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Other Financial Data
 12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Other Financial Data Other Financial Data
Statement of Operations Information
Other Charges (Income)
Other charges (income) included in Operating earnings consist of the following:
Years ended December 31 (in millions)
2019

2018
 
2017
Other charges (income):
 
 
 
 
 
Intangibles amortization (Note 15)
$
208

 
$
188

 
$
151

Reorganization of businesses (Note 14)
40

 
61

 
33

Loss (gain) on legal settlements
3

 
3

 
(1
)
Asset impairments
—

 
1

 
10

Environmental reserve expense
—

 
57

 
—

Gain on the recovery of long-term receivables
—

 
—

 
(47
)
Operating lease ROU asset impairment
5

 
—

 
—

Acquisition-related transaction fees
3

 
24

 
1

Other
1

 
—

 
—

 
$
260

 
$
334

 
$
147


During 2018, the Company recorded an environmental reserve charge of $57 million due to: (i) changing the expected timeline of the remediation activities to 30 years and (ii) additional costs for further remediation efforts, increasing the reserve to $107 million.
During the year ended December 31, 2017, the Company recognized a net gain of $47 million related to the recovery, through legal procedures to seize and liquidate assets, of long-term receivables owed to the Company by a former customer of its legacy Networks business. The net gain of $47 million was based on $57 million of proceeds received, net of $10 million of fees owed to third parties for their involvement in the recovery.
Other Income (Expense)
Interest expense, net, and Other both included in Other income (expense) consist of the following: 
Years ended December 31 (in millions)
2019
 
2018
 
2017
Interest expense, net:
 
 
 
 
 
Interest expense
$
(237
)
 
$
(240
)
 
$
(215
)
Interest income
17

 
18

 
14

 
$
(220
)
 
$
(222
)
 
$
(201
)
Other:
 
 
 
 
 
Net periodic pension and postretirement benefit (Note 8)
$
78

 
$
75

 
$
46

Non-U.S. pension settlement loss (Note 8)
—

 
—

 
(48
)
Losses from the extinguishment of long-term debt (Note 5)
(50
)
 
—

 
—

Gain from the extinguishment of 2.00% senior convertible notes (Note 5)
4

 
6

 
—

Investment impairments
(18
)
 
(5
)
 
—

Foreign currency loss
(22
)
 
(24
)
 
(31
)
Gain (loss) on derivative instruments
(8
)
 
(14
)
 
15

Gains on equity method investments
3

 
1

 
1

Fair value adjustments to equity investments
(3
)
 
11

 
—

U.S. pension settlement (Note 8)
(359
)
 
—

 
—

Other
10

 
3

 
7

 
$
(365
)
 
$
53

 
$
(10
)

Earnings Per Common Share
Basic and diluted earnings per common share from net earnings attributable to Motorola Solutions, Inc. are computed as follows: 
 
Amounts attributable to Motorola Solutions, Inc. common stockholders
 
Net Earnings (loss)
Years ended December 31
2019
 
2018
 
2017
Basic earnings per common share:
 
 
 
 
 
Earnings (loss)
$
868

 
$
966

 
$
(155
)
Weighted average common shares outstanding
166.6

 
162.4

 
162.9

Per share amount
$
5.21

 
$
5.95

 
$
(0.95
)
Diluted earnings per common share:
 
 
 
 
 
Earnings (loss)
$
868

 
$
966

 
$
(155
)
Weighted average common shares outstanding
166.6

 
162.4

 
162.9

Add effect of dilutive securities:
 
 
 
 
 
Share-based awards
4.7

 
4.2

 
—

2.00% senior convertible notes
4.3

 
5.4

 
—

1.75% senior convertible notes
—

 
—

 
—

Diluted weighted average common shares outstanding
175.6

 
172.0

 
162.9

Per share amount
$
4.95

 
$
5.62

 
$
(0.95
)
In the computation of diluted earnings per common share for the year ended December 31, 2019, the assumed exercise of 0.3 million options, including 0.1 million subject to market-based contingent option agreements, were excluded because their inclusion would have been antidilutive. In the computation of diluted earnings per common share for the year ended December 31, 2018, the assumed exercise of 0.8 million options, including 0.6 million subject to market-based contingent option agreements, were excluded because their inclusion would have been antidilutive. In the computation of diluted earnings per common share for the year ended December 31, 2017, the Company recorded a net loss and, accordingly, the basic and diluted weighted average shares outstanding are equal because any increase to the basic shares would be antidilutive, including the assumed exercise 8.7 million stock options and the assumed vesting of 1.4 million RSUs, and 3.1 million shares related to the 2.00% senior convertible notes.
On September 5, 2019, the Company issued $1.0 billion of 1.75% senior convertible notes which mature on September 15, 2024 ("New Senior Convertible Notes"). The notes are convertible based on a conversion rate of 4.9140 per $1,000 principal amount (which is equal to an initial conversion price of $203.50 per share). In the event of conversion, the Company intends to settle the principal amount of the New Senior Convertible Notes in cash. Because of the Company’s intention to settle the par value of the New Senior Convertible Notes in cash, Motorola Solutions does not reflect any shares underlying the New Senior Convertible Notes in its diluted weighted average shares outstanding until the average stock price per share for the period exceeds the conversion price. Only the number of shares that would be issuable (under the treasury stock method of accounting for share dilution) will be included, which is based upon the amount by which the average stock price exceeds the conversion price of $203.50. For the period ended December 31, 2019, there was no dilutive effect of the New Senior Convertible Notes on diluted earnings per share attributable to Motorola Solutions, Inc. as the average stock price for the period outstanding was below the conversion price. See further discussion in Note 5.

Balance Sheet Information
Accounts Receivable, Net
Accounts receivable, net, consists of the following: 
December 31
2019
 
2018
Accounts receivable
$
1,475

 
$
1,344

Less allowance for doubtful accounts
(63
)
 
(51
)
 
$
1,412

 
$
1,293


Inventories, Net
Inventories, net, consist of the following: 
December 31
2019
 
2018
Finished goods
$
209

 
$
206

Work-in-process and production materials
374

 
293

 
583

 
499

Less inventory reserves
(136
)
 
(143
)
 
$
447

 
$
356


Other Current Assets
Other current assets consist of the following:
December 31
2019
 
2018
Current contract cost assets (Note 2)
$
24

 
$
30

Tax-related deposits
77

 
138

Other
171

 
186

 
$
272

 
$
354


Property, Plant and Equipment, Net
Property, plant and equipment, net, consist of the following: 
December 31
2019
 
2018
Land
$
15

 
$
10

Leasehold improvements
410

 
362

Machinery and equipment
2,051

 
1,886

 
2,476

 
2,258

Less accumulated depreciation
(1,484
)
 
(1,363
)
 
$
992

 
$
895


Depreciation expense for the years ended December 31, 2019, 2018, and 2017 was $186 million, $172 million and $192 million, respectively.

Investments
Investments consist of the following:
December 31
2019
 
2018
Corporate bonds
$
—

 
$
1

Common stock
25

 
19

Strategic investments, at cost
40

 
62

Company-owned life insurance policies
74

 
75

Equity method investments
20

 
12

 
$
159

 
$
169

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 year ended December 31, 2019, the Company recognized $3 million in Other income (expense) related to a decrease in the fair value of the investments.
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 year ended December 31, 2019.
Gains on the sale of investments and businesses were $5 million, $16 million and $3 million for the years ended 2019, 2018, 2017, respectively. During the year ended December 31, 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 sale of a business of $3 million. During the year ended December 31, 2019, the Company recorded investment impairment charges of $18 million, compared to $5 million during the year ended December 31, 2018, representing other-than-temporary declines in the value of the Company’s strategic equity investment portfolio. There were no investment impairments recorded during the year ended December 31, 2017. Investment impairment charges are included in Other within Other income (expense) in the Company’s Consolidated Statements of Operations.
Other Assets
Other assets consist of the following: 
December 31
2019
 
2018
Defined benefit plan assets (Note 8)
$
223

 
$
135

Tax receivable
—

 
39

Non-current contract cost assets (Note 2)
107

 
98

Other
92

 
72

 
$
422

 
$
344


Accrued Liabilities
Accrued liabilities consist of the following: 
December 31
2019
 
2018
Compensation
347

 
324

Tax liabilities (Note 7)
95

 
111

Dividend payable
110

 
93

Trade liabilities
161

 
185

Operating lease liabilities (Note 3)
122

 
—

Other
521

 
497

 
$
1,356

 
$
1,210







Other Liabilities
Other liabilities consist of the following: 
December 31
2019
 
2018
Defined benefit plans (Note 8)
$
1,524

 
$
1,557

Non-current contract liabilities (Note 2)
274

 
214

Unrecognized tax benefits (Note 7)
53

 
51

Deferred income taxes (Note 7)
184

 
201

Other
241

 
277

 
$
2,276

 
$
2,300


Stockholders’ Equity Information
Share Repurchase Program: Through a series of actions, the board of directors has authorized the Company to repurchase in the aggregate up to $14.0 billion of its outstanding shares of common stock (the “share repurchase program”). The share repurchase program does not have an expiration date. As of December 31, 2019, the Company had used approximately $12.7 billion of the share repurchase authority, including transaction costs, to repurchase shares, leaving $1.3 billion of authority available for future repurchases.
The Company's share repurchases, including transaction costs, for 2019, 2018, and 2017 can be summarized as follows:
Year
Shares Repurchased (in millions)
 
Average Price
 
Aggregate Amount (in millions)
2019
2.3

 
$
137.35

 
$
315

2018
1.2

 
112.42

 
132

2017
5.7

 
85.32

 
483


Payment of Dividends:  On November 14, 2019, the Company announced that its board of directors approved an increase in the quarterly cash dividend from $0.57 per share to $0.64 per share of common stock. During the years ended December 31, 2019, 2018, and 2017 the Company paid $379 million, $337 million, and $307 million, respectively, in cash dividends to holders of its common stock. On January 15, 2020, we paid an additional $109 million in cash dividends to holders of our 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 Consolidated Statements of Operations during the years ended December 31, 2019, 2018, and 2017:
 
Years ended December 31
 
2019
 
2018
 
2017
Foreign Currency Translation Adjustments:
 
 
 
 
 
Balance at beginning of period
$
(444
)
 
$
(353
)
 
$
(494
)
Other comprehensive income (loss) before reclassification adjustment
35

 
(94
)
 
133

Tax benefit (expense)
(1
)
 
3

 
8

Other comprehensive income (loss), net of tax
34

 
(91
)
 
141

Balance at end of period
$
(410
)
 
$
(444
)
 
$
(353
)
Available-for-Sale Securities:
 
 
 
 
 
Balance at beginning of period
$
—

 
$
6

 
$
—

Other comprehensive income (loss) before reclassification adjustment
—

 
(8
)
 
8

Tax benefit (expense)
—

 
2

 
(2
)
Other comprehensive income (loss), net of tax
—

 
(6
)
 
6

Balance at end of period
$
—

 
$
—

 
$
6

Defined Benefit Plans:
 
 
 
 
 
Balance at beginning of period
$
(2,321
)
 
$
(2,215
)
 
$
(1,823
)
Other comprehensive income (loss) before reclassification adjustment
337

 
(200
)
 
(260
)
Tax benefit (expense)
(85
)
 
46

 
(213
)
Other comprehensive income (loss) before reclassification adjustment, net of tax
252

 
(154
)
 
(473
)
Reclassification adjustment - Actuarial net losses into Other income (expense)
65

 
76

 
65

Reclassification adjustment - Prior service benefits into Other income (expense)
(15
)
 
(15
)
 
(18
)
Reclassification adjustment - Non-U.S. pension settlement loss into Other income (expense)
—

 
—

 
48

Tax benefit
(11
)
 
(13
)
 
(14
)
Reclassification adjustments into Net earnings, net of tax
39

 
48

 
81

Other comprehensive income (loss), net of tax
291

 
(106
)
 
(392
)
Balance at end of period
$
(2,030
)
 
$
(2,321
)
 
$
(2,215
)
Total Accumulated other comprehensive loss
$
(2,440
)
 
$
(2,765
)
 
$
(2,562
)

During the year ended December 31, 2017, the Company reclassified $270 million of stranded tax effects out of Accumulated other comprehensive loss and into Retained earnings. The stranded tax effects remained a component of Accumulated other comprehensive loss as a result of the remeasurement of our deferred tax assets related to our U.S. Pension Plans through the statement of operations, to the U.S. federal tax rate of 21%. As a result, stranded tax effects within Accumulated other comprehensive loss which would not be realized at the established historical tax rates have been adjusted through equity.