Motorola Solutions, Inc.MSI

Motorola Solutions, Inc. Leases Disclosure

10-KFiled Feb 12, 20262 min read
Leases
The Company leases certain office, factory and warehouse space, land and other equipment under various operating leases.
Components of Lease Expense
(in millions)December 31, 2025December 31, 2024December 31, 2023
Lease expense:
Operating lease cost$146 $140 $140 
Short-term lease cost2 1 1 
Variable cost47 47 36 
Sublease income(6)(5)(5)
Net lease expense from operating leases
$189 $183 $172 
Operating Lease Assets and Liabilities
(in millions)Statement Line ClassificationDecember 31, 2025December 31, 2024
Right-of-use lease assetsOperating lease assets$581 $529 
Current lease liabilitiesAccrued liabilities133 127 
Operating lease liabilitiesOperating lease liabilities471 427 
Other Information Related to Leases
(in millions)December 31, 2025December 31, 2024December 31, 2023
Supplemental cash flow information:
Net cash used for operating activities related to operating leases$156 $152 $147 
Right-of-use assets obtained in exchange for lease liabilities
$143 $150 $98 
During the year ended December 31, 2025, assets obtained in exchange for lease liabilities were primarily driven by new and renewed real estate leases. During the year ended December 31, 2024, the Company recorded $80 million of assets obtained in exchange for lease liabilities due to an assumption that it is reasonably certain that renewal options will be extended on its radio tower site leases operated within the Airwave radio network, consistent with the Home Office's notice of contract extension for the Airwave service through December 31, 2029. During the year ended December 31, 2023, the Company included $66 million of additional leases due to renewals of three large managed service contracts due to an assumption that it is reasonably certain that renewal options will be extended on the associated radio tower site leases.
December 31, 2025December 31, 2024
Weighted average remaining lease terms (years)
55
Weighted average discount rate
4.21 %3.97 %
Future Lease Payments
December 31 (in millions)
Amount
2026$155 
2027153 
2028125 
202993 
203043 
Thereafter107 
Total lease payments$676 
Less: Interest72 
Present value of operating lease liabilities
$604 

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 14, 2025
2023Feb 15, 2024
2022Feb 16, 2023
2021Feb 16, 2022
2020Feb 12, 2021
2019Feb 14, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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