Motorola Solutions, Inc.

4. Other Financial Data

Statements of Operations Information

Other charges included in Operating earnings consist of the following:

During the six months ended July 4, 2026, the Company recorded a charge of $91 million to increase the fair value of the contingent earnout consideration related to the Silvus acquisition. Refer to "Note 10: Fair Value Measurements," in this "Part I — Financial Information" of this Form 10-Q for more information.

During the six months ended July 4, 2026 and June 28, 2025, the Company recognized gains on the Hytera litigation of $60 million and $20 million, respectively, for amounts recovered through legal proceedings due to theft of the Company's trade secrets. Refer to "Hytera Civil Litigation" within "Note 12: Commitments and Contingencies" in this "Part I — Financial Information" of this Form 10-Q for more information.

Other Income (Expense)

Interest expense, net, and Other, net, 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, share-based awards with an antidilutive impact were excluded.

The antidilutive impact of 0.8 million and 0.6 million share-based awards for thethree and six months ended July 4, 2026, respectively, and 0.2 million share-based awards for thethree and six months ended June 28, 2025, were excluded because their inclusion would have been antidilutive.

In connection with the acquisition of Silvus, the Seller will have the potential to earn contingent earnout consideration upon the achievement of certain financial targets payable in shares of common stock of up to $600 million in total, comprised of up to $150 million for the annual period from July 5, 2026 through July 3, 2027 and up to $450 million for the annual period from July 4, 2027 through July 1, 2028 (with the potential to earn catch-up earnout consideration based on performance in the annual period from July 4, 2027 through July 1, 2028 if the maximum earnout for the annual period from July 5, 2026 through July 3, 2027 is not earned). The estimated fair value of the total contingent earnout consideration was $127 million as of July 4, 2026. The shares required to settle the contingent earnout consideration will only be reflected within diluted earnings per share when and if the earnout financial targets have been achieved, in each of the two respective periods.

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:

Depreciation expense was $53 million and $47 million for the three months ended July 4, 2026 and June 28, 2025, respectively. Depreciation expense for the six months ended July 4, 2026 and June 28, 2025 was $106 million and $91 million, respectively.

Investments

Investments consist of the following:

On July 1, 2026, the Company paid $100 million for a strategic investment in equity securities of BRINC Drones, Inc. (“BRINC”). BRINC is a leader in public safety drone technology. Strategic investments do not have readily determinable fair values and are carried at cost; adjustments resulting from observable price changes in orderly transactions for similar securities of the same issuer are recorded in Other, net within Other income (expense).

Other Assets

Other assets consist of the following:

Accounts Payable

The Company utilizes a supplier finance program which provides its 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 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 $27 million and $34 million as of July 4, 2026 and December 31, 2025, 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 July 4, 2026, the Company repurchased approximately 0.8 million and 1.1 million shares at an average price of $413.53 and $420.50 per share for an aggregate amount of $326 million and $444 million, respectively.

Payment of Dividends: During the three months ended July 4, 2026 and June 28, 2025, the Company paid $201 million and $182 million, respectively, in cash dividends to holders of its common stock. Subsequent to the quarter, the Company paid an additional$200 million in cash dividends to holders of its common stock. During the six months ended July 4, 2026 and June 28, 2025, the Company paid $402 million and $364 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 July 4, 2026 and June 28, 2025: