Definitions
* Amounts attributable to Motorola Solutions, Inc. common shareholders
** Non-GAAP financial information excludes from GAAP results the effects of stock-based compensation expense, intangible assets amortization expense and highlighted items
*** Total cash = Cash and cash equivalents + Sigma Fund and short-term investments
About Motorola Solutions
Motorola Solutions is a leading provider of mission-critical communication solutions and services for enterprise and government customers. Through leading-edge innovation and communications technology, it is a global leader that enables its customers to be their best in the moments that matter. Motorola Solutions trades on the New York Stock Exchange under the ticker “MSI.” To learn more, visit www.motorolasolutions.com. For ongoing news, please visit our newsroom or subscribe to our news feed.
MOTOROLA, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners. ©2014 Motorola Solutions, Inc. All rights reserved.
| GAAP-1 | ||||||
| Motorola Solutions, Inc. and Subsidiaries | ||||||
| Condensed Consolidated Statements of Operations | ||||||
| (In millions, except per share amounts) | ||||||
| Three Months Ended | ||||||
| December 31, 2013 | December 31, 2012 | |||||
| Net sales from products | $ | 1,776 | $ | 1,789 | ||
| Net sales from services | 728 | 652 | ||||
| Net sales | 2,504 | 2,441 | ||||
| Costs of products sales | 832 | 791 | ||||
| Costs of services sales | 458 | 421 | ||||
| Costs of sales | 1,290 | 1,212 | ||||
| Gross margin | 1,214 | 1,229 | ||||
| Selling, general and administrative expenses | 471 | 510 | ||||
| Research and development expenditures | 272 | 290 | ||||
| Other charges | 52 | (4) | ||||
| Intangibles amortization | 6 | 10 | ||||
| Operating earnings | 413 | 423 | ||||
| Other income (expense): | ||||||
| Interest expense, net: | (28) | (20) | ||||
| Gains on sales of investments and businesses, net | 3 | - | ||||
| Other | 3 | 4 | ||||
| Total other expense | (22) | (16) | ||||
| Earnings before income taxes | 391 | 407 | ||||
| Income tax expense | 48 | 71 | ||||
| Net earnings attributable to Motorola Solutions, Inc. | $ | 343 | $ | 336 | ||
|
Earnings per common share |
||||||
| Basic | $ | 1.33 | $ | 1.20 | ||
| Diluted | 1.31 | 1.18 | ||||
|
Weighted average common shares outstanding |
||||||
| Basic | 257.5 | 279.3 | ||||
| Diluted | 261.2 | 284.4 | ||||
| Percentage of Net Sales* | ||||||
| Net sales from products | 70.9% | 73.3% | ||||
| Net sales from services | 29.1% | 26.7% | ||||
| Net sales | 100% | 100% | ||||
| Costs of products sales | 46.8% | 44.2% | ||||
| Costs of services sales | 62.9% | 64.6% | ||||
| Costs of sales | 51.5% | 49.7% | ||||
| Gross margin | 48.5% | 50.3% | ||||
| Selling, general and administrative expenses | 18.8% | 20.9% | ||||
| Research and development expenditures | 10.9% | 11.9% | ||||
| Other charges | 2.1% | -0.2% | ||||
| Intangibles amortization | 0.2% | 0.4% | ||||
| Operating earnings | 16.5% | 17.3% | ||||
| Other income (expense): | ||||||
| Interest expense, net: | -1.1% | -0.8% | ||||
| Gains on sales of investments and businesses, net | 0.1% | 0.0% | ||||
| Other | 0.1% | 0.2% | ||||
| Total other expense | -0.9% | -0.7% | ||||
| Earnings before income taxes | 15.6% | 16.7% | ||||
| Income tax expense | 1.9% | 2.9% | ||||
| Net earnings attributable to Motorola Solutions, Inc. | 13.7% | 13.8% | ||||
| * Percentages may not add up due to rounding | ||||||
| GAAP-2 | |||||||||
| Motorola Solutions, Inc. and Subsidiaries | |||||||||
| Condensed Consolidated Statements of Operations | |||||||||
| (In millions, except per share amounts) | |||||||||
| Years Ended | |||||||||
| December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||
| Net sales from products | $ | 6,118 | $ | 6,363 | $ | 6,068 | |||
| Net sales from services | 2,578 | 2,335 | 2,135 | ||||||
| Net sales | 8,696 | 8,698 | 8,203 | ||||||
| Costs of products sales | 2,852 | 2,844 | 2,723 | ||||||
| Costs of services sales | 1,603 | 1,506 | 1,334 | ||||||
| Costs of sales | 4,455 | 4,350 | 4,057 | ||||||
| Gross margin | 4,241 | 4,348 | 4,146 | ||||||
| Selling, general and administrative expenses | 1,838 | 1,963 | 1,912 | ||||||
| Research and development expenditures | 1,055 | 1,075 | 1,035 | ||||||
| Other charges | 107 | 25 | 141 | ||||||
| Intangibles amortization | 26 | 29 | 200 | ||||||
| Operating earnings | 1,215 | 1,256 | 858 | ||||||
| Other income (expense): | |||||||||
| Interest expense, net: | (113) | (66) | (74) | ||||||
| Gains on sales of investments and businesses, net | 40 | 39 | 23 | ||||||
| Other | 3 | (14) | (69) | ||||||
| Total other expense | (70) | (41) | (120) | ||||||
| Earnings from continuing operations before income taxes | 1,145 | 1,215 | 738 | ||||||
| Income tax expense (benefit) | 40 | 337 | (3) | ||||||
| Earnings from continuing operations | 1,105 | 878 | 741 | ||||||
| Earnings from discontinued operations, net of tax | - | 3 | 411 | ||||||
| Net earnings | 1,105 | 881 | 1,152 | ||||||
| Less: Earnings (loss) attributable to noncontrolling interests | 6 | - | (6) | ||||||
| Net earnings attributable to Motorola Solutions, Inc. | $ | 1,099 | $ | 881 | $ | 1,158 | |||
| Amounts attributable to Motorola Solutions, Inc. common shareholders | |||||||||
| Earnings from continuing operations, net of tax | $ | 1,099 | $ | 878 | $ | 747 | |||
| Earnings from discontinued operations, net of tax | - | 3 | 411 | ||||||
| Net earnings attributable to Motorola Solutions, Inc. | $ | 1,099 | $ | 881 | $ | 1,158 | |||
|
Earnings per common share |
|||||||||
| Basic: | |||||||||
| Continuing operations | $ | 4.13 | $ | 3.01 | $ | 2.24 | |||
| Discontinued operations | - | - | 1.23 | ||||||
| $ | 4.13 | $ | 3.01 | $ | 3.47 | ||||
| Diluted: | |||||||||
| Continuing operations | $ | 4.06 | $ | 2.95 | $ | 2.20 | |||
| Discontinued operations | - | 0.01 | 1.21 | ||||||
| $ | 4.06 | $ | 2.96 | $ | 3.41 | ||||
|
Weighted average common shares outstanding |
|||||||||
| Basic | 266.0 | 292.1 | 333.8 | ||||||
| Diluted | 270.5 | 297.4 | 339.7 | ||||||
| Percentage of Net Sales* | |||||||||
| Net sales from products | 70.4% | 73.2% | 74.0% | ||||||
| Net sales from services | 29.6% | 26.8% | 26.0% | ||||||
| Net sales | 100% | 100% | 100% | ||||||
| Costs of products sales | 46.6% | 44.7% | 44.9% | ||||||
| Costs of services sales | 62.2% | 64.5% | 62.5% | ||||||
| Costs of sales | 51.2% | 50.0% | 49.5% | ||||||
| Gross margin |
48.8% |
50.0% | 50.5% | ||||||
| Selling, general and administrative expenses | 21.1% | 22.6% | 23.3% | ||||||
| Research and development expenditures | 12.1% | 12.4% | 12.6% | ||||||
| Other charges | 1.2% | 0.3% | 1.7% | ||||||
| Intangibles amortization | 0.3% | 0.3% | 2.4% | ||||||
| Operating earnings | 14.0% | 14.4% | 10.5% | ||||||
| Other income (expense): | |||||||||
| Interest expense, net: | -1.3% | -0.8% | -0.9% | ||||||
| Gains on sales of investments and businesses, net | 0.5% | 0.4% | 0.3% | ||||||
| Other | 0.0% | -0.2% | -0.8% | ||||||
| Total other expense | -0.8% | -0.5% | -1.5% | ||||||
| Earnings from continuing operations before income taxes | 13.2% | 14.0% | 9.0% | ||||||
| Income tax expense (benefit) | 0.5% | 3.9% | 0.0% | ||||||
| Earnings from continuing operations | 12.7% | 10.1% | 9.0% | ||||||
| Earnings from discontinued operations, net of tax | 0.0% | 0.0% | 5.0% | ||||||
| Net earnings | 12.7% | 10.1% | 14.0% | ||||||
| Less: Earnings (loss) attributable to noncontrolling interests | 0.1% | 0.0% | -0.1% | ||||||
| Net earnings attributable to Motorola Solutions, Inc. | 12.6% | 10.1% | 14.1% | ||||||
| * Percentages may not add up due to rounding | |||||||||
| GAAP-3 | ||||||
| Motorola Solutions, Inc. and Subsidiaries | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (In millions) | ||||||
| December 31, | December 31, | |||||
| 2013 | 2012 | |||||
| Assets | ||||||
| Cash and cash equivalents | $ | 3,225 | $ | 1,468 | ||
| Sigma Fund and short-term investments | 2 | 2,135 | ||||
| Accounts receivable, net | 1,920 | 1,881 | ||||
| Inventories, net | 522 | 513 | ||||
| Deferred income taxes | 584 | 604 | ||||
| Other current assets | 767 | 800 | ||||
| Total current assets | 7,020 | 7,401 | ||||
| Property, plant and equipment, net | 810 | 839 | ||||
| Investments | 251 | 240 | ||||
| Deferred income taxes | 2,076 | 2,416 | ||||
| Goodwill | 1,509 | 1,510 | ||||
| Other assets | 185 | 273 | ||||
| Total assets | $ | 11,851 | $ | 12,679 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current portion of long-term debt | $ | 4 | $ | 4 | ||
| Accounts payable | 814 | 705 | ||||
| Accrued liabilities | 2,402 | 2,626 | ||||
| Total current liabilities | 3,220 | 3,335 | ||||
| Long-term debt | 2,457 | 1,859 | ||||
| Other liabilities | 2,485 | 4,195 | ||||
| Total Motorola Solutions, Inc. stockholders' equity | 3,659 | 3,265 | ||||
| Noncontrolling interests | 30 | 25 | ||||
| Total liabilities and stockholders' equity | $ | 11,851 | $ | 12,679 | ||
| Total cash* | $ | 3,227 | $ | 3,603 | ||
| Net cash** | 766 | 1,740 | ||||
| *Total cash = Cash and cash equivalents + Sigma Fund and short-term investments | ||||||
| **Net cash = Total cash - Current portion of long-term debt - Long-term debt | ||||||
| GAAP-4 | ||||||
| Motorola Solutions, Inc. and Subsidiaries | ||||||
| Condensed Consolidated Statements of Cash Flows | ||||||
| (In millions) | ||||||
| Three Months Ended | ||||||
| December 31, 2013 | December 31, 2012 | |||||
| Operating | ||||||
| Net earnings attributable to Motorola Solutions, Inc. | $ | 343 | $ | 336 | ||
| Adjustments to reconcile Earnings to Net cash provided by operating activities: | ||||||
| Depreciation and amortization | 60 | 57 | ||||
| Non-cash other income | (3) | (1) | ||||
| Share-based compensation expense | 37 | 45 | ||||
| Gains on sales of investments and businesses, net | (3) | - | ||||
| Deferred income taxes | 11 | 39 | ||||
| Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||
| Accounts receivable | (95) | (108) | ||||
| Inventories | - | 48 | ||||
| Other current assets | 28 | 29 | ||||
| Accounts payable and accrued liabilities | 372 | 121 | ||||
| Other assets and liabilities | (9) | (2) | ||||
| Net cash provided by operating activities | 741 | 564 | ||||
| Investing | ||||||
| Acquisitions and investments, net | (38) | (170) | ||||
| Proceeds from sales of investments and businesses, net | 13 | - | ||||
| Capital expenditures | (66) | (47) | ||||
| Proceeds from sales of property, plant and equipment | 51 | 47 | ||||
| Proceeds from sales (purchases) of Sigma Fund and short-term investments, net | 1,167 | (375) | ||||
| Net cash provided by (used for) investing activities | 1,127 | (545) | ||||
| Financing | ||||||
| Repayment of debt | (1) | (1) | ||||
| Issuance of common stock | 56 | 54 | ||||
| Repurchase of common stock | (362) | (326) | ||||
| Excess tax benefit from share-based compensation | 5 | 3 | ||||
| Payments of dividends | (80) | (73) | ||||
| Distributions from discontinued operations | - | - | ||||
| Net cash used for financing activities | (382) | (343) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 18 | 13 | ||||
| Net increase (decrease) in cash and cash equivalents | 1,504 | (311) | ||||
| Cash and cash equivalents, beginning of period | 1,721 | 1,779 | ||||
| Cash and cash equivalents, end of period | $ | 3,225 | $ | 1,468 | ||
| Financial Ratios: | ||||||
| Free cash flow* | $ | 675 | $ | 517 | ||
| *Free cash flow = Net cash provided by operating activities - Capital expenditures | ||||||
| GAAP-5 | |||||||||
| Motorola Solutions, Inc. and Subsidiaries | |||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||
| (In millions) | |||||||||
| Years Ended | |||||||||
| December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||
| Operating | |||||||||
| Net earnings attributable to Motorola Solutions, Inc. | $ | 1,099 | $ | 881 | $ | 1,158 | |||
| Earnings (loss) attributable to noncontrolling interests | 6 | - | (6) | ||||||
| Net earnings | 1,105 | 881 | 1,152 | ||||||
| Earnings from discontinued operations, net of tax | - | 3 | 411 | ||||||
| Earnings from continuing operations, net of tax | 1,105 | 878 | 741 | ||||||
| Adjustments to reconcile Earnings from continuing operations to Net cash provided by operating activities: | |||||||||
| Depreciation and amortization | 228 | 208 | 366 | ||||||
| Non-cash other charges (income) | (12) | 11 | 34 | ||||||
| Share-based compensation expense | 153 | 184 | 168 | ||||||
| Gains on sales of investments and businesses, net | (40) | (39) | (23) | ||||||
| Loss from the extinguishment of long term debt | - | 6 | 81 | ||||||
| Deferred income taxes | (231) | 242 | 63 | ||||||
| Changes in assets and liabilities, net of effects of acquisitions and dispositions: | |||||||||
| Accounts receivable | (66) | 81 | (250) | ||||||
| Inventories | (10) | (3) | (14) | ||||||
| Other current assets | 51 | (118) | 61 | ||||||
| Accounts payable and accrued liabilities | (201) | (162) | (191) | ||||||
| Other assets and liabilities | (33) | (220) | (188) | ||||||
| Net cash provided by operating activities from continuing operations | 944 | 1,068 | 848 | ||||||
| Investing | |||||||||
| Acquisitions and investments, net | (65) | (109) | (32) | ||||||
| Proceeds from (used for) sales of investments and businesses, net | 67 | (38) | 1,124 | ||||||
| Capital expenditures | (191) | (187) | (186) | ||||||
| Proceeds from sales of property, plant and equipment | 66 | 56 | 6 | ||||||
| Proceeds from sales of Sigma Fund and short-term investments, net | 2,133 | 1,075 | 1,514 | ||||||
| Net cash provided by investing activities from continuing operations | 2,010 | 797 | 2,426 | ||||||
| Financing | |||||||||
| Repayment of debt | (4) | (413) | (1,219) | ||||||
| Net proceeds from issuance of debt | 593 | 747 | - | ||||||
| Issuance of common stock | 165 | 133 | 192 | ||||||
| Repurchase of common stock | (1,694) | (2,438) | (1,110) | ||||||
| Excess tax benefit from share-based compensation | 25 | 20 | 42 | ||||||
| Payments of dividends | (292) | (270) | (72) | ||||||
| Contributions to Motorola Mobility | - | (73) | (3,425) | ||||||
| Distributions from (to) discontinued operations | - | (11) | 64 | ||||||
| Net cash used for financing activities from continuing operations | (1,207) | (2,305) | (5,528) | ||||||
| Discontinued Operations | |||||||||
| Net cash provided by operating activities from discontinued operations | - | 2 | 26 | ||||||
| Net cash used for investing activities from discontinued operations | - | - | (8) | ||||||
| Net cash provided by (used for) financing activities from discontinued operations | - | 11 | (64) | ||||||
| Effect of exchange rate changes on cash and cash equivalents from discontinued operations | - | (13) | 46 | ||||||
| Net cash provided by discontinued operations | - | - | - | ||||||
| Effect of exchange rate changes on cash and cash equivalents from continuing operations | 10 | 27 | (73) | ||||||
| Net increase (decrease) in cash and cash equivalents | 1,757 | (413) | (2,327) | ||||||
| Cash and cash equivalents, beginning of period | 1,468 | 1,881 | 4,208 | ||||||
| Cash and cash equivalents, end of period | $ | 3,225 | $ | 1,468 | $ | 1,881 | |||
| Financial Ratios: | |||||||||
| Free cash flow* | $ | 753 | $ | 881 | $ | 662 | |||
| *Free cash flow = Net cash provided by operating activities - Capital expenditures | |||||||||
| GAAP-6 | ||||||||||||||||
| Motorola Solutions, Inc. and Subsidiaries | ||||||||||||||||
| Segment Information | ||||||||||||||||
| (In millions) | ||||||||||||||||
| Net Sales | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||
| Government | $ | 1,768 | $ | 1,708 | 4% | $ | 6,030 | $ | 5,989 | 1% | ||||||
| Enterprise | 736 | 733 | 0% | 2,666 | 2,709 | -2% | ||||||||||
| Company Total | $ | 2,504 | $ | 2,441 | 3% | $ | 8,696 | $ | 8,698 | 0% | ||||||
| Operating Earnings | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||
| Government | $ | 332 | $ | 346 | -4% | $ | 979 | $ | 965 | 1% | ||||||
| Enterprise | 81 | 77 | 5% | 236 | 291 | -19% | ||||||||||
| Company Total | $ | 413 | $ | 423 | -2% | $ | 1,215 | $ | 1,256 | -3% | ||||||
| Operating Earnings % | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Government | 18.8% | 20.3% | 16.2% | 16.1% | ||||||||||||
| Enterprise | 11.0% | 10.5% | 8.9% | 10.7% | ||||||||||||
| Company Total | 16.5% | 17.3% | 14.0% | 14.4% | ||||||||||||
| Non-GAAP-1 | |||||||||||||||||||
| Motorola Solutions, Inc. and Subsidiaries | |||||||||||||||||||
| Non-GAAP Adjustments (Intangibles Amortization Expense, Stock-Based Compensation Expense and Highlighted Items) | |||||||||||||||||||
| Q1 2013 | |||||||||||||||||||
| PBT | Tax | PAT | |||||||||||||||||
| Highlighted Items | Statement Line | (Inc)/Exp | Inc/(Exp) | (Inc)/Exp | EPS impact | ||||||||||||||
| Intangibles amortization expense | Intangibles amortization | $ | 6 | $ | 2 | $ | 4 | $ | 0.01 | ||||||||||
| Stock-based compensation expense | Cost of sales, SG&A and R&D | 45 | 14 | 31 | 0.11 | ||||||||||||||
| Reorganization of business charges | Cost of sales and Other charges | 11 | 3 | 8 | 0.03 | ||||||||||||||
| Tax benefit for prior period R&D tax credit | Income tax expense | - | 12 | (12 | ) | (0.04 | ) | ||||||||||||
| Reduction in deferred tax asset valuation allowance | Income tax expense | - | 11 | (11 | ) | (0.04 | ) | ||||||||||||
| Reduction in deferred tax liability for undistributed earnings | Income tax expense | - | 25 | (25 | ) | (0.09 | ) | ||||||||||||
| Total impact on Net earnings | $ | 62 | $ | 67 | $ | (5 | ) | $ | (0.02 | ) | |||||||||
| Q2 2013 | |||||||||||||||||||
| PBT | Tax | PAT | |||||||||||||||||
| Highlighted Items | Statement Line | (Inc)/Exp | Inc/(Exp) | (Inc)/Exp | EPS impact | ||||||||||||||
| Intangibles amortization expense | Intangibles amortization | $ | 6 | $ | 2 | $ | 4 | $ | 0.01 | ||||||||||
| Stock-based compensation expense | Cost of sales, SG&A and R&D | 34 | 10 | 24 | 0.09 | ||||||||||||||
| Reorganization of business charges | Cost of sales and Other charges | 28 | 6 | 22 | 0.08 | ||||||||||||||
| Total impact on Net earnings | $ | 68 | $ | 18 | $ | 50 | $ | 0.18 | |||||||||||
| Q3 2013 | |||||||||||||||||||
| PBT | Tax | PAT | |||||||||||||||||
| Highlighted Items | Statement Line | (Inc)/Exp | Inc/(Exp) | (Inc)/Exp | EPS impact | ||||||||||||||
| Intangibles amortization expense | Intangibles amortization | $ | 8 | $ | 2 | $ | 6 | $ | 0.02 | ||||||||||
| Stock-based compensation expense | Cost of sales, SG&A and R&D | 37 | 12 | 25 | 0.10 | ||||||||||||||
| Reorganization of business charges | Cost of sales and Other charges | 32 | 10 | 22 | 0.08 | ||||||||||||||
| Gain on sale of investment | Gains on sales of investments | (23 | ) | (8 | ) | (15 | ) | (0.06 | ) | ||||||||||
| Result of tax rate change in foreign subsidiary | Income tax | - | (6 | ) | 6 | 0.02 | |||||||||||||
| Total impact on Net earnings | $ | 54 | $ | 10 | $ | 44 | $ | 0.16 | |||||||||||
| Q4 2013 | |||||||||||||||||||
| PBT | Tax | PAT | |||||||||||||||||
| Highlighted Items | Statement Line | (Inc)/Exp | Inc/(Exp) | (Inc)/Exp | EPS impact | ||||||||||||||
| Intangibles amortization expense | Intangibles amortization | $ | 6 | $ | 2 | $ | 4 | 0.02 | |||||||||||
| Stock-based compensation expense | Cost of sales, SG&A and R&D | 37 | 11 | 26 | 0.10 | ||||||||||||||
| Reorganization of business charges | Cost of sales and Other charges | 63 | 21 | 42 | 0.16 | ||||||||||||||
| Tax expense related to Sigma termination | Income tax (expense) benefit | - | (20 | ) | 20 | 0.08 | |||||||||||||
| Total impact on Net earnings | $ | 106 | $ | 14 | $ | 92 | $ | 0.36 | |||||||||||
| FY 2013 | |||||||||||||||||||
| PBT | Tax | PAT | |||||||||||||||||
| Highlighted Items | Statement Line | (Inc)/Exp | Inc/(Exp) | (Inc)/Exp | EPS impact | ||||||||||||||
| Intangibles amortization expense | Intangibles amortization | $ | 26 | $ | 8 | $ | 18 | 0.06 | |||||||||||
| Stock-based compensation expense | Cost of sales, SG&A and R&D | 153 | 47 | 106 | 0.39 | ||||||||||||||
| Reorganization of business charges | Cost of sales and Other charges | 133 | 39 | 94 | 0.35 | ||||||||||||||
| Gain on sale of investment | Gains on sales of investments | (23 | ) | (8 | ) | (15 | ) | (0.06 | ) | ||||||||||
| Tax expense related to Sigma termination | Income tax (expense) benefit | - | (20 | ) | 20 | 0.08 | |||||||||||||
| Result of tax rate change in foreign subsidiary | Income tax (expense) benefit | - | (6 | ) | 6 | 0.02 | |||||||||||||
| Reduction in deferred tax asset valuation allowance | Income tax (expense) benefit | - | 11 | (11 | ) | (0.04 | ) | ||||||||||||
| Tax benefit for prior period R&D tax credit | Income tax (expense) benefit | - | 12 | (12 | ) | (0.04 | ) | ||||||||||||
| Reduction in deferred tax liability for undistributed earnings | Income tax (expense) benefit | - | 25 | (25 | ) | (0.09 | ) | ||||||||||||
| Total impact on Net earnings | $ | 289 | $ | 108 | $ | 181 | $ | 0.67 | |||||||||||
| Non-GAAP-2 | ||||||||||||||||||||||
| Motorola Solutions, Inc. and Subsidiaries | ||||||||||||||||||||||
| Non-GAAP Segment Information | ||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||
| Net Sales | ||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| 2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||
| Government | $ | 1,768 | $ | 1,708 | 4 | % | $ | 6,030 | $ | 5,989 | 1 | % | ||||||||||
| Enterprise | 736 | 733 | 0 | % | 2,666 | 2,709 | -2 | % | ||||||||||||||
| Company Total | $ | 2,504 | $ | 2,441 | 3 | % | $ | 8,696 | $ | 8,698 | 0 | % | ||||||||||
| Non-GAAP Operating Earnings | ||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| 2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||||||||||||
| Government | $ | 398 | $ | 373 | 7 | % | $ | 1,169 | $ | 1,108 | 6 | % | ||||||||||
| Enterprise | 121 | 103 | 17 | % | 358 | 395 | -9 | % | ||||||||||||||
| Company Total | $ | 519 | $ | 476 | 9 | % | $ | 1,527 | $ | 1,503 | 2 | % | ||||||||||
| Non-GAAP Operating Earnings % | ||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
| Government | 22.5 | % | 21.8 | % | 19.4 | % | 18.5 | % | ||||||||||||||
| Enterprise | 16.4 | % | 14.1 | % | 13.4 | % | 14.6 | % | ||||||||||||||
| Company Total | 20.7 | % | 19.5 | % | 17.6 | % | 17.3 | % | ||||||||||||||
| Non-GAAP-3 | ||||||||||||
| Motorola Solutions, Inc. and Subsidiaries | ||||||||||||
| Operating Earnings after Non-GAAP Adjustments | ||||||||||||
| Q1 2013 | ||||||||||||
| TOTAL | Government | Enterprise | ||||||||||
| Net sales | $ | 1,973 | $ | 1,346 | $ | 627 | ||||||
| Operating earnings ("OE") | $ | 216 | $ | 180 | $ | 36 | ||||||
| Above-OE non-GAAP adjustments: | ||||||||||||
| Stock-based compensation expense | 45 | 30 | 15 | |||||||||
| Reorganization of business charges | 11 | 7 | 4 | |||||||||
| Intangibles amortization expense | 6 | - | 6 | |||||||||
| Total above-OE non-GAAP adjustments | 62 | 37 | 25 | |||||||||
| Operating earnings after non-GAAP adjustments | $ | 278 | $ | 217 | $ | 61 | ||||||
| Operating earnings as a percentage of net sales - GAAP | 10.9 | % | 13.4 | % | 5.7 | % | ||||||
| Operating earnings as a percentage of net sales - after non-GAAP adjustments | 14.1 | % | 16.1 | % | 9.7 | % | ||||||
| Q2 2013 | ||||||||||||
| TOTAL | Government | Enterprise | ||||||||||
| Net sales | $ | 2,107 | $ | 1,451 | $ | 656 | ||||||
| Operating earnings | $ | 266 | $ | 215 | $ | 51 | ||||||
| Above-OE non-GAAP adjustments: | ||||||||||||
| Stock-based compensation expense | 34 | 23 | 11 | |||||||||
| Reorganization of business charges | 28 | 18 | 10 | |||||||||
| Intangibles amortization expense | 6 | - | 6 | |||||||||
| Total above-OE non-GAAP adjustments | 68 | 41 | 27 | |||||||||
| Operating earnings after non-GAAP adjustments | $ | 334 | $ | 256 | $ | 78 | ||||||
| Operating earnings as a percentage of net sales - GAAP | 12.6 | % | 14.8 | % | 7.8 | % | ||||||
| Operating earnings as a percentage of net sales - after non-GAAP adjustments | 15.9 | % | 17.6 | % | 11.9 | % | ||||||
| Q3 2013 | ||||||||||||
| TOTAL | Government | Enterprise | ||||||||||
| Net sales | $ | 2,112 | $ | 1,465 | $ | 647 | ||||||
| Operating earnings | $ | 320 | $ | 252 | $ | 68 | ||||||
| Above-OE non-GAAP adjustments: | ||||||||||||
|
Stock-based compensation expense |
37 | 25 | 12 | |||||||||
| Reorganization of business charges | 32 | 21 | 11 | |||||||||
| Intangibles amortization expense | 8 | 1 | 7 | |||||||||
| Total above-OE non-GAAP adjustments | 77 | 47 | 30 | |||||||||
| Operating earnings after non-GAAP adjustments | $ | 397 | $ | 299 | $ | 98 | ||||||
| Operating earnings as a percentage of net sales - GAAP | 15.2 | % | 17.2 | % | 10.5 | % | ||||||
| Operating earnings as a percentage of net sales - after non-GAAP adjustments | 18.8 | % | 20.4 | % | 15.1 | % | ||||||
| Q4 2013 | ||||||||||||
| TOTAL | Government | Enterprise | ||||||||||
| Net sales | $ | 2,504 | $ | 1,768 | $ | 736 | ||||||
| Operating earnings | $ | 413 | $ | 332 | $ | 81 | ||||||
| Above-OE non-GAAP adjustments: | ||||||||||||
| Stock-based compensation expense | 37 | 25 | 12 | |||||||||
| Reorganization of business charges | 63 | 41 | 22 | |||||||||
| Intangibles amortization expense | 6 | - | 6 | |||||||||
| Total above-OE non-GAAP adjustments | 106 | 66 | 40 | |||||||||
| Operating earnings after non-GAAP adjustments | $ | 519 | $ | 398 | $ | 121 | ||||||
| Operating earnings as a percentage of net sales - GAAP | 16.5 | % | 18.8 | % | 11.0 | % | ||||||
| Operating earnings as a percentage of net sales - after non-GAAP adjustments | 20.7 | % | 22.5 | % | 16.4 | % | ||||||
| FY 2013 | ||||||||||||
| TOTAL | Government | Enterprise | ||||||||||
| Net sales | $ | 8,696 | $ | 6,030 | $ | 2,666 | ||||||
| Operating earnings | $ | 1,215 | $ | 979 | $ | 236 | ||||||
| Above-OE non-GAAP adjustments: | ||||||||||||
| Stock-based compensation expense | 153 | 103 | 50 | |||||||||
| Reorganization of business charges | 133 | 86 | 47 | |||||||||
| Intangibles amortization expense | 26 | 1 | 25 | |||||||||
| Total above-OE non-GAAP adjustments | 312 | 190 | 122 | |||||||||
| Operating earnings after non-GAAP adjustments | $ | 1,527 | $ | 1,169 | $ | 358 | ||||||
| Operating earnings as a percentage of net sales - GAAP | 14.0 | % | 16.2 | % | 8.9 | % | ||||||
| Operating earnings as a percentage of net sales - after non-GAAP adjustments | 17.6 | % | 19.4 | % | 13.4 | % | ||||||
