 | $ | 4.95 | $ | 5.62 |
December 31 | 2020 | 2019 | |||||||||
Accounts receivable | $ | 1,465 | $ | 1,475 | |||||||
Less allowance for credit losses | (75) | (63) | |||||||||
$ | 1,390 | $ | 1,412 |
December 31 | 2020 | 2019 | |||||||||
Finished goods | $ | 271 | $ | 209 | |||||||
Work-in-process and production materials | 360 | 374 | |||||||||
631 | 583 | ||||||||||
Less inventory reserves | (123) | (136) | |||||||||
$ | 508 | $ | 447 |
December 31 | 2020 | 2019 | |||||||||
Current contract cost assets (Note 2) | $ | 23 | $ | 24 | |||||||
Tax-related deposits | 52 | 77 | |||||||||
Other | 167 | 171 | |||||||||
$ | 242 | $ | 272 |
December 31 | 2020 | 2019 | |||||||||
Land | $ | 6 | $ | 15 | |||||||
Leasehold improvements | 439 | 410 | |||||||||
Machinery and equipment | 2,276 | 2,051 | |||||||||
2,721 | 2,476 | ||||||||||
Less accumulated depreciation | (1,699) | (1,484) | |||||||||
$ | 1,022 | $ | 992 |
December 31 | 2020 | 2019 | |||||||||||||||||||||
Common stock | $ | 19 | $ | 25 | |||||||||||||||||||
Strategic investments, at cost | 46 | 40 | |||||||||||||||||||||
Company-owned life insurance policies | 77 | 74 | |||||||||||||||||||||
Equity method investments | 16 | 20 | |||||||||||||||||||||
$ | 158 | $ | 159 | ||||||||||||||||||||
December 31 | 2020 | 2019 | |||||||||
Defined benefit plan assets (Note 8) | $ | 283 | $ | 223 | |||||||
Non-current contract cost assets (Note 2) | 105 | 107 | |||||||||
Other | 94 | 92 | |||||||||
$ | 482 | $ | 422 |
December 31 | 2020 | 2019 | |||||||||
Compensation | $ | 291 | $ | 347 | |||||||
Tax liabilities (Note 7) | 147 | 95 | |||||||||
Dividend payable | 120 | 110 | |||||||||
Trade liabilities | 164 | 161 | |||||||||
Operating lease liabilities (Note 3) | 126 | 122 | |||||||||
Other | 463 | 521 | |||||||||
$ | 1,311 | $ | 1,356 |
December 31 | 2020 | 2019 | |||||||||
Defined benefit plans (Note 8) | $ | 1,578 | $ | 1,524 | |||||||
Non-current contract liabilities (Note 2) | 283 | 274 | |||||||||
Unrecognized tax benefits (Note 7) | 49 | 53 | |||||||||
Deferred income taxes (Note 7) | 180 | 184 | |||||||||
Other | 273 | 241 | |||||||||
$ | 2,363 | $ | 2,276 |
Year | Shares Repurchased (in millions) | Average Price | Amount (in millions) | ||||||||||||||
2020 | 3.9 | $ | 155.93 | $ | 612 | ||||||||||||
2019 | 2.3 | 137.35 | 315 | ||||||||||||||
2018 | 1.2 | 112.42 | 132 |
Years ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Foreign Currency Translation Adjustments: | |||||||||||||||||
Balance at beginning of period | $ | (410) | $ | (444) | $ | (353) | |||||||||||
Other comprehensive income (loss) before reclassification adjustment | 55 | 35 | (94) | ||||||||||||||
Tax benefit (expense) | (5) | (1) | 3 | ||||||||||||||
Other comprehensive income (loss), net of tax | 50 | 34 | (91) | ||||||||||||||
Balance at end of period | $ | (360) | $ | (410) | $ | (444) | |||||||||||
Available-for-Sale Securities: | |||||||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | 6 | |||||||||||
Other comprehensive income (loss) before reclassification adjustment | — | — | (8) | ||||||||||||||
Tax benefit | — | — | 2 | ||||||||||||||
Other comprehensive income (loss), net of tax | — | — | (6) | ||||||||||||||
Balance at end of period | $ | — | $ | — | $ | — | |||||||||||
Defined Benefit Plans: | |||||||||||||||||
Balance at beginning of period | $ | (2,030) | $ | (2,321) | $ | (2,215) | |||||||||||
Other comprehensive income (loss) before reclassification adjustment | (130) | 337 | (200) | ||||||||||||||
Tax benefit (expense) | 30 | (85) | 46 | ||||||||||||||
Other comprehensive income (loss) before reclassification adjustment, net of tax | (100) | 252 | (154) | ||||||||||||||
Reclassification adjustment - Actuarial net losses into Other income (expense) | 76 | 65 | 76 | ||||||||||||||
Reclassification adjustment - Prior service benefits into Other income (expense) | (18) | (15) | (15) | ||||||||||||||
Tax benefit | (14) | (11) | (13) | ||||||||||||||
Reclassification adjustments into Net earnings, net of tax | 44 | 39 | 48 | ||||||||||||||
Other comprehensive income (loss), net of tax | (56) | 291 | (106) | ||||||||||||||
Balance at end of period | $ | (2,086) | $ | (2,030) | $ | (2,321) | |||||||||||
Total Accumulated other comprehensive loss | $ | (2,446) | $ | (2,440) | $ | (2,765) |
December 31 | 2020 | 2019 | |||||||||
3.75% senior notes due 2022
|
$ | — | $ | 550 | |||||||
3.5% senior notes due 2023
|
323 | 597 | |||||||||
4.0% senior notes due 2024
|
583 | 593 | |||||||||
1.75% senior convertible notes due 2024
|
995 | 988 | |||||||||
6.5% debentures due 2025
|
70 | 72 | |||||||||
7.5% debentures due 2025
|
252 | 254 | |||||||||
4.6% senior notes due 2028
|
692 | 691 | |||||||||
6.5% debentures due 2028
|
24 | 24 | |||||||||
4.6% senior notes due 2029
|
803 | 804 | |||||||||
2.3% senior notes due 2030
|
892 | — | |||||||||
6.625% senior notes due 2037
|
37 | 37 | |||||||||
5.5% senior notes due 2044
|
396 | 396 | |||||||||
5.22% debentures due 2097
|
92 | 91 | |||||||||
Other long-term debt | 18 | 35 | |||||||||
5,177 | 5,132 | ||||||||||
Adjustments for unamortized gains on interest rate swap terminations | (2) | (3) | |||||||||
Less: current portion | (12) | (16) | |||||||||
Long-term debt | $ | 5,163 | $ | 5,113 |
Notional Amount | |||||||||||
Net Buy (Sell) by Currency | 2020 | 2019 | |||||||||
Euro | $ | 177 | $ | 134 | |||||||
British pound | 86 | 107 | |||||||||
Canadian dollar | 61 | 8 | |||||||||
Chinese renminbi | (90) | (79) | |||||||||
Australian dollar | (88) | (123) |
Fair Values of Derivative Instruments | |||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||
December 31, 2020 |
Fair
Value |
Balance
Sheet Location |
Fair
Value |
Balance
Sheet Location |
|||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Foreign exchange contracts | $ | — | Other assets | $ | 5 | Accrued liabilities | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Foreign exchange contracts | $ | 14 | Other assets | $ | 3 | Accrued liabilities | |||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||
December 31, 2019 |
Fair
Value |
Balance
Sheet Location |
Fair
Value |
Balance
Sheet Location |
|||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Foreign exchange contracts | $ | 3 | Other assets | $ | — | Accrued liabilities | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Foreign exchange contracts | $ | 1 | Other assets | $ | 5 | Accrued liabilities | |||||||||||||||||
December 31 | Financial Statement Location | |||||||||||||||||||
Gain (Loss) on Derivative Instruments | 2020 | 2019 | 2018 | |||||||||||||||||
Foreign exchange contracts | $ | (7) | $ | 8 | $ | — | Other comprehensive income (loss) | |||||||||||||
December 31 | Financial Statement Location | |||||||||||||||||||
Gain (Loss) on Derivative Instruments | 2020 | 2019 | 2018 | |||||||||||||||||
Foreign exchange contracts | $ | 25 | $ | (8) | $ | (14) | Other income (expense) | |||||||||||||
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
United States | $ | 1,029 | $ | 714 | $ | 980 | |||||||||||
Other nations | 145 | 287 | 122 | ||||||||||||||
$ | 1,174 | $ | 1,001 | $ | 1,102 |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
United States | $ | 117 | $ | 94 | $ | 16 | |||||||||||
Other nations | 98 | 93 | 88 | ||||||||||||||
States (U.S.) | 31 | 27 | 20 | ||||||||||||||
Current income tax expense | 246 | 214 | 124 | ||||||||||||||
United States | (21) | (61) | 39 | ||||||||||||||
Other nations | 8 | (22) | (18) | ||||||||||||||
States (U.S.) | (12) | (1) | (12) | ||||||||||||||
Deferred income tax expense (benefit) | (25) | (84) | 9 | ||||||||||||||
Total income tax expense | $ | 221 | $ | 130 | $ | 133 |
Years ended December 31 | 2020 | 2019 | 2018 | |||||||||||||||||||||||
Income tax expense at statutory rate | $ | 246 | 21.0 | % | $ | 210 | 21.0 | % | $ | 231 | 21.0 | % | ||||||||||||||
State income taxes, net of federal benefit | 39 | 3.3 | % | 32 | 3.2 | % | 11 | 1.0 | % | |||||||||||||||||
U.S. tax expense (benefit) on undistributed non-U.S. earnings | (2) | (0.2) | % | 6 | 0.6 | % | 6 | 0.5 | % | |||||||||||||||||
Non-U.S. tax expense on non-U.S. earnings | 5 | 0.5 | % | 4 | 0.4 | % | 7 | 0.6 | % | |||||||||||||||||
U.S. tax reform | — | — | % | — | — | % | (79) | (7.2) | % | |||||||||||||||||
Reserve for uncertain tax positions | — | — | % | (3) | (0.3) | % | 2 | 0.2 | % | |||||||||||||||||
Other tax expense (benefit) | 5 | 0.4 | % | (3) | (0.3) | % | 8 | 0.7 | % | |||||||||||||||||
Research credits | (28) | (2.4) | % | (10) | (1.0) | % | (9) | (0.8) | % | |||||||||||||||||
Stock compensation | (48) | (4.1) | % | (27) | (2.7) | % | (30) | (2.7) | % | |||||||||||||||||
Valuation allowances | 4 | 0.3 | % | (79) | (7.9) | % | (14) | (1.3) | % | |||||||||||||||||
$ | 221 | 18.8 | % | $ | 130 | 13.0 | % | $ | 133 | 12.0 | % |
December 31 | 2020 | 2019 | |||||||||
Inventory | $ | 22 | $ | 45 | |||||||
Accrued liabilities and allowances | 67 | 65 | |||||||||
Employee benefits | 372 | 392 | |||||||||
Capitalized items | (61) | (129) | |||||||||
Tax basis differences on investments | (3) | 2 | |||||||||
Depreciation tax basis differences on fixed assets | 52 | 68 | |||||||||
Undistributed non-U.S. earnings | (33) | (27) | |||||||||
Tax attribute carryforwards | 449 | 471 | |||||||||
Business reorganization | 16 | 10 | |||||||||
Warranty and customer liabilities | 24 | 33 | |||||||||
Deferred revenue and costs | 203 | 165 | |||||||||
Valuation allowances | (341) | (349) | |||||||||
Operating lease assets | (103) | (125) | |||||||||
Operating lease liabilities | 119 | 139 | |||||||||
Other | 3 | (1) | |||||||||
$ | 786 | $ | 759 |
December 31, 2020 |
Gross
Tax Loss |
Tax
Effected |
Expiration
Period |
||||||||||||||
United States: | |||||||||||||||||
U.S. tax losses | $ | 48 | $ | 10 | 2028-2038 | ||||||||||||
Foreign tax credits | — | 282 | 2021-2023 | ||||||||||||||
General business credits | — | 3 | 2030-2039 | ||||||||||||||
State tax losses | — | 27 | 2021-2031 | ||||||||||||||
State tax credits | — | 20 | 2021-2039 | ||||||||||||||
Non-U.S. subsidiaries: | |||||||||||||||||
Japan tax losses | 74 | 22 | 2021-2027 | ||||||||||||||
United Kingdom tax losses | 113 | 21 | Unlimited | ||||||||||||||
Singapore tax losses | 12 | 2 | Unlimited | ||||||||||||||
Canada tax losses | 20 | 5 | 2034-2038 | ||||||||||||||
Spain tax credits | — | 24 | 2021-2028 | ||||||||||||||
Other subsidiaries tax losses | 90 | 20 | Various | ||||||||||||||
Other subsidiaries tax credits | — | 13 | Various | ||||||||||||||
$ | 449 |
2020 | 2019 | ||||||||||
Balance at January 1 | $ | 70 | $ | 76 | |||||||
Additions based on tax positions related to current year | 8 | 4 | |||||||||
Additions for tax positions of prior years | 2 | 3 | |||||||||
Reductions for tax positions of prior years | (6) | (8) | |||||||||
Settlements and agreements | (8) | (1) | |||||||||
Lapse of statute of limitations | (2) | (4) | |||||||||
Balance at December 31 | $ | 64 | $ | 70 |
Jurisdiction | Tax Years | ||||
United States | 2016-2020 | ||||
Australia | 2016-2020 | ||||
Canada | 2015-2020 | ||||
Germany | 2016-2020 | ||||
India | 1997-2020 | ||||
Israel | 2019-2020 | ||||
Poland | 2016-2020 | ||||
Malaysia | 2013-2020 | ||||
United Kingdom | 2019-2020 |
U.S. Pension Benefit Plans | Non U.S. Pension Benefit Plans | Postretirement Health Care Benefits Plan | |||||||||||||||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | 2 | $ | 2 | $ | 3 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||
Interest cost | 144 | 202 | 186 | 29 | 36 | 38 | 2 | 3 | 2 | ||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (225) | (275) | (270) | (85) | (85) | (92) | (10) | (10) | (10) | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized net loss | 58 | 46 | 57 | 15 | 15 | 15 | 3 | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||
Unrecognized prior service benefit | — | — | — | (3) | — | — | (15) | (15) | (15) | ||||||||||||||||||||||||||||||||||||||||||||
Settlement loss | — | 359 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net periodic cost (benefit) | $ | (23) | $ | 332 | $ | (27) | $ | (42) | $ | (32) | $ | (36) | $ | (20) | $ | (18) | $ | (19) |
U.S. Pension Benefit Plans | Non U.S. Pension Benefit Plans | Postretirement Health Care Benefits Plan | |||||||||||||||||||||||||||||||||
|
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||||||||
Benefit obligation at January 1 | $ | 4,727 | $ | 4,864 | $ | 1,814 | $ | 1,654 | $ | 73 | $ | 72 | |||||||||||||||||||||||
Service cost | — | — | 2 | 2 | — | — | |||||||||||||||||||||||||||||
Interest cost | 144 | 202 | 29 | 36 | 2 | 3 | |||||||||||||||||||||||||||||
Plan amendments | — | — | 1 | (83) | — | — | |||||||||||||||||||||||||||||
Actuarial loss | 480 | 609 | 171 | 207 | 1 | 4 | |||||||||||||||||||||||||||||
Foreign exchange valuation adjustment | — | — | 88 | 44 | — | — | |||||||||||||||||||||||||||||
Benefit payments | (125) | (948) | (47) | (46) | (5) | (6) | |||||||||||||||||||||||||||||
Benefit obligation at December 31 | $ | 5,226 | $ | 4,727 | $ | 2,058 | $ | 1,814 | $ | 71 | $ | 73 | |||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||||||||
Fair value at January 1 | $ | 3,601 | $ | 3,673 | $ | 1,641 | $ | 1,438 | $ | 160 | $ | 133 | |||||||||||||||||||||||
Return on plan assets | 604 | 873 | 214 | 188 | 26 | 33 | |||||||||||||||||||||||||||||
Company contributions | 3 | 3 | 9 | 8 | — | — | |||||||||||||||||||||||||||||
Foreign exchange valuation adjustment | — | — | 63 | 53 | — | — | |||||||||||||||||||||||||||||
Benefit payments | (125) | (948) | (47) | (46) | (5) | (6) | |||||||||||||||||||||||||||||
Fair value at December 31 | $ | 4,083 | $ | 3,601 | $ | 1,880 | $ | 1,641 | $ | 181 | $ | 160 | |||||||||||||||||||||||
Funded status of the plan | $ | (1,143) | $ | (1,126) | $ | (178) | $ | (173) | $ | 110 | $ | 87 | |||||||||||||||||||||||
Unrecognized net loss | 1,977 | 1,935 | 675 | 648 | 23 | 42 | |||||||||||||||||||||||||||||
Unrecognized prior service benefit | — | — | (80) | (84) | (5) | (20) | |||||||||||||||||||||||||||||
Prepaid pension cost | $ | 834 | $ | 809 | $ | 417 | $ | 391 | $ | 128 | $ | 109 | |||||||||||||||||||||||
Components of prepaid (accrued) pension cost: | |||||||||||||||||||||||||||||||||||
Current benefit liability | $ | (3) | $ | (3) | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Non-current benefit liability | (1,140) | (1,123) | (330) | (299) | — | — | |||||||||||||||||||||||||||||
Non-current benefit asset | — | — | 152 | 126 | 110 | 87 | |||||||||||||||||||||||||||||
Deferred income taxes | 480 | 463 | 65 | 60 | 7 | 9 | |||||||||||||||||||||||||||||
Accumulated other comprehensive loss | 1,497 | 1,472 | 530 | 504 | 11 | 13 | |||||||||||||||||||||||||||||
Prepaid pension cost | $ | 834 | $ | 809 | $ | 417 | $ | 391 | $ | 128 | $ | 109 |
U.S. Pension Benefit Plans | Non U.S. Pension Benefit Plans | Postretirement Health Care Benefits Plan | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Discount rate | 3.10 | % | 4.25 | % | 1.61 | % | 2.37 | % | 2.66 | % | 3.85 | % | |||||||||||||||||||||||
Investment return assumption | 6.85 | % | 6.85 | % | 4.66 | % | 5.23 | % | 6.90 | % | 6.90 | % |
U.S. Pension Benefit Plans | Non U.S. Pension Benefit Plans | Postretirement Health Care Benefits Plan | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Discount rate | 2.63 | % | 3.32 | % | 1.24 | % | 1.82 | % | 2.39 | % | 3.15 | % | |||||||||||||||||||||||
Future compensation increase rate | n/a | n/a | 0.43 | % | 0.52 | % | n/a | n/a |
U.S. Pension Benefit Plans | Non U.S. Pension Benefit Plans | |||||||||||||||||||||||||||||||
December 31 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 5,226 | $ | 4,727 | $ | 2,055 | $ | 1,809 | ||||||||||||||||||||||||
Projected benefit obligation | 5,226 | 4,727 | 2,058 | 1,814 | ||||||||||||||||||||||||||||
Fair value of plan assets | 4,083 | 3,601 | 1,880 | 1,641 |
All Pension Benefit Plans | Postretirement Health Care Benefits Plan | ||||||||||||||||||||||
December 31 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Target Mix: | |||||||||||||||||||||||
Equity securities | 25 | % | 25 | % | 28 | % | 28 | % | |||||||||||||||
Fixed income securities | 57 | % | 56 | % | 51 | % | 52 | % | |||||||||||||||
Cash and other investments | 18 | % | 19 | % | 21 | % | 20 | % | |||||||||||||||
Actual Mix: | |||||||||||||||||||||||
Equity securities | 26 | % | 24 | % | 30 | % | 29 | % | |||||||||||||||
Fixed income securities | 58 | % | 57 | % | 53 | % | 54 | % | |||||||||||||||
Cash and other investments | 16 | % | 19 | % | 17 | % | 17 | % |
Year | U.S. Pension Benefit Plans | Non U.S. Pension Benefit Plans | Postretirement Health Care Benefits Plan | ||||||||||||||
2021 | $ | 157 | $ | 51 | $ | 6 | |||||||||||
2022 | 176 | 52 | 6 | ||||||||||||||
2023 | 190 | 53 | 5 | ||||||||||||||
2024 | 205 | 55 | 5 | ||||||||||||||
2025 | 231 | 56 | 5 | ||||||||||||||
2026-2030 | 1,344 | 294 | 20 |
2020 | 2019 | 2018 | |||||||||||||||
Expected volatility | 33.7 | % | 23.8 | % | 24.7 | % | |||||||||||
Risk-free interest rate | 0.6 | % | 2.3 | % | 2.7 | % | |||||||||||
Dividend yield | 2.7 | % | 2.5 | % | 2.4 | % | |||||||||||
Expected life (years) | 5.9 | 6.0 | 5.9 |
2020 | 2019 | 2018 | |||||||||||||||
Performance Options | Performance Options | Performance Options | |||||||||||||||
Expected volatility of common stock | 34.7 | % | 22.4 | % | 25.0 | % | |||||||||||
Expected volatility of the S&P 500 | 29.0 | % | 25.1 | % | 25.3 | % | |||||||||||
Risk-free interest rate | 0.8 | % | 2.3 | % | 2.7 | % | |||||||||||
Dividend yield | 2.6 | % | 2.7 | % | 3.1 | % | |||||||||||
Expected life (years) | 6.5 | 6.5 | 6.5 |
2020 | 2019 | 2018 | |||||||||||||||
Market Stock Unit | Market Stock Unit | Market Stock Units | |||||||||||||||
Expected volatility of common stock | 34.7 | % | 22.4 | % | 25.0 | % | |||||||||||
Risk-free interest rate | 0.6 | % | 2.2 | % | 2.4 | % | |||||||||||
Dividend yield | 1.7 | % | 2.0 | % | 2.2 | % |
2020 | 2019 | |||||||||||||
Performance Stock Units | Performance Stock Units | |||||||||||||
Expected volatility of common stock | 34.7 | % | 20.6 | % | ||||||||||
Expected volatility of the S&P 500 | 29.0 | % | 25.0 | % | ||||||||||
Risk-free interest rate | 0.6 | % | 2.2 | % | ||||||||||
Dividend yield | 1.7 | % | 1.6 | % | ||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||||||||||
Exercise price range |
No. of
options |
Wtd. avg.
Exercise Price |
Wtd. avg.
contractual life (in yrs.) |
No. of
options |
Wtd. avg.
Exercise Price |
Wtd. avg.
contractual life (in yrs.) |
|||||||||||||||||||||||||||||
Under $50
|
520 | $ | 38 | 0 | 520 | $ | 38 | 0 | |||||||||||||||||||||||||||
$51-$60
|
646 | 54 | 1 | 646 | 54 | 2 | |||||||||||||||||||||||||||||
$61-$70
|
1,372 | 68 | 1 | 1,372 | 68 | 2 | |||||||||||||||||||||||||||||
$71-$80
|
372 | 71 | 3 | 372 | 71 | 5 | |||||||||||||||||||||||||||||
$81-$90
|
505 | 82 | 6 | 502 | 82 | 6 | |||||||||||||||||||||||||||||
$91-$100
|
6 | 93 | 6 | 6 | 93 | 6 | |||||||||||||||||||||||||||||
$101 and over
|
979 | 134 | 8 | 164 | 126 | 8 | |||||||||||||||||||||||||||||
4,400 | 3,582 | ||||||||||||||||||||||||||||||||||
Stock Options | Restricted Stock Units | Restricted Stock | |||||||||||||||||||||||||||||||||
No. of Options Outstanding | Wtd. Avg. Exercise Price of Shares | No. of Non-Vested Awards | Wtd. Avg. Grant Date Fair Value | No. of Non-Vested Awards | Wtd. Avg. Grant Date Fair Value | ||||||||||||||||||||||||||||||
Balance as of January 1, 2020 | 2,983 | $ | 63 | 1,047 | $ | 111 | 440 | $ | 119 | ||||||||||||||||||||||||||
Granted | 167 | 153 | 510 | 144 | 51 | 171 | |||||||||||||||||||||||||||||
Releases/Exercised | (890) | 51 | (489) | 103 | (366) | 122 | |||||||||||||||||||||||||||||
Forfeited/Canceled | (20) | 129 | (81) | 134 | — | — | |||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 2,240 | $ | 74 | 987 | $ | 138 | 125 | $ | 132 | ||||||||||||||||||||||||||
Awards exercisable | 1,845 | 60 | — | — | — | — |
Performance Options* | Market Stock Units | Performance Stock Units | |||||||||||||||||||||||||||||||||
No. of Options Outstanding | Wtd. Avg. Exercise Price of Shares | No. of Non-Vested Awards | Wtd. Avg. Grant Date Fair Value | No. of Non-Vested Awards | Wtd. Avg. Grant Date Fair Value | ||||||||||||||||||||||||||||||
Balance as of January 1, 2020 | 2,168 | $ | 78 | 112 | $ | 123 | 27 | $ | 204 | ||||||||||||||||||||||||||
Granted | 111 | 155 | 79 | 112 | 87 | 234 | |||||||||||||||||||||||||||||
Releases/Exercised | (491) | 75 | (94) | 114 | (59) | 184 | |||||||||||||||||||||||||||||
Adjustment for payout factor | 376 | 81 | 35 | 90 | — | — | |||||||||||||||||||||||||||||
Forfeited/Canceled | (4) | 139 | (1) | 94 | — | 204 | |||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 2,160 | $ | 84 | 131 | $ | 121 | 55 | $ | 219 | ||||||||||||||||||||||||||
Awards exercisable | 1,737 | 72 | — | — | — | — |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Share-based compensation expense included in: | |||||||||||||||||
Costs of sales | $ | 16 | $ | 14 | $ | 11 | |||||||||||
Selling, general and administrative expenses | 73 | 62 | 45 | ||||||||||||||
Research and development expenditures | 40 | 42 | 17 | ||||||||||||||
Share-based compensation expense included in Operating earnings | 129 | 118 | 73 | ||||||||||||||
Tax benefit | 30 | 22 | 18 | ||||||||||||||
Share-based compensation expense, net of tax | $ | 99 | $ | 96 | $ | 55 | |||||||||||
Decrease in basic earnings per share | $ | (0.58) | $ | (0.57) | $ | (0.34) | |||||||||||
Decrease in diluted earnings per share | $ | (0.57) | $ | (0.55) | $ | (0.32) | |||||||||||
December 31, 2020 | Level 1 | Level 2 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 14 | $ | 14 | |||||||||||||||||
Common stock and equivalents | 19 | — | 19 | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 8 | $ | 8 | |||||||||||||||||
December 31, 2019 | Level 1 | Level 2 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 4 | $ | 4 | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
Common stock and equivalents | 25 | — | 25 | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 5 | $ | 5 | |||||||||||||||||
December 31, 2020 | Level 1 | Level 2 | Total | ||||||||||||||||||||
Equities | $ | 45 | $ | — | $ | 45 | |||||||||||||||||
Commingled funds | 1,603 | 463 | 2,066 | ||||||||||||||||||||
Government fixed income securities | — | 516 | 516 | ||||||||||||||||||||
Corporate fixed income securities | — | 1,070 | 1,070 | ||||||||||||||||||||
Short-term investment funds | 327 | — | 327 | ||||||||||||||||||||
Total investment securities | $ | 1,975 | $ | 2,049 | $ | 4,024 | |||||||||||||||||
Accrued income receivable | 44 | ||||||||||||||||||||||
Cash | 15 | ||||||||||||||||||||||
Fair value plan assets | $ | 4,083 |
December 31, 2019 | Level 1 | Level 2 | Total | ||||||||||||||||||||
Equities | $ | 12 | $ | — | $ | 12 | |||||||||||||||||
Commingled funds | 1,320 | 555 | 1,875 | ||||||||||||||||||||
Government fixed income securities | — | 529 | 529 | ||||||||||||||||||||
Corporate fixed income securities | — | 959 | 959 | ||||||||||||||||||||
Short-term investment funds | 179 | — | 179 | ||||||||||||||||||||
Total investment securities | $ | 1,511 | $ | 2,043 | $ | 3,554 | |||||||||||||||||
Accrued income receivable | 20 | ||||||||||||||||||||||
Cash | 27 | ||||||||||||||||||||||
Fair value plan assets | $ | 3,601 |
December 31, 2020 | Level 1 | Level 2 | Total | ||||||||||||||||||||
Equities | $ | 78 | $ | — | $ | 78 | |||||||||||||||||
Commingled funds | 458 | 71 | 529 | ||||||||||||||||||||
Government fixed income securities | — | 1,076 | 1,076 | ||||||||||||||||||||
Short-term investment funds | 106 | — | 106 | ||||||||||||||||||||
Total investment securities | $ | 642 | $ | 1,147 | $ | 1,789 | |||||||||||||||||
Cash | 7 | ||||||||||||||||||||||
Accrued income receivable | 30 | ||||||||||||||||||||||
Insurance contracts | 54 | ||||||||||||||||||||||
Fair value plan assets | $ | 1,880 |
December 31, 2019 | Level 1 | Level 2 | Total | ||||||||||||||||||||
Equities | $ | 69 | $ | — | $ | 69 | |||||||||||||||||
Commingled funds | 217 | 181 | 398 | ||||||||||||||||||||
Government fixed income securities | 4 | 899 | 903 | ||||||||||||||||||||
Short-term investment funds | 170 | — | 170 | ||||||||||||||||||||
Total investment securities | $ | 460 | $ | 1,080 | $ | 1,540 | |||||||||||||||||
Cash | 4 | ||||||||||||||||||||||
Accrued income receivable | 48 | ||||||||||||||||||||||
Insurance contracts | 49 | ||||||||||||||||||||||
Fair value plan assets | $ | 1,641 |
December 31, 2020 | Level 1 | Level 2 | Total | ||||||||||||||||||||
Equities | $ | 2 | $ | — | $ | 2 | |||||||||||||||||
Commingled funds | 71 | 20 | 91 | ||||||||||||||||||||
Government fixed income securities | — | 23 | 23 | ||||||||||||||||||||
Corporate fixed income securities | — | 48 | 48 | ||||||||||||||||||||
Short-term investment funds | 15 | — | 15 | ||||||||||||||||||||
Total investment securities | $ | 88 | $ | 91 | $ | 179 | |||||||||||||||||
Accrued income receivable | $ | 2 | |||||||||||||||||||||
Fair value plan assets | $ | 181 |
December 31, 2019 | Level 1 | Level 2 | Total | ||||||||||||||||||||
Commingled funds | 59 | 25 | 84 | ||||||||||||||||||||
Government fixed income securities | — | 24 | 24 | ||||||||||||||||||||
Corporate fixed income securities | — | 43 | 43 | ||||||||||||||||||||
Short-term investment funds | 8 | — | 8 | ||||||||||||||||||||
Total investment securities | $ | 67 | $ | 92 | $ | 159 | |||||||||||||||||
Cash | 1 | ||||||||||||||||||||||
Fair value plan assets | $ | 160 |
December 31 | 2020 | 2019 | |||||||||
Long-term receivables, gross | $ | 76 | $ | 62 | |||||||
Less allowance for losses | (3) | (2) | |||||||||
Long-term receivables | $ | 73 | $ | 60 | |||||||
Less current portion | (19) | (19) | |||||||||
Non-current long-term receivables | $ | 54 | $ | 41 |
Years ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Contract-specific discounting facility | $ | 228 | $ | — | $ | — | |||||||||||
Accounts receivable sales proceeds | 74 | 34 | 77 | ||||||||||||||
Long-term receivables sales proceeds | 181 | 265 | 270 | ||||||||||||||
Total proceeds from receivable sales | $ | 483 | $ | 299 | $ | 347 |
December 31, 2020 |
Total
Long-term Receivable |
Current Billed
Due |
Past Due Under 90 Days | Past Due Over 90 Days | |||||||||||||||||||
Municipal leases secured tax exempt | $ | 50 | $ | — | $ | — | $ | — | |||||||||||||||
Commercial loans and leases secured | 26 | 2 | 1 | 4 | |||||||||||||||||||
Long-term receivables, including current portion | $ | 76 | $ | 2 | $ | 1 | $ | 4 |
December 31, 2019 |
Total
Long-term Receivable |
Current Billed
Due |
Past Due Under 90 Days | Past Due Over 90 Days | |||||||||||||||||||
Municipal leases secured tax exempt | $ | 31 | $ | 1 | $ | 1 | $ | — | |||||||||||||||
Commercial loans and leases secured | 31 | 3 | — | 5 | |||||||||||||||||||
Long-term receivables, including current portion | $ | 62 | $ | 4 | $ | 1 | $ | 5 |
Net Sales | Operating Earnings | ||||||||||||||||||||||||||||||||||
Years ended December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
Products and Systems Integration | $ | 4,634 | $ | 5,329 | $ | 5,100 | $ | 656 | $ | 994 | $ | 854 | |||||||||||||||||||||||
Software and Services | 2,780 | 2,558 | 2,243 | 727 | 587 | 401 | |||||||||||||||||||||||||||||
$ | 7,414 | $ | 7,887 | $ | 7,343 | $ | 1,383 | $ | 1,581 | $ | 1,255 | ||||||||||||||||||||||||
Total other expense | (209) | (580) | (153) | ||||||||||||||||||||||||||||||||
Net earnings before income taxes | $ | 1,174 | $ | 1,001 | $ | 1,102 |
Capital Expenditures | Depreciation Expense | ||||||||||||||||||||||||||||||||||
Years ended December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
Products and Systems Integration | $ | 91 | $ | 98 | $ | 72 | $ | 90 | $ | 82 | $ | 71 | |||||||||||||||||||||||
Software and Services | 126 | 150 | 125 | 104 | 104 | 101 | |||||||||||||||||||||||||||||
$ | 217 | $ | 248 | $ | 197 | $ | 194 | $ | 186 | $ | 172 | ||||||||||||||||||||||||
Net Sales | Assets | ||||||||||||||||||||||||||||||||||
Years ended December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
United States | $ | 4,770 | $ | 5,006 | $ | 4,361 | $ | 7,009 | $ | 6,749 | $ | 5,441 | |||||||||||||||||||||||
United Kingdom | 740 | 692 | 638 | 2,460 | 2,460 | 2,284 | |||||||||||||||||||||||||||||
Canada | 254 | 270 | 303 | 1,016 | 1,040 | 1,014 | |||||||||||||||||||||||||||||
Other, net of eliminations | 1,650 | 1,919 | 2,041 | 391 | 393 | 670 | |||||||||||||||||||||||||||||
$ | 7,414 | $ | 7,887 | $ | 7,343 | $ | 10,876 | $ | 10,642 | $ | 9,409 |
Year ended December 31 | 2020 | ||||
Products and Systems Integration | $ | 69 | |||
Software and Services | 17 | ||||
$ | 86 |
Accruals at
January 1, 2020
|
Additional
Charges |
Adjustments |
Amount
Used |
Accruals at
December 31, 2020
|
||||||||||||||||||||||
$ | 78 | $ | 102 | $ | (16) | $ | (85) | $ | 79 | |||||||||||||||||
Year ended December 31 | 2019 | ||||
Products and Systems Integration | $ | 45 | |||
Software and Services | 12 | ||||
$ | 57 |
Accruals at
January 1, 2019
|
Additional
Charges |
Adjustments |
Amount
Used |
Accruals at
December 31, 2019
|
||||||||||||||||||||||
$ | 84 | $ | 69 | $ | (12) | $ | (63) | $ | 78 | |||||||||||||||||
Year ended December 31 | 2018 | ||||
Products and Systems integration | $ | 101 | |||
Software and Services | 19 | ||||
$ | 120 |
2020 | 2019 | ||||||||||||||||||||||
December 31 |
Gross
Carrying Amount |
Accumulated
Amortization |
Gross
Carrying Amount |
Accumulated
Amortization |
|||||||||||||||||||
Intangible assets: | |||||||||||||||||||||||
Completed technology | $ | 766 | $ | 210 | $ | 738 | $ | 148 | |||||||||||||||
Patents | 2 | 2 | 2 | 2 | |||||||||||||||||||
Customer-related | 1,335 | 685 | 1,222 | 518 | |||||||||||||||||||
Other intangibles | 78 | 50 | 75 | 42 | |||||||||||||||||||
$ | 2,181 | $ | 947 | $ | 2,037 | $ | 710 |
2020 | 2019 | ||||||||||||||||||||||
|
Gross
Carrying Amount |
Accumulated
Amortization |
Gross
Carrying Amount |
Accumulated
Amortization |
|||||||||||||||||||
Products and Systems Integration | $ | 692 | $ | 129 | $ | 652 | $ | 82 | |||||||||||||||
Software and Services | 1,489 | 818 | 1,385 | 628 | |||||||||||||||||||
$ | 2,181 | $ | 947 | $ | 2,037 | $ | 710 |
Products and Systems Integration | Software and Services | Total | |||||||||||||||
Balance as of January 1, 2019 | $ | 722 | $ | 792 | $ | 1,514 | |||||||||||
Goodwill acquired | 251 | 288 | 539 | ||||||||||||||
Purchase accounting adjustments | — | 9 | 9 | ||||||||||||||
Foreign currency translation | — | 5 | 5 | ||||||||||||||
Balance as of December 31, 2019 | $ | 973 | $ | 1,094 | $ | 2,067 | |||||||||||
Goodwill acquired | 46 | 100 | 146 | ||||||||||||||
Foreign currency translation | — | 6 | 6 | ||||||||||||||
Balance as of December 31, 2020 | $ | 1,019 | $ | 1,200 | $ | 2,219 |
Balance at
Beginning of Period |
Charged to
Earnings |
Used | Adjustments* |
Balance at
End of Period |
|||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||
Allowance for credit losses | $ | 63 | $ | 47 | $ | (34) | $ | (1) | $ | 75 | |||||||||||||||||||
2019 | |||||||||||||||||||||||||||||
Allowance for credit losses | 51 | 39 | (26) | (1) | 63 | ||||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||
Allowance for credit losses | 45 | 37 | (30) | (1) | 51 | ||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
|
Mar. 28, 2020 | June 27, 2020 | Sept. 26, 2020 | Dec. 31, 2020 | Mar. 30, 2019 | June 29, 2019 | Sept. 28, 2019 | Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||
Operating Results | |||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,655 | $ | 1,618 | $ | 1,868 | $ | 2,273 | $ | 1,657 | $ | 1,860 | $ | 1,994 | $ | 2,377 | |||||||||||||||||||||||||||||||
Costs of sales | 868 | 852 | 959 | 1,127 | 884 | 929 | 987 | 1,157 | |||||||||||||||||||||||||||||||||||||||
Gross margin | $ | 787 | $ | 766 | $ | 909 | $ | 1,146 | $ | 773 | $ | 931 | $ | 1,007 | $ | 1,220 | |||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 341 | 297 | 313 | 343 | 327 | 351 | 359 | 368 | |||||||||||||||||||||||||||||||||||||||
Research and development expenditures | 168 | 161 | 175 | 182 | 162 | 170 | 172 | 182 | |||||||||||||||||||||||||||||||||||||||
Other charges | 19 | 90 | 69 | 66 | 55 | 61 | 63 | 80 | |||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 259 | $ | 218 | $ | 352 | $ | 555 | $ | 229 | $ | 349 | $ | 413 | $ | 590 | |||||||||||||||||||||||||||||||
Net earnings* | 197 | 135 | 205 | 412 | 151 | 207 | 267 | 244 | |||||||||||||||||||||||||||||||||||||||
Per Share Data (in dollars) | |||||||||||||||||||||||||||||||||||||||||||||||
Net earnings*: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per common share | $ | 1.15 | $ | 0.79 | $ | 1.21 | $ | 2.43 | $ | 0.92 | $ | 1.25 | $ | 1.60 | $ | 1.43 | |||||||||||||||||||||||||||||||
Diluted earnings per common share | 1.12 | 0.78 | 1.18 | 2.37 | 0.86 | 1.18 | 1.51 | 1.39 | |||||||||||||||||||||||||||||||||||||||
Dividends declared | $ | 0.64 | $ | 0.64 | $ | 0.64 | $ | 0.71 | $ | 0.57 | $ | 0.57 | $ | 0.57 | $ | 0.64 | |||||||||||||||||||||||||||||||
Dividends paid | 0.64 | 0.64 | 0.64 | 0.64 | 0.57 | 0.57 | 0.57 | 0.57 | |||||||||||||||||||||||||||||||||||||||
Stock prices | |||||||||||||||||||||||||||||||||||||||||||||||
High | $ | 187.49 | $ | 159.76 | $ | 158.99 | $ | 176.92 | $ | 144.94 | $ | 169.30 | $ | 182.28 | $ | 176.95 | |||||||||||||||||||||||||||||||
Low | $ | 120.77 | $ | 123.56 | $ | 127.58 | $ | 153.70 | $ | 110.61 | $ | 139.21 | $ | 160.81 | $ | 154.02 |
Arrangement Agreement, dated February 1, 2018, among Motorola Solutions, Inc., Motorola Solutions Canada Holdings Inc. and Avigilon Corporation (incorporated by reference to Exhibit 2.1 to Motorola Solutions, Inc.’s Current Report on Form 8-K filed on March 28, 2018). | |||||||||||
Restated Certificate of Incorporation of Motorola, Inc., as amended through May 5, 2009 (incorporated by reference to Exhibit 3(i)(b) to Motorola, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 4, 2009). | |||||||||||
Certificate of Amendment to the Restated Certificate of Incorporation of Motorola, Inc., effective January 4, 2011, as filed with the Secretary of State of the State of Delaware (incorporated by reference to Exhibit 3.1 to Motorola Solutions, Inc.'s Current Report on Form 8-K filed on January 10, 2011). | |||||||||||
Certificate of Ownership and Merger merging Motorola Name Change Corporation into Motorola, Inc., effective January 4, 2011, as filed with the Secretary of State of the State of Delaware (incorporated by reference to Exhibit 3.2 to Motorola Solutions, Inc.’s Current Report on Form 8-K filed on January 10, 2011). | |||||||||||
Amended and Restated Bylaws of Motorola Solutions, Inc. as of August 27, 2020 (incorporated by reference to Exhibit 3.1 to Motorola Solutions, Inc.’s Current Report on Form 8-K filed on August 27, 2020).
|
|||||||||||
Senior Indenture, dated as of May 1, 1995, between The Bank of New York Mellon Trust Company, N.A. (as successor Trustee to JPMorgan Chase Bank (as successor in interest to Bank One Trust Company) and BNY Midwest Trust Company (as successor in interest to Harris Trust and Savings Bank) and Motorola, Inc. (incorporated by reference to Exhibit 4(d) of the Registrant's Registration Statement on Form S-3 filed on September 25, 1995). | |||||||||||
Instrument of Resignation, Appointment and Acceptance, dated as of January 22, 2001, among Motorola, Inc., Bank One Trust Company, N.A. and BNY Midwest Trust Company (as successor in interest to Harris Trust and Savings Bank) (incorporated by reference to Exhibit 4.2(b) to Motorola, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2000). | |||||||||||
Indenture, dated as of August 19, 2014, between Motorola Solutions, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.1 to Motorola Solutions, Inc.’s Current Report on Form 8-K filed on August 19, 2014). | |||||||||||
Indenture, dated as of September 5, 2019, between Motorola Solutions, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, related to the 1.75% Convertible Senior Notes Due 2024 (incorporated by reference to Exhibit 10.2 to Motorola Solutions, Inc.’s Current Report on Form 8-K filed on September 5, 2019). | |||||||||||
Certain instruments defining the rights of holders of long-term debt of Motorola Solutions, Inc. and of all its subsidiaries for which consolidated or unconsolidated financial statements are required to be filed are being omitted pursuant to paragraph (b)(4)(iii)(A) of Item 601 of Regulation S-K. Motorola Solutions, Inc. agrees to furnish a copy of any such instrument to the Commission upon request. | |||||||||||
Description of the Registrant's Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934. | |||||||||||
Amended and Restated Master Separation and Distribution Agreement, effective as of July 31, 2010, among Motorola Mobility Holdings, Inc. (f/k/a Motorola SpinCo Holdings Corporation), Motorola Mobility, Inc. and Motorola, Inc. (incorporated by reference to Exhibit 2.1 to Amendment No. 1 to the Form 10 Registration Statement filed on August 31, 2010 by Motorola Mobility Holdings, Inc. (formerly Motorola SpinCo Holdings Corporation)). | |||||||||||
Amended and Restated Intellectual Property License Agreement, effective as of July 31, 2010, between Motorola Mobility, Inc. and Motorola, Inc. (incorporated by reference to Exhibit 10.2 to Amendment No. 1 to the Form 10 Registration Statement filed on August 31, 2010 by Motorola Mobility Holdings, Inc. (formerly Motorola SpinCo Holdings Corporation). | |||||||||||
Amended and Restated Exclusive License Agreement, effective as of July 30, 2010, between Motorola Trademark Holdings, LLC and Motorola, Inc. (incorporated by reference to Exhibit 10.3 to Amendment No. 3 to the Form 10 Registration Statement filed on November 12, 2010 by Motorola Mobility Holdings, Inc. (File No. 1-34805)). | |||||||||||
Tax Sharing Agreement, effective as of July 31, 2020, among Motorola Mobility Holdings, Inc. (f/k/a Motorola SpinCo Holdings Corporation), Motorola Mobility, Inc. and Motorola, Inc. (incorporated by reference to Exhibit 10.4 to Amendment No. 1 to the Form 10 Registration Statement filed on August 31, 2010 by Motorola Mobility Holdings, Inc. (formerly Motorola SpinCo Holdings Corporation)). | |||||||||||
Motorola Solutions Omnibus Incentive Plan of 2015 (f/k/a the Motorola Omnibus Incentive Plan of 2006), as amended and restated effective May 18, 2015 (incorporated by reference to Exhibit 10.1 to Motorola Solutions, Inc.’s Current Report on Form 8-K filed on May 21, 2015). |
First Amendment to the Motorola Solutions Omnibus Incentive Plan of 2015 (f/k/a the Motorola Omnibus Incentive Plan of 2006), as amended and restated effective May 18, 2015 (incorporated by reference to Exhibit 10.1 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 26, 2020). | |||||||||||
March 9, 2017 Form of Motorola Solutions, Inc. Terms and Conditions Related to Employee Performance Contingent Stock Options (non-CEO) (incorporated by reference to Exhibit 10.8 to Motorola Solutions, Inc.'s Quarterly Report on Form 10-Q for the fiscal quarter ended April 1, 2017). | |||||||||||
Form of Motorola Solutions, Inc. Performance Option Award Agreement for grants to Section 16 Officers on or after February 14, 2019 (incorporated by reference to Exhibit 10.2 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2019). | |||||||||||
Form of Motorola Solutions, Inc. Performance Option Award Agreement for grants to Section 16 Officers from March 9, 2015 to February 13, 2019 (incorporated by reference to Exhibit 10.1 to Motorola Solutions, Inc.’s Current Report on Form 8-K filed on March 11, 2015). | |||||||||||
Form of Motorola Solutions, Inc. Terms and Conditions Related to Employee Performance-Contingent Stock Options (non-CEO) (incorporated by reference to Exhibit 10.3 to Motorola Solutions, Inc.’s Current Report on Form 8-K filed on August 26, 2015). | |||||||||||
Form of Motorola Solutions, Inc. Award Document-Terms and Conditions Related to Employee Nonqualified Stock Options for grants to Section 16 Officers on or after May 6, 2013 (incorporated by reference to Exhibit 10.2 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2013). | |||||||||||
Form of Motorola Solutions, Inc. Award Document-Terms and Conditions Related to Employee Nonqualified Stock Options relating to the Motorola Solutions Omnibus Incentive Plan of 2015 for grants on or after February 15, 2018 (incorporated by reference to Exhibit 10.4 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018). | |||||||||||
Form of Motorola Solutions, Inc. Award Document-Terms and Conditions Related to Employee Nonqualified Stock Options relating to the Motorola Solutions Omnibus Incentive Plan of 2015 for grants from March 9, 2017 to February 14, 2018 (incorporated by reference to Exhibit 10.6 to Motorola Solutions’ Quarterly Report on Form 10-Q for the fiscal quarter ended April 1, 2017). | |||||||||||
Form of Motorola Solutions, Inc. Award Document-Terms and Conditions Related to Employee Nonqualified Stock Options relating to the Motorola Solutions Omnibus Incentive Plan of 2006 for grants from February 3, 2014 to March 8, 2017 (incorporated by reference to Exhibit 10.9 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013). | |||||||||||
Form of Motorola Solutions, Inc. Award Document-Terms and Conditions Related to Employee Nonqualified Stock Options relating to the Motorola Solutions Omnibus Incentive Plan of 2006 for grants from January 4, 2011 to February 2, 2014 (incorporated by reference to Exhibit 10.11 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010). | |||||||||||
Form of Motorola Solutions, Inc. Stock Option Consideration Agreement for grants on or after March 9, 2017 (incorporated by reference to Exhibit 10.7 to Motorola Solutions, Inc.'s Quarterly Report on Form 10-Q for the fiscal quarter ended April 1, 2017). | |||||||||||
Form of Motorola Solutions Stock Option Consideration Agreement for grants from February 3, 2014 to March 8, 2017 (incorporated by reference to Exhibit 10.14 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013). | |||||||||||
Form of Motorola Solutions Stock Option Consideration Agreement for grants from January 4, 2011 to February 2, 2014 (incorporated by reference to Exhibit 10.15 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010). | |||||||||||
Form of Motorola Solutions, Inc. Market Stock Unit Agreement for grants to Section 16 Officers on or after March 9, 2017 (incorporated by reference to Exhibit 10.2 to Motorola Solutions, Inc.'s Quarterly Report on Form 10-Q for the fiscal quarter ended April 1, 2017). | |||||||||||
Form of Motorola Solutions, Inc. Restricted Stock Unit Agreement relating to the Motorola Solutions Omnibus Incentive Plan of 2015 for grants to Section 16 Officers on or after March 9, 2017 (incorporated by reference to Exhibit 10.5 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 1, 2017). | |||||||||||
Form of Motorola Solutions, Inc. Restricted Stock Unit Agreement relating to the Motorola Solutions Omnibus Incentive Plan of 2006 for grants to Section 16 Officers from May 6, 2013 to March 8, 2017 (incorporated by reference to Exhibit 10.1 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2013). | |||||||||||
Form of Motorola Solutions, Inc. Restricted Stock Unit Agreement relating to the Motorola Solutions Omnibus Incentive Plan of 2015 for grants to Appointed Vice Presidents and Elected Officers on or after February 15, 2018 (incorporated by reference to Exhibit 10.2 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018). | |||||||||||
Form of Motorola Solutions, Inc. Restricted Stock Unit Agreement relating to the Motorola Solutions Omnibus Incentive Plan of 2015 for grants to Appointed Vice Presidents and Elected Officers from March 9, 2017 to February 14, 2018 (incorporated by reference to Exhibit 10.3 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 1, 2017). | |||||||||||
Form of Motorola Solutions, Inc. Restricted Stock Unit Agreement relating to the Motorola Solutions Omnibus Incentive Plan of 2006 for grants to Appointed Vice Presidents and Elected Officers from February 3, 2014 to March 8, 2017 (incorporated by reference to Exhibit 10.19 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013). |
Form of Motorola Solutions, Inc. Restricted Stock Unit Agreement relating to the Motorola Solutions Omnibus Incentive Plan of 2015 for grants to Employees on or after February 15, 2018 (incorporated by reference to Exhibit 10.3 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018). | |||||||||||
Form of Motorola Solutions, Inc. Restricted Stock Unit Agreement relating to the Motorola Solutions Omnibus Incentive Plan of 2015 for grants to Employees from March 9, 2017 to February 14, 2018 (incorporated by reference to Exhibit 10.4 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 1, 2017). | |||||||||||
Form of Motorola Solutions, Inc. Performance Stock Unit Award Agreement for grants to Section 16 Officers on or after May 13, 2019 (incorporated by reference to Exhibit 10.1 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2019). | |||||||||||
Form of Motorola Solutions, Inc. Performance Stock Unit Award Agreement for grants to Gregory Q. Brown on or after May 13, 2019 (incorporated by reference to Exhibit 10.2 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2019). | |||||||||||
Motorola Solutions, Inc. Amended Award Document-Terms and Conditions Related to Employee Nonqualified Stock Options and Addendum A to Motorola Solutions, Inc. Award Document-Terms and Conditions Related to Employee Stock Appreciation Rights, relating to the Motorola Solutions Omnibus Incentive Plan of 2006 for a grant on February 22, 2011 to Gregory Q. Brown. (incorporated by reference to exhibit 10.5 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 2, 2011). | |||||||||||
Form of Motorola Solutions Award Document-Terms and Conditions Related to Employee Nonqualified Stock Options for Gregory Q. Brown, relating to the Motorola Solutions Omnibus Incentive Plan of 2006 for grants on or after January 4, 2011 (incorporated by reference to Exhibit 10.25 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010). | |||||||||||
Form of Motorola Solutions, Inc. Performance Option Award Agreement for grants to Gregory Q. Brown on or after March 9, 2015 (incorporated by reference to Exhibit 10.3 to Motorola Solutions, Inc.’s Current Report on Form 8-K filed on March 11, 2015). | |||||||||||
Form of Motorola Solutions, Inc. Terms and Conditions Related to Employee Performance-Contingent Stock Options (CEO) (incorporated by reference to Exhibit 10.4 to Motorola Solutions, Inc.’s Current Report on Form 8-K filed on August 26, 2015). | |||||||||||
Form of Motorola Solutions Stock Option Consideration Agreement for Gregory Q. Brown for grants on or after January 4, 2011 under the Motorola Solutions Omnibus Incentive Plan of 2006 (incorporated by reference to Exhibit 10.27 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010)). | |||||||||||
Form of Motorola Solutions, Inc. Restricted Stock Unit Award Agreement for Gregory Q. Brown under the Motorola Solutions Omnibus Incentive Plan of 2006 for grants on or after January 4, 2011 (incorporated by reference to Exhibit 10.32 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010). | |||||||||||
Form of Motorola Solutions, Inc. Market Stock Unit Agreement for grants to Gregory Q. Brown on or after March 9, 2015 (incorporated by reference to Exhibit 10.4 to Motorola Solutions, Inc.’s Current Report on Form 8-K filed on March 11, 2015). | |||||||||||
Form of Motorola Solutions Deferred Stock Units Agreement between Motorola Solutions, Inc. and its non-employee directors, relating to the deferred stock units issued in lieu of cash compensation to directors under the Motorola Solutions Omnibus Incentive Plan of 2006, for acquisitions on or after January 1, 2012 (incorporated by reference to Exhibit 10.37 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011). | |||||||||||
Form of Motorola Solutions Deferred Stock Units Agreement between Motorola Solutions, Inc. and its non-employee directors, relating to the deferred stock units issued in lieu of cash compensation to directors under the Motorola Solutions Omnibus Incentive Plan of 2006, for acquisitions on or after January 4, 2011 (incorporated by reference to Exhibit 10.37 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010). | |||||||||||
Form of Motorola Solutions Deferred Stock Units Award between Motorola Solutions, Inc. and its non-employee directors under the Motorola Solutions Omnibus Incentive Plan of 2006 or any successor plan for grants on or after January 1, 2012 (incorporated by reference to Exhibit 10.40 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011). | |||||||||||
Form of Motorola Solutions Deferred Stock Units Award between Motorola Solutions, Inc. and its non-employee directors under the Motorola Solutions Omnibus Incentive Plan of 2006 or any successor plan for grants from January 4, 2011 to December 31, 2011 (incorporated by reference to Exhibit 10.39 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010). | |||||||||||
Motorola Solutions Executive Officer Short Term Incentive Plan dated January 17, 2013 (effective January 1, 2013) (incorporated by reference to Exhibit 10.50 to Motorola Solutions’ Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (File No. 1-7221)). | |||||||||||
Motorola Solutions Executive Officer Short Term Incentive Plan Term Sheet (incorporated by reference to Exhibit 10.51 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012). | |||||||||||
Motorola Solutions Long Range Incentive Plan (LRIP), as Amended and Restated February 11, 2015, applicable to 2018-2020 cycles (incorporated by reference to Exhibit 10.5 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 4, 2015). | |||||||||||
2018-2020 Performance Measures under the Motorola Solutions Long Range Incentive Plan (LRIP), as approved on February 15, 2018 (incorporated by reference to Exhibit 10.1 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2018). |
Motorola Solutions Long Range Incentive Plan (LRIP), as Amended and Restated May 13, 2019 (incorporated by reference to Exhibit 10.3 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2019). | |||||||||||
2019-2021 Performance Measures under the Motorola Solutions Long Range Incentive Plan (LRIP), as approved on February 14, 2019 (incorporated by reference to Exhibit 10.1 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2019). | |||||||||||
2020-2022 Performance Measures under the Motorola Solutions Long Range Incentive Plan (LRIP), as approved on February 13, 2020 (incorporated by reference to Exhibit 10.1 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 28, 2020). | |||||||||||
Motorola Solutions Management Deferred Compensation Plan (As Amended and Restated Effective as of June 1, 2013) (incorporated by reference to Exhibit 10.1 to Motorola Solutions, Inc.'s Current Report on Form 8-K filed on June 5, 2013). | |||||||||||
Motorola Solutions Management Deferred Compensation Plan, as amended and restated effective as of December 1, 2010, as amended January 4, 2011 (incorporated by reference to Exhibit 10.57 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010). | |||||||||||
Motorola Solutions, Inc. 2011 Senior Officer Change in Control Severance Plan, as amended and restated November 13, 2014 (incorporated by reference to Exhibit No. 10.54 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014). | |||||||||||
Motorola Solutions, Inc. 2011 Executive Severance Plan, as amended and restated November 13, 2014 (incorporated by reference to Exhibit No. 10.55 to Motorola Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014). | |||||||||||
Arrangement for directors’ fees for non-employee directors (description incorporated by reference from the information under the caption “How our Directors are Compensated” of Motorola Solutions Inc.’s Proxy Statement on Schedule 14A for the 2020 Annual Meeting of Shareholders filed on March 27, 2020 (“Motorola Solutions’ Proxy Statement”)). | |||||||||||
Description of insurance covering non-employee directors and their spouses (including a description incorporated by reference from the information under the caption “Director Retirement Plan and Insurance Coverage” of the Motorola Solutions’ Proxy Statement, and incorporated by reference to Exhibit 10.2 to Motorola Solutions, Inc.'s Quarterly Report on Form 10-Q for the fiscal quarter ended on July 1, 2017). | |||||||||||
Employment Agreement, dated August 27, 2008, by and between Motorola, Inc. and Gregory Q. Brown (incorporated by reference to Exhibit 10.1 to Motorola, Inc.’s Current Report on Form 8-K filed on August 29, 2008). | |||||||||||
Amendment made on December 15, 2008, to the Employment Agreement dated August 27, 2008 by and between Motorola, Inc. and Gregory Q. Brown (incorporated by reference to Exhibit No. 10.50 to Motorola, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008). | |||||||||||
Second Amendment, dated May 28, 2010, to the Employment Agreement dated August 27, 2008, as amended, by and between Motorola, Inc. and Gregory Q. Brown (incorporated by reference to Exhibit 10.1 to Motorola, Inc.’s Current Report on Form 8-K filed on May 28, 2010 ). | |||||||||||
Third Amendment, dated March 10, 2014, to the Employment Agreement dated August 27, 2008, as amended, by and between Motorola Solutions, Inc. and Gregory Q. Brown (incorporated by reference to Exhibit 10.1 to Motorola Solutions, Inc.’s Current Report on Form 8-K filed on March 13, 2014). | |||||||||||
Revolving Credit Agreement, dated as of April 25, 2017, among Motorola Solutions, Inc., JPMorgan Chase Bank, N.A., as administrative agent, and the several lenders and agents party thereto (incorporated by reference to Exhibit 10.1 to Motorola Solutions, Inc.'s Current Report on Form 8-K filed on April 27, 2017). | |||||||||||
Revised and Amended Aircraft Time Sharing Agreement, dated as of October 1, 2015, between Motorola Solutions, Inc. and Gregory Q. Brown (incorporated by reference to Exhibit 10.4 to Motorola Solutions, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 3, 2015). | |||||||||||
Investment Agreement, dated as of September 5, 2019, among Motorola Solutions, Inc., Silver Lake Alpine, L.P. and Silver Lake Alpine (Offshore Master) L.P. (incorporated by reference to Exhibit 10.1 to Motorola Solutions, Inc.’s Current Report on Form 8-K filed on September 5, 2019). | |||||||||||
Subsidiaries of Motorola Solutions, Inc. | |||||||||||
Consent of Independent Registered Public Accounting Firm. | |||||||||||
Consent of Independent Registered Public Accounting Firm. | |||||||||||
Certification of Gregory Q. Brown pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||||||
Certification of Jason J. Winkler pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||||||
Certification of Gregory Q. Brown pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||||||
Certification of Jason J. Winkler pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||||||
101.INS | Inline XBRL Instance 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) |
MOTOROLA SOLUTIONS, INC. | ||||||||
By: |
/S/ GREGORY Q. BROWN
|
|||||||
Gregory Q. Brown | ||||||||
Chairman and Chief Executive Officer |
Signature | Title | Date | ||||||||||||
/S/ GREGORY Q. BROWN | Chairman and Chief Executive Officer | February 12, 2021 | ||||||||||||
Gregory Q. Brown |
and Director
(Principal Executive Officer) |
|||||||||||||
/S/ JASON J. WINKLER | Executive Vice President and | February 12, 2021 | ||||||||||||
Jason J. Winkler |
Chief Financial Officer
(Principal Financial Officer) |
|||||||||||||
/S/ DAN PEKOFSKE | Corporate Vice President and | February 12, 2021 | ||||||||||||
Dan Pekofske |
Chief Accounting Officer
(Principal Accounting Officer) |
|||||||||||||
/S/ KENNETH D. DENMAN | Director | February 12, 2021 | ||||||||||||
Kenneth D. Denman | ||||||||||||||
/S/ EGON P. DURBAN | Director | February 12, 2021 | ||||||||||||
Egon P. Durban | ||||||||||||||
/S/ CLAYTON M. JONES | Director | February 12, 2021 | ||||||||||||
Clayton M. Jones | ||||||||||||||
/S/ JUDY C. LEWENT | Director | February 12, 2021 | ||||||||||||
Judy C. Lewent | ||||||||||||||
/S/ GREGORY K. MONDRE | Director | February 12, 2021 | ||||||||||||
Gregory K. Mondre | ||||||||||||||
/S/ JOSEPH M. TUCCI | Director | February 12, 2021 | ||||||||||||
Joseph M. Tucci | ||||||||||||||
MOTOROLA SOLUTIONS, INC. | ||||||||
LISTING OF MAJOR SUBSIDIARIES | ||||||||
12/31/2020 | ||||||||
EXHIBIT 21 | ||||||||
Motorola Solutions Australia Pty. Limited | Australia | |||||||
Vesta Solutions, Inc. | California, U.S. | |||||||
Avigilon Corporation | Canada | |||||||
Motorola Solutions Canada Inc. | Canada | |||||||
Vesta Solutions Communications Corp. | Canada | |||||||
Interexport Telecomunicaciones e Integracion de Sistemas S.A. | Chile | |||||||
Interexport Telecomunicaciones y Servicios S.A. | Chile | |||||||
Mobilink S.A. | Chile | |||||||
Quorum II S.A. | Chile | |||||||
Motorola Solutions (China) Co. Ltd. | China | |||||||
Digital Recognition Network, Inc. | Delaware, U.S. | |||||||
Kodiak Networks, Inc. | Delaware, U.S. | |||||||
Motorola Solutions Credit Company LLC | Delaware, U.S. | |||||||
Motorola Solutions Funding Corporation | Delaware, U.S. | |||||||
Network Ventures I, Inc. | Delaware, U.S. | |||||||
Pelco, Inc. | Delaware, U.S. | |||||||
VaaS International Holdings, Inc. | Delaware, U.S. | |||||||
Vigilant Solutions, LLC | Delaware, U.S. | |||||||
WatchGuard Video, Inc. | Delaware, U.S. | |||||||
Airwave Solutions Limited | England | |||||||
Guardian Digital Communications Limited | England | |||||||
Motorola Solutions International Holding Limited | England | |||||||
Motorola Solutions UK Acquisition Company Limited | England | |||||||
Motorola Solutions UK Limited | England | |||||||
Motorola Solutions UK One LP | England | |||||||
Motorola Solutions UK Two LP | England | |||||||
Motorola Solutions Germany GmbH | Germany | |||||||
Kodiak Networks India Private Limited | India | |||||||
Vigilant Solutions India Private Limited | India | |||||||
Motorola Solutions Israel Limited | Israel | |||||||
Motorola Solutions Malaysia Sdn Bhd | Malaysia | |||||||
Motorola Solutions (Oman) LLC | Oman | |||||||
Motorola Solutions Systems Polska Sp.z.o.o. | Poland | |||||||
Edesix Limited | Scotland | |||||||
Avtec, LLC | South Carolina, U.S. | |||||||
420 E Exchange Parkway, LLC | Texas, U.S. | |||||||
Vigilant Video Co., Ltd | Vietnam |
/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. |