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 | ) | | | | | | | | |