Company Quick10K Filing
Motorola Solutions
Price170.19 EPS6
Shares176 P/E29
MCap30,022 P/FCF29
Net Debt4,592 EBIT1,410
TEV34,614 TEV/EBIT25
TTM 2019-09-28, in MM, except price, ratios
10-Q 2020-03-28 Filed 2020-05-08
10-K 2019-12-31 Filed 2020-02-14
10-Q 2019-09-28 Filed 2019-10-31
10-Q 2019-06-29 Filed 2019-08-02
10-Q 2019-03-30 Filed 2019-05-03
10-K 2018-12-31 Filed 2019-02-15
10-Q 2018-09-29 Filed 2018-11-02
10-Q 2018-06-30 Filed 2018-08-03
10-Q 2018-03-31 Filed 2018-05-04
10-K 2017-12-31 Filed 2018-02-16
10-Q 2017-09-30 Filed 2017-11-03
10-Q 2017-07-01 Filed 2017-08-04
10-Q 2017-04-01 Filed 2017-05-05
10-K 2016-12-31 Filed 2017-02-21
10-Q 2016-10-01 Filed 2016-11-04
10-Q 2016-07-02 Filed 2016-08-05
10-Q 2016-04-02 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-02-23
10-Q 2015-10-03 Filed 2015-11-04
10-Q 2014-06-28 Filed 2014-08-05
10-K 2013-12-31 Filed 2014-02-13
10-Q 2013-09-28 Filed 2013-10-23
10-Q 2013-06-29 Filed 2013-07-24
10-Q 2013-03-30 Filed 2013-04-24
10-K 2012-12-31 Filed 2013-02-12
10-Q 2012-09-29 Filed 2012-10-24
10-Q 2012-06-30 Filed 2012-07-25
10-Q 2012-03-31 Filed 2012-04-25
10-K 2011-12-31 Filed 2012-02-15
10-Q 2011-10-01 Filed 2011-10-27
10-Q 2011-07-02 Filed 2011-07-28
10-Q 2011-04-02 Filed 2011-05-02
10-K 2010-12-31 Filed 2011-02-18
10-Q 2010-10-02 Filed 2010-11-02
10-Q 2010-07-03 Filed 2010-08-05
10-Q 2010-04-03 Filed 2010-05-04
10-K 2009-12-31 Filed 2010-02-16
8-K 2020-07-24 Officers
8-K 2020-06-25 Earnings, Officers, Exhibits
8-K 2020-06-01
8-K 2020-05-11
8-K 2020-05-07
8-K 2020-03-12
8-K 2020-03-10
8-K 2020-02-06
8-K 2019-10-30
8-K 2019-09-20
8-K 2019-09-05
8-K 2019-09-05
8-K 2019-09-05
8-K 2019-08-06
8-K 2019-08-01
8-K 2019-05-23
8-K 2019-05-13
8-K 2019-05-02
8-K 2019-03-14
8-K 2019-02-07
8-K 2019-01-07
8-K 2018-11-01
8-K 2018-10-05
8-K 2018-09-28
8-K 2018-09-14
8-K 2018-09-10
8-K 2018-09-05
8-K 2018-08-28
8-K 2018-08-02
8-K 2018-08-02
8-K 2018-05-14
8-K 2018-05-03
8-K 2018-03-28
8-K 2018-03-28
8-K 2018-02-23
8-K 2018-02-01
8-K 2018-02-01

MSI 10Q Quarterly Report

Part I - Financial Information
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits
EX-10.1 msiex101q12020.htm
EX-31.1 msiex311q12020.htm
EX-31.2 msiex312q12020.htm
EX-32.1 msiex321q12020.htm
EX-32.2 msiex322q12020.htm

Motorola Solutions Earnings 2020-03-28

Balance SheetIncome StatementCash Flow
1511841-12012201420172020
Assets, Equity
2.62.01.30.70.0-0.62012201420172020
Rev, G Profit, Net Income
3.42.41.40.5-0.5-1.52012201420172020
Ops, Inv, Fin

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________ 
Form 10-Q
 ____________________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the period ended March 28, 2020
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)
____________________________________________ 
Delaware 36-1115800
(State of Incorporation)(I.R.S. Employer Identification No.)
500 W. Monroe Street, 60661
Chicago, Illinois
(Address of principal executive offices)
(847576-5000
Registrant’s telephone number, including area code
____________________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock$0.01Par ValueMSINew York Stock Exchange

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   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   No 
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 filerAccelerated 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 
The number of shares outstanding of each of the issuer’s classes of common stock as of the close of business on April 15, 2020 was 170,067,338




 Page
Item 1 Financial Statements
Condensed Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 28, 2020 and March 30, 2019
Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended March 28, 2020 and March 30, 2019
Condensed Consolidated Balance Sheets as of March 28, 2020 (Unaudited) and December 31, 2019
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) for the Three Months Ended March 28, 2020 and March 30, 2019
Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 28, 2020 and March 30, 2019
Notes to Condensed Consolidated Financial Statements (Unaudited)
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 4 Mine Safety Disclosures




Part I—Financial Information
Condensed Consolidated Statements of Operations
(Unaudited)
 Three Months Ended
(In millions, except per share amounts)March 28, 2020March 30, 2019
Net sales from products$884  $945  
Net sales from services771  712  
Net sales1,655  1,657  
Costs of products sales397  444  
Costs of services sales471  440  
Costs of sales868  884  
Gross margin787  773  
Selling, general and administrative expenses341  327  
Research and development expenditures168  162  
Other charges19  55  
Operating earnings259  229  
Other income (expense):
Interest expense, net(52) (55) 
Gains on sales of investments and businesses, net    1  
Other, net17  10  
Total other expense(35) (44) 
Net earnings before income taxes224  185  
Income tax expense26  33  
Net earnings198  152  
Less: Earnings attributable to non-controlling interests1  1  
Net earnings attributable to Motorola Solutions, Inc.$197  $151  
Earnings per common share:  
Basic$1.15  $0.92  
Diluted$1.12  $0.86  
Weighted average common shares outstanding:
Basic170.6  164.0  
Diluted175.9  174.6  
Dividends declared per share$0.64  $0.57  
See accompanying notes to condensed consolidated financial statements (unaudited).
1


Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
 Three Months Ended
(In millions)March 28, 2020March 30, 2019
Net earnings$198  $152  
Other comprehensive income (loss), net of tax (Note 4):
Foreign currency translation adjustments(138) 30  
Defined benefit plans12  11  
Total other comprehensive income (loss), net of tax(126) 41  
Comprehensive income72  193  
Less: Earnings attributable to non-controlling interests1  1  
Comprehensive income attributable to Motorola Solutions, Inc. common shareholders$71  $192  
See accompanying notes to condensed consolidated financial statements (unaudited).

2


Condensed Consolidated Balance Sheets
(Unaudited)
(In millions, except par value)March 28, 2020December 31, 2019
ASSETS
Cash and cash equivalents$1,672  $1,001  
Accounts receivable, net1,122  1,412  
Contract assets958  1,046  
Inventories, net442  447  
Other current assets287  272  
Total current assets4,481  4,178  
Property, plant and equipment, net932  992  
Operating lease assets521  554  
Investments154  159  
Deferred income taxes918  943  
Goodwill2,075  2,067  
Intangible assets, net1,242  1,327  
Other assets393  422  
Total assets$10,716  $10,642  
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current portion of long-term debt$814  $16  
Accounts payable531  618  
Contract liabilities1,278  1,449  
Accrued liabilities1,256  1,356  
Total current liabilities3,879  3,439  
Long-term debt5,111  5,113  
Operating lease liabilities458  497  
Other liabilities2,198  2,276  
Preferred stock, $100 par value
    
Common stock, $0.01 par value:
2  2  
Authorized shares: 600.0
Issued shares: 3/28/20—170.7; 12/31/19—171.0
Outstanding shares: 3/28/20—170.0; 12/31/19—170.5
Additional paid-in capital542  499  
Retained earnings1,074  1,239  
Accumulated other comprehensive loss(2,566) (2,440) 
Total Motorola Solutions, Inc. stockholders’ equity (deficit)(948) (700) 
Non-controlling interests18  17  
Total stockholders’ equity (deficit)(930) (683) 
Total liabilities and stockholders’ equity (deficit)$10,716  $10,642  
See accompanying notes to condensed consolidated financial statements (unaudited).

3


Condensed Consolidated Statements of Stockholders’ Equity (Deficit)
(Unaudited)
(In millions)SharesCommon Stock and Additional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained
Earnings
Noncontrolling
Interests
Balance as of December 31, 2019171.0  $501  $(2,440) $1,239  $17  
Net earnings197  1  
Other comprehensive loss(126) 
Issuance of common stock and stock options exercised1.3  5  
Share repurchase program(1.6) (253) 
Share-based compensation expenses38  
Dividends declared $0.64 per share
(109) 
Balance as of March 28, 2020170.7  $544  $(2,566) $1,074  $18  

(In millions)SharesCommon Stock and Additional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained
Earnings
Noncontrolling
Interests
Balance as of December 31, 2018164.0  $421  $(2,765) $1,051  $17  
Net earnings151  1
Other comprehensive income41  
Issuance of common stock and stock options exercised1.2  45  
Share repurchase program(1.2) (145) 
Share-based compensation expenses27  
Issuance of common stock for acquisition1.4160
Dividends declared $0.57 per share
(94) 
Balance as of March 30, 2019165.4  $653  $(2,724) $963  $18  
See accompanying notes to condensed consolidated financial statements (unaudited).

4


Condensed Consolidated Statements of Cash Flows
(Unaudited)
 Three Months Ended
(In millions)March 28, 2020March 30, 2019
Operating
Net earnings attributable to Motorola Solutions, Inc.$197  $151  
Earnings attributable to non-controlling interests1  1  
Net earnings198  152  
Adjustments to reconcile Net earnings to Net cash provided by operating activities:
Depreciation and amortization99  95  
Non-cash other charges (income)(51) 10  
Share-based compensation expenses38  27  
Gain on sales of investments and businesses, net  (1) 
Changes in assets and liabilities, net of effects of acquisitions, dispositions, and foreign currency translation adjustments:
Accounts receivable275  168  
Inventories2  (63) 
Other current assets and contract assets48  136  
Accounts payable, accrued liabilities, and contract liabilities(301) (261) 
Other assets and liabilities(4) (6) 
Deferred income taxes4  (6) 
Net cash provided by operating activities308  251  
Investing
Acquisitions and investments, net(36) (368) 
Proceeds from sales of investments and businesses, net2  2  
Capital expenditures(48) (66) 
Proceeds from sales of property, plant and equipment56    
Net cash used for investing activities(26) (432) 
Financing
Repayments of debt(4) (8) 
Net proceeds from revolver draw800    
Issuances of common stock5  45  
Purchases of common stock(253) (145) 
Payments of dividends(109) (93) 
Net cash provided by (used for) financing activities439  (201) 
Effect of exchange rate changes on total cash and cash equivalents(50) 22  
Net increase (decrease) in total cash and cash equivalents671  (360) 
Cash and cash equivalents, beginning of period1,001  1,257  
Cash and cash equivalents, end of period$1,672  $897  
Supplemental Cash Flow Information  
Cash paid during the period for:
Interest paid$61  $72  
Income and withholding taxes, net of refunds22  23  
See accompanying notes to condensed consolidated financial statements (unaudited).
5


Notes to Condensed Consolidated Financial Statements
(Dollars in millions, except as noted)
(Unaudited)

1.Basis of Presentation
The condensed consolidated financial statements as of March 28, 2020 and for the three months ended March 28, 2020 and March 30, 2019 include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Condensed Consolidated Balance Sheets, Statements of Operations, Statements of Comprehensive Income, Statements of Stockholders' Equity (Deficit), and Statements of Cash Flows of Motorola Solutions, Inc. (“Motorola Solutions” or the “Company”) for all periods presented.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2019. The results of operations for the three months ended March 28, 2020 are not necessarily indicative of the operating results to be expected for the full year.
The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Recent Acquisitions and Developments
On March 17, 2020, the Company announced the proposed acquisition of IndigoVision Group plc ("IndigoVision") for a purchase price of approximately $37 million in cash. The proposed acquisition complements the Company's video security and analytics portfolio, providing enhanced geographical reach across a wider customer base. The proposed acquisition is subject to customary closing conditions for a UK public transaction and is expected to close in the second quarter of 2020.
On March 3, 2020, the Company acquired a cybersecurity services business for $40 million, inclusive of share-based compensation withheld at a fair value of $6 million that will be expensed over a service period of two years. The acquisition was settled with $33 million of cash, net of cash acquired. The acquisition expands the Company’s ability to assist customers with cybersecurity needs through vulnerability assessments, cybersecurity consulting, managed services and remediation and response capabilities. The business is a part of the Software and Services segment.
On October 16, 2019, the Company acquired a data solutions business for vehicle location information for a purchase price of $85 million, net of cash acquired. The acquisition enhances the Company's video security platform by adding data to the Company’s existing license plate recognition (“LPR”) database within the Software and Services segment.
On July 11, 2019, the Company acquired WatchGuard, Inc. ("WatchGuard"), a provider of in-car and body-worn video solutions for $271 million, inclusive of share-based compensation withheld at a fair value of $16 million that will be expensed over an average service period of two years. The acquisition was settled with $250 million of cash, net of cash acquired. The acquisition expands the Company's video security platform within both the Product and Systems Integration segment and the Software and Services segment.
On March 11, 2019, the Company acquired Avtec, Inc. ("Avtec"), a provider of dispatch communication equipment for U.S. public safety and commercial customers for a purchase price of $136 million in cash, net of cash acquired. This acquisition expands the Company's commercial portfolio with new capabilities, allowing it to offer an enhanced platform for customers to communicate, coordinate resources, and secure their facilities. The business is part of both the Product and Systems Integration segment and the Software and Services segment.
On January 7, 2019, the Company announced that it acquired VaaS International Holdings ("VaaS"), a global provider of data and image analytics for vehicle location for $445 million, inclusive of share-based compensation withheld at a fair value of $38 million that will be expensed over an average service period of one year. The acquisition was settled with $231 million of cash, net of cash acquired, and 1.4 million of shares issued at a fair value of $160 million for a purchase price of $391 million. This acquisition expands the Company's video security platform within both the Product and Systems Integration segment and the Software and Services segment.
Change in presentation
During the first quarter of 2020, the Company restructured its operations to realize more operational efficiencies, combining EMEA, AP and LA into one region which is now reflected as "International." Accordingly, the Company now reports net sales in the following two geographic regions: North America, which includes the United States and Canada, and International. The Company has updated all periods presented to reflect this change in presentation.
Recent Accounting Pronouncements
In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740),” which simplifies the accounting for income taxes by removing certain exceptions and streamlining other areas of accounting for income taxes. The ASU is effective
6


for the Company on January 1, 2021 with early adoption permitted. Portions of the amendment within the ASU require retrospective, modified retrospective or prospective adoption methods. The Company is still evaluating the impact of adoption on its financial statements and disclosures.
In August 2018, the FASB issued ASU No. 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) - Changes to the Disclosure Requirements for Defined Benefit Plans,” which modifies the disclosure requirements for the defined benefit pension plans and other postretirement plans. The ASU is effective for the Company on January 1, 2021 with early adoption permitted. The ASU requires a retrospective adoption method. The Company does not believe the ASU will have a material impact on its financial statement disclosures.
Recently Adopted Accounting Pronouncements
In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019, May 2019 and November 2019, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” ASU No. 2019-04, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," ASU No. 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief," and ASU No. 2019-11," Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” which provided additional implementation guidance on the previously issued ASU. The Company adopted ASC 326 as of January 1, 2020 using a modified retrospective transition approach for all credit losses. Consequently, financial information will not be updated and disclosures required under ASC 326 will not be provided for dates and periods before January 1, 2020.
The Company considered the impact of adoption by reviewing historical losses in conjunction with current and future economic conditions on the following financial assets: i) cash equivalents, ii) accounts receivable, iii) contract assets and iv) long-term receivables. Historical losses for these financial assets were previously insignificant with the exception of accounts receivable. The Company estimates credit losses on accounts receivable based on historical losses and then takes into account estimates of current and future economic conditions. The Company’s historical loss model is based on past due customer receivable balances and considers past collection experience, historical write-offs as well as the customer’s overall financial condition. Customer receivables are considered past due if payments have not been received within the agreed invoice terms. These historical losses are aggregated based on the type of customer (Direct and Indirect) and the geographic region (North America and International). The adoption of this standard did not have a material impact to the Company's financial statements.
The following table displays the rollforward of the allowance for credit losses on the Company's trade receivables:
Allowance for Credit LossesBalance at January 1, 2020Charged to EarningsUsedAdjustments*Balance at
March 28, 2020
2020$63  $11  $(5) $(2) $67  
*Adjustments include translation adjustments
7


2. Revenue from Contracts with Customers
Disaggregation of Revenue
The following table summarizes the disaggregation of our revenue by segment, geography, major product and service type and customer type for the three months ended March 28, 2020 and March 30, 2019, consistent with the information reviewed by our chief operating decision maker for evaluating the financial performance of operating segments:
Three Months Ended
March 28, 2020March 30, 2019
Products and Systems IntegrationSoftware and ServicesProducts and Systems IntegrationSoftware and Services
Regions:
North America$748  $368  $755  $320  
International245  294  314  268  
$993  $662  $1,069  $588  
Major Products and Services:
Devices$620  $  $686  $  
Systems and Systems Integration373    383    
Services  493    452  
Software  169    136  
$993  $662  $1,069  $588  
Customer Type:
Direct$641  $621  $657  $553  
Indirect352  41  412  35  
$993  $662  $1,069  $588  
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. The transaction price associated with remaining performance obligations which are not yet satisfied as of March 28, 2020 is $6.7 billion. A total of $2.9 billion is from Products and Systems Integration performance obligations that are not yet satisfied, of which $1.4 billion is expected to be recognized in the next twelve months. The remaining amounts will generally be satisfied over time as systems are implemented. A total of $3.8 billion is from Software and Services performance obligations that are not yet satisfied as of March 28, 2020. The determination of Software and Services performance obligations that are not satisfied takes into account a contract term that 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 Company expects to recognize $1.3 billion from unsatisfied Software and Services performance obligations over the next twelve months, with the remaining performance obligations to be recognized over time as services are performed and software is implemented.
Contract Balances
March 28, 2020December 31, 2019
Accounts receivable, net$1,122  $1,412  
Contract assets958  1,046  
Contract liabilities1,278  1,449  
Non-current contract liabilities264  274  
Revenue recognized during the three months ended March 28, 2020 which was previously included in Contract liabilities as of December 31, 2019 is $382 million, compared to $393 million of revenue recognized during the three months ended March 30, 2019 which was previously included in Contract liabilities as of December 31, 2018. Revenue of $19 million was reversed during the three months ended March 28, 2020, compared to $9 million of reversals for the three months ended March 30, 2019.
There were no material expected credit losses recognized on contract assets during the three months ended March 28, 2020 and March 30, 2019.
8


Contract Cost Balances
March 28, 2020December 31, 2019
Current contract cost assets$21  $24  
Non-current contract cost assets99  107  
Amortization of non-current contract cost assets was $11 million for the three months ended March 28, 2020 and March 30, 2019.

3. Leases
The components of the Company's lease expense are as follows:
Three months ended
(in millions)March 28, 2020March 30, 2019
Lease expense:
Operating lease cost$34  $33  
Finance lease cost
Amortization of right-of-use assets3  3  
Interest on lease liabilities  1  
Total finance lease cost3  4  
Short-term lease cost  2  
Variable cost8  9  
Sublease income(1) (1) 
Net lease expense$44  $47  
Lease assets and liabilities consist of the following:
(in millions)Statement Line ClassificationMarch 28, 2020December 31, 2019
Assets:
Operating lease assetsOperating lease assets$521  $554  
Finance lease assetsProperty, plant, and equipment, net33  41  
$554  $595  
Current liabilities:
Operating lease liabilitiesAccrued liabilities$119  $122  
Finance lease liabilitiesCurrent portion of long-term debt11  13  
$130  $135  
Non-current liabilities:
Operating lease liabilitiesOperating lease liabilities$458  $497  
Finance lease liabilitiesLong-term debt11  16  
$469  $513  
Other information related to leases is as follows:
Three months ended
(in millions)March 28, 2020March 30, 2019
Supplemental cash flow information:
Net cash used for operating activities related to operating leases$37  $33  
Net cash used for operating activities related to finance leases  1  
Net cash used for financing activities related to finance leases3  4  
Assets obtained in exchange for lease liabilities:
Operating leases$19  $27  

9


(in millions)March 28, 2020December 31, 2019
Weighted average remaining lease terms (years):
Operating leases77
Finance leases22
Weighted average discount rate:
Operating leases3.64 %3.61 %
Finance leases4.27 %4.28 %

Future lease payments as of March 28, 2020 are as follows:
(in millions)Operating LeasesFinance LeasesTotal
Remainder of 2020$104  $9  $113  
2021127  10  137  
2022112  4  116  
202365  1  66  
202454