Motorola Solutions, Inc.

14. Reorganization of Business

2026 Charges

During the three months ended October 3, 2026, the Company recorded net reorganization of business charges of $12 million, including $10 million of charges in Other charges and $2 million of charges in Cost of sales in the Company's Condensed Consolidated Statements of Operations. Included in the $12 million were charges of $13 million related to employee separation costs, partially offset by $1 million of reversals for employee separation accruals no longer needed.

During the nine months ended October 3, 2026, the Company recorded net reorganization of business charges of $42 million, including $30 million of charges in Other charges and $12 million of charges in Cost of sales in the Company's Condensed Consolidated Statements of Operations. Included in the $42 million were charges of $46 million related to employee separation costs, partially offset by $4 million of reversals for employee separation accruals no longer needed.

Reorganization of Businesses Accruals

Employee Separation Costs

At January 1, 2026, the Company had an accrual of $24 million for employee separation costs. The 2026 additional charges of $46 million represent severance costs for approximately 725 employees. The adjustment of $4 million reflects reversals for accruals no longer needed. The $41 million used reflects cash payments to severed employees. The remaining accrual of $25 million, which is included in Accrued liabilities in the Company’s Condensed Consolidated Balance Sheets at October 3, 2026, is expected to be paid, primarily within one year, to approximately 650 employees, who have either been severed or have been notified of their severance and have begun or will begin receiving payments.

2025 Charges

During the three months ended September 27, 2025, the Company recorded net reorganization of business charges of $14 million, consisting of $12 million of charges in Other charges and $2 million of charges in Cost of sales in the Company's Condensed Consolidated Statements of Operations. Included in the $14 million were charges of $13 million related to employee separation costs and $1 million related to exit costs.

During the nine months ended September 27, 2025, the Company recorded net reorganization of business charges of $45 million, consisting of $33 million of charges in Other charges and $12 million of charges in Cost of sales in the Company's Condensed Consolidated Statements of Operations. Included in the $45 million were charges of $46 million related to employee separation costs and $2 million related to exit costs, partially offset by $3 million of reversals for employee separation accruals no longer needed.