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 Six Months Ended June 29, June 30, June 29, June 30, Other charges: Intangibles amortization (Note 15) $ 52 $ 53 $ 102 $ 94 Reorganization of business (Note 14) 8 18 12 26 Legal settlements 1 — — 1 Acquisition-related transaction fees — — 2 17 $ 61 $ 71 $ 116 $ 138 During the six months ended June 29, 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 six months ended June 30, 2018 . Other Income (Expense) Interest expense, net, and Other, both included in Other income (expense), consist of the following: Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Interest income (expense), net: Interest expense $ (59 ) $ (63 ) $ (119 ) $ (117 ) Interest income 3 5 8 13 $ (56 ) $ (58 ) $ (111 ) $ (104 ) Other,net: Net periodic pension and postretirement benefit (Note 8) $ 17 $ 20 $ 33 $ 40 Loss from the extinguishment of long-term debt (Note 5) (43 ) — (43 ) — Investment impairments (3 ) — (11 ) — Foreign currency gain (loss) (7 ) 11 (11 ) — Loss on derivative instruments (3 ) (19 ) (7 ) (23 ) Gains on equity method investments — — 1 1 Fair value adjustments to equity investments 16 — 15 — Other 2 1 11 (2 ) $ (21 ) $ 13 $ (12 ) $ 16 During the three months ended June 29, 2019 , the Company recognized a foreign currency loss of $7 million , primarily driven by the Pakistani rupee, the Euro, and the Israeli Shekel, and a loss of $3 million on derivative instruments put in place to minimize the foreign exchange risk related to currency fluctuations. During the six months ended June 29, 2019 , the Company recognized a foreign currency loss of $11 million , primarily related to the British pound, Pakistani rupee, the Euro, and the Israeli Shekel, and a loss of $7 million on derivative instruments put in place to minimize the foreign exchange risk related to currency fluctuations. During the three months ended June 30, 2018 , the Company recognized a foreign currency gain of $11 million , primarily driven by the Euro and British pound, and a loss of $19 million on derivative instruments put in place to minimize the foreign exchange risk related to currency fluctuations. During the six months ended June 30, 2018 , the Company recognized a loss of $23 million on derivative instruments put in place to minimize the foreign exchange risk related to currency fluctuations, which included a loss of $14 million on foreign currency derivatives put in place to minimize the exposure to the Canadian dollar related to the acquisition 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 Six Months Ended June 29, June 30, June 29, June 30, Basic earnings per common share: Earnings $ 207 $ 180 $ 358 $ 297 Weighted average common shares outstanding 164.9 162.2 164.4 161.7 Per share amount $ 1.25 $ 1.11 $ 2.18 $ 1.83 Diluted earnings per common share: Earnings $ 207 $ 180 $ 358 $ 297 Weighted average common shares outstanding 164.9 162.2 164.4 161.7 Add effect of dilutive securities: Share-based awards 4.6 3.8 4.7 4.0 Senior Convertible Notes 6.6 5.7 6.2 5.4 Diluted weighted average common shares outstanding 176.1 171.7 175.3 171.1 Per share amount $ 1.18 $ 1.05 $ 2.04 $ 1.73 In the computation of diluted earnings per common share for the three and six months ended June 29, 2019 , the assumed exercise of 0.5 million options, including 0.3 million subject to market-based contingent option agreements, were excluded because their inclusion would have been antidilutive. For the three months ended June 30, 2018 , the assumed exercise of 1.4 million options, including 1.2 million subject to market-based contingent option agreements, were excluded because their inclusion would have been antidilutive. For the six months ended June 30, 2018 , the assumed exercise of 2.9 million options, including 2.4 million subject to market-based contingent stock agreements, were excluded because their inclusion would have been antidilutive. As of June 29, 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: June 29, December 31, Accounts receivable $ 1,264 $ 1,344 Less allowance for doubtful accounts (58 ) (51 ) $ 1,206 $ 1,293 Inventories, Net Inventories, net, consist of the following: June 29, December 31, Finished goods $ 233 $ 206 Work-in-process and production materials 335 293 568 499 Less inventory reserves (144 ) (143 ) $ 424 $ 356 Other Current Assets Other current assets consist of the following: June 29, December 31, Current contract cost assets (Note 2) $ 37 $ 30 Tax-related deposits 106 138 Other 181 186 $ 324 $ 354 Property, Plant and Equipment, Net Property, plant and equipment, net, consists of the following: June 29, December 31, Land $ 10 $ 10 Leasehold improvements 377 362 Machinery and equipment 1,938 1,886 2,325 2,258 Less accumulated depreciation (1,385 ) (1,363 ) $ 940 $ 895 Depreciation expense for the three months ended June 29, 2019 and June 30, 2018 was $44 million and $43 million , respectively. Depreciation expense for the six months ended June 29, 2019 and June 30, 2018 was $89 million and $84 million , respectively. Investments Investments consist of the following: June 29, December 31, 2018 Corporate bonds $ — $ 1 Common stock 42 19 Strategic investments, at cost 40 62 Company-owned life insurance policies 76 75 Equity method investments 17 12 $ 175 $ 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 six months ended June 29, 2019 , with the exception of one company becoming publicly-traded during the second quarter, which required the investment to be reclassified to common stock. The Company’s common stock portfolio reflects investments in publicly-traded companies within the communications services sector and is valued utilizing active market prices for similar instruments. During the three and six months ended June 29, 2019 , the Company recognized $15 million and $14 million , respectively, in Other income (expense) related to an increase in the fair value of the investments. During the three months ended June 29, 2019 , Gains on the sale of investments and businesses, net were $3 million , related to the sale of a business, compared to losses of $1 million , related to the sale of various strategic investments during the three months ended June 30, 2018 . During the three months ended June 29, 2019 , the Company received $6 million in cash for the sale of $3 million of net assets related to a two-way communications rental business, resulting in the gain on the sale of a business of $3 million . During the six months ended June 29, 2019 , Gains on the sale of investments and businesses, net were $4 million , related to the sale of the two-way communications rental business and various equity method investments, compared to $10 million , related to the sale of various strategic and equity method investments during the six months ended June 30, 2018 . During the three months ended and six months ended June 29, 2019 , the Company recorded investment impairment charges of $3 million and $11 million , respectively, representing other-than-temporary declines in the value of the Company’s strategic investments portfolio. There were no investment impairments recorded during the three months ended and six months ended June 30, 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: June 29, December 31, Defined benefit plan assets (Note 8) $ 163 $ 135 Tax receivable 39 39 Non-current contract cost assets (Note 2) 98 98 Other 64 72 $ 364 $ 344 Accrued Liabilities Accrued liabilities consist of the following: June 29, December 31, Compensation $ 224 $ 324 Tax liabilities 91 111 Dividend payable 94 93 Trade liabilities 146 185 Operating lease liabilities (Note 3) 118 — Other 444 497 $ 1,117 $ 1,210 Other Liabilities Other liabilities consist of the following: June 29, December 31, Defined benefit plans (Note 8) $ 1,509 $ 1,557 Non-current contract liabilities (Note 2) 263 214 Unrecognized tax benefits 52 51 Deferred income taxes 180 201 Other 229 277 $ 2,233 $ 2,300 Stockholders’ Equity Share Repurchase Program: During the three and six months ended June 29, 2019 , the Company paid an aggregate of $25 million and $170 million , including transaction costs, to repurchase approximately 0.2 million and 1.4 million shares at an average price of $146.65 and $122.31 per share, respectively. As of June 29, 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 June 29, 2019 and June 30, 2018 , the Company paid $94 million and $84 million , respectively, in cash dividends to holders of its common stock. During the six months ended June 29, 2019 and June 30, 2018 , the Company paid $187 million and $168 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 and six months ended June 29, 2019 and June 30, 2018 : Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Foreign Currency Translation Adjustments: Balance at beginning of period $ (414 ) $ (305 ) $ (444 ) $ (353 ) Other comprehensive income (loss) before reclassification adjustment (24 ) (81 ) 10 (30 ) Tax benefit (expense) 1 (5 ) (3 ) (8 ) Other comprehensive income (loss), net of tax (23 ) (86 ) 7 (38 ) Balance at end of period $ (437 ) $ (391 ) $ (437 ) $ (391 ) 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 $ (2,310 ) $ (2,203 ) $ (2,321 ) $ (2,215 ) Reclassification adjustment - Actuarial net losses into Other income (expense) 17 18 33 36 Reclassification adjustment - Prior service benefits into Other income (expense) (4 ) (4 ) (7 ) (7 ) Tax expense (3 ) — (5 ) (3 ) Other comprehensive income, net of tax 10 14 21 26 Balance at end of period $ (2,300 ) $ (2,189 ) $ (2,300 ) $ (2,189 ) Total Accumulated other comprehensive loss $ (2,737 ) $ (2,580 ) $ (2,737 ) $ (2,580 ) |