Motorola Solutions, Inc.
For the period ended Oct 3, 2026. Filed Nov 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Oct 3, 2026 · Filed Nov 4, 2026
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Fair Value Measurements
- Fair Value Measurements
The fair values of the Company’s financial assets and liabilities by level in the fair value hierarchy as of October 3, 2026 and December 31, 2025 were as follows:
| October 3, 2026 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Assets: | ||||
| Foreign exchange derivative contracts | $— | $8 | $— | $8 |
| Common stock and equivalents | 28 | — | — | 28 |
| Liabilities: | ||||
| Contingent earnout consideration (Note 15) | $— | $— | $214 | $214 |
| Foreign exchange derivative contracts | — | 11 | — | 11 |
| December 31, 2025 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Assets: | ||||
| Foreign exchange derivative contracts | $— | $10 | $— | $10 |
| Common stock and equivalents | 42 | — | — | 42 |
| Liabilities: | ||||
| Contingent earnout consideration (Note 15) | $— | $— | $37 | $37 |
| Foreign exchange derivative contracts | — | 19 | — | 19 |
At October 3, 2026 and December 31, 2025, the Company had $412 million and $735 million, respectively, of investments in money market government and U.S. treasury funds classified (Level 1) as Cash and cash equivalents in its Condensed Consolidated Balance Sheets. The money market funds had quoted market prices that are equivalent to par.
Using quoted market prices and market interest rates, the fair value of the Company's debt as of October 3, 2026 was $9.7 billion. The fair value of debt as of December 31, 2025 was $9.2 billion.
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. Refer to Note 15, “Intangible Assets and Goodwill” in this “Part 1 – Financial Information” of this Form 10-Q for more information regarding the details of the contingent earnout consideration. The Company determines the fair value of the contingent earnout consideration liability using a Monte Carlo simulation model, which requires the use of Level 3 inputs, such as projected future net sales, gross margin and cash flows. At the acquisition date, the Company recorded a contingent liability of approximately $38 million, related to the estimated fair value of the contingent earnout consideration, which was included in the purchase price. As of October 3, 2026, the fair value of the contingent earnout consideration was estimated to be $214 million, resulting in charges of $87 million and $178 million recorded within Other Charges in the Company's Consolidated Statement of Operations during the three and nine months ended October 3, 2026, respectively. These non-cash charges are attributable to the Company's updated expectations regarding the achievement of the previously noted financial targets.
All other financial instruments are carried at cost, which is not materially different from the instruments’ fair values.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.