Motorola Solutions, Inc.MSI
Motorola Solutions, Inc. Revenue Disclosure
Revenue from Contracts with Customers
Contract cost assets include incremental costs to obtain a contract, primarily related to the Company's sales incentive plans, and certain costs to fulfill contracts. Contract cost assets are amortized into expense over a period that follows the passage of control to the customer over time. Incremental costs to obtain a contract with the Company's sales incentive plans are accounted for under a portfolio approach, with amortization ranging from one year to eight years to approximate the recognition of revenues over time. Where incremental costs to obtain a contract will be recognized in one year or less, the Company applies a practical expedient around expensing amounts as incurred. Amortization of contract cost assets was $52 million for the year ended December 31, 2025, compared to $51 million as of the year ended December 31, 2024 and $61 million as of the year ended December 31, 2023.
Disaggregation of Revenue
Following the acquisition of Silvus Technologies Holdings Inc. (“Silvus”) in August 2025, we renamed our "Land Mobile Radio Communications" technology to MCN. We combined our legacy Land Mobile Radio portfolio with the newly acquired Silvus and now report net sales under MCN. This name change does not require any financial information to be reclassified from previous periods.
The following table summarizes the disaggregation of our revenue by segment, geography, major product and service type and customer type for the years ended December 31, 2025, 2024 and 2023, consistent with the information reviewed by our chief operating decision maker, the chief executive officer, for evaluating the financial performance of reportable segments:
| Years Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | Products and Systems Integration | Software and Services | Total | Products and Systems Integration | Software and Services | Total | Products and Systems Integration | Software and Services | Total | ||||||||||||||||||||||||||||||||||||||||||||
| Regions | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| North America | $ | 5,318 | $ | 3,044 | $ | 8,362 | $ | 5,097 | $ | 2,723 | $ | 7,820 | $ | 4,507 | $ | 2,425 | $ | 6,932 | |||||||||||||||||||||||||||||||||||
| International | 1,935 | 1,385 | 3,320 | 1,786 | 1,211 | 2,997 | 1,735 | 1,311 | 3,046 | ||||||||||||||||||||||||||||||||||||||||||||
| $ | 7,253 | $ | 4,429 | $ | 11,682 | $ | 6,883 | $ | 3,934 | $ | 10,817 | $ | 6,242 | $ | 3,736 | $ | 9,978 | ||||||||||||||||||||||||||||||||||||
| Major Products and Services | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mission Critical Networks (MCN) | $ | 6,066 | $ | 2,581 | $ | 8,647 | $ | 5,739 | $ | 2,361 | $ | 8,100 | $ | 5,127 | $ | 2,399 | $ | 7,526 | |||||||||||||||||||||||||||||||||||
| Video | 1,187 | 933 | 2,120 | 1,144 | 776 | 1,920 | 1,115 | 611 | 1,726 | ||||||||||||||||||||||||||||||||||||||||||||
| Command Center | — | 915 | 915 | — | 797 | 797 | — | 726 | 726 | ||||||||||||||||||||||||||||||||||||||||||||
| $ | 7,253 | $ | 4,429 | $ | 11,682 | $ | 6,883 | $ | 3,934 | $ | 10,817 | $ | 6,242 | $ | 3,736 | $ | 9,978 | ||||||||||||||||||||||||||||||||||||
| Customer Type | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Direct | $ | 4,618 | $ | 4,037 | $ | 8,655 | $ | 4,238 | $ | 3,586 | $ | 7,824 | $ | 3,619 | $ | 3,396 | $ | 7,015 | |||||||||||||||||||||||||||||||||||
| Indirect | 2,635 | 392 | 3,027 | 2,645 | 348 | 2,993 | 2,623 | 340 | 2,963 | ||||||||||||||||||||||||||||||||||||||||||||
| $ | 7,253 | $ | 4,429 | $ | 11,682 | $ | 6,883 | $ | 3,934 | $ | 10,817 | $ | 6,242 | $ | 3,736 | $ | 9,978 | ||||||||||||||||||||||||||||||||||||
Remaining Performance Obligations
Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations that are unsatisfied, or partially unsatisfied, as of the end of a period. Remaining performance obligations are equal to disclosed backlog, except within our Software and Services contracts where multi-year contract terms may be limited by the customer's ability to terminate for convenience. Where termination for convenience exists in the Company's service contracts, its disclosure of the remaining performance obligations that are unsatisfied assumes the contract term is limited until renewal. The transaction value associated with remaining performance obligations which were not yet satisfied as of December 31, 2025 was $9.6 billion, of which $4.0 billion is expected to be recognized in the next twelve months. The remaining amounts will generally be satisfied over time as systems are implemented and services are performed.
Contract Balances
| December 31 (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Accounts receivable, net | $ | 2,200 | $ | 1,952 | $ | 1,710 | |||||||||||
| Contract assets | 1,574 | 1,230 | 1,102 | ||||||||||||||
| Contract liabilities | 2,265 | 2,072 | 2,037 | ||||||||||||||
| Non-current contract liabilities | 751 | 496 | 424 | ||||||||||||||
Payment terms on system contracts are typically tied to implementation milestones associated with progress on contracts, while revenue recognition is over time based on a cost-to-cost method of measuring performance. The Company may recognize a Contract asset or Contract liability, depending on whether revenue has been recognized in excess of billings or billings in excess of revenue. Services contracts are typically billed in advance, generating Contract liabilities until the Company has performed the services. The Company does not record a financing component to contracts when it expects, at contract inception, that the period between the transfer of a promised good or service and related payment terms are less than a year.
The Company recognized revenue of $1.3 billion during the years ended December 31, 2025, 2024 and 2023 which was previously included in Contract liabilities as of January 1, 2025, 2024 and 2023. Revenue of $7 million was reversed during the year ended December 31, 2025 related to performance obligations satisfied, or partially satisfied, in previous periods, primarily driven by changes in the estimates of progress on system contracts, compared to $28 million reversed during the year ended December 31, 2024 and $37 million reversed during the year ended December 31, 2023.
There have been no material expected credit losses recognized on contract assets during the year ended December 31, 2025.
Contract Cost Balances
| December 31 (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Current contract cost assets | $ | 72 | $ | 70 | $ | 56 | |||||||||||
| Non-current contract cost assets | 152 | 141 | 119 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 15, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.