Name: Motorola Solutions Inc. (NYSE:MSI) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Motorola Solutions Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Current portion of long-term debt	1,313)	1)	5)	12)	16)
Accounts payable	881)	1,062)	851)	612)	618)
Contract liabilities	2,037)	1,859)	1,650)	1,554)	1,449)
Compensation	407)	374)	360)	291)	347)
Tax liabilities	231)	367)	183)	147)	95)
Dividend payable	163)	148)	134)	120)	110)
Trade liabilities	140)	145)	235)	164)	161)
Current operating lease liabilities	125)	118)	124)	126)	122)
Customer reserves	89)	78)	102)	—)	—)
Other	349)	408)	419)	463)	521)
Accrued liabilities	1,504)	1,638)	1,557)	1,311)	1,356)
Current liabilities held for disposition	1)	—)	—)	—)	—)
Current liabilities	5,736)	4,560)	4,063)	3,489)	3,439)
Long-term debt, excluding current portion	4,705)	6,013)	5,688)	5,163)	5,113)
Non-current operating lease liabilities	407)	419)	313)	402)	497)
Defined benefit plans	939)	1,004)	1,390)	1,578)	1,524)
Non-current contract liabilities	424)	363)	306)	283)	274)
Unrecognized tax benefits	26)	29)	36)	49)	53)
Deferred income taxes	55)	73)	183)	180)	184)
Environmental Reserve	119)	108)	108)	—)	—)
Other	178)	114)	125)	273)	241)
Other liabilities	1,741)	1,691)	2,148)	2,363)	2,276)
Non-current liabilities held for disposition	8)	—)	—)	—)	—)
Non-current liabilities	6,861)	8,123)	8,149)	7,928)	7,886)
Total liabilities	12,597)	12,683)	12,212)	11,417)	11,325)
Preferred stock, $100 par value; none issued and outstanding	—)	—)	—)	—)	—)
Common stock, $0.01 par value	2)	2)	2)	2)	2)
Additional paid-in capital	1,622)	1,306)	987)	759)	499)
Retained earnings	1,640)	1,343)	1,350)	1,127)	1,239)
Accumulated other comprehensive loss	(2,540)	(2,535)	(2,379)	(2,446)	(2,440)
Total Motorola Solutions, Inc. stockholders’ equity (deficit)	724)	116)	(40)	(558)	(700)
Noncontrolling interests	15)	15)	17)	17)	17)
Total stockholders’ equity (deficit)	739)	131)	(23)	(541)	(683)
Total liabilities and stockholders’ equity (deficit)	13,336)	12,814)	12,189)	10,876)	10,642)

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 position of the company between 2019 and 2023 is characterized by a strategic transition from a stockholders' equity deficit to a positive equity position, alongside a significant shift in the maturity profile of its debt obligations.

Current Liabilities Trends

Current liabilities exhibited a consistent upward trajectory, increasing from 3,439 million US$ in 2019 to 5,736 million US$ in 2023. The most substantial surge occurred between 2022 and 2023, primarily driven by a sharp increase in the current portion of long-term debt, which rose from 1 million US$ to 1,313 million US$. This suggests a significant amount of long-term debt is maturing within the next twelve months. Additionally, contract liabilities grew steadily from 1,449 million US$ in 2019 to 2,037 million US$ in 2023, indicating an increase in deferred revenue and advance payments from customers.

Non-Current Liabilities and Long-Term Debt

Non-current liabilities peaked in 2021 at 8,149 million US$ before declining to 6,861 million US$ by 2023. This decrease is largely attributable to the reduction in long-term debt excluding the current portion, which fell from a peak of 6,013 million US$ in 2022 to 4,705 million US$ in 2023. A concurrent downward trend is observed in defined benefit plan obligations, which decreased from 1,524 million US$ in 2019 to 939 million US$ in 2023, reducing the long-term liability burden.

Stockholders' Equity and Capital Structure

A notable reversal in equity status is evident, as total stockholders' equity moved from a deficit of 683 million US$ in 2019 to a positive 739 million US$ in 2023. This recovery was supported by a steady increase in additional paid-in capital, which grew from 499 million US$ to 1,622 million US$ over the period. Retained earnings also improved, ending at 1,640 million US$ in 2023. Despite these gains, the balance sheet continues to be impacted by a substantial accumulated other comprehensive loss, which remained relatively stable but significant at approximately 2,540 million US$ by the end of 2023.

Overall Liability Profile: Total liabilities remained relatively stable over the five-year period, fluctuating between 11,325 million US$ in 2019 and a peak of 12,683 million US$ in 2022, before settling at 12,597 million US$ in 2023. The shift in the composition of these liabilities indicates a migration of debt from long-term to short-term classifications, which increases immediate liquidity requirements while the overall equity position strengthens.

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