Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Motorola Solutions Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Developed technology	1,156)	1,083)	828)	766)	738)
Patents	2)	2)	2)	2)	2)
Customer-related	1,566)	1,519)	1,367)	1,335)	1,222)
Other intangibles	105)	97)	82)	78)	75)
Intangible assets, gross	2,829)	2,701)	2,279)	2,181)	2,037)
Accumulated amortization	(1,574)	(1,359)	(1,174)	(947)	(710)
Intangible assets, net	1,255)	1,342)	1,105)	1,234)	1,327)
Goodwill	3,401)	3,312)	2,565)	2,219)	2,067)
Intangible assets and goodwill	4,656)	4,654)	3,670)	3,453)	3,394)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Motorola Solutions Inc. intangible assets, net increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Motorola Solutions Inc. goodwill increased from 2021 to 2022 and from 2022 to 2023.
Intangible assets and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Motorola Solutions Inc. intangible assets and goodwill increased from 2021 to 2022 and from 2022 to 2023.

Motorola Solutions Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	13,336)	12,814)	12,189)	10,876)	10,642)
Less: Goodwill	3,401)	3,312)	2,565)	2,219)	2,067)
Total assets (adjusted)	9,935)	9,502)	9,624)	8,657)	8,575)
Adjustment to Total Motorola Solutions, Inc. Stockholders’ Equity (deficit)
Total Motorola Solutions, Inc. stockholders’ equity (deficit) (as reported)	724)	116)	(40)	(558)	(700)
Less: Goodwill	3,401)	3,312)	2,565)	2,219)	2,067)
Total Motorola Solutions, Inc. stockholders’ equity (deficit) (adjusted)	(2,677)	(3,196)	(2,605)	(2,777)	(2,767)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Motorola Solutions Inc., Financial Data: Reported vs. Adjusted

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Motorola Solutions Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total Asset Turnover
Reported total asset turnover	0.75	0.71	0.67	0.68	0.74
Adjusted total asset turnover	1.00	0.96	0.85	0.86	0.92
Financial Leverage
Reported financial leverage	18.42	110.47	—	—	—
Adjusted financial leverage	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	236.05%	1,175.00%	—	—	—
Adjusted ROE	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	12.81%	10.64%	10.21%	8.73%	8.16%
Adjusted ROA	17.20%	14.34%	12.94%	10.96%	10.12%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Motorola Solutions Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Motorola Solutions Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Motorola Solutions Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales	9,978)	9,112)	8,171)	7,414)	7,887)
Total assets	13,336)	12,814)	12,189)	10,876)	10,642)
Activity Ratio
Total asset turnover¹	0.75	0.71	0.67	0.68	0.74
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales	9,978)	9,112)	8,171)	7,414)	7,887)
Adjusted total assets	9,935)	9,502)	9,624)	8,657)	8,575)
Activity Ratio
Adjusted total asset turnover²	1.00	0.96	0.85	0.86	0.92

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 9,978 ÷ 13,336 = 0.75

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 9,978 ÷ 9,935 = 1.00

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Motorola Solutions Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	13,336)	12,814)	12,189)	10,876)	10,642)
Total Motorola Solutions, Inc. stockholders’ equity (deficit)	724)	116)	(40)	(558)	(700)
Solvency Ratio
Financial leverage¹	18.42	110.47	—	—	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	9,935)	9,502)	9,624)	8,657)	8,575)
Adjusted total Motorola Solutions, Inc. stockholders’ equity (deficit)	(2,677)	(3,196)	(2,605)	(2,777)	(2,767)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Motorola Solutions, Inc. stockholders’ equity (deficit)
= 13,336 ÷ 724 = 18.42

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Motorola Solutions, Inc. stockholders’ equity (deficit)
= 9,935 ÷ -2,677 = —

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Motorola Solutions, Inc.	1,709)	1,363)	1,245)	949)	868)
Total Motorola Solutions, Inc. stockholders’ equity (deficit)	724)	116)	(40)	(558)	(700)
Profitability Ratio
ROE¹	236.05%	1,175.00%	—	—	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings attributable to Motorola Solutions, Inc.	1,709)	1,363)	1,245)	949)	868)
Adjusted total Motorola Solutions, Inc. stockholders’ equity (deficit)	(2,677)	(3,196)	(2,605)	(2,777)	(2,767)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net earnings attributable to Motorola Solutions, Inc. ÷ Total Motorola Solutions, Inc. stockholders’ equity (deficit)
= 100 × 1,709 ÷ 724 = 236.05%

² Adjusted ROE = 100 × Net earnings attributable to Motorola Solutions, Inc. ÷ Adjusted total Motorola Solutions, Inc. stockholders’ equity (deficit)
= 100 × 1,709 ÷ -2,677 = —

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Motorola Solutions, Inc.	1,709)	1,363)	1,245)	949)	868)
Total assets	13,336)	12,814)	12,189)	10,876)	10,642)
Profitability Ratio
ROA¹	12.81%	10.64%	10.21%	8.73%	8.16%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings attributable to Motorola Solutions, Inc.	1,709)	1,363)	1,245)	949)	868)
Adjusted total assets	9,935)	9,502)	9,624)	8,657)	8,575)
Profitability Ratio
Adjusted ROA²	17.20%	14.34%	12.94%	10.96%	10.12%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net earnings attributable to Motorola Solutions, Inc. ÷ Total assets
= 100 × 1,709 ÷ 13,336 = 12.81%

² Adjusted ROA = 100 × Net earnings attributable to Motorola Solutions, Inc. ÷ Adjusted total assets
= 100 × 1,709 ÷ 9,935 = 17.20%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Motorola Solutions Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Motorola Solutions Inc. (NYSE:MSI)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Motorola Solutions Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Motorola Solutions Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)