Motorola Solutions Inc

4. Other Financial Data

Statements of Operations Information

Other charges included in Operating earnings consist of the following:

Other Income (Expense)

Interest expense, net, and Other both included in Other income (expense), consist of the following:

Earnings Per Common Share

Basic and diluted earnings per common share from net earnings attributable to Motorola Solutions, Inc. are computed as follows:

In the computation of diluted earnings per common share for the three months ended June 29, 2024, the assumed exercise of 0.3 million options, inclusive of 0.2 million options subject to market based contingent option agreements, were excluded from the computation of diluted earnings per common share because their inclusion would have been antidilutive.

In the computation of diluted earnings per common share for the six months ended June 29, 2024, a total of 0.5 million shares related to the Silver Lake Convertible Debt (as defined in Note 5, "Debt and Credit Facilities" in this "Part 1 - Financial Information" of this Form 10-Q) were excluded from the computation of diluted earnings per common share because their inclusion would have been antidilutive. In addition, the assumed exercise of 0.3 million options, inclusive of 0.2 million options subject to market based contingent option agreements were excluded from the computation of diluted earnings per common share because their inclusion would have been antidilutive.

In the computation of diluted earnings per common share for the three and six months ended July 1, 2023, the assumed exercise of 0.3 million options, inclusive of 0.2 million options subject to market based contingent option agreements, were excluded from the computation of diluted earnings per common share because their inclusion would have been antidilutive.

Balance Sheet Information

Accounts Receivable, Net

Accounts receivable, net, consists of the following:

Inventories, Net

Inventories, net, consist of the following:

Other Current Assets

Other current assets consist of the following:

Property, Plant and Equipment, Net

Property, plant and equipment, net, consist of the following:

During the year ended December 31, 2023, the Company entered into an arrangement to sell its Richmond, British Columbia and Richardson, Texas video manufacturing operations, including the machinery and equipment, inventory, transfer of employees and related facility lease to a contract manufacturer. During the year ended December 31, 2023, the Company presented the assets and liabilities as held for sale in its Consolidated Balance Sheet and recognized an impairment loss of $24 million on the exit of these video manufacturing operations within Other charges in the Consolidated Statement of Operations, as the carrying value of the asset group was below the expected selling price. The transaction closed on February 1, 2024 resulting in a gain on the sale of these video manufacturing operations, which was de minimis.

Depreciation expense for the three months ended June 29, 2024 and July 1, 2023 was $47 million and $44 million, respectively. Depreciation expense for the six months ended June 29, 2024 and July 1, 2023 was $90 million and $87 million, respectively.

Investments

Investments consist of the following:

During the six months ended June 29, 2024, the Company recognized a loss of $13 million in Other income (expense) within the Condensed Consolidated Statement of Operations related to a decrease in the fair value of its investment in Evolv Technologies, Inc. During the six months ended June 29, 2024, the Company recorded a $3 million investment impairment charge, representing an other-than-temporary decline in the value of the Company's strategic equity investment portfolio. The investment impairment charge is classified within Other income (expense) within the Condensed Consolidated Statement of Operations.

Other Assets

Other assets consist of the following:

Accounts Payable

The Company utilizes a supplier finance program which provides our suppliers the ability to accelerate payment on the Company's invoices beyond the stated payment terms. Under the terms of this program, the Company agrees to pay an intermediary the stated amount of confirmed invoices on the stated maturity dates of the invoices, and the supplier is able to negotiate earlier payment terms with the intermediary. The Company or the intermediary may terminate their agreement at any time upon 60 days' notice. The Company does not provide any forms of guarantees under this arrangement. Supplier participation in the program is solely at the supplier's discretion, and the participating suppliers negotiate their arrangements directly with the intermediary. The Company has no economic interest in a supplier's decision to participate in the program, and their participation has no bearing on our payment terms or amounts due. The stated invoice payment terms range from 75 to 120 days from the invoice date and are considered commercially reasonable.

The Company's outstanding amounts related to the suppliers participating in this program was $30 million and $35 million as of June 29, 2024 and December 31, 2023, respectively. Supplier finance program obligations are classified as Accounts payable within the Condensed Consolidated Balance Sheets.

Accrued Liabilities

Accrued liabilities consist of the following:

Other Liabilities

Other liabilities consist of the following:

Stockholders’ Equity

Share Repurchase Program: During the three and six months ended June 29, 2024, the Company repurchased approximately 0.2 million and 0.3 million shares at an average price of $348.19 and $336.57 per share for an aggregate amount of $71 million and $110 million, respectively.

Payment of Dividends: During the three months ended June 29, 2024 and July 1, 2023, the Company paid $163 million and $148 million, respectively, in cash dividends to holders of its common stock. Subsequent to the quarter, the Company paid an additional$164 million in cash dividends to holders of its common stock. During the six months ended June 29, 2024 and July 1, 2023, the Company paid $326 million and $296 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, 2024 and July 1, 2023: