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 March 30, March 31, Other charges (income): Intangibles amortization (Note 15) $ 50 $ 41 Reorganization of business (Note 14) 4 8 Legal settlements (1 ) 1 Acquisition-related transaction fees 2 17 $ 55 $ 67 During the three months ended March 30, 2019 , the Company recognized $2 million of acquisition-related transaction fees for the VaaS and Avtec acquisitions and $17 million for the Avigilon and Plant acquisitions during the three months ended March 31, 2018 . Other Income (Expense) Interest expense, net, and Other, both included in Other income (expense), consist of the following: Three Months Ended March 30, March 31, Interest income (expense), net: Interest expense $ (60 ) $ (54 ) Interest income 5 8 $ (55 ) $ (46 ) Other: Net periodic pension and postretirement benefit (Note 8) $ 16 $ 20 Investment impairments (8 ) — Foreign currency loss (4 ) (11 ) Loss on derivative instruments (4 ) (4 ) Gains on equity method investments 1 1 Fair value adjustments to equity investments (1 ) — Other 10 (2 ) $ 10 $ 4 During the three months ended March 30, 2019 , the Company recognized a foreign currency loss of $4 million , primarily driven by the British pound, and a loss of $4 million on derivative instruments put in place to minimize the foreign exchange risk related to currency fluctuations. During the three months ended March 31, 2018 , the Company recognized a foreign currency loss of $11 million , primarily driven by the Euro and British pound, and a loss of $4 million on derivative instruments put in place to minimize the foreign exchange risk related to currency fluctuations, which includes a loss of $14 million on foreign currency derivatives put in place to minimize the exposure to the Canadian dollar related to the purchase of Avigilon. 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 Three Months Ended March 30, 2019 March 31, 2018 Basic earnings per common share: Earnings $ 151 $ 117 Weighted average common shares outstanding 164.0 161.4 Per share amount $ 0.92 $ 0.73 Diluted earnings per common share: Earnings $ 151 $ 117 Weighted average common shares outstanding 164.0 161.4 Add effect of dilutive securities: Share-based awards 4.9 4.2 Senior Convertible Notes 5.7 5.0 Diluted weighted average common shares outstanding 174.6 170.6 Per share amount $ 0.86 $ 0.69 In the computation of diluted earnings per common share for the three months ended March 30, 2019 , the assumed exercise of 0.5 million options, including 0.2 million subject to market-based contingent option agreements, were excluded because their inclusion would have been antidilutive. For the three months ended March 31, 2018 , the assumed exercise of 1.5 million options, including 1.2 million subject to market-based contingent option agreements, were excluded because their inclusion would have been antidilutive. As of March 30, 2019 , the Company had $800 million of 2.0% Senior Convertible Notes outstanding which mature in September 2020 (the "Senior Convertible Notes"), and are fully convertible. In the event of a conversion, the Company intends to settle the principal amount of the Senior Convertible Notes in cash and accordingly, only the number of shares that would be issuable (under the treasury stock method of accounting for share dilution) are included in our computation of diluted earnings per share. The conversion price is adjusted for dividends declared through the date of settlement. Diluted earnings per share has been calculated based upon the amount by which the average stock price exceeds the conversion price. Balance Sheet Information Accounts Receivable, Net Accounts receivable, net, consists of the following: March 30, December 31, Accounts receivable $ 1,208 $ 1,344 Less allowance for doubtful accounts (58 ) (51 ) $ 1,150 $ 1,293 Inventories, Net Inventories, net, consist of the following: March 30, December 31, Finished goods $ 227 $ 206 Work-in-process and production materials 340 293 567 499 Less inventory reserves (142 ) (143 ) $ 425 $ 356 Other Current Assets Other current assets consist of the following: March 30, December 31, Current contract cost assets (Note 2) $ 36 $ 30 Tax-related deposits 137 138 Other 191 186 $ 364 $ 354 Property, Plant and Equipment, Net Property, plant and equipment, net, consists of the following: March 30, December 31, Land $ 10 $ 10 Leasehold improvements 372 362 Machinery and equipment 1,903 1,886 2,285 2,258 Less accumulated depreciation (1,348 ) (1,363 ) $ 937 $ 895 Depreciation expense for the three months ended March 30, 2019 and March 31, 2018 was $45 million and $41 million , respectively. Investments Investments consist of the following: March 30, 2019 December 31, 2018 Corporate bonds $ — $ 1 Common stock 18 19 Strategic investments, at cost 50 62 Company-owned life insurance policies 78 75 Equity method investments 17 12 $ 163 $ 169 Strategic investments include investments in non-public technology-driven startup companies. Strategic investments do not have a readily determinable fair value and are recorded at cost, less any impairment, and adjusted for changes resulting from observable, orderly transactions for identical or similar securities. The Company did not recognize any significant adjustments to the recorded cost basis during the three months ended March 30, 2019 . The Company’s common stock portfolio reflects an investment in a publicly-traded company within the communications services sector and is valued utilizing active market prices for similar instruments. During the three months ended March 30, 2019 , the Company recognized $1 million in Other income (expense) related to a decrease in the fair value of the investment. During the three months ended March 30, 2019 , Gains on the sale of investments and businesses were $1 million , compared to $11 million during the three months ended March 31, 2018 . During the three months ended March 30, 2019 , the Company recorded investment impairment charges of $8 million , representing other-than-temporary declines in the value of the Company’s equity investment portfolio. There were no investment impairments recorded during the three months ended March 31, 2018 . Investment impairment charges are included in Other within Other income (expense) in the Company’s Condensed Consolidated Statements of Operations. Other Assets Other assets consist of the following: March 30, December 31, Defined benefit plan assets (Note 8) $ 152 $ 135 Tax receivable 39 39 Non-current contract cost assets (Note 2) 99 98 Other 67 72 $ 357 $ 344 Accrued Liabilities Accrued liabilities consist of the following: March 30, December 31, Compensation $ 336 $ 324 Tax liabilities 94 111 Dividend payable 94 93 Trade liabilities 161 185 Operating lease liabilities (Note 3) 116 — Other 434 497 $ 1,235 $ 1,210 Other Liabilities Other liabilities consist of the following: March 30, December 31, Defined benefit plans (Note 8) $ 1,527 $ 1,557 Non-current contract liabilities (Note 2) 239 214 Unrecognized tax benefits 54 51 Deferred income taxes 222 201 Other 222 277 $ 2,264 $ 2,300 Stockholders’ Equity Share Repurchase Program: During the three months ended March 30, 2019 , the Company paid an aggregate of $145 million , including transaction costs, to repurchase approximately 1.2 million shares at an average price of $118.98 per share. As of March 30, 2019 , the Company had used approximately $12.6 billion of the share repurchase authority, including transaction costs, to repurchase shares, leaving $1.4 billion of authority available for future repurchases. Payment of Dividends: During the three months ended March 30, 2019 and March 31, 2018 , the Company paid $93 million and $84 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 March 30, 2019 and March 31, 2018 : Three Months Ended March 30, March 31, Foreign Currency Translation Adjustments: Balance at beginning of period $ (444 ) $ (353 ) Other comprehensive income before reclassification adjustment 34 51 Tax expense (4 ) (3 ) Other comprehensive income, net of tax 30 48 Balance at end of period $ (414 ) $ (305 ) Available-for-Sale Securities: Balance at beginning of period $ — $ 6 Reclassification adjustment into Gains on sales of investments and businesses, net — (8 ) Tax benefit — 2 Other comprehensive loss, net of tax — (6 ) Balance at end of period $ — $ — Defined Benefit Plans: Balance at beginning of period $ (2,321 ) $ (2,215 ) Reclassification adjustment - Actuarial net losses into Other income (expense) 17 18 Reclassification adjustment - Prior service benefits into Other income (expense) (4 ) (4 ) Tax expense (2 ) (2 ) Other comprehensive income, net of tax 11 12 Balance at end of period $ (2,310 ) $ (2,203 ) Total Accumulated other comprehensive loss $ (2,724 ) $ (2,508 ) |