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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________ 
Form 10-Q
 ____________________________________________
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 1, 2023
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to            
Commission file number: 1-7221
___________________________________________ 
MOTOROLA SOLUTIONS, INC.
(Exact Name of Registrant as Specified in Its Charter)
____________________________________________ 
Delaware 36-1115800
(State of Incorporation)(I.R.S. Employer Identification No.)
500 W. Monroe Street, Chicago, Illinois 60661
(Address of Principal Executive Offices, Zip Code)
(847) 576-5000
(Registrant’s Telephone Number, Including Area Code)
Not applicable
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
____________________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock$0.01Par ValueMSINew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒  No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒  No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer” “accelerated filer” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer☒Accelerated filer 
☐
Non-accelerated filer 
☐
Smaller reporting company 
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐  No ☒
The number of shares of the registrant's Common Stock, $0.01 par value per share, outstanding as of April 28, 2023 was 167,717,082.


TABLE OF CONTENTS
For the Quarter Ended April 1, 2023
 
PART I. FINANCIAL INFORMATION
Page No.
Item 1.
Item 2.
Item 3.
Item 4.
PART II. OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.



PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except per share amounts)Three Months Ended
April 1, 2023April 2, 2022
Net sales from products$1,224 $1,046 
Net sales from services947 846 
Net sales2,171 1,892 
Costs of products sales576 548 
Costs of services sales549 487 
Costs of sales1,125 1,035 
Gross margin1,046 857 
Selling, general and administrative expenses368 338 
Research and development expenditures210 188 
Other charges69 92 
Operating earnings399 239 
Other income (expense):
Interest expense, net(54)(56)
Gain on sales of investments and businesses, net1 2 
Other, net12 34 
Total other expense(41)(20)
Net earnings before income taxes358 219 
Income tax expense (benefit)79 (49)
Net earnings279 268 
Less: Earnings attributable to non-controlling interests1 1 
Net earnings attributable to Motorola Solutions, Inc.$278 $267 
Earnings per common share:
Basic$1.66 $1.59 
Diluted$1.61 $1.54 
Weighted average common shares outstanding:
Basic167.4 168.0 
Diluted172.6 173.1 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
1

Condensed Consolidated Statements of Comprehensive Income (Unaudited)
 Three Months Ended
(In millions)April 1, 2023April 2, 2022
Net earnings$279 $268 
Foreign currency translation adjustments36 (20)
Defined benefit plans12 15 
Total other comprehensive income (loss), net of tax48 (5)
Comprehensive income327 263 
Less: Earnings attributable to non-controlling interests1 1 
Comprehensive income attributable to Motorola Solutions, Inc. common shareholders$326 $262 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

2

Condensed Consolidated Balance Sheets (Unaudited)
(In millions, except par value)April 1, 2023December 31, 2022
ASSETS
Cash and cash equivalents$1,022 $1,325 
Accounts receivable, net1,340 1,518 
Contract assets1,024 974 
Inventories, net1,082 1,055 
Other current assets358 383 
Total current assets4,826 5,255 
Property, plant and equipment, net927 927 
Operating lease assets472 485 
Investments144 147 
Deferred income taxes1,073 1,036 
Goodwill3,287 3,312 
Intangible assets, net1,302 1,342 
Other assets322 310 
Total assets$12,353 $12,814 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt$1 $1 
Accounts payable719 1,062 
Contract liabilities1,793 1,859 
Accrued liabilities1,453 1,638 
Total current liabilities3,966 4,560 
Long-term debt6,014 6,013 
Operating lease liabilities398 419 
Other liabilities1,726 1,691 
Preferred stock, $100 par value: 0.5 shares authorized; none issued and outstanding
— — 
Common stock, $0.01 par value:
2 2 
Authorized shares: 600.0
Issued shares: 4/1/23—168.9; 12/31/22—168.5
Outstanding shares: 4/1/23—167.7; 12/31/22—167.5
Additional paid-in capital1,386 1,306 
Retained earnings1,333 1,343 
Accumulated other comprehensive loss(2,487)(2,535)
Total Motorola Solutions, Inc. stockholders’ equity234 116 
Non-controlling interests15 15 
Total stockholders’ equity249 131 
Total liabilities and stockholders’ equity$12,353 $12,814 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

3

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)
(In millions)SharesCommon Stock and Additional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained
Earnings		Noncontrolling
Interests
Balance as of December 31, 2022168.5 $1,308 $(2,535)$1,343 $15 
Net earnings278 1 
Other comprehensive income48 
Issuance of common stock and stock options exercised0.9 25 
Share repurchase program(0.5)(140)
Share-based compensation expenses55 
Dividends declared $0.88 per share
(148)
Dividends paid to non-controlling interest on subsidiary common stock(1)
Balance as of April 1, 2023168.9 $1,388 $(2,487)$1,333 $15 

(In millions)SharesCommon Stock and Additional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained
Earnings		Noncontrolling
Interests
Balance as of December 31, 2021169.6 $989 $(2,379)$1,350 $17 
Net earnings267 1 
Other comprehensive loss(5)
Issuance of common stock and stock options exercised1.2 50 
Share repurchase program(2.2)(493)
Share-based compensation expenses37 
Dividends declared $0.79 per share
(132)
ASU 2020-06 modified retrospective adoption(10)10 
Balance as of April 2, 2022168.6 $1,066 $(2,384)$1,002 $18 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
4

Condensed Consolidated Statements of Cash Flows (Unaudited)
 Three Months Ended
(In millions)April 1, 2023April 2, 2022
Operating
Net earnings$279 $268 
Adjustments to reconcile Net earnings to Net cash provided by (used for) operating activities:
Depreciation and amortization98 111 
Non-cash other charges7 2 
Share-based compensation expenses55 37 
Gain on sales of investments and businesses, net(1)(2)
Changes in assets and liabilities, net of effects of acquisitions, dispositions, and foreign currency translation adjustments:
Accounts receivable179 248 
Inventories(26)(162)
Other current assets and contract assets(40)47 
Accounts payable, accrued liabilities and contract liabilities(536)(188)
Other assets and liabilities(5)(30)
Deferred income taxes(18)(179)
Net cash provided by (used for) operating activities(8)152 
Investing
Acquisitions and investments, net(4)(512)
Proceeds from sales of investments and businesses, net5 9 
Capital expenditures(54)(54)
Net cash used for investing activities(53)(557)
Financing
Repayments of debt— (2)
Issuances of common stock26 52 
Purchases of common stock(140)(493)
Payments of dividends(148)(134)
Payments of dividends to non-controlling interests(1)— 
Net cash used for financing activities(263)(577)
Effect of exchange rate changes on total cash and cash equivalents21 (14)
Net decrease in total cash and cash equivalents(303)(996)
Cash and cash equivalents, beginning of period1,325 1,874 
Cash and cash equivalents, end of period$1,022 $878 
Supplemental Cash Flow Information  
Cash paid during the period for:
Interest paid$47 $53 
Income and withholding taxes, net of refunds$100 $33 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
5

INDEX FOR NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Page No.
Note 1
Note 2
Note 3
Note 4
Note 5
Note 6
Note 7
Note 8
Note 9
Note 10
Note 11
Note 12
Note 13
Note 14
Note 15
Note 16

6

Notes to Condensed Consolidated Financial Statements (Unaudited)
(Dollars in millions, except as noted)
1.Basis of Presentation
The condensed consolidated financial statements as of April 1, 2023 and for the three months ended April 1, 2023 and April 2, 2022 include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to state fairly the Condensed Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income, Statements of Stockholders' Equity, and Statements of Cash Flows of Motorola Solutions, Inc. (“Motorola Solutions” or the “Company”) for all periods presented.
The Company operates on a 52-week fiscal year, with each fiscal year ending on December 31. With respect to each fiscal quarter, the Company operates on a 13-week fiscal quarter, with all fiscal quarters ending on a Saturday.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2022 (the "Form 10-K"). The results of operations for the three months ended April 1, 2023 are not necessarily indicative of the operating results to be expected for the full year.
The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Business Overview
The Company reports net sales in the following three major products and services (which the Company refers to as “technologies” in this Quarterly Report on Form 10-Q (this “Form 10-Q”)): Land Mobile Radio Communications (“LMR” or “LMR Communications”), Video Security and Access Control ("Video"), and Command Center. In January 2023, we began using Command Center as a naming convention, eliminating the "Software" descriptor from Command Center Software in order to inform investors that the Company has software components more broadly across all technologies; this name change does not require any financial information to be reclassified from previous periods.
•LMR Communications: Infrastructure, devices (two-way radio and broadband, including both for public safety and Professional Commercial Radio ("PCR")) and software that enable communications, inclusive of installation and integration, backed by services, to assure availability, security and resiliency.
•Video: Cameras (fixed, body-worn, in-vehicle), access control, infrastructure, video management, software and artificial intelligence ("AI")-enabled analytics that enable visibility “on scene” and bring attention to what’s important.
•Command Center: Software suite that enables collaboration and shares information throughout the public safety workflow from "911 call to case closure."
Recent Acquisitions
On December 14, 2022, the Company acquired Rave Mobile Safety, Inc. ("Rave Mobile"), a leader in mass notification and incident management, for $553 million, net of cash acquired. In addition, the Company issued restricted stock at a fair value of $2 million to certain key employees that will be expensed over a service period of two years. This acquisition complements the Company's portfolio with a platform specifically designed to help organizations and public safety agencies communicate and collaborate during emergencies. The business is a part of the Software and Services segment.
On October 25, 2022, the Company acquired Futurecom Systems Group, ULC ("Futurecom"), a leading provider of radio coverage extension solutions for public safety agencies, for $30 million, net of cash acquired. Futurecom designs and manufactures radio frequency repeaters. This acquisition further expands the Company's radio network and device portfolios. The business is a part the Products and Systems Integration segment.
On August 8, 2022, the Company acquired Barrett Communications Pty Ltd ("Barrett Communications"), a global provider of specialized radio communications, for $18 million, net of cash acquired. This acquisition complements the Company's existing radio portfolio, allowing the Company to use high frequency and very high frequency radio communications to support mission-critical operations. The business is a part of the Products and Systems Integration segment.
On May 12, 2022, the Company acquired Videotec S.p.A. ("Videotec"), a global provider of ruggedized video security solutions, for $23 million, net of cash acquired. In addition, the Company issued restricted stock at a fair value of $4 million to certain key employees that will be expensed over a service period of one year. This acquisition extends the Company's breadth of high-performance video products, reinforcing the Company's strategy to be a global leader in video security solutions. The business is a part of the Products and Systems Integration segment.
On April 19, 2022, the Company acquired Calipsa, Inc. ("Calipsa"), a technology leader in cloud-native advanced video analytics, for $39 million, net of cash acquired. In addition, the Company issued restricted stock at a fair value of $4 million to certain key employees that will be expensed over a service period of two years. This acquisition extends the Company's intelligent analytics across video security solutions and supports the accelerating trend of enterprises using cloud technologies to enhance safety and security. The business is a part of the Software and Services segment.
7

On March 23, 2022, the Company acquired TETRA Ireland Communications Limited ("TETRA Ireland"), the provider of Ireland's National Digital Radio Service, for $120 million, net of cash acquired. The Company was an initial shareholder of TETRA Ireland and acquired the remaining interest in the entity from the other shareholders. This acquisition expands the Company's portfolio of delivering mission-critical voice and data communications solutions to first responders and frontline workers. The business is part of the Software and Services segment.
On March 3, 2022, the Company acquired Ava Security Limited ("Ava"), a global provider of cloud-native video security and analytics, for $388 million, net of cash acquired. In addition, the Company issued restricted stock and restricted stock units at a fair value of $7 million to certain key employees that will be expensed over an average service period of two years. This acquisition expands the Company's portfolio of intelligent video solutions that help to enhance safety and streamline operations. The business is a part of both the Products and Systems Integration segment and the Software and Services segment.
Recently Adopted Accounting Pronouncements
In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2022-04, “Liabilities—Supplier Finance Programs" (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which requires disclosures to enhance transparency about an entity’s use of supplier finance programs. The amendments require a buyer that uses supplier finance programs to disclose the program’s key terms, outstanding confirmed amounts as of the end of the period, a rollforward of such amounts during each annual period and a description of where in the financial statements outstanding amounts are presented. Only the amount outstanding at the end of the period must be disclosed in interim periods. The Company adopted ASU 2022-04 on January 1, 2023. Refer to Note 4, "Other Financial Data" to our condensed consolidated financial statements included in this Part I, Item 1 of this Form 10-Q for the related disclosures.

2.    Revenue from Contracts with Customers
Disaggregation of Revenue
The following table summarizes the disaggregation of the Company's revenue by segment, region, major products and services and customer type for the three months ended April 1, 2023 and April 2, 2022, consistent with the information reviewed by the Company's chief operating decision maker for evaluating the financial performance of the Company's reportable segments:
Three Months Ended
April 1, 2023April 2, 2022
(In millions)Products and Systems IntegrationSoftware and ServicesTotalProducts and Systems IntegrationSoftware and ServicesTotal
Regions:
North America$950 $542 $1,492 $831 $474 $1,305 
International353 326 679 272 315 587 
$1,303 $868 $2,171 $1,103 $789 $1,892 
Major Products and Services:
LMR Communications$1,080 $577 $1,657 $909 $546 $1,455 
Video 223 136 359 194 113 307 
Command Center— 155 155 — 130 130 
$1,303 $868 $2,171 $1,103 $789 $1,892 
Customer Types:
Direct$723 $795 $1,518 $656 $702 $1,358 
Indirect580 73 653 447 87 534 
$1,303 $868 $2,171 $1,103 $789 $1,892 
Three Months Ended
Remaining Performance Obligations
Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations that are unsatisfied, or partially unsatisfied, as of the end of a period. The transaction values associated with remaining performance obligations which were not yet satisfied as of April 1, 2023 was $9.2 billion. A total of $4.7 billion was from Products and Systems Integration performance obligations that were not yet satisfied as of April 1, 2023, of which $2.9 billion is expected to be recognized in the next twelve months. The remaining amounts will generally be satisfied over time as systems are implemented. A total of $4.5 billion was from Software and Services performance obligations that were not yet
8

satisfied as of April 1, 2023. The determination of Software and Services performance obligations that are not satisfied takes into account a contract term that may be limited by the customer’s ability to terminate for convenience. Where termination for convenience exists in the Company's service contracts, its disclosure of the remaining performance obligations that are unsatisfied assumes the contract term is limited until renewal. The Company expects to recognize $1.6 billion from unsatisfied Software and Services performance obligations over the next twelve months, with the remaining performance obligations to be recognized over time as services are performed and software is implemented.
Contract Balances
(In millions)April 1, 2023December 31, 2022
Accounts receivable, net$1,340 $1,518 
Contract assets1,024 974 
Contract liabilities1,793 1,859 
Non-current contract liabilities378 363 
Revenue recognized during the three months ended April 1, 2023 which was previously included in Contract liabilities as of December 31, 2022 was $474 million, compared to $456 million of revenue recognized during the three months ended April 2, 2022 which was previously included in Contract liabilities as of December 31, 2021. Revenue of $10 million was reversed during the three months ended April 1, 2023 related to performance obligations satisfied or partially satisfied, in previous periods, primarily driven by changes in the estimates of progress on system contracts, compared to $17 million of reversals for the three months ended April 2, 2022.
There were no material expected credit losses recorded on contract assets during each of the three months ended April 1, 2023 and April 2, 2022.
Contract Cost Balances
(In millions)April 1, 2023December 31, 2022
Current contract cost assets$69 $61 
Non-current contract cost assets119 130 
Amortization of non-current contract cost assets was $17 million for both the three months ended April 1, 2023, and April 2, 2022.

3.    Leases
Components of Lease Expense
Three Months Ended
(in millions)April 1, 2023April 2, 2022
Lease expense:
Operating lease cost$34 $33 
Finance lease cost
Amortization of right-of-use assets$1 $2 
Short-term lease cost$— $1 
Variable cost9 9 
Sublease income(2)(1)
Net lease expense$42 $44 
9

Lease Assets and Liabilities
(in millions)Statement Line ClassificationApril 1, 2023December 31, 2022
Assets:
Operating lease assetsOperating lease assets$472 $485 
Finance lease assetsProperty, plant and equipment, net10 9 
$482 $494 
Current liabilities:
Operating lease liabilitiesAccrued liabilities$108 $118 
Finance lease liabilitiesCurrent portion of long-term debt1 1 
$109 $119 
Non-current liabilities:
Operating lease liabilitiesOperating lease liabilities$398 $419 
Other Information Related to Leases
Three Months Ended
(in millions)April 1, 2023April 2, 2022
Supplemental cash flow information:
Net cash used for operating activities related to operating leases$52 $62 
Net cash used for financing activities related to finance leases— 2 
Assets obtained in exchange for lease liabilities:
Operating leases$8 $40 
Assets obtained in exchange for lease liabilities for the three months ended April 2, 2022 included $34 million of additional leases acquired in connection with the Company's acquisition of TETRA Ireland.
April 1, 2023December 31, 2022
Weighted average remaining lease terms (years):
Operating leases55
Finance leases11
Weighted average discount rate:
Operating leases4.09 %4.07 %
Finance leases2.77 %3.23 %
Future Lease Payments
April 1, 2023
(in millions)Operating LeasesFinance LeasesTotal
Remainder of 2023$90 $1 $91 
2024129 — 129 
2025112 — 112 
202696 — 96 
202751 — 51 
Thereafter81 — 81 
Total lease payments$559 $1 $560 
Less: Interest53 — 53 
Present value of lease liabilities$506 $1 $507 

10

4.    Other Financial Data
Statements of Operations Information
Other Charges
Other charges (income) included in Operating earnings consist of the following:
 Three Months Ended
April 1, 2023April 2, 2022
Other charges (income):
Intangibles amortization (Note 15)$55 $66 
Reorganization of business (Note 14)7 7 
Operating lease asset impairments3 9 
Acquisition-related transaction fees2 10 
Legal settlements— 11 
Fixed asset impairments2 3 
Gain on Hytera legal settlement— (13)
Other— (1)
 $69 $92 
Other Income (Expense)
Interest expense, net, and Other, net, both included in Other income (expense), consist of the following: 
 Three Months Ended
April 1, 2023April 2, 2022
Interest income (expense), net:
Interest expense$(63)$(58)
Interest income9 2 
$(54)$(56)
Other, net:
Net periodic pension and postretirement benefit (Note 8)$25 $32 
Investment impairments(6)(1)
Foreign currency gain (loss)(19)23 
Gain (loss) on derivative instruments (Note 6)7 (23)
Fair value adjustments to equity investments3 (18)
Gain on TETRA Ireland equity method investment— 21 
Other2 — 
 $12 $34 
11

Earnings Per Common Share
The computation of basic and diluted earnings per common share is as follows:
Amounts attributable to Motorola Solutions, Inc. common stockholders
 Three Months Ended
April 1, 2023April 2, 2022
Basic earnings per common share:
Earnings$278 $267 
Weighted average common shares outstanding167.4 168.0 
Per share amount$1.66 $1.59 
Diluted earnings per common share:
Earnings$278 $267 
Weighted average common shares outstanding167.4 168.0 
Add effect of dilutive securities:
Share-based awards4.0 4.5 
1.75% senior convertible notes
1.2 0.6 
Diluted weighted average common shares outstanding172.6 173.1 
Per share amount$1.61 $1.54 
In the computation of diluted earnings per common share for the three months ended April 1, 2023, the assumed exercise of 0.2 million options, inclusive of 0.1 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 months ended April 2, 2022, the assumed exercise of 0.2 million options were excluded because their inclusion would have been antidilutive.
As of April 1, 2023, the Company had $1.0 billion of the Senior Convertible Notes outstanding, which mature on September 15, 2024. The notes are convertible based on a conversion rate of 4.9670 per $1,000 principal amount (which is equal to a conversion price of $201.33 per share), adjusted for dividends declared through the date of settlement. The notes became fully convertible as of September 5, 2021, when the average stock price exceeded the contractual conversion price, providing the holders the option to convert all or any portion of their Senior Convertible Notes. In November 2021, the Company's Board of Directors approved an irrevocable determination requiring the future settlement of the principal amount of the Senior Convertible Notes to be settled in cash. Because the Company has irrevocably decided to settle the principal amount of the Senior Convertible Notes in cash, the Company did not reflect any shares underlying the Senior Convertible Notes in its diluted weighted average shares outstanding until the average stock price per share for the period exceeded the conversion price, which first occurred for the quarter ended October 2, 2021. Upon conversion of the Senior Convertible Notes, the Company has the option to settle the conversion spread in cash or shares. The Company included the number of shares that would be issuable upon conversion in the Company’s computation of diluted earnings per share, based on the amount by which the average stock price exceeded the conversion price for the period ended April 1, 2023. The value by which the Senior Convertible Notes exceeded their principal amount if converted as of April 1, 2023 was $332 million.
Balance Sheet Information
Accounts Receivable, Net
Accounts receivable, net, consists of the following: 
April 1, 2023December 31, 2022
Accounts receivable$1,403 $1,579 
Less allowance for credit losses(63)(61)
 $1,340 $1,518 
12

Inventories, Net
Inventories, net, consist of the following: 
April 1, 2023December 31, 2022
Finished goods$365 $354 
Work-in-process and production materials852 829 
1,217 1,183 
Less inventory reserves(135)(128)
 $1,082 $1,055 
Other Current Assets
Other current assets consist of the following: 
April 1, 2023December 31, 2022
Current contract cost assets (Note 2)$69 $61 
Contractor receivables4 47 
Tax-related deposits38 33 
Other247 242 
 $358 $383 
Property, Plant and Equipment, Net
Property, plant and equipment, net, consist of the following:
April 1, 2023December 31, 2022
Land$5 $5 
Leasehold improvements463 456 
Machinery and equipment2,224 2,303 
2,692 2,764 
Less accumulated depreciation(1,765)(1,837)
 $927 $927 
Depreciation expense for the three months ended April 1, 2023 and April 2, 2022 was $43 million and $45 million, respectively.
Investments
Investments consist of the following:
April 1, 2023December 31, 2022
Common stock$22 $21 
Strategic investments38 45 
Company-owned life insurance policies71 69 
Equity method investments13 12 
 $144 $147 
During the three months ended April 1, 2023, the Company recorded a $6 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 as Other, net within the Condensed Consolidated Statement of Operations.
Other Assets
 Other assets consist of the following:
April 1, 2023December 31, 2022
Defined benefit plan assets$128 $164 
Non-current contract cost assets (Note 2)119 130 
Other75 16 
 $322 $310 
13

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 our 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 $36 million and $37 million as of April 1, 2023 and December 31, 2022, respectively. Supplier finance program obligations are classified as Accounts payable within the Condensed Consolidated Balance Sheets.
Accrued Liabilities
Accrued liabilities consist of the following: 
April 1, 2023December 31, 2022
Compensation$329 $374 
Tax liabilities349 367 
Dividend payable148 148 
Trade liabilities138 145 
Operating lease liabilities (Note 3)108 118 
Customer reserves56 78 
Other325 408 
 $1,453 $1,638 
Other Liabilities
Other liabilities consist of the following: 
April 1, 2023December 31, 2022
Defined benefit plans$974 $1,004 
Non-current contract liabilities (Note 2)378 363 
Unrecognized tax benefits (Note 7)29 29 
Deferred income taxes (Note 7)74 73 
Environmental reserve108 108 
Other163 114 
 $1,726 $1,691 
Stockholders’ Equity
Share Repurchase Program: During the three months ended April 1, 2023, the Company paid an aggregate of $140 million to repurchase approximately 0.5 million shares at an average price of $261.75. per share. As of April 1, 2023, the Company had $1.1 billion of authority available for future repurchases.
Payment of Dividends: During the three months ended April 1, 2023 and April 2, 2022, the Company paid $148 million and $134 million, respectively, in cash dividends to holders of its common stock. Subsequent to the quarter, the Company paid an additional $148 million in cash dividends to holders of its common stock.
14

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 months ended April 1, 2023 and April 2, 2022:
Three Months Ended
April 1, 2023April 2, 2022
Foreign Currency Translation Adjustments:
Balance at beginning of period$(539)$(384)
Other comprehensive income (loss) before reclassification adjustment27 (18)
Tax benefit (expense)9 (2)
Other comprehensive income (loss), net of tax36 (20)
Balance at end of period$(503)$(404)