Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Motorola Solutions Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net sales from products	5,814)	5,368)	4,606)	4,087)	4,746)
Net sales from services	4,164)	3,744)	3,565)	3,327)	3,141)
Net sales	9,978)	9,112)	8,171)	7,414)	7,887)
Costs of products sales	(2,591)	(2,595)	(2,104)	(1,872)	(2,049)
Costs of services sales	(2,417)	(2,288)	(2,027)	(1,934)	(1,907)
Costs of sales	(5,008)	(4,883)	(4,131)	(3,806)	(3,956)
Gross margin	4,970)	4,229)	4,040)	3,608)	3,931)
Selling, general and administrative expenses	(1,561)	(1,450)	(1,353)	(1,293)	(1,403)
Research and development expenditures	(858)	(779)	(734)	(686)	(687)
Intangibles amortization	(177)	(257)	(236)	(215)	(208)
Reorganization of businesses	(22)	(18)	(24)	(57)	(40)
Legal Settlements	(4)	(23)	(3)	(9)	(3)
Fixed asset impairments	(3)	(12)	—)	(5)	—)
Gain on sale of property, plant, and equipment	—)	—)	—)	50)	—)
Environmental reserve expense	(15)	—)	—)	—)	—)
Exit of video manufacturing operations	(24)	—)	—)	—)	—)
Operating lease asset impairments	(6)	(24)	(10)	—)	(5)
Acquisition-related transaction fees	(7)	(23)	(15)	(9)	(3)
Gain on Hytera legal settlement	—)	15)	—)	—)	—)
Other	1)	3)	2)	(1)	(1)
Other charges	(257)	(339)	(286)	(246)	(260)
Operating earnings	2,294)	1,661)	1,667)	1,383)	1,581)
Interest expense	(249)	(240)	(215)	(233)	(237)
Interest income	33)	14)	7)	13)	17)
Interest expense, net	(216)	(226)	(208)	(220)	(220)
Gains (losses) on sales of investments and businesses, net	—)	3)	1)	(2)	5)
Net periodic pension and postretirement benefit	99)	123)	123)	81)	78)
Loss from the extinguishment of long-term debt	—)	(6)	(18)	(56)	(50)
Gains from the extinguishment of 2.00% senior convertible notes	—)	—)	—)	—)	4)
Investment impairments	(16)	(1)	—)	(4)	(18)
Foreign currency gain (loss)	(53)	37)	17)	(44)	(22)
Gain (loss) on derivative instruments	20)	(61)	(30)	25)	(8)
Gains (loss) on equity method investments	—)	(3)	5)	3)	3)
Fair value adjustments to equity investments	13)	(30)	(8)	6)	(3)
Gain on TETRA Ireland equity method investment	—)	21)	—)	—)	—)
U.S. pension settlement	—)	—)	—)	—)	(359)
Other	5)	(3)	3)	2)	10)
Other, net	68)	77)	92)	13)	(365)
Other expense	(148)	(146)	(115)	(209)	(580)
Net earnings before income taxes	2,146)	1,515)	1,552)	1,174)	1,001)
Income tax expense	(432)	(148)	(302)	(221)	(130)
Net earnings	1,714)	1,367)	1,250)	953)	871)
Earnings attributable to noncontrolling interests	(5)	(4)	(5)	(4)	(3)
Net earnings attributable to Motorola Solutions, Inc.	1,709)	1,363)	1,245)	949)	868)

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).

The financial performance exhibits several notable trends over the five-year period.

Net Sales: Overall net sales increased consistently from 7,887 million USD in 2019 to 9,978 million USD in 2023. Product sales and service sales both showed growth, with product sales rising from 4,746 million USD to 5,814 million USD, and service sales increasing from 3,141 million USD to 4,164 million USD over the same period.
Costs: Costs of sales rose in line with sales, increasing from 3,956 million USD in 2019 to 5,008 million USD in 2023. Product costs fluctuated but generally increased, while costs of services sales incrementally increased yearly.
Gross Margin: Gross margin reflected positive growth, rising from 3,931 million USD in 2019 to 4,970 million USD in 2023, indicating improved profitability at the gross level despite rising costs.
Operating Expenses: Selling, general, and administrative expenses showed moderate growth, moving from 1,403 million USD to 1,561 million USD. Research and development expenditures increased steadily from 687 million USD to 858 million USD, highlighting ongoing investment in innovation.
Non-Operating Items and Special Charges: Intangibles amortization generally trended downward in 2023 after a steady increase till 2022. Reorganization and legal settlement costs remain relatively low and fluctuating. Charges related to impairments and other operational disruptions appeared sporadically, with occasional gains such as a notable gain on the Hytera legal settlement in 2022. Other charges and expenses showed some variability but no clear trend.
Operating Earnings: Operating earnings showed resilience and growth, from 1,581 million USD in 2019 to 2,294 million USD in 2023, reflecting enhanced operational efficiency and profitability.
Interest and Investment Income/Expense: Net interest expense stayed relatively stable around the low 200 million USD range. Gains and losses on investments and equity method activities displayed volatility, with some positive impacts in select years.
Other Income/Expense: Other net items exhibited significant variability, including one-time expenses in 2019, but generally moved towards positive contributions by 2023.
Net Earnings: Net earnings demonstrated a strong upward trajectory, increasing from 871 million USD in 2019 to 1,714 million USD in 2023, supported by revenue growth, margin improvements, and controlled expenses.
Income Tax Expense: The income tax expense fluctuated considerably, with a notable increase in 2023 to 432 million USD, which impacted net earnings after tax but did not impede overall growth.

In summary, the data reflects consistent revenue growth supported by increased sales in both products and services. Costs have risen but at a slower pace than sales, enabling improved margins. Operating expenses increased modestly; however, operating earnings grew significantly, underpinned by higher gross margins and effective cost management. Despite volatility in non-operating items and tax expenses, net earnings consistently trended upward, indicating positive underlying profitability trends.

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Motorola Solutions Inc. (NYSE:MSI)

Income Statement