☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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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 |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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TABLE OF CONTENTS | |||||||||||
For the Quarter Ended July 3, 2021
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PART I. FINANCIAL INFORMATION
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Page No. | ||||||||||
Item 1. | |||||||||||
Condensed Consolidated Statements of Operations for the Three and Six Months Ended July 3, 2021 and June 27, 2020
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Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II. OTHER INFORMATION
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Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
(In millions, except per share amounts) | Three Months Ended | Six Months Ended | |||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Net sales from products | $ | 1,094 | $ | 877 | $ | 2,027 | $ | 1,764 | |||||||||||||||
Net sales from services | 877 | 741 | 1,717 | 1,509 | |||||||||||||||||||
Net sales | 1,971 | 1,618 | 3,744 | 3,273 | |||||||||||||||||||
Costs of products sales | 511 | 413 | 952 | 812 | |||||||||||||||||||
Costs of services sales | 508 | 439 | 980 | 908 | |||||||||||||||||||
Costs of sales | 1,019 | 852 | 1,932 | 1,720 | |||||||||||||||||||
Gross margin | 952 | 766 | 1,812 | 1,553 | |||||||||||||||||||
Selling, general and administrative expenses | 331 | 297 | 633 | 638 | |||||||||||||||||||
Research and development expenditures | 181 | 161 | 361 | 330 | |||||||||||||||||||
Other charges | 70 | 90 | 150 | 109 | |||||||||||||||||||
Operating earnings | 370 | 218 | 668 | 476 | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense, net | (44) | (58) | (98) | (109) | |||||||||||||||||||
Other, net | 14 | 16 | 60 | 34 | |||||||||||||||||||
Total other expense | (30) | (42) | (38) | (75) | |||||||||||||||||||
Net earnings before income taxes | 340 | 176 | 630 | 401 | |||||||||||||||||||
Income tax expense | 46 | 40 | 90 | 67 | |||||||||||||||||||
Net earnings | 294 | 136 | 540 | 334 | |||||||||||||||||||
Less: Earnings attributable to non-controlling interests | 1 | 1 | 3 | 2 | |||||||||||||||||||
Net earnings attributable to Motorola Solutions, Inc. | $ | 293 | $ | 135 | $ | 537 | $ | 332 | |||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | 1.73 | $ | 0.79 | $ | 3.17 | $ | 1.95 | |||||||||||||||
Diluted | $ | 1.69 | $ | 0.78 | $ | 3.10 | $ | 1.90 | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 169.6 | 170.0 | 169.4 | 170.3 | |||||||||||||||||||
Diluted | 173.1 | 173.6 | 173.1 | 174.8 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||
Net earnings | $ | 294 | $ | 136 | $ | 540 | $ | 334 | |||||||||||||||
Other comprehensive income (loss), net of tax (Note 4): | |||||||||||||||||||||||
Foreign currency translation adjustments | 6 | 78 | 25 | (60) | |||||||||||||||||||
Defined benefit plans | 16 | 13 | 33 | 25 | |||||||||||||||||||
Total other comprehensive income (loss), net of tax | 22 | 91 | 58 | (35) | |||||||||||||||||||
Comprehensive income | 316 | 227 | 598 | 299 | |||||||||||||||||||
Less: Earnings attributable to non-controlling interests | 1 | 1 | 3 | 2 | |||||||||||||||||||
Comprehensive income attributable to Motorola Solutions, Inc. common shareholders | $ | 315 | $ | 226 | $ | 595 | $ | 297 |
(In millions, except par value) | July 3, 2021 | December 31, 2020 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 1,921 | $ | 1,254 | |||||||
Accounts receivable, net | 1,169 | 1,390 | |||||||||
Contract assets | 757 | 933 | |||||||||
Inventories, net | 559 | 508 | |||||||||
Other current assets | 254 | 242 | |||||||||
Total current assets | 4,660 | 4,327 | |||||||||
Property, plant and equipment, net | 1,028 | 1,022 | |||||||||
Operating lease assets | 430 | 468 | |||||||||
Investments | 181 | 158 | |||||||||
Deferred income taxes | 981 | 966 | |||||||||
Goodwill | 2,219 | 2,219 | |||||||||
Intangible assets, net | 1,123 | 1,234 | |||||||||
Other assets | 509 | 482 | |||||||||
Total assets | $ | 11,131 | $ | 10,876 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||||
Current portion of long-term debt | $ | 9 | $ | 12 | |||||||
Accounts payable | 547 | 612 | |||||||||
Contract liabilities | 1,416 | 1,554 | |||||||||
Accrued liabilities | 1,212 | 1,311 | |||||||||
Total current liabilities | 3,184 | 3,489 | |||||||||
Long-term debt | 5,686 | 5,163 | |||||||||
Operating lease liabilities | 340 | 402 | |||||||||
Other liabilities | 2,265 | 2,363 | |||||||||
Preferred stock, $100 par value: 0.5 shares authorized; none issued and outstanding
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— | — | |||||||||
Common stock, $0.01 par value:
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2 | 2 | |||||||||
Authorized shares: 600.0
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Issued shares: 7/3/21—170.3; 12/31/20—170.2
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Outstanding shares: 7/3/21—169.3; 12/31/20—169.4
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Additional paid-in capital | 877 | 759 | |||||||||
Retained earnings | 1,151 | 1,127 | |||||||||
Accumulated other comprehensive loss | (2,388) | (2,446) | |||||||||
Total Motorola Solutions, Inc. stockholders’ equity (deficit) | (358) | (558) | |||||||||
Non-controlling interests | 14 | 17 | |||||||||
Total stockholders’ equity (deficit) | (344) | (541) | |||||||||
Total liabilities and stockholders’ equity (deficit) | $ | 11,131 | $ | 10,876 |
(In millions, except per share data) | Shares | Common Stock and Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) |
Retained
Earnings |
Noncontrolling
Interests |
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Balance as of December 31, 2020 | 170.2 | $ | 761 | $ | (2,446) | $ | 1,127 | $ | 17 | ||||||||||||||||||||
Net earnings | 244 | 1 | |||||||||||||||||||||||||||
Other comprehensive income | 36 | ||||||||||||||||||||||||||||
Issuance of common stock and stock options exercised | 1.4 | 44 | |||||||||||||||||||||||||||
Share repurchase program | (1.0) | (170) | |||||||||||||||||||||||||||
Share-based compensation expenses | 29 | ||||||||||||||||||||||||||||
Dividends declared $0.71 per share
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(121) | ||||||||||||||||||||||||||||
Balance as of April 3, 2021 | 170.6 | $ | 834 | $ | (2,410) | $ | 1,080 | $ | 18 | ||||||||||||||||||||
Net earnings | 293 | 1 | |||||||||||||||||||||||||||
Other comprehensive income | 22 | ||||||||||||||||||||||||||||
Issuance of common stock and stock options exercised | 0.2 | 14 | |||||||||||||||||||||||||||
Share repurchase program | (0.5) | (102) | |||||||||||||||||||||||||||
Share-based compensation expenses | 31 | ||||||||||||||||||||||||||||
Dividends declared $0.71 per share
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(120) | ||||||||||||||||||||||||||||
Dividends paid to non-controlling interest on subsidiary common stock | (5) | ||||||||||||||||||||||||||||
Balance as of July 3, 2021 | 170.3 | $ | 879 | $ | (2,388) | $ | 1,151 | $ | 14 | ||||||||||||||||||||
(In millions, except per share data) | Shares | Common Stock and Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) |
Retained
Earnings |
Noncontrolling
Interests |
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Balance as of December 31, 2019 | 171.0 | $ | 501 | $ | (2,440) | $ | 1,239 | $ | 17 | ||||||||||||||||||||
Net earnings | 197 | 1 | |||||||||||||||||||||||||||
Other comprehensive loss | (126) | ||||||||||||||||||||||||||||
Issuance of common stock and stock options exercised | 1.3 | 5 | |||||||||||||||||||||||||||
Share repurchase program | (1.6) | (253) | |||||||||||||||||||||||||||
Share-based compensation expenses | 38 | ||||||||||||||||||||||||||||
Dividends declared $0.64 per share
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(109) | ||||||||||||||||||||||||||||
Balance as of March 28, 2020 | 170.7 | $ | 544 | $ | (2,566) | $ | 1,074 | $ | 18 | ||||||||||||||||||||
Net earnings | 135 | 1 | |||||||||||||||||||||||||||
Other comprehensive income | 91 | ||||||||||||||||||||||||||||
Issuance of common stock and stock options exercised | 0.6 | 53 | |||||||||||||||||||||||||||
Share repurchase program | (0.6) | (83) | |||||||||||||||||||||||||||
Share-based compensation expenses | 31 | ||||||||||||||||||||||||||||
Dividends declared $0.64 per share
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(109) | ||||||||||||||||||||||||||||
Dividends paid to non-controlling interest on subsidiary common stock | (4) | ||||||||||||||||||||||||||||
Balance as of June 27, 2020 | 170.7 | $ | 628 | $ | (2,475) | $ | 1,017 | $ | 15 | ||||||||||||||||||||
Six Months Ended | |||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | |||||||||
Operating | |||||||||||
Net earnings | $ | 540 | $ | 334 | |||||||
Adjustments to reconcile Net earnings to Net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 220 | 197 | |||||||||
Non-cash other income | (24) | (40) | |||||||||
Share-based compensation expenses | 60 | 69 | |||||||||
Loss from the extinguishment of long-term debt | 18 | — | |||||||||
Changes in assets and liabilities, net of effects of acquisitions, dispositions, and foreign currency translation adjustments: | |||||||||||
Accounts receivable | 221 | 286 | |||||||||
Inventories | (53) | 3 | |||||||||
Other current assets and contract assets | 134 | 136 | |||||||||
Accounts payable, accrued liabilities, and contract liabilities | (298) | (454) | |||||||||
Other assets and liabilities | (37) | (15) | |||||||||
Deferred income taxes | (23) | 1 | |||||||||
Net cash provided by operating activities | 758 | 517 | |||||||||
Investing | |||||||||||
Acquisitions and investments, net | (9) | (102) | |||||||||
Proceeds from sales of investments and businesses, net | 3 | 7 | |||||||||
Capital expenditures | (114) | (102) | |||||||||
Proceeds from sales of property, plant and equipment | 6 | 56 | |||||||||
Net cash used for investing activities | (114) | (141) | |||||||||
Financing | |||||||||||
Net proceeds from issuance of debt | 844 | — | |||||||||
Proceeds from revolving credit facility draw | — | 800 | |||||||||
Repayments of debt | (348) | (8) | |||||||||
Repayment of revolving credit facility draw | — | (300) | |||||||||
Revolving credit facility renewal fees | (7) | — | |||||||||
Issuances of common stock | 60 | 49 | |||||||||
Purchases of common stock | (272) | (336) | |||||||||
Payments of dividends | (242) | (218) | |||||||||
Payments of dividends to non-controlling interests | (5) | (4) | |||||||||
Net cash provided by (used for) financing activities | 30 | (17) | |||||||||
Effect of exchange rate changes on total cash and cash equivalents | (7) | (19) | |||||||||
Net increase in total cash and cash equivalents | 667 | 340 | |||||||||
Cash and cash equivalents, beginning of period | 1,254 | 1,001 | |||||||||
Cash and cash equivalents, end of period | $ | 1,921 | $ | 1,341 | |||||||
Supplemental Cash Flow Information | |||||||||||
Cash paid during the period for: | |||||||||||
Interest paid | $ | 102 | $ | 109 | |||||||
Income and withholding taxes, net of refunds | $ | 179 | $ | 50 |
INDEX FOR NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||||||||
Page No. | ||||||||
Note 1 | ||||||||
Note 2 | ||||||||
Note 3 | ||||||||
Note 4 | ||||||||
Note 5 | ||||||||
Note 6 | ||||||||
Note 7 | ||||||||
Note 8 | ||||||||
Note 9 | ||||||||
Note 10 | ||||||||
Note 11 | ||||||||
Note 12 | ||||||||
Note 13 | ||||||||
Note 14 | ||||||||
Note 15 |
Three Months Ended | |||||||||||||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | ||||||||||||||||||||||||||||||||||
(In millions) | Products and Systems Integration | Software and Services | Total | Products and Systems Integration | Software and Services | Total | |||||||||||||||||||||||||||||
Regions: | |||||||||||||||||||||||||||||||||||
North America | $ | 869 | $ | 443 | $ | 1,312 | $ | 719 | $ | 374 | $ | 1,093 | |||||||||||||||||||||||
International | 329 | 330 | 659 | 249 | 276 | 525 | |||||||||||||||||||||||||||||
$ | 1,198 | $ | 773 | $ | 1,971 | $ | 968 | $ | 650 | $ | 1,618 | ||||||||||||||||||||||||
Major Products and Services: | |||||||||||||||||||||||||||||||||||
LMR | $ | 986 | $ | 545 | $ | 1,531 | $ | 836 | $ | 481 | $ | 1,317 | |||||||||||||||||||||||
Video Security and Access Control | 212 | 94 | 306 | 132 | 52 | 184 | |||||||||||||||||||||||||||||
Command Center Software | — | 134 | 134 | — | 117 | 117 | |||||||||||||||||||||||||||||
$ | 1,198 | $ | 773 | $ | 1,971 | $ | 968 | $ | 650 | $ | 1,618 | ||||||||||||||||||||||||
Customer Types: | |||||||||||||||||||||||||||||||||||
Direct | $ | 706 | $ | 706 | $ | 1,412 | $ | 634 | $ | 611 | $ | 1,245 | |||||||||||||||||||||||
Indirect | 492 | 67 | 559 | 334 | 39 | 373 | |||||||||||||||||||||||||||||
$ | 1,198 | $ | 773 | $ | 1,971 | $ | 968 | $ | 650 | $ | 1,618 |
Six Months Ended | |||||||||||||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | ||||||||||||||||||||||||||||||||||
Products and Systems Integration | Software and Services | Total | Products and Systems Integration | Software and Services | Total | ||||||||||||||||||||||||||||||
Regions: | |||||||||||||||||||||||||||||||||||
North America | $ | 1,611 | $ | 886 | $ | 2,497 | $ | 1,467 | $ | 742 | $ | 2,209 | |||||||||||||||||||||||
International | 602 | 645 | 1,247 | 494 | 570 | 1,064 | |||||||||||||||||||||||||||||
$ | 2,213 | $ | 1,531 | $ | 3,744 | $ | 1,961 | $ | 1,312 | $ | 3,273 | ||||||||||||||||||||||||
Major Products and Services: | |||||||||||||||||||||||||||||||||||
LMR | $ | 1,836 | $ | 1,095 | $ | 2,931 | $ | 1,696 | $ | 970 | $ | 2,666 | |||||||||||||||||||||||
Video Security and Access Control | 377 | 182 | 559 | 265 | 119 | 384 | |||||||||||||||||||||||||||||
Command Center Software | — | 254 | 254 | — | 223 | 223 | |||||||||||||||||||||||||||||
$ | 2,213 | $ | 1,531 | $ | 3,744 | $ | 1,961 | $ | 1,312 | $ | 3,273 | ||||||||||||||||||||||||
Customer Types: | |||||||||||||||||||||||||||||||||||
Direct | $ | 1,310 | $ | 1,396 | $ | 2,706 | $ | 1,275 | $ | 1,232 | $ | 2,507 | |||||||||||||||||||||||
Indirect | 903 | 135 | 1,038 | 686 | 80 | 766 | |||||||||||||||||||||||||||||
$ | 2,213 | $ | 1,531 | $ | 3,744 | $ | 1,961 | $ | 1,312 | $ | 3,273 |
(In millions) | July 3, 2021 | December 31, 2020 | |||||||||||||||||||||
Accounts receivable, net | $ | 1,169 | $ | 1,390 | |||||||||||||||||||
Contract assets | 757 | 933 | |||||||||||||||||||||
Contract liabilities | 1,416 | 1,554 | |||||||||||||||||||||
Non-current contract liabilities | 296 | 283 |
(In millions) | July 3, 2021 | December 31, 2020 | |||||||||||||||||||||
Current contract cost assets | $ | 30 | $ | 23 | |||||||||||||||||||
Non-current contract cost assets | 110 | 105 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in millions) | July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||
Lease expense: | |||||||||||||||||||||||
Operating lease cost | $ | 34 | $ | 33 | $ | 67 | $ | 67 | |||||||||||||||
Finance lease cost | |||||||||||||||||||||||
Amortization of right-of-use assets | 3 | 3 | 6 | 6 | |||||||||||||||||||
Interest on lease liabilities | — | — | — | 1 | |||||||||||||||||||
Total finance lease cost | 3 | 3 | 6 | 7 | |||||||||||||||||||
Short-term lease cost | 1 | 1 | 2 | 1 | |||||||||||||||||||
Variable cost | 9 | 9 | 18 | 17 | |||||||||||||||||||
Sublease income | (1) | (1) | (2) | (2) | |||||||||||||||||||
Net lease expense | $ | 46 | $ | 45 | $ | 91 | $ | 90 |
(in millions) | Statement Line Classification | July 3, 2021 | December 31, 2020 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Operating lease assets | Operating lease assets | $ | 430 | $ | 468 | |||||||||||||||||||||
Finance lease assets | Property, plant, and equipment, net | 24 | 30 | |||||||||||||||||||||||
$ | 454 | $ | 498 | |||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||
Operating lease liabilities | Accrued liabilities | $ | 129 | $ | 126 | |||||||||||||||||||||
Finance lease liabilities | Current portion of long-term debt | 8 | 11 | |||||||||||||||||||||||
$ | 137 | $ | 137 | |||||||||||||||||||||||
Non-current liabilities: | ||||||||||||||||||||||||||
Operating lease liabilities | Operating lease liabilities | $ | 340 | $ | 402 | |||||||||||||||||||||
Finance lease liabilities | Long-term debt | 2 | 5 | |||||||||||||||||||||||
$ | 342 | $ | 407 |
Six Months Ended | |||||||||||||||||
(in millions) | July 3, 2021 | June 27, 2020 | |||||||||||||||
Supplemental cash flow information: | |||||||||||||||||
Net cash used for operating activities related to operating leases | $ | 95 | $ | 84 | |||||||||||||
Net cash used for operating activities related to finance leases | — | 1 | |||||||||||||||
Net cash used for financing activities related to finance leases | 7 | 6 | |||||||||||||||
Assets obtained in exchange for lease liabilities: | |||||||||||||||||
Operating leases | $ | 22 | $ | 24 | |||||||||||||
July 3, 2021 | December 31, 2020 | ||||||||||
Weighted average remaining lease terms (years): | |||||||||||
Operating leases | 6 | 6 | |||||||||
Finance leases | 1 | 2 | |||||||||
Weighted average discount rate: | |||||||||||
Operating leases | 3.16 | % | 3.30 | % | |||||||
Finance leases | 4.14 | % | 4.21 | % |
July 3, 2021 | |||||||||||||||||
(in millions) | Operating Leases | Finance Leases | Total | ||||||||||||||
Remainder of 2021 | $ | 50 | $ | 5 | $ | 55 | |||||||||||
2022 | 135 | 5 | 140 | ||||||||||||||
2023 | 79 | 1 | 80 | ||||||||||||||
2024 | 64 | — | 64 | ||||||||||||||
2025 | 51 | — | 51 | ||||||||||||||
Thereafter | 140 | — | 140 | ||||||||||||||
Total lease payments | 519 | 11 | 530 | ||||||||||||||
Less: interest | 50 | 1 | 51 | ||||||||||||||
Present value of lease liabilities | $ | 469 | $ | 10 | $ | 479 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Other charges: | |||||||||||||||||||||||
Intangibles amortization (Note 15) | $ | 58 | $ | 51 | $ | 116 | $ | 104 | |||||||||||||||
Reorganization of business (Note 14) | 6 | 26 | 20 | 38 | |||||||||||||||||||
Operating lease asset impairments | — | — | 7 | — | |||||||||||||||||||
Acquisition-related transaction fees | 3 | 1 | 4 | 3 | |||||||||||||||||||
Losses on legal settlements | 3 | 7 | 3 | 9 | |||||||||||||||||||
Fixed asset impairment | — | 5 | — | 5 | |||||||||||||||||||
Gain on sale of property, plant and equipment | — | — | — | (50) | |||||||||||||||||||
$ | 70 | $ | 90 | $ | 150 | $ | 109 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Interest income (expense), net: | |||||||||||||||||||||||
Interest expense | $ | (46) | $ | (60) | $ | (102) | $ | (114) | |||||||||||||||
Interest income | 2 | 2 | 4 | 5 | |||||||||||||||||||
$ | (44) | $ | (58) | $ | (98) | (109) | |||||||||||||||||
Other, net: | |||||||||||||||||||||||
Net periodic pension and postretirement benefit (Note 8) | $ | 31 | $ | 19 | $ | 60 | $ | 39 | |||||||||||||||
Loss from the extinguishment of long-term debt (Note 5) | (18) | — | (18) | — | |||||||||||||||||||
Foreign currency gain (loss) | (6) | (21) | 8 | (3) | |||||||||||||||||||
Gain (loss) on derivative instruments | (1) | 12 | (9) | (4) | |||||||||||||||||||
Gains on equity method investments | 2 | — | 3 | — | |||||||||||||||||||
Fair value adjustments to equity investments | 8 | 4 | 13 | 5 | |||||||||||||||||||
Other | (2) | 2 | 3 | (3) | |||||||||||||||||||
$ | 14 | $ | 16 | $ | 60 | $ | 34 |
Amounts attributable to Motorola Solutions, Inc. common stockholders | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Basic earnings per common share: | |||||||||||||||||||||||
Earnings | $ | 293 | $ | 135 | $ | 537 | $ | 332 | |||||||||||||||
Weighted average common shares outstanding | 169.6 | 170.0 | 169.4 | 170.3 | |||||||||||||||||||
Per share amount | $ | 1.73 | $ | 0.79 | $ | 3.17 | $ | 1.95 | |||||||||||||||
Diluted earnings per common share: | |||||||||||||||||||||||
Earnings | $ | 293 | $ | 135 | $ | 537 | $ | 332 | |||||||||||||||
Weighted average common shares outstanding | 169.6 | 170.0 | 169.4 | 170.3 | |||||||||||||||||||
Add effect of dilutive securities: | |||||||||||||||||||||||
Share-based awards | 3.5 | 3.6 | 3.7 | 4.5 | |||||||||||||||||||
1.75% senior convertible notes
|
— | — | — | — | |||||||||||||||||||
Diluted weighted average common shares outstanding | 173.1 | 173.6 | 173.1 | 174.8 | |||||||||||||||||||
Per share amount | $ | 1.69 | $ | 0.78 | $ | 3.10 | $ | 1.90 |
July 3, 2021 | December 31, 2020 | ||||||||||
Accounts receivable | $ | 1,244 | $ | 1,465 | |||||||
Less allowance for credit losses | (75) | (75) | |||||||||
$ | 1,169 | $ | 1,390 |
July 3, 2021 | December 31, 2020 | ||||||||||
Finished goods | $ | 261 | $ | 271 | |||||||
Work-in-process and production materials | 429 | 360 | |||||||||
690 | 631 | ||||||||||
Less inventory reserves | (131) | (123) | |||||||||
$ | 559 | $ | 508 |
July 3, 2021 | December 31, 2020 | ||||||||||
Current contract cost assets (Note 2) | $ | 30 | $ | 23 | |||||||
Tax-related deposits | 44 | 52 | |||||||||
Other | 180 | 167 | |||||||||
$ | 254 | $ | 242 |
July 3, 2021 | December 31, 2020 | ||||||||||
Land | $ | 4 | $ | 6 | |||||||
Leasehold improvements | 473 | 439 | |||||||||
Machinery and equipment | 2,378 | 2,276 | |||||||||
2,855 | 2,721 | ||||||||||
Less accumulated depreciation | (1,827) | (1,699) | |||||||||
$ | 1,028 | $ | 1,022 |
July 3, 2021 | December 31, 2020 | ||||||||||||||||||||||
Common stock | $ | 30 | $ | 19 | |||||||||||||||||||
Strategic investments, at cost | 54 | 46 | |||||||||||||||||||||
Company-owned life insurance policies | 79 | 77 | |||||||||||||||||||||
Equity method investments | 18 | 16 | |||||||||||||||||||||
$ | 181 | $ | 158 | ||||||||||||||||||||
July 3, 2021 | December 31, 2020 | ||||||||||
Defined benefit plan assets | $ | 332 | $ | 283 | |||||||
Non-current contract cost assets (Note 2) | 110 | 105 | |||||||||
Other | 67 | 94 | |||||||||
$ | 509 | $ | 482 |
July 3, 2021 | December 31, 2020 | ||||||||||
Compensation | $ | 235 | $ | 291 | |||||||
Tax liabilities | 81 | 147 | |||||||||
Dividend payable | 120 | 120 | |||||||||
Trade liabilities | 157 | 164 | |||||||||
Operating lease liabilities (Note 3) | 129 | 126 | |||||||||
Other | 490 | 463 | |||||||||
$ | 1,212 | $ | 1,311 |
July 3, 2021 | December 31, 2020 | ||||||||||
Defined benefit plans | $ | 1,504 | $ | 1,578 | |||||||
Non-current contract liabilities (Note 2) | 296 | 283 | |||||||||
Deferred income taxes | 178 | 180 | |||||||||
Other | 287 | 322 | |||||||||
$ | 2,265 | $ | 2,363 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Foreign Currency Translation Adjustments: | |||||||||||||||||||||||
Balance at beginning of period | $ | (341) | $ | (548) | $ | (360) | $ | (410) | |||||||||||||||
Other comprehensive income (loss) before reclassification adjustment | 6 | 75 | 23 | (61) | |||||||||||||||||||
Tax benefit | — | 3 | 2 | 1 | |||||||||||||||||||
Other comprehensive income (loss), net of tax | 6 | 78 | 25 | (60) | |||||||||||||||||||
Balance at end of period | $ | (335) | $ | (470) | $ | (335) | $ | (470) | |||||||||||||||
Defined Benefit Plans: | |||||||||||||||||||||||
Balance at beginning of period | $ | (2,069) | $ | (2,018) | $ | (2,086) | $ | (2,030) | |||||||||||||||
Reclassification adjustment - Actuarial net losses into Other income (Note 8) | 21 | 19 | 43 | 38 | |||||||||||||||||||
Reclassification adjustment - Prior service benefits into Other expense (Note 8) | (2) | (4) | (4) | (8) | |||||||||||||||||||
Tax benefit | (3) | (2) | (6) | (5) | |||||||||||||||||||
Other comprehensive income, net of tax | 16 | 13 | 33 | 25 | |||||||||||||||||||
Balance at end of period | $ | (2,053) | $ | (2,005) | $ | (2,053) | $ | (2,005) | |||||||||||||||
Total Accumulated other comprehensive loss | $ | (2,388) | $ | (2,475) | $ | (2,388) | $ | (2,475) |
July 3, 2021 | December 31, 2020 | ||||||||||
3.5% senior notes due 2023
|
$ | — | $ | 323 | |||||||
4.0% senior notes due 2024
|
584 | 583 | |||||||||
1.75% senior convertible notes due 2024
|
999 | 995 | |||||||||
6.5% debentures due 2025
|
70 | 70 | |||||||||
7.5% debentures due 2025
|
252 | 252 | |||||||||
4.6% senior notes due 2028
|
693 | 692 | |||||||||
6.5% debentures due 2028
|
24 | 24 | |||||||||
4.6% senior notes due 2029
|
803 | 803 | |||||||||
2.3% senior notes due 2030
|
892 | 892 | |||||||||
2.75% senior notes due 2031
|
844 | — | |||||||||
6.625% senior notes due 2037
|
37 | 37 | |||||||||
5.5% senior notes due 2044
|
396 | 396 | |||||||||
5.22% debentures due 2097
|
92 | 92 | |||||||||
Other long-term debt | 11 | 18 | |||||||||
5,697 | 5,177 | ||||||||||
Adjustments for unamortized gains on interest rate swap terminations | (2) | (2) | |||||||||
Less: current portion | (9) | (12) | |||||||||
Long-term debt | $ | 5,686 | $ | 5,163 |
Notional Amount | |||||||||||
Net Buy (Sell) by Currency | July 3, 2021 | December 31, 2020 | |||||||||
Euro | $ | 173 | $ | 177 | |||||||
Canadian dollar | 54 | 61 | |||||||||
British pound | 48 | 86 | |||||||||
Chinese renminbi | (99) | (90) | |||||||||
Australian dollar | (89) | (88) |
Fair Values of Derivative Instruments | |||||||||||
July 3, 2021 | Other Current Assets | Accrued Liabilities | |||||||||
Derivatives designated as hedging instruments: | |||||||||||
Foreign exchange contracts | $ | 4 | $ | 1 | |||||||
Derivatives not designated as hedging instruments: | |||||||||||
Foreign exchange contracts | 1 | 10 | |||||||||
Total derivatives | $ | 5 | $ | 11 |
Fair Values of Derivative Instruments | |||||||||||
December 31, 2020 | Other Current Assets | Accrued Liabilities | |||||||||
Derivatives designated as hedging instruments: | |||||||||||
Foreign exchange contracts | $ | — | $ | 5 | |||||||
Derivatives not designated as hedging instruments: | |||||||||||
Foreign exchange contracts | 14 | 3 | |||||||||
Total derivatives | $ | 14 | $ | 8 |
Financial Statement Location | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
Foreign Exchange Contracts | July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||||
Effective portion |
Accumulated other
comprehensive income |
$ | (1) | $ | (11) | $ | 3 | $ | 8 | |||||||||||||||||
Forward points recognized | Other income (expense) | — | 1 | 1 | 2 | |||||||||||||||||||||
Undesignated derivatives recognized | Other income (expense) | (1) | 12 | (9) | (4) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Net earnings before income taxes | $ | 340 | $ | 176 | $ | 630 | $ | 401 | |||||||||||||||
Income tax expense | 46 | 40 | 90 | 67 | |||||||||||||||||||
Effective tax rate | 14 | % | 23 | % | 14 | % | 17 | % |
U.S. Pension Benefit Plans | Non-U.S. Pension Benefit Plans | Postretirement Health Care Benefits Plan | |||||||||||||||||||||||||||||||||
Three Months Ended | July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | — | |||||||||||||||||||||||
Interest cost | 29 | 36 | 5 | 7 | 1 | 1 | |||||||||||||||||||||||||||||
Expected return on plan assets | (59) | (56) | (25) | (22) | (2) | (3) | |||||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||
Unrecognized net loss | 17 | 14 | 4 | 4 | — | 1 | |||||||||||||||||||||||||||||
Unrecognized prior service benefit | — | — | — | — | (2) | (4) | |||||||||||||||||||||||||||||
Net periodic pension benefits | $ | (13) | $ | (6) | $ | (16) | $ | (10) | $ | (3) | $ | (5) |
U.S. Pension Benefit Plans | Non-U.S. Pension Benefit Plans | Postretirement Health Care Benefits Plan | |||||||||||||||||||||||||||||||||
Six Months Ended | July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 1 | $ | 1 | $ | — | $ | — | |||||||||||||||||||||||
Interest cost | 58 | 72 | 10 | 14 | 1 | 1 | |||||||||||||||||||||||||||||
Expected return on plan assets | (118) | (112) | (50) | (42) | (5) | (5) | |||||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||
Unrecognized net loss | 34 | 29 | 8 | 7 | 1 | 2 | |||||||||||||||||||||||||||||
Unrecognized prior service benefit | — | — | (1) | (1) | (3) | (7) | |||||||||||||||||||||||||||||
Net periodic pension benefits | $ | (26) | $ | (11) | $ | (32) | $ | (21) | $ | (6) | $ | (9) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Share-based compensation expense included in: | |||||||||||||||||||||||
Costs of sales | $ | 4 | $ | 4 | $ | 8 | $ | 9 | |||||||||||||||
Selling, general and administrative expenses | 19 | 18 | 36 | 39 | |||||||||||||||||||
Research and development expenditures | 8 | 9 | 16 | 21 | |||||||||||||||||||
Share-based compensation expense included in Operating earnings | 31 | 31 | 60 | 69 | |||||||||||||||||||
Tax benefit | (2) | (5) | (8) | (11) | |||||||||||||||||||
Share-based compensation expense, net of tax | $ | 29 | $ | 26 | $ | 52 | $ | 58 | |||||||||||||||
Decrease in basic earnings per share | $ | (0.17) | $ | (0.15) | $ | (0.31) | $ | (0.34) | |||||||||||||||
Decrease in diluted earnings per share | $ | (0.17) | $ | (0.15) | $ | (0.30) | $ | (0.33) | |||||||||||||||
July 3, 2021 | Level 1 | Level 2 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 5 | $ | 5 | |||||||||||||||||
Common stock | 30 | — | 30 | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 11 | $ | 11 | |||||||||||||||||
December 31, 2020 | Level 1 | Level 2 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 14 | $ | 14 | |||||||||||||||||
Common stock | 19 | — | 19 | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 8 | $ | 8 | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Contract-specific discounting facility | $ | 36 | $ | 54 | $ | 107 | $ | 98 | |||||||||||||||
Accounts receivable sales proceeds | 8 | 34 | 8 | 58 | |||||||||||||||||||
Long-term receivables sales proceeds | 30 | 29 | 84 | 70 | |||||||||||||||||||
Total proceeds from receivable sales | $ | 74 | $ | 117 | $ | 199 | $ | 226 | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Products and Systems Integration | $ | 1,198 | $ | 968 | $ | 2,213 | $ | 1,961 | |||||||||||||||
Software and Services | 773 | 650 | 1,531 | 1,312 | |||||||||||||||||||
$ | 1,971 | $ | 1,618 | $ | 3,744 | $ | 3,273 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Products and Systems Integration | $ | 139 | $ | 49 | $ | 216 | $ | 141 | |||||||||||||||
Software and Services | 231 | 169 | 452 | 335 | |||||||||||||||||||
Operating earnings | 370 | 218 | 668 | 476 | |||||||||||||||||||
Total other expense | (30) | (42) | (38) | (75) | |||||||||||||||||||
Earnings before income taxes | $ | 340 | $ | 176 | $ | 630 | $ | 401 |
July 3, 2021 | Three Months Ended | Six Months Ended | |||||||||
Products and Systems Integration | $ | 7 | $ | 19 | |||||||
Software and Services | 2 | 6 | |||||||||
$ | 9 | $ | 25 |
January 1, 2021 | Additional Charges | Adjustments | Amount Used | July 3, 2021 | ||||||||||||||||||||||
$ | 79 | $ | 30 | $ | (5) | $ | (56) | $ | 48 |
June 27, 2020 | Three Months Ended | Six Months Ended | |||||||||
Products and Systems Integration | $ | 33 | $ | 47 | |||||||
Software and Services | 8 | 12 | |||||||||
$ | 41 | $ | 59 |
July 3, 2021 | December 31, 2020 | ||||||||||||||||||||||
Gross
Carrying Amount |
Accumulated
Amortization |
Gross
Carrying Amount |
Accumulated
Amortization |
||||||||||||||||||||
Completed technology | $ | 766 | $ | 245 | $ | 766 | $ | 210 | |||||||||||||||
Customer-related | 1,354 | 777 | 1,335 | 685 | |||||||||||||||||||
Other intangibles | 81 | 56 | 80 | 52 | |||||||||||||||||||
$ | 2,201 | $ | 1,078 | $ | 2,181 | $ | 947 |
July 3, 2021 | December 31, 2020 | ||||||||||||||||||||||
Gross
Carrying Amount |
Accumulated
Amortization |
Gross
Carrying Amount |
Accumulated
Amortization |
||||||||||||||||||||
Products and Systems Integration | $ | 694 | $ | 154 | $ | 692 | $ | 129 | |||||||||||||||
Software and Services | 1,507 | 924 | 1,489 | 818 | |||||||||||||||||||
$ | 2,201 | $ | 1,078 | $ | 2,181 | $ | 947 |
Products and Systems Integration |
Software and Services
|
Total | |||||||||||||||
Balance as of January 1, 2021 | $ | 1,019 | $ | 1,200 | $ | 2,219 | |||||||||||
Purchase accounting adjustments | (3) | (1) | (4) | ||||||||||||||
Foreign currency | — | 4 | 4 | ||||||||||||||
Balance as of July 3, 2021 | $ | 1,016 | $ | 1,203 | $ | 2,219 | |||||||||||
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 Access Control |
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 Access Control |
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 | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | July 3, 2021 |
% of
Sales* |
June 27, 2020 |
% of
Sales* |
July 3, 2021 |
% of
Sales* |
June 27, 2020 |
% of
Sales* |
|||||||||||||||||||||||||||||||||||||||
Net sales from products | $ | 1,094 | $ | 877 | $ | 2,027 | $ | 1,764 | |||||||||||||||||||||||||||||||||||||||
Net sales from services | 877 | 741 | 1,717 | 1,509 | |||||||||||||||||||||||||||||||||||||||||||
Net sales | 1,971 | 1,618 | 3,744 | 3,273 | |||||||||||||||||||||||||||||||||||||||||||
Costs of products sales | 511 | 46.7 | % | 413 | 47.1 | % | 952 | 47.0 | % | 812 | 46.0 | % | |||||||||||||||||||||||||||||||||||
Costs of services sales | 508 | 57.9 | % | 439 | 59.2 | % | 980 | 57.1 | % | 908 | 60.2 | % | |||||||||||||||||||||||||||||||||||
Costs of sales | 1,019 | 852 | 1,932 | 1,720 | |||||||||||||||||||||||||||||||||||||||||||
Gross margin | 952 | 48.3 | % | 766 | 47.3 | % | 1,812 | 48.4 | % | 1,553 | 47.4 | % | |||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 331 | 16.8 | % | 297 | 18.4 | % | 633 | 16.9 | % | 638 | 19.5 | % | |||||||||||||||||||||||||||||||||||
Research and development expenditures | 181 | 9.2 | % | 161 | 10.0 | % | 361 | 9.6 | % | 330 | 10.1 | % | |||||||||||||||||||||||||||||||||||
Other charges | 70 | 3.5 | % | 90 | 5.6 | % | 150 | 4.0 | % | 109 | 3.3 | % | |||||||||||||||||||||||||||||||||||
Operating earnings | 370 | 18.8 | % | 218 | 13.5 | % | 668 | 17.8 | % | 476 | 14.5 | % | |||||||||||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | (44) | (2.2) | % | (58) | (3.6) | % | (98) | (2.6) | % | (109) | (3.3) | % | |||||||||||||||||||||||||||||||||||
Other, net | 14 | 0.7 | % | 16 | 1.0 | % | 60 | 1.6 | % | 34 | 1.0 | % | |||||||||||||||||||||||||||||||||||
Total other expense | (30) | (1.5) | % | (42) | (2.6) | % | (38) | (1.0) | % | (75) | (2.3) | % | |||||||||||||||||||||||||||||||||||
Net earnings before income taxes | 340 | 17.3 | % | 176 | 10.9 | % | 630 | 16.8 | % | 401 | 12.3 | % | |||||||||||||||||||||||||||||||||||
Income tax expense | 46 | 2.3 | % | 40 | 2.5 | % | 90 | 2.4 | % | 67 | 2.0 | % | |||||||||||||||||||||||||||||||||||
Net earnings | 294 | 14.9 | % | 136 | 8.4 | % | 540 | 14.4 | % | 334 | 10.2 | % | |||||||||||||||||||||||||||||||||||
Less: Earnings attributable to non-controlling interests | 1 | 0.1 | % | 1 | 0.1 | % | 3 | 0.1 | % | 2 | 0.1 | % | |||||||||||||||||||||||||||||||||||
Net earnings attributable to Motorola Solutions, Inc. | $ | 293 | 14.9 | % | $ | 135 | 8.3 | % | $ | 537 | 14.3 | % | $ | 332 | 10.1 | % | |||||||||||||||||||||||||||||||
Earnings per diluted common share | $ | 1.69 | $ | 0.78 | $ | 3.10 | $ | 1.90 | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | % Change | ||||||||||||||
Gross margin | $ | 952 | $ | 766 | 24 | % |
Three Months Ended | |||||||||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | % Change | ||||||||||||||
Selling, general and administrative expenses | $ | 331 | $ | 297 | 11 | % |
Three Months Ended | |||||||||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | % Change | ||||||||||||||
Research and development expenditures | $ | 181 | $ | 161 | 12 | % |
Three Months Ended | |||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | |||||||||
Other charges | $ | 70 | $ | 90 |
Three Months Ended | |||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | |||||||||
Operating earnings from Products and Systems Integration | $ | 139 | $ | 49 | |||||||
Operating earnings from Software and Services | 231 | 169 | |||||||||
Operating earnings | $ | 370 | $ | 218 |
Three Months Ended | |||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | |||||||||
Interest expense, net | $ | (44) | $ | (58) |
Three Months Ended | |||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | |||||||||
Other, net | $ | 14 | $ | 16 |
Three Months Ended | |||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | |||||||||
Income tax expense | $ | 46 | $ | 40 |
Six Months Ended | |||||||||||||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | ||||||||||||||||||||||||||||||||||
(In millions) | Products and Systems Integration | Software and Services | Total | Products and Systems Integration | Software and Services | Total | |||||||||||||||||||||||||||||
Net sales by region | |||||||||||||||||||||||||||||||||||
North America | $ | 1,611 | $ | 886 | $ | 2,497 | $ | 1,467 | $ | 742 | $ | 2,209 | |||||||||||||||||||||||
International | 602 | 645 | 1,247 | 494 | 570 | 1,064 | |||||||||||||||||||||||||||||
$ | 2,213 | $ | 1,531 | $ | 3,744 | $ | 1,961 | $ | 1,312 | $ | 3,273 | ||||||||||||||||||||||||
Net sales by major products and services | |||||||||||||||||||||||||||||||||||
LMR | $ | 1,836 | $ | 1,095 | $ | 2,931 | $ | 1,696 | $ | 970 | $ | 2,666 | |||||||||||||||||||||||
Video Security and Access Control | 377 | 182 | 559 | 265 | 119 | 384 | |||||||||||||||||||||||||||||
Command Center Software | — | 254 | 254 | — | 223 | 223 | |||||||||||||||||||||||||||||
Total | $ | 2,213 | $ | 1,531 | $ | 3,744 | $ | 1,961 | $ | 1,312 | $ | 3,273 | |||||||||||||||||||||||
Operating earnings | 216 | 452 | 668 | 141 | 335 | 476 | |||||||||||||||||||||||||||||
Operating margins | 9.8 | % | 29.5 | % | 17.8 | % | 7.2 | % | 25.5 | % | 14.5 | % |
Six Months Ended | |||||||||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | % Change | ||||||||||||||
Gross margin | $ | 1,812 | $ | 1,553 | 17 | % |
Six Months Ended | |||||||||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | % Change | ||||||||||||||
Selling, general and administrative expenses | $ | 633 | $ | 638 | (1) | % |
Six Months Ended | |||||||||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | % Change | ||||||||||||||
Research and development expenditures | $ | 361 | $ | 330 | 9 | % |
Six Months Ended | |||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | |||||||||
Other charges | $ | 150 | $ | 109 |
Six Months Ended | |||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | |||||||||
Operating earnings from Products and Systems Integration | $ | 216 | $ | 141 | |||||||
Operating earnings from Software and Services | 452 | 335 | |||||||||
Operating earnings | $ | 668 | $ | 476 |
Six Months Ended | |||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | |||||||||
Interest expense, net | $ | (98) | $ | (109) |
Six Months Ended | |||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | |||||||||
Other, net | $ | 60 | $ | 34 |
Six Months Ended | |||||||||||
(In millions) | July 3, 2021 | June 27, 2020 | |||||||||
Income tax expense | $ | 90 | $ | 67 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Products and Systems Integration | $ | 7 | $ | 33 | $ | 19 | $ | 47 | |||||||||||||||
Software and Services | 2 | 8 | 6 | 12 | |||||||||||||||||||
$ | 9 | $ | 41 | $ | 25 | $ | 59 |
Six Months Ended | |||||||||||
July 3, 2021 | June 27, 2020 | ||||||||||
Cash flows provided by (used for): | |||||||||||
Operating activities | $ | 758 | $ | 517 | |||||||
Investing activities | (114) | (141) | |||||||||
Financing activities | 30 | (17) | |||||||||
Effect of exchange rates on cash and cash equivalents | (7) | (19) | |||||||||
Increase (decrease) in cash and cash equivalents | $ | 667 | $ | 340 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Contract-specific discounting facility | $ | 36 | $ | 54 | $ | 107 | $ | 98 | |||||||||||||||
Accounts receivable sales proceeds | 8 | 34 | $ | 8 | $ | 58 | |||||||||||||||||
Long-term receivables sales proceeds | 30 | 29 | 84 | 70 | |||||||||||||||||||
Total proceeds from receivable sales | $ | 74 | $ | 117 | $ | 199 | $ | 226 | |||||||||||||||
Period |
(a) Total Number
of Shares Purchased |
(b) Average Price
Paid per
Share (1)
|
(c) Total Number
of Shares Purchased
as Part of Publicly
Announced Plans
or Program (2)
|
(d) Approximate Dollar
Value of Shares that
May Yet Be Purchased
Under the Plans or
Program(2)
|
|||||||||||||||||||
03/31/2021 to 04/28/2021 | — | $ | — | — | $ | 478,763,100 | |||||||||||||||||
04/29/2021 to 05/26/2021 | 171,681 | $ | 199.59 | 171,681 | $ | 2,444,497,493 | |||||||||||||||||
05/27/2021 to 06/30/2021 | 319,904 | $ | 210.74 | 319,904 | $ | 2,377,079,371 | |||||||||||||||||
Total | 491,585 | $ | 206.85 | 491,585 |
Exhibit No. | Exhibit | |||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Scheme Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
* | Filed herewith | ||||
** | Furnished herewith | ||||
MOTOROLA, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners. ©2021 Motorola Solutions, Inc. All rights reserved. |
MOTOROLA SOLUTIONS, INC. | |||||||||||
By: |
/S/ DAN PEKOFSKE
|
||||||||||
Dan Pekofske
Corporate Vice President and
Chief Accounting Officer
(Principal Accounting Officer)
|
/s/ GREGORY Q. BROWN | |||||
Gregory Q. Brown | |||||
Chairman and Chief Executive Officer | |||||
Motorola Solutions, Inc. |
/s/ JASON J. WINKLER | |||||
Jason J. Winkler | |||||
Executive Vice President and Chief Financial Officer | |||||
Motorola Solutions, Inc. |
/s/ GREGORY Q. BROWN | |||||
Gregory Q. Brown | |||||
Chairman and Chief Executive Officer | |||||
Motorola Solutions, Inc. |
/s/ JASON J. WINKLER | |||||
Jason J. Winkler | |||||
Executive Vice President and Chief Financial Officer | |||||
Motorola Solutions, Inc. |