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Cover and table of contents

10-K 1 msi201710-k.htm 10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-K


ýANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017

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)


DELAWARE36-1115800
(State of Incorporation)(I.R.S. Employer Identification No.)

500 West Monroe Street, Chicago, Illinois 60661

(Address of principal executive offices)

(847) 576-5000

(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each ClassName of Each Exchange on Which Registered
Common Stock, $.01 Par Value per ShareNew York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

None


Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ý No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ¨ No ý

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 ý No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yes ý No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨

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 xAccelerated filer ¨Non-accelerated filer ¨Smaller reporting company ¨Emerging growth company ¨
(Do not check if a smaller reporting 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 ý

The aggregate market value of voting and non-voting common equity held by non-affiliates of the registrant as of July 1, 2017 (the last business day of the Registrant’s most recently completed second quarter) was approximately $12.6 billion.

The number of shares of the registrant’s Common Stock, $.01 par value per share, outstanding as of February 2, 2018 was 161,307,525.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive Proxy Statement to be delivered to stockholders in connection with its Annual Meeting of Stockholders to be held on May 14, 2018, are incorporated by reference into Part III.

Page
PART I3
Item 1. Business3
General3
Business Organization3
Strategy and Focus Areas4
Customers and Contracts4
Competition5
Other Information5
Backlog5
Research and Development5
Intellectual Property Matters6
Inventory and Raw Materials6
Environmental Quality and Regulatory Matters6
Employees7
Material Dispositions7
Financial Information About Geographic Areas7
Financial Information About Segments7
Available Information7
Item 1A. Risk Factors8
Item 1B. Unresolved Staff Comments20
Item 2. Properties20
Item 3. Legal Proceedings20
Item 4. Mine Safety Disclosures20
Executive Officers of the Registrant20
PART II22
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities22
Item 6. Selected Financial Data24
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations25
Item 7A. Quantitative and Qualitative Disclosures About Market Risk42
Item 8. Financial Statements and Supplementary Data44
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure89
Item 9A. Controls and Procedures89
Item 9B. Other Information89
PART III91
Item 10. Directors, Executive Officers and Corporate Governance91
Item 11. Executive Compensation91
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters91
Item 13. Certain Relationships and Related Transactions, and Director Independence91
Item 14. Principal Accounting Fees and Services91
PART IV92
Item 15. Exhibits and Financial Statement Schedules92
15(a)(1) Financial Statements92
15(a)(2) Financial Statement Schedule and Independent Auditors’ Report92
15(a)(3) Exhibits92

PART I

Throughout this 10-K report we “incorporate by reference” certain information in parts of other documents filed with the Securities and Exchange Commission (the “SEC”). The SEC allows us to disclose important information by referring to it in that manner. Please refer to such information.

We are making forward-looking statements in this report. In “Item 1A: Risk Factors” we discuss some of the risk factors that could cause actual results to differ materially from those stated in the forward-looking statements.

“Motorola Solutions” (which may be referred to as the “Company,” “we,” “us,” or “our”) means Motorola Solutions, Inc. or Motorola Solutions, Inc. and its subsidiaries, or one of our segments, as the context requires. MOTOROLA, MOTO, MOTOROLA SOLUTIONS and the Stylized M Logo, as well as iDEN are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license.

Next: Item 1. Business