Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended |
Apr. 04, 2015 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Motorola Solutions, Inc. |
Entity Central Index Key | 68505 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | 4-Apr-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | FALSE |
Entity Common Stock, Shares Outstanding | 210,942,389 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Income Statement [Abstract] | ||
Net sales from products | $758 | $752 |
Net sales from services | 465 | 476 |
Net sales | 1,223 | 1,228 |
Costs of product sales | 359 | 350 |
Costs of services sales | 316 | 301 |
Costs of sales | 675 | 651 |
Gross margin | 548 | 577 |
Selling, general and administrative expenses | 256 | 307 |
Research and development expenditures | 159 | 174 |
Other charges (income) | 14 | -11 |
Operating earnings | 119 | 107 |
Other income (expense): | ||
Interest expense, net | -40 | -25 |
Gains on sales of investments and businesses, net | 46 | 7 |
Other | 3 | 0 |
Total other income (expense) | 9 | -18 |
Earnings before income taxes | 128 | 89 |
Income tax expense | 40 | 4 |
Earnings from continuing operations | 88 | 85 |
Earnings (loss) from discontinued operations, net of tax | -13 | 42 |
Net earnings | 75 | 127 |
Less: Earnings attributable to noncontrolling interests | 1 | 0 |
Net earnings attributable to Motorola Solutions, Inc. | 74 | 127 |
Earnings from continuing operations, net of tax | 87 | 85 |
Earnings (loss) from discontinued operations, net of tax | ($13) | $42 |
Basic: | ||
Continuing operations (US$ per share) | $0.40 | $0.33 |
Discontinued operations (US$ per share) | ($0.06) | $0.17 |
Basic (US$ per share): | $0.34 | $0.50 |
Diluted: | ||
Continuing operations (US$ per share) | $0.40 | $0.33 |
Discontinued operations (US$ per share) | ($0.06) | $0.16 |
Diluted (US$ per share): | $0.34 | $0.49 |
Weighted average common shares outstanding: | ||
Basic (shares) | 215.3 | 254.1 |
Diluted (shares) | 217.8 | 258.3 |
Dividends declared per share (US$ per share) | $0.34 | $0.31 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $75 | $127 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | -26 | 2 |
Marketable securities | -33 | 2 |
Defined benefit plans | 1 | 13 |
Total other comprehensive income (loss) | -58 | 17 |
Comprehensive income | 17 | 144 |
Less: Earnings attributable to noncontrolling interest | 1 | 0 |
Comprehensive income attributable to Motorola Solutions, Inc. common shareholders | $16 | $144 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $3,353 | $3,954 |
Accounts receivable, net | 1,084 | 1,409 |
Inventories, net | 381 | 345 |
Deferred income taxes | 416 | 431 |
Other current assets | 650 | 740 |
Total current assets | 5,884 | 6,879 |
Property, plant and equipment, net | 530 | 549 |
Investments | 285 | 316 |
Deferred income taxes | 2,179 | 2,151 |
Goodwill | 390 | 383 |
Other assets | 157 | 145 |
Total assets | 9,425 | 10,423 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Current portion of long-term debt | 4 | 4 |
Accounts payable | 437 | 540 |
Accrued liabilities | 1,536 | 1,706 |
Total current liabilities | 1,977 | 2,250 |
Long-term debt | 3,392 | 3,396 |
Other liabilities | 1,962 | 2,011 |
Stockholders’ Equity | ||
Preferred stock, $100 par value | 0 | 0 |
Common stock, $.01 par value: Authorized shares: 600.0 Issued shares: 4/4/15--211.3; 12/31/14--220.5 Outstanding shares: 4/4/15--210.9; 12/31/14--219.8 | 2 | 2 |
Additional paid-in capital | 585 | 1,178 |
Retained earnings | 3,412 | 3,410 |
Accumulated other comprehensive loss | -1,913 | -1,855 |
Total Motorola Solutions, Inc. stockholders’ equity | 2,086 | 2,735 |
Noncontrolling interests | 8 | 31 |
Total stockholders’ equity | 2,094 | 2,766 |
Total liabilities and stockholders’ equity | $9,425 | $10,423 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
Stockholders’ Equity | ||
Preferred stock par value (US$ per share) | $100 | $100 |
Common stock par value (US$ per share) | $0.01 | $0.01 |
Common stock, authorized shares | 600,000,000 | 600,000,000 |
Common stock, issued shares | 211,300,000 | 220,500,000 |
Common stock, outstanding shares | 210,900,000 | 219,800,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) | Total | Common Stock and Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interests |
In Millions, unless otherwise specified | |||||
Balance at beginning of period at Dec. 31, 2014 | $2,766 | $1,180 | ($1,855) | $3,410 | $31 |
Balance (in shares) at Dec. 31, 2014 | 220.5 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 75 | 74 | 1 | ||
Other comprehensive loss | -58 | -58 | |||
Issuance of common stock and stock options exercised | 41 | ||||
Issuance of common stock and stock options exercised (in shares) | 0.7 | ||||
Share repurchase program | -653 | ||||
Share repurchase program (in shares) | -9.9 | -9.9 | |||
Tax shortfalls from share-based compensation | -2 | ||||
Share-based compensation expense | 21 | ||||
Sale of controlling interest in subsidiary common stock | -24 | ||||
Dividends declared | -72 | ||||
Balance at end of period at Apr. 04, 2015 | $2,094 | $587 | ($1,913) | $3,412 | $8 |
Balance (in shares) at Apr. 04, 2015 | 211.3 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Operating | ||
Net earnings attributable to Motorola Solutions, Inc. | $74 | $127 |
Less: Earnings attributable to noncontrolling interests | 1 | 0 |
Net earnings | 75 | 127 |
Earnings (loss) from discontinued operations, net of tax | -13 | 42 |
Earnings from continuing operations, net of tax | 88 | 85 |
Adjustments to reconcile Earnings from continuing operations to Net cash provided by operating activities from continuing operations: | ||
Depreciation and amortization | 41 | 40 |
Gain on sale of building and land | 0 | -21 |
Non-cash other charges (income) | 1 | -3 |
Share-based compensation expense | 21 | 28 |
Gains on sales of investments and businesses, net | -46 | -7 |
Deferred income taxes | 23 | 22 |
Changes in assets and liabilities, net of effects of acquisitions, dispositions, and foreign currency translation adjustments: | ||
Accounts receivable | 309 | 160 |
Inventories | -44 | -12 |
Other current assets | 26 | 16 |
Accounts payable and accrued liabilities | -252 | -175 |
Other assets and liabilities | -16 | -121 |
Net cash provided by operating activities from continuing operations | 151 | 12 |
Investing | ||
Acquisitions and investments, net | -74 | -4 |
Proceeds from sales of investments and businesses, net | 88 | 11 |
Capital expenditures | -33 | -41 |
Proceeds from sales of property, plant and equipment | 1 | 24 |
Net cash used for investing activities from continuing operations | -18 | -10 |
Financing | ||
Repayment of debt | -1 | -1 |
Net proceeds from issuance of debt | 0 | 4 |
Issuance of common stock | 46 | 14 |
Purchase of common stock | -653 | -57 |
Excess tax benefit from share-based compensation | 1 | 5 |
Payment of dividends | -75 | -79 |
Distributions from discontinued operations | 0 | 26 |
Net cash used for financing activities from continuing operations | -682 | -88 |
Net cash provided by operating activities from discontinued operations | 0 | 34 |
Net cash used for investing activities from discontinued operations | 0 | -8 |
Net cash used for financing activities from discontinued operations | 0 | -26 |
Net cash provided by discontinued operations | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents from continuing operations | -52 | 2 |
Net decrease in cash and cash equivalents | -601 | -84 |
Cash and cash equivalents, beginning of period | 3,954 | 3,225 |
Cash and cash equivalents, end of period | 3,353 | 3,141 |
Cash paid during the period for: | ||
Interest, net | 50 | 18 |
Income and withholding taxes, net of refunds | $39 | ($2) |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Apr. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The condensed consolidated financial statements as of April 4, 2015 and for the three months ended April 4, 2015 and March 29, 2014, include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the condensed consolidated balance sheets, statements of operations, statements of comprehensive income, statement of stockholders' equity, and statements of cash flows of Motorola Solutions, Inc. (“Motorola Solutions” or the “Company”) for all periods presented. | |
Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2014. The results of operations for the three months ended April 4, 2015 are not necessarily indicative of the operating results to be expected for the full year. | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers." This new standard will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount it expects to receive for those goods and services. This ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and estimates and changes in those estimates. This ASU will be effective for the Company beginning January 1, 2017; however, in April 2015, the FASB proposed a one year delay in the effective date of the standard. This ASU allows for both retrospective and modified-retrospective methods of adoption. The Company is in the process of determining the method of adoption it will elect and is currently assessing the impact of this ASU on its consolidated financial statements and footnote disclosures. | |
In February 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the consolidation analysis required for limited partnerships and other variable interest entities. This ASU will be effective for the Company beginning January 1, 2016, with early adoption permitted. This ASU allows for either retrospective or modified retrospective application. The Company does not expect this ASU will have a material impact on its consolidated financial statements. | |
In April 2015, the FASB issued ASU No. 2015-03, "Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” Under this guidance, debt issuance costs related to a recognized debt liability are required to be presented in the balance sheet as a direct reduction from the carrying amount of such debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this guidance. The Company will be required to apply a full retrospective approach to all periods presented. This guidance will be effective January 1, 2016 and, upon adoption, debt issuance costs capitalized in other assets in the consolidated balance sheet will be reclassified and presented as a reduction to long-term debt. As of April 4, 2015, debt issuance costs, net of accumulated amortization, recognized in the condensed consolidated balance sheet were $19 million. | |
In April 2015, the FASB issued ASU No. 2015-05, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." Under this guidance, if it is determined that a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses; however, if it is determined that a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This ASU allows for the option of applying either a full retrospective approach to all periods presented or a prospective approach to all arrangements entered into or materially modified after the effective date of January 1, 2016. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements and footnote disclosures. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Discontinued Operations | Discontinued Operations | |||||||
On October 27, 2014, the Company completed the sale of its Enterprise business to Zebra Technologies Corporation for $3.45 billion in cash. Certain assets of the Enterprise business were excluded from the transaction and retained by the Company, including the Company’s iDEN business, and other assets and certain liabilities as specified in the Master Acquisition Agreement. The historical financial results of the Enterprise business, excluding those assets and liabilities retained in the transaction, are reflected in the Company's condensed consolidated financial statements and footnotes as discontinued operations for all periods presented. | ||||||||
The following table displays summarized activity in the Company's condensed consolidated statements of operations for discontinued operations during the three months ended April 4, 2015 and March 29, 2014: | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
2015 | 2014 | |||||||
Net sales | $ | — | $ | 573 | ||||
Operating earnings | — | 63 | ||||||
Losses on sales of investments and businesses, net | (20 | ) | — | |||||
Earnings (loss) before income taxes | (20 | ) | 62 | |||||
Income tax expense (benefit) | (7 | ) | 20 | |||||
Earnings (loss) from discontinued operations, net of tax | $ | (13 | ) | $ | 42 | |||
During the three months ended April 4, 2015, the Company recorded $20 million in adjustments and a $7 million tax benefit related to the sale of the Enterprise business. |
Other_Financial_Data
Other Financial Data | 3 Months Ended | |||||||||||||||
Apr. 04, 2015 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Other Financial Data | Other Financial Data | |||||||||||||||
Statements of Operations Information | ||||||||||||||||
Other Charges (Income) | ||||||||||||||||
Other charges (income) included in Operating earnings consist of the following: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
April 4, | March 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Other charges (income): | ||||||||||||||||
Intangibles amortization | $ | 2 | $ | 1 | ||||||||||||
Reorganization of business | 12 | 9 | ||||||||||||||
Gain on sale of building and land | — | (21 | ) | |||||||||||||
$ | 14 | $ | (11 | ) | ||||||||||||
Other Income (Expense) | ||||||||||||||||
Interest expense, net, and Other, both included in Other income (expense), consist of the following: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
April 4, | March 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Interest income (expense), net: | ||||||||||||||||
Interest expense | $ | (43 | ) | $ | (30 | ) | ||||||||||
Interest income | 3 | 5 | ||||||||||||||
$ | (40 | ) | $ | (25 | ) | |||||||||||
Other: | ||||||||||||||||
Foreign currency gain (loss) | $ | 18 | $ | (1 | ) | |||||||||||
Loss on derivative instruments | (17 | ) | (1 | ) | ||||||||||||
Other | 2 | 2 | ||||||||||||||
$ | 3 | $ | — | |||||||||||||
Earnings Per Common Share | ||||||||||||||||
The computation of basic and diluted earnings per common share is as follows: | ||||||||||||||||
Amounts attributable to Motorola Solutions, Inc. common stockholders | ||||||||||||||||
Earnings from Continuing Operations, net of tax | Net Earnings | |||||||||||||||
Three Months Ended | April 4, | March 29, | April 4, | March 29, | ||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Basic earnings per common share: | ||||||||||||||||
Earnings | $ | 87 | $ | 85 | $ | 74 | $ | 127 | ||||||||
Weighted average common shares outstanding | 215.3 | 254.1 | 215.3 | 254.1 | ||||||||||||
Per share amount | $ | 0.4 | $ | 0.33 | $ | 0.34 | $ | 0.5 | ||||||||
Diluted earnings per common share: | ||||||||||||||||
Earnings | $ | 87 | $ | 85 | $ | 74 | $ | 127 | ||||||||
Weighted average common shares outstanding | 215.3 | 254.1 | 215.3 | 254.1 | ||||||||||||
Add effect of dilutive securities: | ||||||||||||||||
Share-based awards | 2.5 | 4.2 | 2.5 | 4.2 | ||||||||||||
Diluted weighted average common shares outstanding | 217.8 | 258.3 | 217.8 | 258.3 | ||||||||||||
Per share amount | $ | 0.4 | $ | 0.33 | $ | 0.34 | $ | 0.49 | ||||||||
In the computation of diluted earnings per common share for the three months ended April 4, 2015 and March 29, 2014, the assumed exercise of 2.2 million and 5.0 million stock options, respectively, were excluded because their inclusion would have been antidilutive. | ||||||||||||||||
Balance Sheet Information | ||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||
The Company’s cash and cash equivalents were $3.4 billion at April 4, 2015 and $4.0 billion at December 31, 2014. Of these amounts, $63 million was restricted at both April 4, 2015 and December 31, 2014. | ||||||||||||||||
Investments | ||||||||||||||||
Investments consist of the following: | ||||||||||||||||
April 4, 2015 | Cost | Unrealized | Investments | |||||||||||||
Basis | Gains | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Government, agency, and government-sponsored enterprise obligations | $ | 37 | $ | — | $ | 37 | ||||||||||
Corporate bonds | 9 | — | 9 | |||||||||||||
Common stock | — | 17 | 17 | |||||||||||||
46 | 17 | 63 | ||||||||||||||
Other investments, at cost | 200 | — | 200 | |||||||||||||
Equity method investments | 22 | — | 22 | |||||||||||||
$ | 268 | $ | 17 | $ | 285 | |||||||||||
December 31, 2014 | Cost | Unrealized | Investments | |||||||||||||
Basis | Gains | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Government, agency, and government-sponsored enterprise obligations | $ | 14 | $ | — | $ | 14 | ||||||||||
Corporate bonds | 16 | — | 16 | |||||||||||||
Mutual funds | 2 | — | 2 | |||||||||||||
Common stock | 1 | 70 | 71 | |||||||||||||
33 | 70 | 103 | ||||||||||||||
Other investments, at cost | 191 | — | 191 | |||||||||||||
Equity method investments | 22 | — | 22 | |||||||||||||
$ | 246 | $ | 70 | $ | 316 | |||||||||||
During the three months ended April 4, 2015, the Company sold shares of an equity investment realizing cash proceeds of $47 million and a previously unrecognized gain of $46 million. | ||||||||||||||||
Accounts Receivable, Net | ||||||||||||||||
Accounts receivable, net, consists of the following: | ||||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Accounts receivable | $ | 1,120 | $ | 1,444 | ||||||||||||
Less allowance for doubtful accounts | (36 | ) | (35 | ) | ||||||||||||
$ | 1,084 | $ | 1,409 | |||||||||||||
Inventories, Net | ||||||||||||||||
Inventories, net, consist of the following: | ||||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Finished goods | $ | 178 | $ | 163 | ||||||||||||
Work-in-process and production materials | 336 | 313 | ||||||||||||||
514 | 476 | |||||||||||||||
Less inventory reserves | (133 | ) | (131 | ) | ||||||||||||
$ | 381 | $ | 345 | |||||||||||||
Other Current Assets | ||||||||||||||||
Other current assets consist of the following: | ||||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Costs and earnings in excess of billings | $ | 367 | $ | 417 | ||||||||||||
Tax-related refunds receivable | 90 | 103 | ||||||||||||||
Zebra receivable for cash transferred | — | 49 | ||||||||||||||
Other | 193 | 171 | ||||||||||||||
$ | 650 | $ | 740 | |||||||||||||
In conjunction with the sale of the Enterprise business to Zebra Technologies, the Company transferred legal entities which maintained cash balances. During the three months ended April 4, 2015, approximately $49 million of transferred cash balances were reimbursed by Zebra in accordance with the Master Acquisition Agreement. | ||||||||||||||||
Property, Plant and Equipment, Net | ||||||||||||||||
Property, plant and equipment, net, consists of the following: | ||||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Land | $ | 17 | $ | 18 | ||||||||||||
Building | 557 | 559 | ||||||||||||||
Machinery and equipment | 1,658 | 1,672 | ||||||||||||||
2,232 | 2,249 | |||||||||||||||
Less accumulated depreciation | (1,702 | ) | (1,700 | ) | ||||||||||||
$ | 530 | $ | 549 | |||||||||||||
Depreciation expense was $39 million for both the three months ended April 4, 2015 and March 29, 2014. | ||||||||||||||||
Other Assets | ||||||||||||||||
Other assets consist of the following: | ||||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Intangible assets, net | $ | 38 | $ | 23 | ||||||||||||
Long-term receivables | 26 | 31 | ||||||||||||||
Other | 93 | 91 | ||||||||||||||
$ | 157 | $ | 145 | |||||||||||||
Accrued Liabilities | ||||||||||||||||
Accrued liabilities consist of the following: | ||||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Deferred revenue | $ | 339 | $ | 355 | ||||||||||||
Compensation | 158 | 190 | ||||||||||||||
Billings in excess of costs and earnings | 344 | 358 | ||||||||||||||
Tax liabilities | 49 | 91 | ||||||||||||||
Dividend payable | 72 | 75 | ||||||||||||||
Other | 574 | 637 | ||||||||||||||
$ | 1,536 | $ | 1,706 | |||||||||||||
Other Liabilities | ||||||||||||||||
Other liabilities consist of the following: | ||||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Defined benefit plans | $ | 1,563 | $ | 1,611 | ||||||||||||
Postretirement Health Care Benefit Plan | 42 | 49 | ||||||||||||||
Deferred revenue | 141 | 139 | ||||||||||||||
Unrecognized tax benefits | 51 | 54 | ||||||||||||||
Other | 165 | 158 | ||||||||||||||
$ | 1,962 | $ | 2,011 | |||||||||||||
Stockholders’ Equity | ||||||||||||||||
Share Repurchase Program: Through actions taken on July 28, 2011, January 30, 2012, July 25, 2012, July 22, 2013, and November 3, 2014, the Board of Directors has authorized the Company to repurchase an aggregate amount of up to $12.0 billion of its outstanding shares of common stock (the “share repurchase program”). The share repurchase program does not have an expiration date. | ||||||||||||||||
The Company paid an aggregate of $653 million during the first quarter of 2015, including transaction costs, to repurchase approximately 9.9 million shares at an average price of $66.12 per share. As of April 4, 2015, the Company had used approximately $8.4 billion of the share repurchase authority, including transaction costs, to repurchase shares, leaving $3.6 billion of authority available for future repurchases. | ||||||||||||||||
Payment of Dividends: During the three months ended April 4, 2015 and March 29, 2014, the Company paid $75 million and $79 million, respectively, in cash dividends to holders of its common stock. | ||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||
The following table displays the changes in Accumulated other comprehensive loss, including amounts reclassified into income, and the affected line items in the condensed consolidated statements of operations during the three months ended April 4, 2015 and March 29, 2014: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
April 4, | March 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Foreign Currency Translation Adjustments | ||||||||||||||||
Balance at beginning of period | $ | (204 | ) | $ | (96 | ) | ||||||||||
Other comprehensive income (loss) before reclassification adjustment | (27 | ) | 3 | |||||||||||||
Tax expense (benefit) | 1 | (1 | ) | |||||||||||||
Other comprehensive income (loss), net of tax | (26 | ) | 2 | |||||||||||||
Balance at end of period | $ | (230 | ) | $ | (94 | ) | ||||||||||
Net loss on derivative instruments | ||||||||||||||||
Balance at beginning and end of period | $ | — | $ | (1 | ) | |||||||||||
Unrealized Gains and Losses on Available-for-Sale Securities: | ||||||||||||||||
Balance at beginning of period | $ | 44 | $ | (2 | ) | |||||||||||
Other comprehensive loss before reclassification adjustment | (7 | ) | — | |||||||||||||
Tax expense | 3 | 2 | ||||||||||||||
Other comprehensive income (loss) before reclassification adjustment, net of tax | (4 | ) | 2 | |||||||||||||
Reclassification adjustment into Gains on Sales of investments and businesses, net | (46 | ) | — | |||||||||||||
Tax expense | 17 | — | ||||||||||||||
Reclassification adjustment into Gains on sales of investments and businesses, net of tax | (29 | ) | — | |||||||||||||
Other comprehensive income (loss), net of tax | (33 | ) | 2 | |||||||||||||
Balance at end of period | $ | 11 | $ | — | ||||||||||||
Defined Benefit Plans | ||||||||||||||||
Balance at beginning of period | (1,695 | ) | (2,188 | ) | ||||||||||||
Reclassification adjustment - Actuarial net losses into Selling, general, and administrative expenses | 19 | 29 | ||||||||||||||
Reclassification adjustment - Prior service benefits into Selling, general, and administrative expenses | (17 | ) | (10 | ) | ||||||||||||
Tax benefit | (1 | ) | (6 | ) | ||||||||||||
Reclassification adjustment into Selling, general, and administrative expenses, net of tax | 1 | 13 | ||||||||||||||
Balance at end of period | $ | (1,694 | ) | $ | (2,175 | ) | ||||||||||
Total Accumulated other comprehensive loss | $ | (1,913 | ) | $ | (2,270 | ) |
Debt_and_Credit_Facilities
Debt and Credit Facilities | 3 Months Ended |
Apr. 04, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Debt and Credit Facilities |
As of April 4, 2015, the Company had a $2.1 billion unsecured syndicated revolving credit facility, which includes a $450 million letter of credit sub-limit, (the “2014 Motorola Solutions Credit Agreement”) scheduled to mature on May 29, 2019. The Company must comply with certain customary covenants, including maximum leverage ratio as defined in the 2014 Motorola Solutions Credit Agreement. The Company was in compliance with its financial covenants as of April 4, 2015. The Company did not borrow or issue any letters of credit under the 2014 Motorola Solutions Credit Agreement during the three months ended April 4, 2015. |
Risk_Management
Risk Management | 3 Months Ended | |||||||||||
Apr. 04, 2015 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||
Risk Management | Risk Management | |||||||||||
Foreign Currency Risk | ||||||||||||
As of April 4, 2015, the Company had outstanding foreign exchange contracts with notional amounts totaling $694 million, compared to $628 million outstanding at December 31, 2014. The Company does not believe these financial instruments should subject it to undue risk due to foreign exchange movements because gains and losses on these contracts should generally offset gains and losses on the underlying assets, liabilities and transactions. | ||||||||||||
The following table shows the five largest net notional amounts of the positions to buy or sell foreign currency as of April 4, 2015, and the corresponding positions as of December 31, 2014: | ||||||||||||
Notional Amount | ||||||||||||
Net Buy (Sell) by Currency | April 4, | December 31, | ||||||||||
2015 | 2014 | |||||||||||
British Pound | $ | 166 | $ | 34 | ||||||||
Euro | 154 | 214 | ||||||||||
Chinese Renminbi | (146 | ) | (161 | ) | ||||||||
Norwegian Krone | (86 | ) | (90 | ) | ||||||||
Brazilian Real | (38 | ) | (28 | ) | ||||||||
Interest Rate Risk | ||||||||||||
As of April 4, 2015, the Company had $3.4 billion of long-term debt, including the current portion, which is primarily priced at long-term, fixed interest rates. | ||||||||||||
One of the Company’s European subsidiaries has Euro-denominated loans. The interest on the Euro-denominated loans is variable and the Company has an interest rate swap in place which is not designated as a hedge. As such, the changes in the fair value of the interest rate swap is included in Other income (expense) in the Company’s condensed consolidated statements of operations. The fair value of the interest rate swap was in a liability position of $2 million at April 4, 2015 and December 31, 2014. | ||||||||||||
Counterparty Risk | ||||||||||||
The use of derivative financial instruments exposes the Company to counterparty credit risk in the event of non-performance by counterparties. However, the Company’s risk is limited to the fair value of the instruments when the derivative is in an asset position. The Company actively monitors its exposure to credit risk. As of April 4, 2015, all of the counterparties have investment grade credit ratings. As of April 4, 2015, the Company had $2 million of exposure to aggregate net credit risk with all counterparties. | ||||||||||||
The following tables summarize the fair values and location in the condensed consolidated balance sheets of all derivative financial instruments held by the Company as of April 4, 2015 and December 31, 2014: | ||||||||||||
Fair Values of Derivative Instruments | ||||||||||||
Assets | Liabilities | |||||||||||
April 4, 2015 | Fair | Balance | Fair | Balance | ||||||||
Value | Sheet | Value | Sheet | |||||||||
Location | Location | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Foreign exchange contracts | $ | 2 | Other assets | $ | 1 | Other liabilities | ||||||
Interest rate swap | — | Other assets | 2 | Other liabilities | ||||||||
Total derivatives | $ | 2 | $ | 3 | ||||||||
Fair Values of Derivative Instruments | ||||||||||||
Assets | Liabilities | |||||||||||
December 31, 2014 | Fair | Balance | Fair | Balance | ||||||||
Value | Sheet | Value | Sheet | |||||||||
Location | Location | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Foreign exchange contracts | 1 | Other assets | 5 | Other liabilities | ||||||||
Interest rate swap | — | Other assets | 2 | Other liabilities | ||||||||
Total derivatives | 1 | 7 | ||||||||||
The following table summarizes the effect of derivative instruments on the Company's condensed consolidated statements of operations for the three months ended April 4, 2015 and March 29, 2014: | ||||||||||||
Three Months Ended | Statements of | |||||||||||
Loss on Derivative Instruments | April 4, | March 29, | Operations Location | |||||||||
2015 | 2014 | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Interest rate swap | $ | (1 | ) | $ | — | Other income (expense) | ||||||
Foreign exchange contracts | (16 | ) | (1 | ) | Other income (expense) | |||||||
Total derivatives | $ | (17 | ) | $ | (1 | ) |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Taxes | Income Taxes | |||||||
At the end of each interim reporting period, the Company makes an estimate of the annual effective income tax rate. Tax items included in the annual effective income tax rate are pro-rated for the full year and tax items discrete to a specific quarter are included in the effective income tax rate for that quarter. The estimate used in providing for income taxes on a year-to-date basis may change in subsequent interim periods. | ||||||||
The following table provides details of income taxes: | ||||||||
Three Months Ended | ||||||||
April 4, 2015 | March 29, 2014 | |||||||
Earnings before income taxes | $ | 128 | $ | 89 | ||||
Income tax expense | 40 | 4 | ||||||
Effective tax rate | 31 | % | 4 | % | ||||
The Company recorded $40 million of net income tax expense in the first quarter of 2015, resulting in an effective tax rate of 31%, compared to $4 million of net tax expense, resulting in an effective tax rate of 4% in the first quarter of 2014. The effective tax rate in 2015 was lower than the U.S. statutory tax rate of 35% primarily due to the U.S. domestic production tax deduction and rate differential for foreign affiliates. The effective tax rate in the first quarter of 2014 was lower than the U.S. statutory tax rate of 35% due to a $30 million net tax benefit associated with the net reduction in unrecognized tax benefits for facts that indicated the extent to which certain tax positions were more-likely-than-not of being sustained. |
Retirement_and_Other_Employee_
Retirement and Other Employee Benefits | 3 Months Ended | |||||||||||||||||||||||
Apr. 04, 2015 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Retirement and Other Employee Benefits | Retirement and Other Employee Benefits | |||||||||||||||||||||||
Pension and Postretirement Health Care Benefits Plans | ||||||||||||||||||||||||
The net periodic costs (benefits) for Pension and Postretirement Health Care Benefits Plans were as follows: | ||||||||||||||||||||||||
U.S. Pension Benefit Plans | Non U.S. Pension Benefit Plans | Postretirement Health Care Benefits Plan | ||||||||||||||||||||||
Three Months Ended | April 4, 2015 | March 29, 2014 | April 4, 2015 | March 29, 2014 | April 4, 2015 | March 29, 2014 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | 3 | $ | 4 | $ | — | $ | 1 | ||||||||||||
Interest cost | 49 | 93 | 16 | 20 | 2 | 3 | ||||||||||||||||||
Expected return on plan assets | (54 | ) | (98 | ) | (26 | ) | (23 | ) | (2 | ) | (2 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Unrecognized net loss | 12 | 22 | 4 | 3 | 3 | 3 | ||||||||||||||||||
Unrecognized prior service cost (benefit) | — | — | (2 | ) | 2 | (15 | ) | (12 | ) | |||||||||||||||
Net periodic pension cost (benefit) | $ | 7 | $ | 17 | $ | (5 | ) | $ | 6 | $ | (12 | ) | $ | (7 | ) | |||||||||
The Company made no contributions to its U.S. Pension Benefit Plans during the three months ended April 4, 2015 and $26 million of contributions to its U.S. Pension Benefit Plans for the three months ended March 29, 2014. During the three months ended April 4, 2015 and March 29, 2014, contributions of $3 million and $17 million were made to the Company’s Non U.S. Pension Benefit Plans, respectively. |
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Share-Based Compensation Plans | Share-Based Compensation Plans | |||||||
Compensation expense for the Company’s employee stock options, stock appreciation rights, employee stock purchase plan, restricted stock and restricted stock units (“RSUs”) was as follows: | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
2015 | 2014 | |||||||
Share-based compensation expense included in: | ||||||||
Costs of sales | $ | 3 | $ | 3 | ||||
Selling, general and administrative expenses | 13 | 17 | ||||||
Research and development expenditures | 5 | 8 | ||||||
Share-based compensation expense included in Operating earnings | 21 | 28 | ||||||
Tax benefit | 7 | 9 | ||||||
Share-based compensation expense, net of tax | $ | 14 | $ | 19 | ||||
Decrease in basic earnings per share | $ | (0.07 | ) | $ | (0.07 | ) | ||
Decrease in diluted earnings per share | $ | (0.06 | ) | $ | (0.07 | ) | ||
Share-based compensation expense in discontinued operations | $ | — | $ | 8 | ||||
For the three months ended April 4, 2015, the Company granted 0.7 million RSUs and 0.8 million stock options. The total aggregate compensation expense, net of estimated forfeitures, for these RSUs and stock options was $39 million and $9 million, respectively, which will be recognized over a weighted average vesting period of three years. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||
Apr. 04, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||
The Company holds certain fixed income securities, equity securities and derivatives, which are recognized and disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. Fair value is measured using the fair value hierarchy and related valuation methodologies as defined in the authoritative literature. This guidance specifies a hierarchy of valuation techniques based on whether the inputs to each measurement are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's assumptions about current market conditions. | ||||||||||||
The fair value hierarchy and related valuation methodologies are as follows: | ||||||||||||
Level 1—Quoted prices for identical instruments in active markets. | ||||||||||||
Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets. | ||||||||||||
Level 3—Valuations derived from valuation techniques, in which one or more significant inputs are unobservable. | ||||||||||||
The fair values of the Company’s financial assets and liabilities by level in the fair value hierarchy as of April 4, 2015 and December 31, 2014 were as follows: | ||||||||||||
April 4, 2015 | Level 1 | Level 2 | Total | |||||||||
Assets: | ||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 2 | $ | 2 | ||||||
Available-for-sale securities: | ||||||||||||
Government, agency, and government-sponsored enterprise obligations | — | 37 | 37 | |||||||||
Corporate bonds | — | 9 | 9 | |||||||||
Common stock | 17 | — | 17 | |||||||||
Liabilities: | ||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 1 | $ | 1 | ||||||
Interest rate swap | — | 2 | 2 | |||||||||
December 31, 2014 | Level 1 | Level 2 | Total | |||||||||
Assets: | ||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 1 | $ | 1 | ||||||
Available-for-sale securities: | ||||||||||||
Government, agency, and government-sponsored enterprise obligations | — | 14 | 14 | |||||||||
Corporate bonds | — | 16 | 16 | |||||||||
Mutual funds | — | 2 | 2 | |||||||||
Common stock | 71 | — | 71 | |||||||||
Liabilities: | ||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 5 | $ | 5 | ||||||
Interest rate swap | — | 2 | 2 | |||||||||
The Company had no Level 3 holdings as of April 4, 2015 or December 31, 2014. | ||||||||||||
At April 4, 2015 and December 31, 2014, the Company had $2.5 billion and $3.3 billion, respectively, of investments in money market mutual funds (Level 2) classified as Cash and cash equivalents in its condensed consolidated balance sheets. The money market funds had quoted market prices that are equivalent to par. | ||||||||||||
Using quoted market prices and market interest rates, the Company determined that the fair value of long-term debt at April 4, 2015 was $3.6 billion (Level 2). | ||||||||||||
All other financial instruments are carried at cost, which is not materially different from the instruments’ fair values. |
Longterm_Customer_Financing_an
Long-term Customer Financing and Sales Of Receivables | 3 Months Ended | |||||||||||||||
Apr. 04, 2015 | ||||||||||||||||
Receivables [Abstract] | ||||||||||||||||
Long-term Customer Financing and Sales of Receivables | Long-term Customer Financing and Sales of Receivables | |||||||||||||||
Long-term Customer Financing | ||||||||||||||||
Long-term customer financing receivables consist of trade receivables with payment terms greater than twelve months, long-term loans and lease receivables under sales-type leases. Long-term customer financing receivables consist of the following: | ||||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Long-term receivables | $ | 51 | $ | 49 | ||||||||||||
Less current portion | (25 | ) | (18 | ) | ||||||||||||
Non-current long-term receivables, net | $ | 26 | $ | 31 | ||||||||||||
The current portion of long-term receivables is included in Accounts receivable, net and the non-current portion of long-term receivables is included in Other assets in the Company’s condensed consolidated balance sheets. The Company had outstanding commitments to provide long-term financing to third parties totaling $65 million at April 4, 2015, compared to $293 million at December 31, 2014. Outstanding commitments decreased during the first quarter of 2015 primarily as a result of two large customer contracts one of which was converted to an order without long-term financing and the other where the financing commitment was funded and sold. | ||||||||||||||||
Sales of Receivables | ||||||||||||||||
The following table summarizes the proceeds received from sales of accounts receivable and long-term receivables for the three months ended April 4, 2015 and March 29, 2014: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
April 4, | March 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Accounts receivable sales proceeds | $ | 6 | $ | 7 | ||||||||||||
Long-term receivables sales proceeds | 65 | 1 | ||||||||||||||
Total proceeds from receivable sales | $ | 71 | $ | 8 | ||||||||||||
At April 4, 2015, the Company had retained servicing obligations for $596 million of long-term receivables, compared to $496 million of long-term receivables at December 31, 2014. Servicing obligations are limited to collection activities related to the sales of accounts receivables and long-term receivables. | ||||||||||||||||
Credit Quality of Customer Financing Receivables and Allowance for Credit Losses | ||||||||||||||||
An aging analysis of financing receivables at April 4, 2015 and December 31, 2014 is as follows: | ||||||||||||||||
April 4, 2015 | Total | Current Billed | Past Due Under 90 Days | Past Due Over 90 Days | ||||||||||||
Long-term | Due | |||||||||||||||
Receivable | ||||||||||||||||
Municipal leases secured tax exempt | $ | 11 | $ | — | $ | — | $ | — | ||||||||
Commercial loans and leases secured | 40 | 4 | 1 | 11 | ||||||||||||
Total gross long-term receivables, including current portion | $ | 51 | $ | 4 | $ | 1 | $ | 11 | ||||||||
December 31, 2014 | Total | Current Billed | Past Due Under 90 Days | Past Due Over 90 Days | ||||||||||||
Long-term | Due | |||||||||||||||
Receivable | ||||||||||||||||
Municipal leases secured tax exempt | $ | 14 | $ | — | $ | — | $ | — | ||||||||
Commercial loans and leases secured | 35 | — | — | 12 | ||||||||||||
Total gross long-term receivables, including current portion | $ | 49 | $ | — | $ | — | $ | 12 | ||||||||
The Company had a total of $11 million of financing receivables past due over 90 days as of April 4, 2015 in relation to two loans. The Company did not accrue interest on these loans, which are fully reserved, during the three months ended April 4, 2015 or March 29, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 04, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Legal Matters | |
The Company is a defendant in various suits, claims and investigations that arise in the normal course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s condensed consolidated financial position, liquidity or results of operations. However, an unfavorable resolution could have a material adverse effect on the Company’s: (i) results of operations in the periods in which an adverse outcome becomes both probable and estimable or (ii) financial position or liquidity in the periods in which the matters are ultimately resolved. | |
Other Indemnifications | |
The Company is a party to a variety of agreements pursuant to which it is obligated to indemnify the other party with respect to certain matters. In indemnification cases, payment by the Company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party's claims. In some instances, the Company may have recourse against third parties for certain payments made by the Company. | |
Some of these obligations arise as a result of divestitures of the Company's assets or businesses and require the Company to indemnify the other party against losses arising from breaches of representations and warranties and covenants and, in some cases, the settlement of pending obligations. The Company's obligations under divestiture agreements for indemnification based on breaches of representations and warranties are generally limited in terms of duration and to amounts not in excess of a percentage of the contract value. The Company had no accruals for any such obligations at April 4, 2015. | |
In addition, the Company may provide indemnifications for losses that result from the breach of general warranties contained in certain commercial and intellectual property agreements. Historically, the Company has not made significant payments under these agreements. |
Segment_Information
Segment Information | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment Information | Segment Information | |||||||
The Company conducts its business globally and manages it through the following two segments: | ||||||||
Products: The Products segment is comprised of Devices and Systems. Devices includes two-way portable and vehicle mounted radios, accessories, and software features and upgrades. Systems includes the radio network core and central processing software, base stations, consoles, repeaters, and software applications and features. The primary customers of the Products segment are government, public safety and first-responder agencies, municipalities, and commercial and industrial customers who operate private communications networks and manage a mobile workforce. | ||||||||
Services: The Services segment provides a full set of offerings for government, public safety and commercial communication networks including: (i) Integration services, (ii) Lifecycle Support services, (iii) Managed services, (iv) Smart Public Safety Solutions, and (v) iDEN services. Integration services includes implementation, optimization, and integration of networks, devices, software, and applications. | ||||||||
The following table summarizes Net sales by segment: | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
2015 | 2014 | |||||||
Products | $ | 758 | $ | 752 | ||||
Services | 465 | 476 | ||||||
$ | 1,223 | $ | 1,228 | |||||
The following table summarizes the Operating earnings by segment: | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
2015 | 2014 | |||||||
Products | $ | 64 | $ | 39 | ||||
Services | 55 | 68 | ||||||
Operating earnings | 119 | 107 | ||||||
Total other income (expense) | 9 | (18 | ) | |||||
Earnings from continuing operations before income taxes | $ | 128 | $ | 89 | ||||
Reorganization_of_Business
Reorganization of Business | 3 Months Ended | |||||||||||||||||||
Apr. 04, 2015 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||
Reorganization of Businesses | Reorganization of Business | |||||||||||||||||||
2015 Charges | ||||||||||||||||||||
During the three months ended April 4, 2015, the Company recorded net reorganization of business charges of $14 million including $12 million of charges in Other charges and $2 million of charges in Cost of sales in the Company's condensed consolidated statements of operations. Included in the $14 million were charges of $10 million for employee separation costs and $4 million for exit costs. | ||||||||||||||||||||
The following table displays the net charges incurred by segment: | ||||||||||||||||||||
April 4, 2015 | Three Months Ended | |||||||||||||||||||
Products | $ | 10 | ||||||||||||||||||
Services | 4 | |||||||||||||||||||
$ | 14 | |||||||||||||||||||
The following table displays a rollforward of the reorganization of business accruals established for lease exit costs and employee separation costs from January 1, 2015 to April 4, 2015, including those related to discontinued operations which were maintained by the Company after the sale of the Enterprise business: | ||||||||||||||||||||
January 1, 2015 | Additional | Adjustments | Amount | April 4, 2015 | ||||||||||||||||
Charges | Used | |||||||||||||||||||
Exit costs | $ | — | $ | 4 | $ | 1 | $ | — | $ | 5 | ||||||||||
Employee separation costs | 57 | 10 | — | (28 | ) | 39 | ||||||||||||||
$ | 57 | $ | 14 | $ | 1 | $ | (28 | ) | $ | 44 | ||||||||||
Exit Costs | ||||||||||||||||||||
At January 1, 2015, the Company had no accruals for exit costs. During the three months ended April 4, 2015, there were $4 million of additional charges related to the exit of leased facilities. The remaining accrual of $5 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at April 4, 2015, primarily represents future cash payments for lease obligations that are expected to be paid over a number of years. | ||||||||||||||||||||
Employee Separation Costs | ||||||||||||||||||||
At January 1, 2015, the Company had an accrual of $57 million for employee separation costs. The 2015 additional charges of $10 million represent severance costs for approximately 100 employees. The $28 million used reflects cash payments to severed employees. The remaining accrual of $39 million, which is included in Accrued liabilities in the Company’s condensed consolidated balance sheets at April 4, 2015, is expected to be paid, primarily within one year, to approximately 450 employees, who have either been severed or have been notified of their severance and have begun or will begin receiving payments. | ||||||||||||||||||||
2014 Charges | ||||||||||||||||||||
During the three months ended March 29, 2014, the Company recorded net reorganization of business charges of $10 million, including $9 million of charges in Other charges and $1 million of charges in Cost of sales in the Company's condensed consolidated statements of operations. Included in the aggregate $10 million were charges of $8 million related to employee separation costs and $3 million related to exit costs, partially offset by $1 million of reversals for accruals no longer needed. | ||||||||||||||||||||
The following table displays the net charges incurred by segment: | ||||||||||||||||||||
March 29, 2014 | Three Months Ended | |||||||||||||||||||
Products | $ | 6 | ||||||||||||||||||
Services | 4 | |||||||||||||||||||
$ | 10 | |||||||||||||||||||
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 3 Months Ended | |||||||||||||||
Apr. 04, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill | |||||||||||||||
Intangible Assets | ||||||||||||||||
Amortized intangible assets were comprised of the following: | ||||||||||||||||
April 4, 2015 | December 31, 2014 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Completed technology | $ | 54 | $ | 29 | $ | 37 | $ | 27 | ||||||||
Patents | 8 | 4 | 8 | 4 | ||||||||||||
Customer-related | 15 | 8 | 15 | 8 | ||||||||||||
Other intangibles | 17 | 15 | 17 | 15 | ||||||||||||
$ | 94 | $ | 56 | $ | 77 | $ | 54 | |||||||||
Amortization expense on intangible assets was $2 million for the three months ended April 4, 2015 and $1 million for the three months ended March 29, 2014. As of April 4, 2015, annual amortization expense is estimated to be $7 million in 2015, 2016, and 2017, $6 million in 2018, $5 million in 2019, and $2 million in 2020. | ||||||||||||||||
Amortized intangible assets, excluding goodwill, were comprised of the following by segment: | ||||||||||||||||
April 4, 2015 | December 31, 2014 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Products | $ | 89 | $ | 56 | $ | 77 | $ | 54 | ||||||||
Services | 5 | — | — | — | ||||||||||||
$ | 94 | $ | 56 | $ | 77 | $ | 54 | |||||||||
Goodwill | ||||||||||||||||
The following table displays a rollforward of the carrying amount of goodwill by segment from January 1, 2015 to April 4, 2015: | ||||||||||||||||
Products | Services | Total | ||||||||||||||
Balance as of January 1, 2015 | ||||||||||||||||
Aggregate goodwill | $ | 264 | $ | 119 | $ | 383 | ||||||||||
Accumulated impairment losses | — | — | — | |||||||||||||
Goodwill, net of impairment losses | $ | 264 | $ | 119 | $ | 383 | ||||||||||
Goodwill acquired | 7 | — | 7 | |||||||||||||
Balance as of April 4, 2015 | ||||||||||||||||
Aggregate goodwill | $ | 271 | $ | 119 | $ | 390 | ||||||||||
Accumulated impairment losses | — | — | — | |||||||||||||
Goodwill, net of impairment losses | $ | 271 | $ | 119 | $ | 390 | ||||||||||
On November 18, 2014, the Company completed the acquisition of an equipment provider for a purchase price of $22 million. During the three months ended April 4, 2015, the Company completed the purchase accounting for this acquisition, recognizing $7 million of goodwill and $12 million of identifiable intangible assets. | ||||||||||||||||
During the quarter ended April 4, 2015 the Company completed the acquisitions of two providers of public safety software-based solutions for an aggregate purchase price of $50 million. During the three months ended April 4, 2015, the Company recognized an additional $5 million of identifiable intangible assets related to one of the acquisitions. As of April 4, 2015, $44 million is included in Other assets in the Company's condensed consolidated balance sheet pending finalization of the purchase price allocation for the second acquisition. | ||||||||||||||||
The results of operations for these acquisitions have been included in the Company’s condensed consolidated statements of operations subsequent to the acquisition date. The pro forma effects of these acquisitions are not significant individually or in the aggregate. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Apr. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers." This new standard will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount it expects to receive for those goods and services. This ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and estimates and changes in those estimates. This ASU will be effective for the Company beginning January 1, 2017; however, in April 2015, the FASB proposed a one year delay in the effective date of the standard. This ASU allows for both retrospective and modified-retrospective methods of adoption. The Company is in the process of determining the method of adoption it will elect and is currently assessing the impact of this ASU on its consolidated financial statements and footnote disclosures. | |
In February 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the consolidation analysis required for limited partnerships and other variable interest entities. This ASU will be effective for the Company beginning January 1, 2016, with early adoption permitted. This ASU allows for either retrospective or modified retrospective application. The Company does not expect this ASU will have a material impact on its consolidated financial statements. | |
In April 2015, the FASB issued ASU No. 2015-03, "Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” Under this guidance, debt issuance costs related to a recognized debt liability are required to be presented in the balance sheet as a direct reduction from the carrying amount of such debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this guidance. The Company will be required to apply a full retrospective approach to all periods presented. This guidance will be effective January 1, 2016 and, upon adoption, debt issuance costs capitalized in other assets in the consolidated balance sheet will be reclassified and presented as a reduction to long-term debt. As of April 4, 2015, debt issuance costs, net of accumulated amortization, recognized in the condensed consolidated balance sheet were $19 million. | |
In April 2015, the FASB issued ASU No. 2015-05, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." Under this guidance, if it is determined that a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses; however, if it is determined that a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This ASU allows for the option of applying either a full retrospective approach to all periods presented or a prospective approach to all arrangements entered into or materially modified after the effective date of January 1, 2016. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements and footnote disclosures. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Summarized Activity of Discontinued Operations | The following table displays summarized activity in the Company's condensed consolidated statements of operations for discontinued operations during the three months ended April 4, 2015 and March 29, 2014: | |||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
2015 | 2014 | |||||||
Net sales | $ | — | $ | 573 | ||||
Operating earnings | — | 63 | ||||||
Losses on sales of investments and businesses, net | (20 | ) | — | |||||
Earnings (loss) before income taxes | (20 | ) | 62 | |||||
Income tax expense (benefit) | (7 | ) | 20 | |||||
Earnings (loss) from discontinued operations, net of tax | $ | (13 | ) | $ | 42 | |||
Other_Financial_Data_Tables
Other Financial Data (Tables) | 3 Months Ended | |||||||||||||||
Apr. 04, 2015 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Other Charges | Other charges (income) included in Operating earnings consist of the following: | |||||||||||||||
Three Months Ended | ||||||||||||||||
April 4, | March 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Other charges (income): | ||||||||||||||||
Intangibles amortization | $ | 2 | $ | 1 | ||||||||||||
Reorganization of business | 12 | 9 | ||||||||||||||
Gain on sale of building and land | — | (21 | ) | |||||||||||||
$ | 14 | $ | (11 | ) | ||||||||||||
Other Income (Expense) | Interest expense, net, and Other, both included in Other income (expense), consist of the following: | |||||||||||||||
Three Months Ended | ||||||||||||||||
April 4, | March 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Interest income (expense), net: | ||||||||||||||||
Interest expense | $ | (43 | ) | $ | (30 | ) | ||||||||||
Interest income | 3 | 5 | ||||||||||||||
$ | (40 | ) | $ | (25 | ) | |||||||||||
Other: | ||||||||||||||||
Foreign currency gain (loss) | $ | 18 | $ | (1 | ) | |||||||||||
Loss on derivative instruments | (17 | ) | (1 | ) | ||||||||||||
Other | 2 | 2 | ||||||||||||||
$ | 3 | $ | — | |||||||||||||
Earnings Per Common Share | The computation of basic and diluted earnings per common share is as follows: | |||||||||||||||
Amounts attributable to Motorola Solutions, Inc. common stockholders | ||||||||||||||||
Earnings from Continuing Operations, net of tax | Net Earnings | |||||||||||||||
Three Months Ended | April 4, | March 29, | April 4, | March 29, | ||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Basic earnings per common share: | ||||||||||||||||
Earnings | $ | 87 | $ | 85 | $ | 74 | $ | 127 | ||||||||
Weighted average common shares outstanding | 215.3 | 254.1 | 215.3 | 254.1 | ||||||||||||
Per share amount | $ | 0.4 | $ | 0.33 | $ | 0.34 | $ | 0.5 | ||||||||
Diluted earnings per common share: | ||||||||||||||||
Earnings | $ | 87 | $ | 85 | $ | 74 | $ | 127 | ||||||||
Weighted average common shares outstanding | 215.3 | 254.1 | 215.3 | 254.1 | ||||||||||||
Add effect of dilutive securities: | ||||||||||||||||
Share-based awards | 2.5 | 4.2 | 2.5 | 4.2 | ||||||||||||
Diluted weighted average common shares outstanding | 217.8 | 258.3 | 217.8 | 258.3 | ||||||||||||
Per share amount | $ | 0.4 | $ | 0.33 | $ | 0.34 | $ | 0.49 | ||||||||
Investments | Investments consist of the following: | |||||||||||||||
April 4, 2015 | Cost | Unrealized | Investments | |||||||||||||
Basis | Gains | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Government, agency, and government-sponsored enterprise obligations | $ | 37 | $ | — | $ | 37 | ||||||||||
Corporate bonds | 9 | — | 9 | |||||||||||||
Common stock | — | 17 | 17 | |||||||||||||
46 | 17 | 63 | ||||||||||||||
Other investments, at cost | 200 | — | 200 | |||||||||||||
Equity method investments | 22 | — | 22 | |||||||||||||
$ | 268 | $ | 17 | $ | 285 | |||||||||||
December 31, 2014 | Cost | Unrealized | Investments | |||||||||||||
Basis | Gains | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Government, agency, and government-sponsored enterprise obligations | $ | 14 | $ | — | $ | 14 | ||||||||||
Corporate bonds | 16 | — | 16 | |||||||||||||
Mutual funds | 2 | — | 2 | |||||||||||||
Common stock | 1 | 70 | 71 | |||||||||||||
33 | 70 | 103 | ||||||||||||||
Other investments, at cost | 191 | — | 191 | |||||||||||||
Equity method investments | 22 | — | 22 | |||||||||||||
$ | 246 | $ | 70 | $ | 316 | |||||||||||
Accounts Receivable, Net | Accounts receivable, net, consists of the following: | |||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Accounts receivable | $ | 1,120 | $ | 1,444 | ||||||||||||
Less allowance for doubtful accounts | (36 | ) | (35 | ) | ||||||||||||
$ | 1,084 | $ | 1,409 | |||||||||||||
Inventories, Net | Inventories, net, consist of the following: | |||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Finished goods | $ | 178 | $ | 163 | ||||||||||||
Work-in-process and production materials | 336 | 313 | ||||||||||||||
514 | 476 | |||||||||||||||
Less inventory reserves | (133 | ) | (131 | ) | ||||||||||||
$ | 381 | $ | 345 | |||||||||||||
Other Current Assets | Other current assets consist of the following: | |||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Costs and earnings in excess of billings | $ | 367 | $ | 417 | ||||||||||||
Tax-related refunds receivable | 90 | 103 | ||||||||||||||
Zebra receivable for cash transferred | — | 49 | ||||||||||||||
Other | 193 | 171 | ||||||||||||||
$ | 650 | $ | 740 | |||||||||||||
Property, Plant And Equipment, Net | Property, plant and equipment, net, consists of the following: | |||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Land | $ | 17 | $ | 18 | ||||||||||||
Building | 557 | 559 | ||||||||||||||
Machinery and equipment | 1,658 | 1,672 | ||||||||||||||
2,232 | 2,249 | |||||||||||||||
Less accumulated depreciation | (1,702 | ) | (1,700 | ) | ||||||||||||
$ | 530 | $ | 549 | |||||||||||||
Other Assets | Other assets consist of the following: | |||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Intangible assets, net | $ | 38 | $ | 23 | ||||||||||||
Long-term receivables | 26 | 31 | ||||||||||||||
Other | 93 | 91 | ||||||||||||||
$ | 157 | $ | 145 | |||||||||||||
Accrued Liabilities | Accrued liabilities consist of the following: | |||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Deferred revenue | $ | 339 | $ | 355 | ||||||||||||
Compensation | 158 | 190 | ||||||||||||||
Billings in excess of costs and earnings | 344 | 358 | ||||||||||||||
Tax liabilities | 49 | 91 | ||||||||||||||
Dividend payable | 72 | 75 | ||||||||||||||
Other | 574 | 637 | ||||||||||||||
$ | 1,536 | $ | 1,706 | |||||||||||||
Other Liabilities | Other liabilities consist of the following: | |||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Defined benefit plans | $ | 1,563 | $ | 1,611 | ||||||||||||
Postretirement Health Care Benefit Plan | 42 | 49 | ||||||||||||||
Deferred revenue | 141 | 139 | ||||||||||||||
Unrecognized tax benefits | 51 | 54 | ||||||||||||||
Other | 165 | 158 | ||||||||||||||
$ | 1,962 | $ | 2,011 | |||||||||||||
Changes in Accumulated Other Comprehensive Loss | The following table displays the changes in Accumulated other comprehensive loss, including amounts reclassified into income, and the affected line items in the condensed consolidated statements of operations during the three months ended April 4, 2015 and March 29, 2014: | |||||||||||||||
Three Months Ended | ||||||||||||||||
April 4, | March 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Foreign Currency Translation Adjustments | ||||||||||||||||
Balance at beginning of period | $ | (204 | ) | $ | (96 | ) | ||||||||||
Other comprehensive income (loss) before reclassification adjustment | (27 | ) | 3 | |||||||||||||
Tax expense (benefit) | 1 | (1 | ) | |||||||||||||
Other comprehensive income (loss), net of tax | (26 | ) | 2 | |||||||||||||
Balance at end of period | $ | (230 | ) | $ | (94 | ) | ||||||||||
Net loss on derivative instruments | ||||||||||||||||
Balance at beginning and end of period | $ | — | $ | (1 | ) | |||||||||||
Unrealized Gains and Losses on Available-for-Sale Securities: | ||||||||||||||||
Balance at beginning of period | $ | 44 | $ | (2 | ) | |||||||||||
Other comprehensive loss before reclassification adjustment | (7 | ) | — | |||||||||||||
Tax expense | 3 | 2 | ||||||||||||||
Other comprehensive income (loss) before reclassification adjustment, net of tax | (4 | ) | 2 | |||||||||||||
Reclassification adjustment into Gains on Sales of investments and businesses, net | (46 | ) | — | |||||||||||||
Tax expense | 17 | — | ||||||||||||||
Reclassification adjustment into Gains on sales of investments and businesses, net of tax | (29 | ) | — | |||||||||||||
Other comprehensive income (loss), net of tax | (33 | ) | 2 | |||||||||||||
Balance at end of period | $ | 11 | $ | — | ||||||||||||
Defined Benefit Plans | ||||||||||||||||
Balance at beginning of period | (1,695 | ) | (2,188 | ) | ||||||||||||
Reclassification adjustment - Actuarial net losses into Selling, general, and administrative expenses | 19 | 29 | ||||||||||||||
Reclassification adjustment - Prior service benefits into Selling, general, and administrative expenses | (17 | ) | (10 | ) | ||||||||||||
Tax benefit | (1 | ) | (6 | ) | ||||||||||||
Reclassification adjustment into Selling, general, and administrative expenses, net of tax | 1 | 13 | ||||||||||||||
Balance at end of period | $ | (1,694 | ) | $ | (2,175 | ) | ||||||||||
Total Accumulated other comprehensive loss | $ | (1,913 | ) | $ | (2,270 | ) |
Risk_Management_Tables
Risk Management (Tables) | 3 Months Ended | |||||||||||
Apr. 04, 2015 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||
Schedule of Largest Net Notional Amounts of The Positions to Buy or Sell Foreign Currency | The following table shows the five largest net notional amounts of the positions to buy or sell foreign currency as of April 4, 2015, and the corresponding positions as of December 31, 2014: | |||||||||||
Notional Amount | ||||||||||||
Net Buy (Sell) by Currency | April 4, | December 31, | ||||||||||
2015 | 2014 | |||||||||||
British Pound | $ | 166 | $ | 34 | ||||||||
Euro | 154 | 214 | ||||||||||
Chinese Renminbi | (146 | ) | (161 | ) | ||||||||
Norwegian Krone | (86 | ) | (90 | ) | ||||||||
Brazilian Real | (38 | ) | (28 | ) | ||||||||
Summary of Fair Values and Location In Condensed Consolidated Balance Sheet | The following tables summarize the fair values and location in the condensed consolidated balance sheets of all derivative financial instruments held by the Company as of April 4, 2015 and December 31, 2014: | |||||||||||
Fair Values of Derivative Instruments | ||||||||||||
Assets | Liabilities | |||||||||||
April 4, 2015 | Fair | Balance | Fair | Balance | ||||||||
Value | Sheet | Value | Sheet | |||||||||
Location | Location | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Foreign exchange contracts | $ | 2 | Other assets | $ | 1 | Other liabilities | ||||||
Interest rate swap | — | Other assets | 2 | Other liabilities | ||||||||
Total derivatives | $ | 2 | $ | 3 | ||||||||
Fair Values of Derivative Instruments | ||||||||||||
Assets | Liabilities | |||||||||||
December 31, 2014 | Fair | Balance | Fair | Balance | ||||||||
Value | Sheet | Value | Sheet | |||||||||
Location | Location | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Foreign exchange contracts | 1 | Other assets | 5 | Other liabilities | ||||||||
Interest rate swap | — | Other assets | 2 | Other liabilities | ||||||||
Total derivatives | 1 | 7 | ||||||||||
Summary of Derivative Instruments and The Effect on the Condensed Consolidated Statements Of Operations | The following table summarizes the effect of derivative instruments on the Company's condensed consolidated statements of operations for the three months ended April 4, 2015 and March 29, 2014: | |||||||||||
Three Months Ended | Statements of | |||||||||||
Loss on Derivative Instruments | April 4, | March 29, | Operations Location | |||||||||
2015 | 2014 | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Interest rate swap | $ | (1 | ) | $ | — | Other income (expense) | ||||||
Foreign exchange contracts | (16 | ) | (1 | ) | Other income (expense) | |||||||
Total derivatives | $ | (17 | ) | $ | (1 | ) |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of Effective Income Tax Rate Reconciliation | The following table provides details of income taxes: | |||||||
Three Months Ended | ||||||||
April 4, 2015 | March 29, 2014 | |||||||
Earnings before income taxes | $ | 128 | $ | 89 | ||||
Income tax expense | 40 | 4 | ||||||
Effective tax rate | 31 | % | 4 | % |
Retirement_and_Other_Employee_1
Retirement and Other Employee Benefits (Tables) | 3 Months Ended | |||||||||||||||||||||||
Apr. 04, 2015 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of Net Benefit Plan Costs | The net periodic costs (benefits) for Pension and Postretirement Health Care Benefits Plans were as follows: | |||||||||||||||||||||||
U.S. Pension Benefit Plans | Non U.S. Pension Benefit Plans | Postretirement Health Care Benefits Plan | ||||||||||||||||||||||
Three Months Ended | April 4, 2015 | March 29, 2014 | April 4, 2015 | March 29, 2014 | April 4, 2015 | March 29, 2014 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | 3 | $ | 4 | $ | — | $ | 1 | ||||||||||||
Interest cost | 49 | 93 | 16 | 20 | 2 | 3 | ||||||||||||||||||
Expected return on plan assets | (54 | ) | (98 | ) | (26 | ) | (23 | ) | (2 | ) | (2 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Unrecognized net loss | 12 | 22 | 4 | 3 | 3 | 3 | ||||||||||||||||||
Unrecognized prior service cost (benefit) | — | — | (2 | ) | 2 | (15 | ) | (12 | ) | |||||||||||||||
Net periodic pension cost (benefit) | $ | 7 | $ | 17 | $ | (5 | ) | $ | 6 | $ | (12 | ) | $ | (7 | ) | |||||||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Schedule of Compensation Expense | Compensation expense for the Company’s employee stock options, stock appreciation rights, employee stock purchase plan, restricted stock and restricted stock units (“RSUs”) was as follows: | |||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
2015 | 2014 | |||||||
Share-based compensation expense included in: | ||||||||
Costs of sales | $ | 3 | $ | 3 | ||||
Selling, general and administrative expenses | 13 | 17 | ||||||
Research and development expenditures | 5 | 8 | ||||||
Share-based compensation expense included in Operating earnings | 21 | 28 | ||||||
Tax benefit | 7 | 9 | ||||||
Share-based compensation expense, net of tax | $ | 14 | $ | 19 | ||||
Decrease in basic earnings per share | $ | (0.07 | ) | $ | (0.07 | ) | ||
Decrease in diluted earnings per share | $ | (0.06 | ) | $ | (0.07 | ) | ||
Share-based compensation expense in discontinued operations | $ | — | $ | 8 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||
Apr. 04, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair Value of Company's Financial Assets And Liabilities | The fair values of the Company’s financial assets and liabilities by level in the fair value hierarchy as of April 4, 2015 and December 31, 2014 were as follows: | |||||||||||
April 4, 2015 | Level 1 | Level 2 | Total | |||||||||
Assets: | ||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 2 | $ | 2 | ||||||
Available-for-sale securities: | ||||||||||||
Government, agency, and government-sponsored enterprise obligations | — | 37 | 37 | |||||||||
Corporate bonds | — | 9 | 9 | |||||||||
Common stock | 17 | — | 17 | |||||||||
Liabilities: | ||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 1 | $ | 1 | ||||||
Interest rate swap | — | 2 | 2 | |||||||||
December 31, 2014 | Level 1 | Level 2 | Total | |||||||||
Assets: | ||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 1 | $ | 1 | ||||||
Available-for-sale securities: | ||||||||||||
Government, agency, and government-sponsored enterprise obligations | — | 14 | 14 | |||||||||
Corporate bonds | — | 16 | 16 | |||||||||
Mutual funds | — | 2 | 2 | |||||||||
Common stock | 71 | — | 71 | |||||||||
Liabilities: | ||||||||||||
Foreign exchange derivative contracts | $ | — | $ | 5 | $ | 5 | ||||||
Interest rate swap | — | 2 | 2 | |||||||||
Longterm_Customer_Financing_an1
Long-term Customer Financing and Sales Of Receivables (Tables) | 3 Months Ended | |||||||||||||||
Apr. 04, 2015 | ||||||||||||||||
Receivables [Abstract] | ||||||||||||||||
Long-Term Customer Financing | Long-term customer financing receivables consist of trade receivables with payment terms greater than twelve months, long-term loans and lease receivables under sales-type leases. Long-term customer financing receivables consist of the following: | |||||||||||||||
April 4, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Long-term receivables | $ | 51 | $ | 49 | ||||||||||||
Less current portion | (25 | ) | (18 | ) | ||||||||||||
Non-current long-term receivables, net | $ | 26 | $ | 31 | ||||||||||||
Proceeds Received From Non-Recourse Sales Of Accounts Receivable And Long-Term Receivables | The following table summarizes the proceeds received from sales of accounts receivable and long-term receivables for the three months ended April 4, 2015 and March 29, 2014: | |||||||||||||||
Three Months Ended | ||||||||||||||||
April 4, | March 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Accounts receivable sales proceeds | $ | 6 | $ | 7 | ||||||||||||
Long-term receivables sales proceeds | 65 | 1 | ||||||||||||||
Total proceeds from receivable sales | $ | 71 | $ | 8 | ||||||||||||
Financing Receivables Aging Analysis | An aging analysis of financing receivables at April 4, 2015 and December 31, 2014 is as follows: | |||||||||||||||
April 4, 2015 | Total | Current Billed | Past Due Under 90 Days | Past Due Over 90 Days | ||||||||||||
Long-term | Due | |||||||||||||||
Receivable | ||||||||||||||||
Municipal leases secured tax exempt | $ | 11 | $ | — | $ | — | $ | — | ||||||||
Commercial loans and leases secured | 40 | 4 | 1 | 11 | ||||||||||||
Total gross long-term receivables, including current portion | $ | 51 | $ | 4 | $ | 1 | $ | 11 | ||||||||
December 31, 2014 | Total | Current Billed | Past Due Under 90 Days | Past Due Over 90 Days | ||||||||||||
Long-term | Due | |||||||||||||||
Receivable | ||||||||||||||||
Municipal leases secured tax exempt | $ | 14 | $ | — | $ | — | $ | — | ||||||||
Commercial loans and leases secured | 35 | — | — | 12 | ||||||||||||
Total gross long-term receivables, including current portion | $ | 49 | $ | — | $ | — | $ | 12 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Net Sales and Operating Earnings by Segment | The following table summarizes Net sales by segment: | |||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
2015 | 2014 | |||||||
Products | $ | 758 | $ | 752 | ||||
Services | 465 | 476 | ||||||
$ | 1,223 | $ | 1,228 | |||||
The following table summarizes the Operating earnings by segment: | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
2015 | 2014 | |||||||
Products | $ | 64 | $ | 39 | ||||
Services | 55 | 68 | ||||||
Operating earnings | 119 | 107 | ||||||
Total other income (expense) | 9 | (18 | ) | |||||
Earnings from continuing operations before income taxes | $ | 128 | $ | 89 | ||||
Reorganization_of_Business_Tab
Reorganization of Business (Tables) | 3 Months Ended | |||||||||||||||||||
Apr. 04, 2015 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||
Restructuring and Related Activities Reportable Segment | The following table displays the net charges incurred by segment: | |||||||||||||||||||
April 4, 2015 | Three Months Ended | |||||||||||||||||||
Products | $ | 10 | ||||||||||||||||||
Services | 4 | |||||||||||||||||||
$ | 14 | |||||||||||||||||||
The following table displays the net charges incurred by segment: | ||||||||||||||||||||
March 29, 2014 | Three Months Ended | |||||||||||||||||||
Products | $ | 6 | ||||||||||||||||||
Services | 4 | |||||||||||||||||||
$ | 10 | |||||||||||||||||||
Reorganization of Businesses Accruals | The following table displays a rollforward of the reorganization of business accruals established for lease exit costs and employee separation costs from January 1, 2015 to April 4, 2015, including those related to discontinued operations which were maintained by the Company after the sale of the Enterprise business: | |||||||||||||||||||
January 1, 2015 | Additional | Adjustments | Amount | April 4, 2015 | ||||||||||||||||
Charges | Used | |||||||||||||||||||
Exit costs | $ | — | $ | 4 | $ | 1 | $ | — | $ | 5 | ||||||||||
Employee separation costs | 57 | 10 | — | (28 | ) | 39 | ||||||||||||||
$ | 57 | $ | 14 | $ | 1 | $ | (28 | ) | $ | 44 | ||||||||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 3 Months Ended | |||||||||||||||
Apr. 04, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Intangible Assets | Amortized intangible assets were comprised of the following: | |||||||||||||||
April 4, 2015 | December 31, 2014 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Completed technology | $ | 54 | $ | 29 | $ | 37 | $ | 27 | ||||||||
Patents | 8 | 4 | 8 | 4 | ||||||||||||
Customer-related | 15 | 8 | 15 | 8 | ||||||||||||
Other intangibles | 17 | 15 | 17 | 15 | ||||||||||||
$ | 94 | $ | 56 | $ | 77 | $ | 54 | |||||||||
Amortized Intangible Assets, Excluding Goodwill, By Business Segment | Amortized intangible assets, excluding goodwill, were comprised of the following by segment: | |||||||||||||||
April 4, 2015 | December 31, 2014 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Products | $ | 89 | $ | 56 | $ | 77 | $ | 54 | ||||||||
Services | 5 | — | — | — | ||||||||||||
$ | 94 | $ | 56 | $ | 77 | $ | 54 | |||||||||
Goodwill | The following table displays a rollforward of the carrying amount of goodwill by segment from January 1, 2015 to April 4, 2015: | |||||||||||||||
Products | Services | Total | ||||||||||||||
Balance as of January 1, 2015 | ||||||||||||||||
Aggregate goodwill | $ | 264 | $ | 119 | $ | 383 | ||||||||||
Accumulated impairment losses | — | — | — | |||||||||||||
Goodwill, net of impairment losses | $ | 264 | $ | 119 | $ | 383 | ||||||||||
Goodwill acquired | 7 | — | 7 | |||||||||||||
Balance as of April 4, 2015 | ||||||||||||||||
Aggregate goodwill | $ | 271 | $ | 119 | $ | 390 | ||||||||||
Accumulated impairment losses | — | — | — | |||||||||||||
Goodwill, net of impairment losses | $ | 271 | $ | 119 | $ | 390 | ||||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | Apr. 04, 2015 |
In Millions, unless otherwise specified | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Debt issuance cost, net of accumulated amortization | $19 |
Discontinued_Operations_Summar
Discontinued Operations (Summarized Activity Of Discontinued Operations) (Details) (USD $) | 3 Months Ended | ||
Apr. 04, 2015 | Mar. 29, 2014 | Oct. 27, 2014 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Earnings (loss) from discontinued operations, net of tax | ($13,000,000) | $42,000,000 | |
Zebra Technologies Corporation | Enterprise | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal price agreed upon to sell Enterprise business | 3,450,000,000 | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Net sales | 0 | 573,000,000 | |
Operating earnings | 0 | 63,000,000 | |
Losses on sales of investments and businesses, net | -20,000,000 | 0 | |
Earnings (loss) before income taxes | -20,000,000 | 62,000,000 | |
Income tax expense (benefit) | -7,000,000 | 20,000,000 | |
Earnings (loss) from discontinued operations, net of tax | ($13,000,000) | $42,000,000 |
Other_Financial_Data_Other_Cha
Other Financial Data (Other Charges) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Other charges: | ||
Intangibles amortization | $2 | $1 |
Reorganization of business | 12 | 9 |
Gain on sale of building and land | 0 | -21 |
Other charges (income): | $14 | ($11) |
Other_Financial_Data_Other_Inc
Other Financial Data (Other Income (Expense)) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Interest income (expense), net: | ||
Interest expense | ($43) | ($30) |
Interest income | 3 | 5 |
Interest income (expense), net: | -40 | -25 |
Other: | ||
Foreign currency gain (loss) | 18 | -1 |
Loss on derivative instruments | -17 | -1 |
Other | 2 | 2 |
Total Other Income (Expense) | $3 | $0 |
Other_Financial_Data_Earnings_
Other Financial Data (Earnings Per Common Share) (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Basic earnings (loss) per common share: | ||
Earnings from continuing operations, net of tax | $87 | $85 |
Net earnings | 74 | 127 |
Weighted average common shares outstanding, basic (shares) | 215.3 | 254.1 |
Continuing operations (US$ per share) | $0.40 | $0.33 |
Basic earnings per share amount (US$ per share) | $0.34 | $0.50 |
Diluted earnings per common share: | ||
Earnings from continuing operations, net of tax | 87 | 85 |
Net earnings | $74 | $127 |
Weighted average common shares outstanding, basic (shares) | 215.3 | 254.1 |
Add effect of dilutive securities: | ||
Share-based awards (in shares) | 2.5 | 4.2 |
Diluted weighted average common shares outstanding (shares) | 217.8 | 258.3 |
Continuing operations (US$ per share) | $0.40 | $0.33 |
Diluted earnings per share amount (US$ per share) | $0.34 | $0.49 |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options excluded from computation of dilutive shares due to antidilutive nature | 2.2 | 5 |
Other_Financial_Data_Investmen
Other Financial Data (Investments) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | Dec. 31, 2014 |
Investments | |||
Cost Basis | $268 | $246 | |
Unrealized Gains | 17 | 70 | |
Investments | 285 | 316 | |
Cash proceeds of equity method investment | 47 | ||
Unrecognized gain of equity investment | 46 | 7 | |
Available-for-sale securities: | |||
Investments | |||
Cost Basis | 46 | 33 | |
Unrealized Gains | 17 | 70 | |
Investments | 63 | 103 | |
Government, agency, and government-sponsored enterprise obligations | |||
Investments | |||
Cost Basis | 37 | 14 | |
Unrealized Gains | 0 | 0 | |
Investments | 37 | 14 | |
Corporate bonds | |||
Investments | |||
Cost Basis | 9 | 16 | |
Unrealized Gains | 0 | 0 | |
Investments | 9 | 16 | |
Mutual funds | |||
Investments | |||
Cost Basis | 2 | ||
Unrealized Gains | 0 | ||
Investments | 2 | ||
Common stock | |||
Investments | |||
Cost Basis | 0 | 1 | |
Unrealized Gains | 17 | 70 | |
Investments | 17 | 71 | |
Other investments, at cost | |||
Investments | |||
Cost Basis | 200 | 191 | |
Unrealized Gains | 0 | 0 | |
Investments | 200 | 191 | |
Equity method investments | |||
Investments | |||
Cost Basis | 22 | 22 | |
Unrealized Gains | 0 | 0 | |
Investments | $22 | $22 |
Other_Financial_Data_Accounts_
Other Financial Data (Accounts Receivable, Net) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable | $1,120 | $1,444 |
Less allowance for doubtful accounts | -36 | -35 |
Accounts receivable, net | $1,084 | $1,409 |
Other_Financial_Data_Inventori
Other Financial Data (Inventories, Net) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Finished goods | $178 | $163 |
Work-in-process and production materials | 336 | 313 |
Inventories, gross | 514 | 476 |
Less inventory reserves | -133 | -131 |
Inventories, net | $381 | $345 |
Other_Financial_Data_Other_Cur
Other Financial Data (Other Current Assets) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Dec. 31, 2014 |
Other Current Assets [Abstract] | ||
Costs and earnings in excess of billings | $367 | $417 |
Tax-related refunds receivable | 90 | 103 |
Zebra receivable for cash transferred | 0 | 49 |
Other | 193 | 171 |
Other current assets | 650 | 740 |
Transferred cash balance | $49 |
Other_Financial_Data_Property_
Other Financial Data (Property, Plant And Equipment, Net) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | Dec. 31, 2014 |
Property, Plant and Equipment, Net [Abstract] | |||
Land | $17 | $18 | |
Building | 557 | 559 | |
Machinery and equipment | 1,658 | 1,672 | |
Property, plant and equipment, gross | 2,232 | 2,249 | |
Less accumulated depreciation | -1,702 | -1,700 | |
Property, plant and equipment, net | 530 | 549 | |
Depreciation expense | $39 | $39 |
Other_Financial_Data_Other_Ass
Other Financial Data (Other Assets) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other Assets [Abstract] | ||
Intangible assets, net | $38 | $23 |
Long-term receivables | 26 | 31 |
Other | 93 | 91 |
Other assets, total | $157 | $145 |
Other_Financial_Data_Accrued_L
Other Financial Data (Accrued Liabilities) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ||
Deferred revenue | $339 | $355 |
Compensation | 158 | 190 |
Billings in excess of costs and earnings | 344 | 358 |
Tax liabilities | 49 | 91 |
Dividend payable | 72 | 75 |
Other | 574 | 637 |
Accrued liabilities | $1,536 | $1,706 |
Other_Financial_Data_Other_Lia
Other Financial Data (Other Liabilities) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other Liabilities [Abstract] | ||
Defined benefit plans | $1,563 | $1,611 |
Postretirement Health Care Benefit Plan | 42 | 49 |
Deferred revenue | 141 | 139 |
Unrecognized tax benefits | 51 | 54 |
Other | 165 | 158 |
Other liabilities | $1,962 | $2,011 |
Other_Financial_Data_Changes_i
Other Financial Data (Changes in Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | $2,766 | |||
Other comprehensive income (loss), net of tax | -58 | 17 | ||
Balance at end of period | 2,094 | |||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | -1,855 | |||
Other comprehensive income (loss), net of tax | -58 | |||
Balance at end of period | -1,913 | -2,270 | ||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | -204 | -96 | ||
Other comprehensive income (loss) before reclassification adjustment | -27 | 3 | ||
Other comprehensive income (loss), tax | 1 | -1 | ||
Other comprehensive income (loss), net of tax | -26 | 2 | ||
Balance at end of period | -230 | -94 | ||
Net loss on derivative instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | 0 | -1 | ||
Balance at end of period | 0 | -1 | 0 | -1 |
Unrealized Gains and Losses on Available-for-Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | 44 | -2 | ||
Other comprehensive income (loss) before reclassification adjustment | -7 | 0 | ||
Other comprehensive income (loss) before reclassification adjustment, tax | 3 | 2 | ||
Other comprehensive income (loss) before reclassification adjustment, net of tax | -4 | 2 | ||
Reclassification adjustment | -46 | 0 | ||
Tax expense (benefit) | 17 | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | -29 | 0 | ||
Other comprehensive income (loss), net of tax | -33 | 2 | ||
Balance at end of period | 11 | 0 | ||
Defined Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | -1,695 | -2,188 | ||
Tax expense (benefit) | -1 | -6 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1 | 13 | ||
Balance at end of period | -1,694 | -2,175 | ||
Defined Benefit Plans - Actuarial net losses | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassification adjustment | 19 | 29 | ||
Defined Benefit Plans - Prior service benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Reclassification adjustment | ($17) | ($10) |
Other_Financial_Data_Narrative
Other Financial Data (Narrative) (Details) (USD $) | 3 Months Ended | ||||
Share data in Millions, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | Dec. 31, 2014 | Nov. 03, 2014 | Dec. 31, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Cash and cash equivalents | $3,353,000,000 | $3,141,000,000 | $3,954,000,000 | $3,225,000,000 | |
Restricted cash and cash equivalents | 63,000,000 | 63,000,000 | |||
Stockholders' Equity [Abstract] | |||||
Stock repurchase program, authorized amount | 12,000,000,000 | ||||
Payments for repurchased shares | 653,000,000 | 57,000,000 | |||
Number of shares repurchased | 9.9 | ||||
Repurchase of common shares, average cost (in US$ per share) | $66.12 | ||||
Share repurchase authority utilized during period | 8,400,000,000 | ||||
Share repurchase program, available for repurchases | 3,600,000,000 | ||||
Cash dividends paid | $75,000,000 | $79,000,000 |
Debt_and_Credit_Facilities_Nar
Debt and Credit Facilities (Narrative) (Details) (2014 Motorola Solutions Credit Agreement, USD $) | 3 Months Ended |
Apr. 04, 2015 | |
Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Unsecured syndicated revolving credit facility | $2,100,000,000 |
Borrowings outstanding | 0 |
Letter of Credit | |
Line of Credit Facility [Line Items] | |
Unsecured syndicated revolving credit facility | $450,000,000 |
Risk_Management_Schedule_Of_La
Risk Management (Schedule Of Largest Notional Amounts Of The Positions To Buy Or Sell Foreign Currency) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | position | position |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Number of net notional positions to buy or sell foreign currency disclosed (in number of positions) | 5 | 5 |
British Pound | ||
Foreign Currency Contracts | ||
Notional amount of foreign currency derivatives | 166 | 34 |
Euro | ||
Foreign Currency Contracts | ||
Notional amount of foreign currency derivatives | 154 | 214 |
Chinese Renminbi | ||
Foreign Currency Contracts | ||
Notional amount of foreign currency derivatives | -146 | -161 |
Norwegian Krone | ||
Foreign Currency Contracts | ||
Notional amount of foreign currency derivatives | -86 | -90 |
Brazilian Real | ||
Foreign Currency Contracts | ||
Notional amount of foreign currency derivatives | -38 | -28 |
Risk_Management_Summary_Of_Fai
Risk Management (Summary Of Fair Values And Location In Condensed Consolidated Balance Sheet) (Details) (Not Designated As Hedging Instruments, USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $2 | $1 |
Fair value of derivative liabilities | 3 | 7 |
Foreign exchange contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 2 | 1 |
Foreign exchange contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 1 | 5 |
Interest rate swap | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 0 |
Interest rate swap | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $2 | $2 |
Risk_Management_Summary_Of_Der
Risk Management (Summary Of Derivative Instruments And The Effect On The Condensed Consolidated Statements Of Operations) (Details) (Not Designated As Hedging Instruments, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Gain (Loss) on Derivative Instruments | ||
Total derivatives not designated as hedging instruments | ($17) | ($1) |
Interest rate swap | Other Income (Expense) | ||
Gain (Loss) on Derivative Instruments | ||
Total derivatives not designated as hedging instruments | -1 | 0 |
Foreign exchange derivative contracts | Other Income (Expense) | ||
Gain (Loss) on Derivative Instruments | ||
Total derivatives not designated as hedging instruments | ($16) | ($1) |
Risk_Management_Narrative_Deta
Risk Management (Narrative) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Notional amount of foreign currency derivatives | $694,000,000 | $628,000,000 |
Not Designated As Hedging Instruments | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 3,000,000 | 7,000,000 |
Not Designated As Hedging Instruments | Interest Rate Swap | Other Liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 2,000,000 | 2,000,000 |
Credit Concentration Risk | ||
Derivative [Line Items] | ||
Notional amount of foreign currency derivatives | 2,000,000 | |
Reported Value Measurement | ||
Derivative [Line Items] | ||
Long-term debt | $3,400,000,000 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Income Tax Disclosure [Abstract] | ||
Earnings before income taxes | $128 | $89 |
Income tax expense | 40 | 4 |
Effective tax rate | 31.00% | 4.00% |
Federal income tax rate | 35.00% | 35.00% |
Unrecognized tax benefits | $30 |
Retirement_and_Other_Employee_2
Retirement and Other Employee Benefits (Pension and Postretirement Health Care Benefits) (Details) (USD $) | 3 Months Ended | |
Apr. 04, 2015 | Mar. 29, 2014 | |
U.S. Pension Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $0 | $0 |
Interest cost | 49,000,000 | 93,000,000 |
Expected return on plan assets | -54,000,000 | -98,000,000 |
Amortization of unrecognized net loss | 12,000,000 | 22,000,000 |
Amortization of unrecognized prior service cost (benefit) | 0 | 0 |
Net periodic pension cost (benefit) | 7,000,000 | 17,000,000 |
Contributions | 0 | 26,000,000 |
Non U.S. Pension Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 3,000,000 | 4,000,000 |
Interest cost | 16,000,000 | 20,000,000 |
Expected return on plan assets | -26,000,000 | -23,000,000 |
Amortization of unrecognized net loss | 4,000,000 | 3,000,000 |
Amortization of unrecognized prior service cost (benefit) | -2,000,000 | 2,000,000 |
Net periodic pension cost (benefit) | -5,000,000 | 6,000,000 |
Contributions | 3,000,000 | 17,000,000 |
Postretirement Health Care Benefits Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 1,000,000 |
Interest cost | 2,000,000 | 3,000,000 |
Expected return on plan assets | -2,000,000 | -2,000,000 |
Amortization of unrecognized net loss | 3,000,000 | 3,000,000 |
Amortization of unrecognized prior service cost (benefit) | -15,000,000 | -12,000,000 |
Net periodic pension cost (benefit) | ($12,000,000) | ($7,000,000) |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans (Schedule Of Compensation Expense) (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense included in Operating earnings | $21 | $28 |
Tax benefit | 7 | 9 |
Share-based compensation expense, net of tax | 14 | 19 |
Decrease in basic earnings per share (US$ per share) | ($0.07) | ($0.07) |
Decrease in diluted earnings per share (US$ per share) | ($0.06) | ($0.07) |
Share-based compensation expense in discontinued operations | 0 | 8 |
Costs of sales | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense included in Operating earnings | 3 | 3 |
Selling, general and administrative expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense included in Operating earnings | 13 | 17 |
Research and development expenditures | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense included in Operating earnings | $5 | $8 |
ShareBased_Compensation_Plans_2
Share-Based Compensation Plans (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $21 | $28 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units granted in period (in shares) | 0.7 | |
Compensation expense | 39 | |
Compensation expense recognized during vesting period | 3 years | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted in period (in shares) | 0.8 | |
Compensation expense | $9 | |
Compensation expense recognized during vesting period | 3 years |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Of Assets And Liabilities) (Details) (Recurring basis, USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Level 1 | Government, agency, and government-sponsored enterprise obligations | ||
Assets: | ||
Available-for-sale securities: | $0 | $0 |
Level 1 | Corporate bonds | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Level 1 | Mutual funds | ||
Assets: | ||
Available-for-sale securities: | 0 | |
Level 1 | Common stock | ||
Assets: | ||
Available-for-sale securities: | 17 | 71 |
Level 2 | Government, agency, and government-sponsored enterprise obligations | ||
Assets: | ||
Available-for-sale securities: | 37 | 14 |
Level 2 | Corporate bonds | ||
Assets: | ||
Available-for-sale securities: | 9 | 16 |
Level 2 | Mutual funds | ||
Assets: | ||
Available-for-sale securities: | 2 | |
Level 2 | Common stock | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Foreign exchange derivative contracts | Level 1 | ||
Assets: | ||
Foreign exchange derivative contracts, Fair value | 0 | 0 |
Liabilities: | ||
Foreign exchange derivative contracts, Fair Value | 0 | 0 |
Foreign exchange derivative contracts | Level 2 | ||
Assets: | ||
Foreign exchange derivative contracts, Fair value | 2 | 1 |
Liabilities: | ||
Foreign exchange derivative contracts, Fair Value | 1 | 5 |
Interest rate swap | Level 1 | ||
Liabilities: | ||
Interest agreement derivative contracts, Fair Value | 0 | 0 |
Interest rate swap | Level 2 | ||
Liabilities: | ||
Interest agreement derivative contracts, Fair Value | 2 | 2 |
Estimate of Fair Value, Fair Value Disclosure | Government, agency, and government-sponsored enterprise obligations | ||
Assets: | ||
Available-for-sale securities: | 37 | 14 |
Estimate of Fair Value, Fair Value Disclosure | Corporate bonds | ||
Assets: | ||
Available-for-sale securities: | 9 | 16 |
Estimate of Fair Value, Fair Value Disclosure | Mutual funds | ||
Assets: | ||
Available-for-sale securities: | 2 | |
Estimate of Fair Value, Fair Value Disclosure | Common stock | ||
Assets: | ||
Available-for-sale securities: | 17 | 71 |
Estimate of Fair Value, Fair Value Disclosure | Foreign exchange derivative contracts | ||
Assets: | ||
Foreign exchange derivative contracts, Fair value | 2 | 1 |
Liabilities: | ||
Foreign exchange derivative contracts, Fair Value | 1 | 5 |
Estimate of Fair Value, Fair Value Disclosure | Interest rate swap | ||
Liabilities: | ||
Interest agreement derivative contracts, Fair Value | $2 | $2 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in money market mutual funds classified as cash and cash equivalents | $2,500,000,000 | $3,300,000,000 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Holding | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | $3,600,000,000 |
Longterm_Customer_Financing_an2
Long-term Customer Financing and Sales Of Receivables (Long-Term Customer Financing) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ||
Long-term receivables | $51 | $49 |
Less current portion | -25 | -18 |
Non-current long-term receivables, net | $26 | $31 |
Longterm_Customer_Financing_an3
Long-term Customer Financing and Sales Of Receivables (Proceeds Received From Non-Recourse Sales Of Accounts Receivable And Long-Term Receivables) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Receivables [Abstract] | ||
Accounts receivable sales proceeds | $6 | $7 |
Long-term receivables sales proceeds | 65 | 1 |
Total proceeds from receivable sales | $71 | $8 |
Longterm_Customer_Financing_an4
Long-term Customer Financing and Sales Of Receivables (Credit Quality Of Customer Financing Receivables And Allowance For Credit Losses) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Long-term Receivable | $51 | $49 |
Current Billed Due | 4 | 0 |
Past Due Under 90 Days | 1 | 0 |
Past Due Over 90 Days | 11 | 12 |
Municipal leases secured tax exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Long-term Receivable | 11 | 14 |
Current Billed Due | 0 | 0 |
Past Due Under 90 Days | 0 | 0 |
Past Due Over 90 Days | 0 | 0 |
Commercial loans and leases secured | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Long-term Receivable | 40 | 35 |
Current Billed Due | 4 | 0 |
Past Due Under 90 Days | 1 | 0 |
Past Due Over 90 Days | $11 | $12 |
Longterm_Customer_Financing_an5
Long-term Customer Financing and Sales Of Receivables (Narrative) (Details) (USD $) | 3 Months Ended | ||
Apr. 04, 2015 | Mar. 29, 2014 | Dec. 31, 2014 | |
Contract | |||
loan | |||
Receivables [Abstract] | |||
Commitments to provide long-term financing | $65,000,000 | $293,000,000 | |
Number of large customers contracts | 2 | ||
Servicing obligations for long-term receivables | 596,000,000 | 496,000,000 | |
Financing receivables past due over 90 days | 11,000,000 | 12,000,000 | |
Number of loans, past due over 90 days | 2 | ||
Interest accrued on loans | $0 | $0 |
Commitments_and_Contingencies_
Commitments and Contingencies (Narrative) (Details) (USD $) | Apr. 04, 2015 |
Commitments and Contingencies Disclosure [Abstract] | |
Accrual for obligations of divestitures | $0 |
Segment_Information_Operating_
Segment Information (Operating Business Segment) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
segment | ||
Number of segments | 2 | |
Net sales from products | $758 | $752 |
Net sales from services | 465 | 476 |
Net Sales | 1,223 | 1,228 |
Business Segments Information | ||
Operating earnings | 119 | 107 |
Total other income (expense) | 9 | -18 |
Earnings before income taxes | 128 | 89 |
Products | ||
Net sales from products | 758 | 752 |
Business Segments Information | ||
Operating earnings | 64 | 39 |
Services | ||
Net sales from services | 465 | 476 |
Business Segments Information | ||
Operating earnings | $55 | $68 |
Reorganization_of_Business_Net
Reorganization of Business (Net Charges Incurred By Business Segment) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Reorganization of business charges | $14 | $10 |
Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Reorganization of business charges | 10 | 6 |
Services | ||
Restructuring Cost and Reserve [Line Items] | ||
Reorganization of business charges | $4 | $4 |
Reorganization_of_Business_Reo
Reorganization of Business (Reorganization Of Businesses Accruals) (Details) (USD $) | 3 Months Ended | |
Apr. 04, 2015 | Mar. 29, 2014 | |
Restructuring Reserve [Roll Forward] | ||
1-Jan-15 | $57,000,000 | |
Additional Charges | 14,000,000 | |
Adjustments | 1,000,000 | -1,000,000 |
Amount Used | -28,000,000 | |
4-Apr-15 | 44,000,000 | |
Exit costs | ||
Restructuring Reserve [Roll Forward] | ||
1-Jan-15 | 0 | |
Additional Charges | 4,000,000 | |
Adjustments | 1,000,000 | |
Amount Used | 0 | |
4-Apr-15 | 5,000,000 | |
Employee separation costs | ||
Restructuring Reserve [Roll Forward] | ||
1-Jan-15 | 57,000,000 | |
Additional Charges | 10,000,000 | 8,000,000 |
Adjustments | 0 | |
Amount Used | -28,000,000 | |
4-Apr-15 | $39,000,000 |
Reorganization_of_Business_Nar
Reorganization of Business (Narrative) (Details) (USD $) | 3 Months Ended | ||
Apr. 04, 2015 | Mar. 29, 2014 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Reorganization of business charges | $14,000,000 | $10,000,000 | |
Restructuring reserve | 44,000,000 | 57,000,000 | |
Restructuring charges | 14,000,000 | ||
Restructuring charges settled with cash | 28,000,000 | ||
Restructuring reversals no longer needed | 1,000,000 | -1,000,000 | |
Employee separation costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Reorganization of business charges | 10,000,000 | ||
Restructuring reserve | 39,000,000 | 57,000,000 | |
Restructuring charges | 10,000,000 | 8,000,000 | |
Restructuring charges settled with cash | 28,000,000 | ||
Restructuring reversals no longer needed | 0 | ||
Number of Employees Impacted By Reorganization of Business | |||
Restructuring charges in the period for total employee severance (in number of employees) | 100 | ||
Number of employees expected to be paid (in number of employees) | 450 | ||
Exit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Reorganization of business charges | 4,000,000 | 3,000,000 | |
Restructuring reserve | 5,000,000 | 0 | |
Restructuring charges | 4,000,000 | ||
Restructuring charges settled with cash | 0 | ||
Restructuring reversals no longer needed | 1,000,000 | ||
Other charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Reorganization of business charges | 12,000,000 | 9,000,000 | |
Costs of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Reorganization of business charges | $2,000,000 | $1,000,000 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill (Intangible Assets) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $94 | $77 |
Accumulated Amortization | 56 | 54 |
Completed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 54 | 37 |
Accumulated Amortization | 29 | 27 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8 | 8 |
Accumulated Amortization | 4 | 4 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15 | 15 |
Accumulated Amortization | 8 | 8 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 17 | 17 |
Accumulated Amortization | $15 | $15 |
Recovered_Sheet1
Intangible Assets And Goodwill (Amortized Intangible Assets, Excluding Goodwill, By Business Segment) (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $94 | $77 |
Accumulated Amortization | 56 | 54 |
Products | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 89 | 77 |
Accumulated Amortization | 56 | 54 |
Services | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5 | 0 |
Accumulated Amortization | $0 | $0 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill (Goodwill) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Dec. 31, 2014 |
Goodwill Activity | ||
Aggregate goodwill | $390 | $383 |
Accumulated impairment losses | 0 | 0 |
Goodwill, net of impairment losses | 390 | 383 |
Goodwill acquired | 7 | |
Products | ||
Goodwill Activity | ||
Aggregate goodwill | 271 | 264 |
Accumulated impairment losses | 0 | 0 |
Goodwill, net of impairment losses | 271 | 264 |
Goodwill acquired | 7 | |
Services | ||
Goodwill Activity | ||
Aggregate goodwill | 119 | 119 |
Accumulated impairment losses | 0 | 0 |
Goodwill, net of impairment losses | 119 | 119 |
Goodwill acquired | $0 |
Intangible_Assets_and_Goodwill4
Intangible Assets and Goodwill (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | Nov. 18, 2014 | Dec. 31, 2014 |
Intangible Assets And Goodwill | ||||
Amortization expense on intangibles | $2 | $1 | ||
Finite-Lived Intangible Assets, Future Amortization Expense | ||||
2015 | 7 | |||
2016 | 7 | |||
2017 | 7 | |||
2018 | 6 | |||
2019 | 5 | |||
2020 | 2 | |||
Business Acquisition [Line Items] | ||||
Goodwill | 390 | 383 | ||
Acquired Communications Software Provider | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire businesses, gross | 22 | |||
Goodwill | 7 | |||
Identifiable intangible assets recognized, other than goodwill | 12 | |||
Business Acquisition of Two Public Safety Software-Based Solutions | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire businesses, gross | 50 | |||
Number of acquisitions | 2 | |||
First of Two Acquisition of Public Safety Software-Based Solutions | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets recognized | 5 | |||
Other Assets | Second of Two Acquisition of Public Safety Software-Based Solutions | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets recognized | $44 |