Motorola Solutions, Inc 8-K, filed Aug 3, 2023

Motorola Solutions, Inc. (MSI)

8-K 2023-08-03 For: 2023-08-03

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Added on April 03, 2026

About this 8-K

Motorola Solutions, Inc filed this 8-K on August 3, 2023.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Date of report (Date of earliest event reported): August 3, 2023

Motorola Solutions, Inc.
(Exact Name of Registrant as Specified in Charter)

	Delaware
(State or Other Jurisdiction of Incorporation)

1-7221		36-1115800
(Commission File Number)		(IRS Employer Identification No.)

	500 W. Monroe Street
Chicago,	Illinois	60661
(Address of Principal Executive Offices, Zip Code)


Registrant’s telephone number, including area code: 847-576-5000

Not applicable
(Former Name or Former Address, if Changed Since Last Report)


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Exhibit No.			Description
99.1			Press Release by Motorola Solutions, Inc. dated August 3, 2023 announcing financial results for the quarter ended July 1, 2023.
104			Cover Page Interactive Data File (embedded within the Inline XBRL document).


	MOTOROLA SOLUTIONS, INC. (Registrant)


Dated: August 3, 2023	By:	/s/ Katherine Maher
		Name:	Katherine Maher
		Title:	Corporate Vice President and Chief Accounting Officer


	Q2 2023		Q2 2022		% Change
Sales	$2,403		$2,140		12	%
GAAP
Operating Earnings	$518		$358		45	%
% of Sales	21.6	%	16.7	%
EPS	$2.15		$1.33		62	%
Non-GAAP*
Operating Earnings	$641		$497		29	%
% of Sales	26.7	%	23.2	%
EPS	$2.65		$2.07		28	%
Products and Systems Integration Segment
Sales	$1,437		$1,285		12	%
GAAP Operating Earnings	$212		$118		80	%
% of Sales	14.8	%	9.2	%
Non-GAAP Operating Earnings*	$285		$188		52	%
% of Sales	19.8	%	14.6	%
Software and Services Segment
Sales	$966		$855		13	%
GAAP Operating Earnings	$306		$240		28	%
% of Sales	31.7	%	28.1	%
Non-GAAP Operating Earnings*	$356		$309		15	%
% of Sales	36.9	%	36.1	%


	Q2 2023	Q2 2022
Net sales	$2,403	$2,140
Gross margin	$1,189	$990
Operating earnings	$518	$358
Amounts attributable to Motorola Solutions, Inc. common stockholders
Net earnings	$371	$228
Diluted EPS	$2.15	$1.33
Weighted average diluted common shares outstanding	172.6	170.9


	Three Months Ended
	July 1, 2023			July 2, 2022
Net sales from products	$	1,349		$	1,212
Net sales from services	1,054			928
Net sales	2,403			2,140
Costs of products sales	636			637
Costs of services sales	578			513
Costs of sales	1,214			1,150
Gross margin	1,189			990
Selling, general and administrative expenses	390			356
Research and development expenditures	215			191
Other charges	23			20
Intangibles amortization	43			65
Operating earnings	518			358
Other income (expense):
Interest expense, net	(57)			(56)

Other, net	26			(2)
Total other expense	(31)			(58)
Net earnings before income taxes	487			300
Income tax expense	114			71



Net earnings	373			229

Less: Earnings attributable to non-controlling interests	2			1
Net earnings attributable to Motorola Solutions, Inc.	$	371		$	228






Earnings per common share:
Basic	$	2.21		$	1.36




Diluted	$	2.15		$	1.33



Weighted average common shares outstanding:
Basic	167.5			167.2
Diluted	172.6			170.9

	Percentage of Net Sales*
Net sales from products	56.1		%	56.6		%
Net sales from services	43.9		%	43.4		%
Net sales	100.0		%	100.0		%
Costs of products sales	47.1		%	52.6		%
Costs of services sales	54.8		%	55.3		%
Costs of sales	50.5		%	53.7		%
Gross margin	49.5		%	46.3		%
Selling, general and administrative expenses	16.2		%	16.6		%
Research and development expenditures	8.9		%	8.9		%
Other charges	1.0		%	0.9		%
Intangibles amortization	1.8		%	3.0		%
Operating earnings	21.6		%	16.7		%
Other income (expense):
Interest expense, net	(2.4)		%	(2.6)		%

Other, net	1.1		%	(0.1)		%
Total other expense	(1.3)		%	(2.7)		%
Net earnings before income taxes	20.3		%	14.0		%
Income tax expense	4.7		%	3.3		%
Net earnings	15.5		%	10.7		%
Less: Earnings attributable to non-controlling interests	0.1		%	—		%
Net earnings attributable to Motorola Solutions, Inc.	15.4		%	10.7		%
* Percentages may not add up due to rounding


	Six Months Ended
	July 1, 2023			July 2, 2022
Net sales from products	$	2,573		$	2,258
Net sales from services	2,001			1,774
Net sales	4,574			4,032
Costs of products sales	1,209			1,185
Costs of services sales	1,130			1,001
Costs of sales	2,339			2,186
Gross margin	2,235			1,846

Selling, general and administrative expenses	757			692
Research and development expenditures	426			380
Other charges	37			46
Intangibles amortization	98			131
Operating earnings	917			597

Other income (expense):
Interest expense, net	(111)			(112)
Gain on sales of investments and businesses, net	1			2
Other, net	39			33
Total other expense	(71)			(77)
Net earnings before income taxes	846			520
Income tax expense	194			23



Net earnings	652			497

Less: Earnings attributable to non-controlling interests	3			2
Net earnings attributable to Motorola Solutions, Inc.	$	649		$	495





Earnings per common share:

Basic	$	3.88		$	2.95




Diluted	$	3.76		$	2.88

Weighted average common shares outstanding:
Basic	167.4			167.6
Diluted	172.5			172.0

	Percentage of Net Sales*
Net sales from products	56.3		%	56.0		%
Net sales from services	43.7		%	44.0		%
Net sales	100.0		%	100.0		%
Costs of products sales	47.0		%	52.5		%
Costs of services sales	56.5		%	56.4		%
Costs of sales	51.1		%	54.2		%
Gross margin	48.9		%	45.8		%
Selling, general and administrative expenses	16.6		%	17.2		%
Research and development expenditures	9.3		%	9.4		%
Other charges	0.8		%	1.1		%
Intangibles amortization	2.1		%	3.2		%
Operating earnings	20.0		%	14.8		%
Other income (expense):
Interest expense, net	(2.4)		%	(2.8)		%
Gain on sales of investments and businesses, net	—		%	—		%
Other, net	0.9		%	0.8		%
Total other expense	(1.6)		%	(1.9)		%
Net earnings before income taxes	18.5		%	12.9		%
Income tax expense	4.2		%	0.6		%
Net earnings	14.3		%	12.3		%
Less: Earnings attributable to non-controlling interests	0.1		%	—		%
Net earnings attributable to Motorola Solutions, Inc.	14.2		%	12.3		%
* Percentages may not add up due to rounding


	July 1, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	710	$	1,325
Accounts receivable, net	1,513		1,518
Contract assets	1,033		974
Inventories, net	1,020		1,055
Other current assets	350		383
Total current assets	4,626		5,255
Property, plant and equipment, net	935		927
Operating lease assets	478		485
Investments	162		147
Deferred income taxes	1,172		1,036
Goodwill	3,295		3,312
Intangible assets, net	1,261		1,342
Other assets	323		310
Total assets	$	12,252	$	12,814
Liabilities and Stockholders' Equity
Current portion of long-term debt	$	—	$	1
Accounts payable	676		1,062
Contract liabilities	1,764		1,859
Accrued liabilities	1,326		1,638
Total current liabilities	3,766		4,560
Long-term debt	6,015		6,013
Operating lease liabilities	391		419
Other liabilities	1,729		1,691
Total Motorola Solutions, Inc. stockholders’ equity	337		116
Non-controlling interests	14		15
Total liabilities and stockholders’ equity	$	12,252	$	12,814


		Three Months Ended				Six Months Ended
	Statement Line	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Net earnings attributable to MSI		$	371	$	228	$	649	$	495
Non-GAAP adjustments before income taxes:
Share-based compensation expenses	Cost of sales, SG&A and R&D	$	53	$	44	$	108	$	81
Intangible assets amortization expense	Intangibles amortization	43		65		98		131
Environmental reserve expense	Other charges (income)	15		—		15		—
Hytera-related legal expenses	SG&A	7		8		10		10
Reorganization of business charges	Cost of sales and Other charges (income)	3		7		16		17
Investment impairments	Other (income) expense	3		—		9		1
Operating lease asset impairments	Other charges (income)	1		3		4		12
Fixed asset impairments	Other charges (income)	1		8		3		11
Acquisition-related transaction fees	Other charges (income)	—		4		2		14
Loss from extinguishment of long-term debt	Other (income) expense	—		6		—		6
Legal settlements	Other charges (income)	—		—		—		11
Adjustments to uncertain tax positions	Interest income, net	—		—		—		(2)
Gain on Hytera legal settlement	Other charges (income)	—		—		—		(13)
Gain on TETRA Ireland equity method investment	Other (income) expense	—		—		—		(21)
Gain on sales of investments	(Gain) or loss on sales of investments and businesses, net	—		—		(1)		(2)

Fair value adjustments to equity investments	Other (income) expense	(16)		12		(19)		30
Total Non-GAAP adjustments before income taxes		$	110	$	157	$	245	$	286
Income tax expense on Non-GAAP adjustments		23		31		52		133
Total Non-GAAP adjustments after income taxes		87		126		193		153
Non-GAAP Net earnings attributable to MSI		$	458	$	354	$	842	$	648