Motorola Solutions (MSI) FY2025 10-K Risk Factors: 1 New, 2 Dropped

What the changes say

Motorola Solutions updated its risk disclosures to address emerging legal and ethical liabilities concerning artificial intelligence integration.

What changed since the prior 10-K

New

NewRisks Related to Our Ability to Grow Our Business
We use AI in our products and services, and challenges related to the use of AI could subject us to legal liability or additional regulatory oversight, or adversely affect our business, financial condition, results of operations or business reputation
The company faces potential legal liability, regulatory scrutiny, and reputational damage if its integrated artificial intelligence features produce flawed, biased, or controversial outputs.

Dropped

DroppedRisks Related to Our Ability to Grow Our Business
Social, ethical, environmental, and competitive risks relating to the use of AI in our products and services could adversely affect our results of operations and business reputation
DroppedRisks Related to Laws and Regulations
Increased focus on climate change has contributed to an evolving state of environmental regulation and uncertainty related to such regulation, as well as physical risks of climate change, could impact our business, results of operations, financial or competitive position
Social, ethical, and competitive risks relating to the future use of AI in products.

Reworded

67% rewrittenRisks Related to Our Ability to Grow Our Business
Catastrophic events may interrupt our business, or our customers’ or suppliers’ business, which may adversely affect our business, results of operations, financial position, cash flows or stock price
Added extreme weather, increased insurance costs, energy supply impacts, and inventory spoilage as potential consequences of catastrophic events.
Was: Catastrophic events may interrupt our business, or our customers’ or suppliers’ business, which may adversely affect our business, results of operations, financial position, cash flows and stock price
56% rewrittenRisks Related to the Operation of Our Business
We are exposed to risks under large, multi-year system and services contracts that may negatively impact our business
No substantive textual changes made to multi-year contract risks.
56% rewrittenRisks Related to the Operation of Our Business
We utilize the services of subcontractors to perform under many of our contracts and the inability of our subcontractors to perform in a timely and compliant manner or to adhere to our Human Rights Policy could negatively impact our business
Updated subcontractor reliance phrasing to anticipate continued increases in subcontractor usage.
44% rewrittenRisks Related to the Operation of Our Business
Our success depends in part upon our ability to attract and retain senior management and key employees, including engineers and other key technical employees, in order to remain competitive
Minor punctuation adjustment regarding executive retention and industry competition.
43% rewrittenRisks Related to Information Technology and Intellectual Property
If we are unable to adequately protect our intellectual property, or if we, our customers and/or our suppliers are found to have infringed intellectual property rights of third-parties, our competitive position, financial condition or results of operations may be adversely impacted
No substantive textual changes made to intellectual property protection risks.
Was: If we are unable to adequately protect our intellectual property, or if we, our customers and/or our suppliers are found to have infringed intellectual property rights of third parties, our competitive position and results of operations may be adversely impacted
40% rewrittenRisks Related to the Operation of Our Business
Our employees, customers, suppliers and outsource partners are located throughout the world and, as a result, we face risks that other companies that are not global may not face
Updated international financial and employment metrics from the 2024 fiscal year to the 2025 fiscal year, maintaining 28 percent foreign revenue and 49 percent foreign employees.
37% rewrittenRisks Related to Laws and Regulations
Tax matters could have a negative impact on our financial condition and results of operations
Replaced reference to the Tax Cuts and Jobs Act of 2017 with the 2025 enactment of the One Big Beautiful Bill Act, noting taxpayer-favorable research expensing and added tax code complexity.
32% rewrittenRisks Related to Laws and Regulations
Government regulation of radio frequencies may limit the growth of private, public safety and government narrowband and broadband systems or reduce barriers to entry for new competitors
Added government users alongside commercial and public safety users regarding radio spectrum allocation and regulation.
Was: Government regulation of radio frequencies may limit the growth of private and public safety narrowband and broadband systems or reduce barriers to entry for new competitors
28% rewrittenRisks Related to Financial Performance or Economic Conditions
As we are a global company, we face a number of risks related to current global economic and political conditions in the markets in which we operate that have and could continue to unfavorably impact our business, financial condition, results of operations and cash flows
24% rewrittenRisks Related to the Operation of Our Business
If the quality of our products does not meet our customers' expectations or regulatory or industry standards, or our products and services suffer from an actual or perceived systems or service failure, then our results of operations, financial condition, or reputation could be negatively impacted
Was: If the quality of our products does not meet our customers' expectations or regulatory or industry standards, then our sales and operating earnings, and ultimately our reputation, could be negatively impacted
23% rewrittenRisks Related to the Operation of Our Business
A significant amount of manufacturing and research and development of our products, as well as administrative and sales facilities, takes place outside of the U.S. If the operations in these facilities are disrupted, our business, financial condition, results of operations, and cash flows could be negatively impacted
Was: A significant amount of manufacturing and research and development of our products, as well as administrative and sales facilities, takes place outside of the U.S. If the operations in these facilities are disrupted, our business, financial condition, results of operation, and cash flows could be negatively impacted

All 18 risk factors

Headings as the filing states them, in filing order.

Risks Related to Our Ability to Grow Our Business

01We use AI in our products and services, and challenges related to the use of AI could subject us to legal liability or additional regulatory oversight, or adversely affect our business, financial condition, results of operations or business reputationNew
02Catastrophic events may interrupt our business, or our customers’ or suppliers’ business, which may adversely affect our business, results of operations, financial position, cash flows or stock price67% rewritten
03We expect to continue to make strategic acquisitions of other companies or businesses and these acquisitions introduce significant risks and uncertainties, including risks related to integrating the acquired businesses and achieving benefits from the acquisitions

Risks Related to the Operation of Our Business

04If the quality of our products does not meet our customers' expectations or regulatory or industry standards, or our products and services suffer from an actual or perceived systems or service failure, then our results of operations, financial condition, or reputation could be negatively impacted24% rewritten
05We are exposed to risks under large, multi-year system and services contracts that may negatively impact our business56% rewritten
06Our employees, customers, suppliers and outsource partners are located throughout the world and, as a result, we face risks that other companies that are not global may not face40% rewritten
07A significant amount of manufacturing and research and development of our products, as well as administrative and sales facilities, takes place outside of the U.S. If the operations in these facilities are disrupted, our business, financial condition, results of operations, and cash flows could be negatively impacted23% rewritten
08We utilize the services of subcontractors to perform under many of our contracts and the inability of our subcontractors to perform in a timely and compliant manner or to adhere to our Human Rights Policy could negatively impact our business56% rewritten
09Our success depends in part upon our ability to attract and retain senior management and key employees, including engineers and other key technical employees, in order to remain competitive44% rewritten

Risks Related to Laws and Regulations

10Government regulation of radio frequencies may limit the growth of private, public safety and government narrowband and broadband systems or reduce barriers to entry for new competitors32% rewritten
11We are subject to a wide range of product regulatory and safety, consumer, worker safety, and environmental product compliance and remediation laws that continue to expand and could impact our ability to grow our business, could subject us to unexpected costs and liabilities and could impact our financial performance
12Tax matters could have a negative impact on our financial condition and results of operations37% rewritten

Risks Related to Information Technology and Intellectual Property

13If we are unable to adequately protect our intellectual property, or if we, our customers and/or our suppliers are found to have infringed intellectual property rights of third-parties, our competitive position, financial condition or results of operations may be adversely impacted43% rewritten
14We face risks relating to intellectual property licenses and intellectual property indemnities in our customer and supplier contracts, which may fail to fully protect us and subject us to unexpected liabilities or harm our financial condition and results of operations

Risks Related to Financial Performance or Economic Conditions

15As we are a global company, we face a number of risks related to current global economic and political conditions in the markets in which we operate that have and could continue to unfavorably impact our business, financial condition, results of operations and cash flows28% rewritten
16We may not continue to have access to the capital markets for financing on acceptable terms and conditions, particularly if our credit ratings are downgraded, which could limit our ability to repay our indebtedness and could cause liquidity issues
17Our exposure to exchange rate fluctuations on cross-border transactions and the translation of local currency results into U.S. dollars could negatively impact our results of operations
18Returns on pension and retirement plan assets and interest rate changes could affect our earnings and cash flows in future periods

Motorola Solutions (MSI) risk factors, FY2025 10-K

What the changes say

What changed since the prior 10-K

All 18 risk factors

Other Motorola Solutions 10-Ks