Highlighted items: The company has excluded the effects of highlighted items (and any reversals of highlighted items recorded in prior periods) from its non-GAAP operating expenses and net income measurements because the company believes that these historical items do not reflect expected future operating earnings or expenses and do not contribute to a meaningful evaluation of the company’s current operating performance or comparisons to the company’s past operating performance.
Share-based compensation expense: The company has excluded share-based compensation expense from its non-GAAP operating expenses and net income measurements. Although share-based compensation is a key incentive offered to the company’s employees and the company believes such compensation contributed to the revenue earned during the periods presented and also believes it will contribute to the generation of future period revenues, the company continues to evaluate its performance excluding share-based compensation expense primarily because it represents a significant non-cash expense. Share-based compensation expense will recur in future periods.
Intangible assets amortization expense: The company has excluded intangible assets amortization expense from its Non-GAAP operating expenses and net earnings measurements, primarily because it represents a non-cash expense and because the company evaluates its performance excluding intangible assets amortization expense. Amortization of intangible assets is consistent in amount and frequency but is significantly affected by the timing and size of the company’s acquisitions. Investors should note that the use of intangible assets contributed to the company’s revenues earned during the periods presented and will contribute to the company’s future period revenues as well. Intangible assets amortization expense will recur in future periods.
Details of the above items and reconciliations of the non-GAAP measurements to the corresponding GAAP measurements can be found at the end of this press release.
BUSINESS RISKS
This press release contains "forward-looking statements" within the
meaning of applicable federal securities law. These statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and generally include words such as
“believes,” “expects,” “intends,” “anticipates,” “estimates” and similar
expressions. The company can give no assurance that any actual or future
results or events discussed in these statements will be achieved. Any
forward-looking statements represent the company’s views only as of
today and should not be relied upon as representing the company’s views
as of any subsequent date. Readers are cautioned that such
forward-looking statements are subject to a variety of risks and
uncertainties that could cause the company’s actual results to differ
materially from the statements contained in this release. Such
forward-looking statements include, but are not limited to, Motorola
Solutions’ expected full-year non-GAAP tax rate, full-year cash tax rate
and financial outlook for the second quarter and full year of 2015,
including the impact of currency rates. Motorola Solutions cautions the
reader that the risk factors below, as well as those on pages 9 through
20 in Item 1A of Motorola Solutions, Inc.'s 2014 Annual Report on Form
10-K and in its other SEC filings available for free on the SEC’s
website at
www.sec.gov
and on Motorola Solutions’ website at
www.motorolasolutions.com,
could cause Motorola Solutions’ actual results to differ materially from
those estimated or predicted in the forward-looking statements. Many of
these risks and uncertainties cannot be controlled by Motorola Solutions
and factors that may impact forward-looking statements include, but are
not limited to: (1) the economic outlook for the government
communications industry; (2) the impact of foreign currency fluctuations
on the company; (3) the level of demand for the company's products; (4)
the company's ability to introduce new products and technologies in a
timely manner; (5) negative impact on the company's business from global
economic and political conditions, which may include: (i) continued
deferment or cancellation of purchase orders by customers; (ii) the
inability of customers to obtain financing for purchases of the
company's products; (iii) increased demand to provide vendor financing
to customers; (iv) increased financial pressures on third-party dealers,
distributors and retailers; (v) the viability of the company's suppliers
that may no longer have access to necessary financing; (vi) counterparty
failures negatively impacting the company’s financial position; (vii)
changes in the value of investments held by the company's pension plan
and other defined benefit plans, which could impact future required or
voluntary pension contributions; and (viii) the company’s ability to
access the capital markets on acceptable terms and conditions; (6) the
impact of a security breach or other significant disruption in the
company’s IT systems, those of our partners or suppliers or those we
sell to or operate or maintain for our customers; (7) the outcome of
ongoing and future tax matters; (8) the company's ability to purchase
sufficient materials, parts and components to meet customer demand,
particularly in light of global economic conditions and reductions in
the company’s purchasing power; (9) risks related to dependence on
certain key suppliers, subcontractors, third-party distributors and
other representatives; (10) the impact on the company's performance and
financial results from strategic acquisitions or divestitures; (11)
risks related to the company's manufacturing and business operations in
foreign countries; (12) the creditworthiness of the company's customers
and distributors, particularly purchasers of large infrastructure
systems; (13) exposure under large systems and managed services
contracts, including risks related to the fact that certain customers
require that the company build, own and operate their systems, often
over a multi-year period; (14) the ownership of certain logos,
trademarks, trade names and service marks including “MOTOROLA” by
Motorola Mobility Holdings, Inc.; (15) variability in income received
from licensing the company's intellectual property to others, as well as
expenses incurred when the company licenses intellectual property from
others; (16) unexpected liabilities or expenses, including unfavorable
outcomes to any pending or future litigation or regulatory or similar
proceedings; (17) the impact of the percentage of cash and cash
equivalents held outside of the United States; (18) the ability of the
company to pay future dividends due to possible adverse market
conditions or adverse impacts on the company’s cash flow; (19) the
ability of the company to repurchase shares under its repurchase program
due to possible adverse market conditions or adverse impacts on the
company’s cash flow; (20) the impact of changes in governmental
policies, laws or regulations; (21) negative consequences from the
company's outsourcing of various activities, including certain business
operations, information technology and administrative functions; (22)
the impact of the sale of the company’s enterprise legacy information
systems, including components of the enterprise resource planning (ERP)
system and the implementation of a new ERP system; and (23) the
company’s ability to return proceeds of the sale of the Enterprise
business to shareholders and the timing thereof. Motorola Solutions
undertakes no obligation to publicly update any forward-looking
statement or risk factor, whether as a result of new information, future
events or otherwise.