DEFINITIONS
1 Free cash flow represents operating cash flow less capital expenditures
2 Q4 Non-GAAP financial information excludes the after-tax impact of approximately $0.60 per diluted share related to share-based compensation, intangible assets amortization expense and highlighted items for the fourth-quarter. Details on these non-GAAP adjustments and the use of non-GAAP measures are included later in this news release.
3 Net debt represents cash and cash equivalents less long-term debt, including current portion
ABOUT MOTOROLA SOLUTIONS
Motorola Solutions (NYSE: MSI) creates innovative, mission-critical communication solutions and services that help public safety and commercial customers build safer cities and thriving communities. For ongoing news, visit www.motorolasolutions.com/newsroom or subscribe to a 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. ©2017 Motorola Solutions, Inc. All rights reserved.
| GAAP-1 | ||||||||
| Motorola Solutions, Inc. and Subsidiaries | ||||||||
| Consolidated Statements of Operations | ||||||||
| (In millions, except per share amounts) | ||||||||
| Three Months Ended | ||||||||
| December 31, 2016 | December 31, 2015 | |||||||
| Net sales from products | $ | 1,226 | $ | 1,125 | ||||
| Net sales from services | 657 | 557 | ||||||
| Net sales | 1,883 | 1,682 | ||||||
| Costs of products sales | 525 | 485 | ||||||
| Costs of services sales | 430 | 359 | ||||||
| Costs of sales | 955 | 844 | ||||||
| Gross margin | 928 | 838 | ||||||
| Selling, general and administrative expenses | 277 | 252 | ||||||
| Research and development expenditures | 142 | 152 | ||||||
| Other charges | 76 | 43 | ||||||
| Intangibles amortization | 30 | 2 | ||||||
| Operating earnings | 403 | 389 | ||||||
| Other income (expense): | ||||||||
| Interest expense, net | (48 | ) | (51 | ) | ||||
| Gains on sales of investments and businesses, net | 7 | 47 | ||||||
| Other | — | (8 | ) | |||||
| Total other expense | (41 | ) | (12 | ) | ||||
| Earnings from continuing operations before income taxes | 362 | 377 | ||||||
| Income tax expense | 118 | 99 | ||||||
| Earnings from continuing operations | 244 | 278 | ||||||
| Earnings from discontinued operations, net of tax | — | 2 | ||||||
| Net earnings | 244 | 280 | ||||||
| Less: Earnings attributable to noncontrolling interests | 1 | 1 | ||||||
| Net earnings attributable to Motorola Solutions, Inc. | $ | 243 | $ | 279 | ||||
| Amounts attributable to Motorola Solutions, Inc. common stockholders: | ||||||||
| Earnings from continuing operations, net of tax | $ | 243 | $ | 277 | ||||
| Earnings from discontinued operations, net of tax | — | 2 | ||||||
| Net earnings attributable to Motorola Solutions, Inc. | $ | 243 | $ | 279 | ||||
|
Earnings per common share: |
||||||||
| Basic: | ||||||||
| Continuing operations | $ | 1.47 | $ | 1.58 | ||||
| Discontinued operations | — | 0.02 | ||||||
| $ | 1.47 | $ | 1.60 | |||||
| Diluted: | ||||||||
| Continuing operations | $ | 1.43 | $ | 1.56 | ||||
| Discontinued operations | — | 0.01 | ||||||
| $ | 1.43 | $ | 1.57 | |||||
|
Weighted average common shares outstanding: |
||||||||
| Basic | 165.4 | 174.9 | ||||||
| Diluted | 170.4 | 177.5 | ||||||
| Percentage of Net Sales* | ||||||||
| Net sales from products | 65.1 | % | 66.9 | % | ||||
| Net sales from services | 34.9 | % | 33.1 | % | ||||
| Net sales | 100.0 | % | 100.0 | % | ||||
| Costs of products sales | 42.8 | % | 43.1 | % | ||||
| Costs of services sales | 65.4 | % | 64.5 | % | ||||
| Costs of sales | 50.7 | % | 50.2 | % | ||||
| Gross margin | 49.3 | % | 49.8 | % | ||||
| Selling, general and administrative expenses | 14.7 | % | 15.0 | % | ||||
| Research and development expenditures | 7.5 | % | 9.0 | % | ||||
| Other charges | 4.0 | % | 2.6 | % | ||||
| Intangibles amortization | 1.6 | % | 0.1 | % | ||||
| Operating earnings | 21.4 | % | 23.1 | % | ||||
| Other income (expense): | ||||||||
| Interest expense, net | (2.5 | )% | (3.0 | )% | ||||
| Gains on sales of investments and businesses, net | 0.4 | % | 2.8 | % | ||||
| Other | — | % | (0.5 | )% | ||||
| Total other expense | (2.2 | )% | (0.7 | )% | ||||
| Earnings from continuing operations before income taxes | 19.2 | % | 22.4 | % | ||||
| Income tax expense | 6.3 | % | 5.9 | % | ||||
| Earnings from continuing operations | 13.0 | % | 16.5 | % | ||||
| Earnings from discontinued operations, net of tax | — | % | 0.1 | % | ||||
| Net earnings | 13.0 | % | 16.6 | % | ||||
| Less: Earnings attributable to noncontrolling interests | 0.1 | % | 0.1 | % | ||||
| Net earnings attributable to Motorola Solutions, Inc. | 12.9 | % | 16.6 | % | ||||
| * Percentages may not add up due to rounding | ||||||||
| GAAP-2 | ||||||||||||
| Motorola Solutions, Inc. and Subsidiaries | ||||||||||||
| Consolidated Statements of Operations | ||||||||||||
| (In millions, except per share amounts) | ||||||||||||
| Years Ended | ||||||||||||
| December 31, 2016 | December 31, 2015 | December 31, 2014 | ||||||||||
| Net sales from products | $ | 3,649 | $ | 3,676 | $ | 3,807 | ||||||
| Net sales from services | 2,389 | 2,019 | 2,074 | |||||||||
| Net sales | 6,038 | 5,695 | 5,881 | |||||||||
| Costs of products sales | 1,649 | 1,625 | 1,678 | |||||||||
| Costs of services sales | 1,520 | 1,351 | 1,372 | |||||||||
| Costs of sales | 3,169 | 2,976 | 3,050 | |||||||||
| Gross margin | 2,869 | 2,719 | 2,831 | |||||||||
| Selling, general and administrative expenses | 1,000 | 1,021 | 1,184 | |||||||||
| Research and development expenditures | 553 | 620 | 681 | |||||||||
| Other charges | 136 | 76 | 1,968 | |||||||||
| Intangibles amortization | 113 | 8 | 4 | |||||||||
| Operating earnings (loss) | 1,067 | 994 | (1,006 | ) | ||||||||
| Other income (expense): | ||||||||||||
| Interest expense, net | (205 | ) | (173 | ) | (126 | ) | ||||||
| Gains (losses) on sales of investments and businesses, net | (6 | ) | 107 | 5 | ||||||||
| Other | (12 | ) | (11 | ) | (34 | ) | ||||||
| Total other expense | (223 | ) | (77 | ) | (155 | ) | ||||||
| Earnings (loss) from continuing operations before income taxes | 844 | 917 | (1,161 | ) | ||||||||
| Income tax expense (benefit) | 282 | 274 | (465 | ) | ||||||||
| Earnings (loss) from continuing operations | 562 | 643 | (696 | ) | ||||||||
| Earnings (loss) from discontinued operations, net of tax | — | (30 | ) | 1,996 | ||||||||
| Net earnings | 562 | 613 | 1,300 | |||||||||
| Less: Earnings attributable to noncontrolling interests | 2 | 3 | 1 | |||||||||
| Net earnings attributable to Motorola Solutions, Inc. | $ | 560 | $ | 610 | $ | 1,299 | ||||||
| Amounts attributable to Motorola Solutions, Inc. common stockholders: | ||||||||||||
| Earnings (loss) from continuing operations, net of tax | $ | 560 | $ | 640 | $ | (697 | ) | |||||
| Earnings (loss) from discontinued operations, net of tax | — | (30 | ) | 1,996 | ||||||||
| Net earnings attributable to Motorola Solutions, Inc. | $ | 560 | $ | 610 | $ | 1,299 | ||||||
|
Earnings (loss) per common share: |
||||||||||||
| Basic: | ||||||||||||
| Continuing operations | $ | 3.30 | $ | 3.21 | $ | (2.84 | ) | |||||
| Discontinued operations | — | (0.15 | ) | 8.13 | ||||||||
| $ | 3.30 | $ | 3.06 | $ | 5.29 | |||||||
| Diluted: | ||||||||||||
| Continuing operations | $ | 3.24 | $ | 3.17 | $ | (2.84 | ) | |||||
| Discontinued operations | — | (0.15 | ) | 8.13 | ||||||||
| $ | 3.24 | $ | 3.02 | $ | 5.29 | |||||||
|
Weighted average common shares outstanding: |
||||||||||||
| Basic | 169.6 | 199.6 | 245.6 | |||||||||
| Diluted | 173.1 | 201.8 | 245.6 | |||||||||
| Percentage of Net Sales* | ||||||||||||
| Net sales from products | 60.4 | % | 64.5 | % | 64.7 | % | ||||||
| Net sales from services | 39.6 | % | 35.5 | % | 35.3 | % | ||||||
| Net sales | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
| Costs of products sales | 45.2 | % | 44.2 | % | 44.1 | % | ||||||
| Costs of services sales | 63.6 | % | 66.9 | % | 66.2 | % | ||||||
| Costs of sales | 52.5 | % | 52.3 | % | 51.9 | % | ||||||
| Gross margin | 47.5 | % | 47.7 | % | 48.1 | % | ||||||
| Selling, general and administrative expenses | 16.6 | % | 17.9 | % | 20.1 | % | ||||||
| Research and development expenditures | 9.2 | % | 10.9 | % | 11.6 | % | ||||||
| Other charges | 2.3 | % | 1.3 | % | 33.5 | % | ||||||
| Intangibles amortization | 1.9 | % | 0.1 | % | 0.1 | % | ||||||
| Operating earnings (loss) | 17.7 | % | 17.5 | % | (17.1 | )% | ||||||
| Other income (expense): | ||||||||||||
| Interest expense, net | (3.4 | )% | (3.0 | )% | (2.1 | )% | ||||||
| Gains (losses) on sales of investments and businesses, net | (0.1 | )% | 1.9 | % | 0.1 | % | ||||||
| Other | (0.2 | )% | (0.2 | )% | (0.6 | )% | ||||||
| Total other expense | (3.7 | )% | (1.4 | )% | (2.6 | )% | ||||||
| Earnings (loss) from continuing operations before income taxes | 14.0 | % | 16.1 | % | (19.7 | )% | ||||||
| Income tax expense (benefit) | 4.7 | % | 4.8 | % | (7.9 | )% | ||||||
| Earnings (loss) from continuing operations | 9.3 | % | 11.3 | % | (11.8 | )% | ||||||
| Earnings (loss) from discontinued operations, net of tax | — | % | (0.5 | )% | 33.9 | % | ||||||
| Net earnings | 9.3 | % | 10.8 | % | 22.1 | % | ||||||
| Less: Earnings attributable to noncontrolling interests | — | % | 0.1 | % | — | % | ||||||
| Net earnings attributable to Motorola Solutions, Inc. | 9.3 | % | 10.7 | % | 22.1 | % | ||||||
| * Percentages may not add up due to rounding | ||||||||||||
| GAAP-3 | ||||||||
| Motorola Solutions, Inc. and Subsidiaries | ||||||||
| Consolidated Balance Sheets | ||||||||
| (In millions) | ||||||||
| December 31, 2016 | December 31, 2015 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 1,030 | $ | 1,980 | ||||
| Accounts receivable, net | 1,372 | 1,362 | ||||||
| Inventories, net | 273 | 296 | ||||||
| Other current assets | 755 | 954 | ||||||
| Current assets held for disposition | — | 27 | ||||||
| Total current assets | 3,430 | 4,619 | ||||||
| Property, plant and equipment, net | 789 | 487 | ||||||
| Investments | 238 | 231 | ||||||
| Deferred income taxes | 2,219 | 2,278 | ||||||
| Goodwill | 728 | 420 | ||||||
| Other assets | 1,021 | 271 | ||||||
| Non-current assets held for disposition | — | 40 | ||||||
| Total assets | $ | 8,425 | $ | 8,346 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current portion of long-term debt | $ | 4 | $ | 4 | ||||
| Accounts payable | 553 | 518 | ||||||
| Accrued liabilities | 2,073 | 1,671 | ||||||
| Total current liabilities | 2,630 | 2,193 | ||||||
| Long-term debt | 4,392 | 4,345 | ||||||
| Other liabilities | 2,355 | 1,904 | ||||||
| Total Motorola Solutions, Inc. stockholders’ equity (deficit) | (964 | ) | (106 | ) | ||||
| Noncontrolling interests | 12 | 10 | ||||||
| Total liabilities and stockholders’ equity | $ | 8,425 | $ | 8,346 | ||||
| Financial Ratios: | ||||||||
| Net cash (debt)* | $ | (3,366 | ) | $ | (2,369 | ) | ||
| *Net cash (debt) = Total cash - Current portion of long-term debt - Long-term debt | ||||||||
| GAAP-4 | ||||||||
| Motorola Solutions, Inc. and Subsidiaries | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (In millions) | ||||||||
| Three Months Ended | ||||||||
| December 31, 2016 | December 31, 2015 | |||||||
| Operating | ||||||||
| Net earnings attributable to Motorola Solutions, Inc. | $ | 243 | $ | 279 | ||||
| Earnings attributable to noncontrolling interests | 1 | 1 | ||||||
| Net earnings | 244 | 280 | ||||||
| Earnings from discontinued operations, net of tax | — | 2 | ||||||
| Earnings from continuing operations, net of tax | 244 | 278 | ||||||
| Adjustments to reconcile earnings (loss) from continuing operations to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 75 | 37 | ||||||
| Non-cash other charges | 11 | 9 | ||||||
| Loss on pension plan settlement | 26 | — | ||||||
| Share-based compensation expense | 16 | 20 | ||||||
| Gains on sales of investments and businesses, net | (7 | ) | (47 | ) | ||||
| Loss from the extinguishment of long-term debt | 2 | — | ||||||
| Deferred income taxes | 71 | 33 | ||||||
| Changes in assets and liabilities, net of effects of acquisitions, dispositions, and foreign currency translation adjustments: | ||||||||
| Accounts receivable | (213 | ) | (146 | ) | ||||
| Inventories | 6 | 37 | ||||||
| Other current assets | (81 | ) | 54 | |||||
| Accounts payable and accrued liabilities | 427 | 179 | ||||||
| Other assets and liabilities | (64 | ) | (39 | ) | ||||
| Net cash provided by operating activities from continuing operations | 513 | 415 | ||||||
| Investing | ||||||||
| Acquisitions and investments, net | (259 | ) | (436 | ) | ||||
| Proceeds from sales of investments and businesses, net | 33 | 80 | ||||||
| Capital expenditures | (60 | ) | (44 | ) | ||||
| Proceeds from sales of property, plant and equipment | 4 | 1 | ||||||
| Net cash used for investing activities from continuing operations | (282 | ) | (399 | ) | ||||
| Financing | ||||||||
| Repayment of debt | (683 | ) | (1 | ) | ||||
| Net proceeds from issuance of debt | — | (5 | ) | |||||
| Issuance of common stock | 14 | 14 | ||||||
| Purchase of common stock | (114 | ) | (179 | ) | ||||
| Excess tax benefit from share-based compensation | — | 4 | ||||||
| Payment of dividends | (68 | ) | (60 | ) | ||||
| Net cash used for financing activities from continuing operations | (851 | ) | (227 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents from continuing operations | (37 | ) | (9 | ) | ||||
| Net decrease in cash and cash equivalents | (657 | ) | (220 | ) | ||||
| Cash and cash equivalents, beginning of period | 1,687 | 2,200 | ||||||
| Cash and cash equivalents, end of period | $ | 1,030 | $ | 1,980 | ||||
| Financial Ratios: | ||||||||
| Free cash flow* | $ | 453 | $ | 371 | ||||
| *Free cash flow = Net cash provided by operating activities - Capital Expenditures | ||||||||
| GAAP-5 | ||||||||||||
| Motorola Solutions, Inc. and Subsidiaries | ||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||
| (In millions) | ||||||||||||
| Years Ended | ||||||||||||
| December 31, 2016 | December 31, 2015 | December 31, 2014 | ||||||||||
| Operating | ||||||||||||
| Net earnings attributable to Motorola Solutions, Inc. | $ | 560 | $ | 610 | $ | 1,299 | ||||||
| Earnings attributable to noncontrolling interests | 2 | 3 | 1 | |||||||||
| Net earnings | 562 | 613 | 1,300 | |||||||||
| Earnings (loss) from discontinued operations, net of tax | — | (30 | ) | 1,996 | ||||||||
| Earnings (loss) from continuing operations, net of tax | 562 | 643 | (696 | ) | ||||||||
| Adjustments to reconcile earnings (loss) from continuing operations to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 295 | 150 | 173 | |||||||||
| Non-cash other charges | 54 | 52 | — | |||||||||
| Non-U.S. pension curtailment gain | — | (32 | ) | — | ||||||||
| Gain on sale of building and land | — | — | (21 | ) | ||||||||
| Loss on pension plan settlement | 26 | — | 1,883 | |||||||||
| Share-based compensation expense | 68 | 78 | 94 | |||||||||
| Loss (gains) on sales of investments and businesses, net | 6 | (107 | ) | (5 | ) | |||||||
| Loss from the extinguishment of long-term debt | 2 | — | 37 | |||||||||
| Deferred income taxes | 213 | 160 | (557 | ) | ||||||||
| Changes in assets and liabilities, net of effects of acquisitions, dispositions, and foreign currency translation adjustments: | ||||||||||||
| Accounts receivable | 32 | 21 | (62 | ) | ||||||||
| Inventories | 6 | 16 | (5 | ) | ||||||||
| Other current assets | (185 | ) | 92 | (47 | ) | |||||||
| Accounts payable and accrued liabilities | 203 | 26 | (72 | ) | ||||||||
| Other assets and liabilities | (117 | ) | (78 | ) | (1,359 | ) | ||||||
| Net cash provided by (used for) operating activities from continuing operations | 1,165 | 1,021 | (637 | ) | ||||||||
| Investing | ||||||||||||
| Acquisitions and investments, net | (1,474 | ) | (586 | ) | (47 | ) | ||||||
| Proceeds from sales of investments and businesses, net | 670 | 230 | 3,403 | |||||||||
| Capital expenditures | (271 | ) | (175 | ) | (181 | ) | ||||||
| Proceeds from sales of property, plant and equipment | 73 | 3 | 33 | |||||||||
| Net cash provided by (used for) investing activities from continuing operations | (1,002 | ) | (528 | ) | 3,208 | |||||||
| Financing | ||||||||||||
| Repayment of debt | (686 | ) | (4 | ) | (465 | ) | ||||||
| Net proceeds from issuance of debt | 673 | 971 | 1,375 | |||||||||
| Issuance of common stock | 93 | 84 | 87 | |||||||||
| Purchase of common stock | (842 | ) | (3,177 | ) | (2,546 | ) | ||||||
| Excess tax benefit from share-based compensation | — | 5 | 11 | |||||||||
| Payment of dividends | (280 | ) | (277 | ) | (318 | ) | ||||||
| Distributions from discontinued operations | — | — | 93 | |||||||||
| Net cash used for financing activities from continuing operations | (1,042 | ) | (2,398 | ) | (1,763 | ) | ||||||
| Discontinued Operations | ||||||||||||
| Net cash provided by operating activities from discontinued operations | — | — | 95 | |||||||||
| Net cash provided by investing activities from discontinued operations | — | — | 4 | |||||||||
| Net cash used for financing activities from discontinued operations | — | — | (93 | ) | ||||||||
| Effect of exchange rate changes on cash and cash equivalents from discontinued operations | — | — | (6 | ) | ||||||||
| Net cash provided by discontinued operations | — | — | — | |||||||||
| Effect of exchange rate changes on cash and cash equivalents from continuing operations | (71 | ) | (69 | ) | (79 | ) | ||||||
| Net decrease in cash and cash equivalents | (950 | ) | (1,974 | ) | 729 | |||||||
| Cash and cash equivalents, beginning of period | 1,980 | 3,954 | 3,225 | |||||||||
| Cash and cash equivalents, end of period | $ | 1,030 | $ | 1,980 | $ | 3,954 | ||||||
| Financial Ratios: | ||||||||||||
| Free cash flow* | $ | 894 | $ | 846 | $ | (818 | ) | |||||
| *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 | ||||||||||||
| December 31, 2016 | December 31, 2015 | % Change | ||||||||||
| Products | $ | 1,226 | $ | 1,125 | 9 | % | ||||||
| Services | 657 | 557 | 18 | % | ||||||||
| Total Motorola Solutions | $ | 1,883 | $ | 1,682 | 12 | % | ||||||
| Years Ended | ||||||||||||
| December 31, 2016 | December 31, 2015 | % Change | ||||||||||
| Products | $ | 3,649 | $ | 3,676 | (1 | )% | ||||||
| Services | 2,389 | 2,019 | 18 | % | ||||||||
| Total Motorola Solutions | $ | 6,038 | $ | 5,695 | 6 | % | ||||||
| Operating Earnings | ||||||||||||
| Three Months Ended | ||||||||||||
| December 31, 2016 | December 31, 2015 | % Change | ||||||||||
| Products | $ | 330 | $ | 291 | 13 | % | ||||||
| Services | 73 | 98 | (26 | )% | ||||||||
| Total Motorola Solutions | $ | 403 | $ | 389 | 4 | % | ||||||
| Years Ended | ||||||||||||
| December 31, 2016 | December 31, 2015 | % Change | ||||||||||
| Products | $ | 734 | $ | 704 | 4 | % | ||||||
| Services | 333 | 290 | 15 | % | ||||||||
| Total Motorola Solutions | $ | 1,067 | $ | 994 | 7 | % | ||||||
| Operating Earnings % | ||||||||||||
| Three Months Ended | ||||||||||||
| December 31, 2016 | December 31, 2015 | |||||||||||
| Products | 26.9 | % | 25.9 | % | ||||||||
| Services | 11.1 | % | 17.6 | % | ||||||||
| Total Motorola Solutions | 21.4 | % | 23.1 | % | ||||||||
| Years Ended | ||||||||||||
| December 31, 2016 | December 31, 2015 | |||||||||||
| Products | 20.1 | % | 19.2 | % | ||||||||
| Services | 13.9 | % | 14.4 | % | ||||||||
| Total Motorola Solutions | 17.7 | % | 17.5 | % | ||||||||
| Non-GAAP-1 | ||||||||||||||||
| Motorola Solutions, Inc. and Subsidiaries | ||||||||||||||||
| Non-GAAP Adjustments (Intangibles Amortization Expense, Share-Based Compensation Expense, and Highlighted Items) | ||||||||||||||||
| Q1 2016 | ||||||||||||||||
| PBT | Tax | PAT | ||||||||||||||
| Non-GAAP Adjustments | Statement Line | (Inc)/Exp | Inc/(Exp) | (Inc)/Exp | EPS impact | |||||||||||
| Share-based compensation expense | Cost of sales, SG&A and R&D | $ | 17 | $ | 6 | $ | 11 | $ | 0.06 | |||||||
| Reorganization of business charges | Cost of sales and Other charges | 23 | 8 | 15 | 0.08 | |||||||||||
| Intangibles amortization expense | Intangibles amortization | 13 | 3 | 10 | 0.06 | |||||||||||
| Acquisition related transaction fees | Other charges | 13 | — | 13 | 0.07 | |||||||||||
| Loss on investment in United Kingdom treasuries | Other expense (income) | 19 | 7 | 12 | 0.07 | |||||||||||
| Realized foreign currency loss on acquisition | Other expense (income) | 10 | 3 | 7 | 0.04 | |||||||||||
| Loss on sale of Malaysia facility and operations | Other expense (income) | 7 | — | 7 | 0.04 | |||||||||||
| Total impact on Net earnings | $ | 102 | $ | 27 | $ | 75 | $ | 0.42 | ||||||||
| Q2 2016 | ||||||||||||||||
| PBT | Tax | PAT | ||||||||||||||
| Non-GAAP Adjustments | Statement Line | (Inc)/Exp | Inc/(Exp) | (Inc)/Exp | EPS impact | |||||||||||
| Share-based compensation expense | Cost of sales, SG&A and R&D | $ | 18 | $ | 6 | $ | 12 | $ | 0.07 | |||||||
| Reorganization of business charges | Cost of sales and Other charges | 27 | 7 | 20 | 0.12 | |||||||||||
| Intangibles amortization expense | Intangibles amortization | 38 | 8 | 30 | 0.17 | |||||||||||
| Building impairment | Other charges | 17 | 6 | 11 | 0.06 | |||||||||||
| Total impact on Net earnings | $ | 100 | $ | 27 | $ | 73 | $ | 0.42 | ||||||||
| Q3 2016 | ||||||||||||||||
| PBT | Tax | PAT | ||||||||||||||
| Non-GAAP Adjustments | Statement Line | (Inc)/Exp | Inc/(Exp) | (Inc)/Exp | EPS impact | |||||||||||
| Share-based compensation expense | Cost of sales, SG&A and R&D | $ | 17 | $ | 5 | $ | 12 | $ | 0.07 | |||||||
| Reorganization of business charges | Cost of sales and Other charges | 7 | 2 | 5 | 0.03 | |||||||||||
| Intangibles amortization expense | Intangibles amortization | 31 | 7 | 24 | 0.14 | |||||||||||
| Total impact on Net earnings | $ | 55 | $ | 14 | $ | 41 | $ | 0.24 | ||||||||
| Q4 2016 | ||||||||||||||||
| PBT | Tax | PAT | ||||||||||||||
| Non-GAAP Adjustments | Statement Line | (Inc)/Exp | Inc/(Exp) | (Inc)/Exp | EPS impact | |||||||||||
| Share-based compensation expense | Cost of sales, SG&A and R&D | $ | 16 | $ | 5 | $ | 11 | $ | 0.06 | |||||||
| Reorganization of business charges | Cost of sales and Other charges | 66 | 14 | 52 | 0.31 | |||||||||||
| Intangibles amortization expense | Intangibles amortization | 30 | 6 | 24 | 0.14 | |||||||||||
| Loss on Non-U.S. pension plan settlement | Other charges | 26 | — | 26 | 0.15 | |||||||||||
| Release of unrecognized tax benefit from audit settlement | Income Tax Expense (Benefit) | — | 10 | (10 | ) | (0.06 | ) | |||||||||
| Total impact on Net earnings | $ | 138 | $ | 35 | $ | 103 | 0.60 | |||||||||
| FY 2016 | ||||||||||||||||
| PBT | Tax | PAT | ||||||||||||||
| Non-GAAP Adjustments | Statement Line | (Inc)/Exp | Inc/(Exp) | (Inc)/Exp | EPS impact | |||||||||||
| Share-based compensation expense | Cost of sales, SG&A and R&D | $ | 68 | $ | 22 | $ | 46 | $ | 0.27 | |||||||
| Reorganization of business charges | Cost of sales and Other charges | 123 | 31 | 92 | 0.53 | |||||||||||
| Intangibles amortization expense | Intangibles amortization | 113 | 26 | 87 | 0.50 | |||||||||||
| Acquisition related transaction fees | Other charges | 13 | — | 13 | 0.08 | |||||||||||
| Loss on investment in United Kingdom treasuries | Other expense (income) | 19 | 7 | 12 | 0.07 | |||||||||||
| Realized foreign currency loss on acquisition | Other expense (income) | 10 | 3 | 7 | 0.04 | |||||||||||
| Loss on sale of Malaysia facility and operations | Other expense (income) | 7 | — | 7 | 0.04 | |||||||||||
| Building impairment | Other charges | 17 | 6 | 11 | 0.06 | |||||||||||
| Loss on Non-U.S. pension plan settlement | Other charges | 26 | — | 26 | 0.15 | |||||||||||
| Release of unrecognized tax benefit from audit settlement | Income Tax Expense (Benefit) | — | 10 | (10 | ) | (0.06 | ) | |||||||||
| Total impact on Net earnings | $ | 396 | $ | 105 | $ | 291 | $ | 1.68 | ||||||||
| Non-GAAP-2 | |||||||||||
| Motorola Solutions, Inc. and Subsidiaries | |||||||||||
| Non-GAAP Segment Information | |||||||||||
| (In millions) | |||||||||||
| Net Sales | |||||||||||
| Three Months Ended | |||||||||||
| December 31, 2016 | December 31, 2015 | % Change | |||||||||
| Products | $ | 1,226 | $ | 1,125 | 9 | % | |||||
| Services | 657 | 557 | 18 | % | |||||||
| Total Motorola Solutions | $ | 1,883 | $ | 1,682 | 12 | % | |||||
| Years Ended | |||||||||||
| December 31, 2016 | December 31, 2015 | % Change | |||||||||
| Products | $ | 3,649 | $ | 3,676 | (1 | )% | |||||
| Services | 2,389 | 2,019 | 18 | % | |||||||
| Total Motorola Solutions | $ | 6,038 | $ | 5,695 | 6 | % | |||||
| Non-GAAP Operating Earnings | |||||||||||
| Three Months Ended | |||||||||||
| December 31, 2016 | December 31, 2015 | % Change | |||||||||
| Products | $ | 407 | $ | 340 | 20 | % | |||||
| Services | 134 | 118 | 14 | % | |||||||
| Total Motorola Solutions | $ | 541 | $ | 458 | 18 | % | |||||
| Years Ended | |||||||||||
| December 31, 2016 | December 31, 2015 | % Change | |||||||||
| Products | $ | 910 | $ | 827 | 10 | % | |||||
| Services | 517 | 339 | 53 | % | |||||||
| Total Motorola Solutions | $ | 1,427 | $ | 1,166 | 22 | % | |||||
| Non-GAAP Operating Earnings % | |||||||||||
| Three Months Ended | |||||||||||
| December 31, 2016 | December 31, 2015 | ||||||||||
| Products | 33.2 | % | 30.2 | % | |||||||
| Services | 20.4 | % | 21.2 | % | |||||||
| Total Motorola Solutions | 28.7 | % | 27.2 | % | |||||||
| Years Ended | |||||||||||
| December 31, 2016 | December 31, 2015 | ||||||||||
| Products | 24.9 | % | 22.5 | % | |||||||
| Services | 21.6 | % | 16.8 | % | |||||||
| Total Motorola Solutions | 23.6 | % | 20.5 | % | |||||||
| Non-GAAP-3 | ||||||||||||
| Motorola Solutions, Inc. and Subsidiaries | ||||||||||||
| Operating Earnings after Non-GAAP Adjustments | ||||||||||||
| Q1 2016 | ||||||||||||
| TOTAL | Products | Services | ||||||||||
| Net sales | $ | 1,193 | $ | 702 | $ | 491 | ||||||
| Operating earnings ("OE") | $ | 100 | $ | 51 | $ | 49 | ||||||
| Above-OE non-GAAP adjustments: | ||||||||||||
| Share-based compensation expense | 17 | 11 | 6 | |||||||||
| Reorganization of business charges | 23 | 21 | 2 | |||||||||
| Intangibles amortization expense | 13 | 1 | 12 | |||||||||
| Acquisition related transaction fees | 13 | — | 13 | |||||||||
| Total above-OE non-GAAP adjustments | 66 | 33 | 33 | |||||||||
| Operating earnings after non-GAAP adjustments | $ | 166 | $ | 84 | $ | 82 | ||||||
| Operating earnings as a percentage of net sales - GAAP | 8.4 | % | 7.3 | % | 10.0 | % | ||||||
| Operating earnings as a percentage of net sales - after non-GAAP adjustments | 13.9 | % | 12.0 | % | 16.7 | % | ||||||
| Q2 2016 | ||||||||||||
| TOTAL | Products | Services | ||||||||||
| Net sales | $ | 1,430 | $ | 801 | $ | 629 | ||||||
| Operating earnings ("OE") | $ | 224 | $ | 129 | $ | 95 | ||||||
| Above-OE non-GAAP adjustments: | ||||||||||||
| Share-based compensation expense | 18 | 12 | 6 | |||||||||
| Reorganization of business charges | 27 | 21 | 6 | |||||||||
| Intangibles amortization expense | 38 | 2 | 36 | |||||||||
| Building impairment | 17 | 12 | 5 | |||||||||
| Total above-OE non-GAAP adjustments | 100 | 47 | 53 | |||||||||
| Operating earnings after non-GAAP adjustments | $ | 324 | $ | 176 | $ | 148 | ||||||
| Operating earnings as a percentage of net sales - GAAP | 15.7 | % | 16.1 | % | 15.1 | % | ||||||
| Operating earnings as a percentage of net sales - after non-GAAP adjustments | 22.7 | % | 22.0 | % | 23.5 | % | ||||||
| Q3 2016 | ||||||||||||
| TOTAL | Products | Services | ||||||||||
| Net sales | $ | 1,532 | $ | 920 | $ | 612 | ||||||
| Operating earnings ("OE") | $ | 341 | $ | 225 | $ | 116 | ||||||
| Above-OE non-GAAP adjustments: | ||||||||||||
| Share-based compensation expense | 17 | 11 | 6 | |||||||||
| Reorganization of business charges | 7 | 5 | 2 | |||||||||
| Intangibles amortization expense | 31 | 2 | 29 | |||||||||
| Total above-OE non-GAAP adjustments | 55 | 18 | 37 | |||||||||
| Operating earnings after non-GAAP adjustments | $ | 396 | $ | 243 | $ | 153 | ||||||
| Operating earnings as a percentage of net sales - GAAP | 22.3 | % | 24.5 | % | 19.0 | % | ||||||
| Operating earnings as a percentage of net sales - after non-GAAP adjustments | 25.8 | % | 26.4 | % | 25.0 | % | ||||||
| Q4 2016 | ||||||||||||
| TOTAL | Products | Services | ||||||||||
| Net sales | $ | 1,883 | $ | 1,226 | $ | 657 | ||||||
| Operating earnings ("OE") | $ | 403 | $ | 330 | $ | 73 | ||||||
| Above-OE non-GAAP adjustments: | ||||||||||||
| Share-based compensation expense | 16 | 10 | 6 | |||||||||
| Reorganization of business charges | 66 | 47 | 19 | |||||||||
| Loss on Non-U.S. pension plan settlement | 26 | 18 | 8 | |||||||||
| Intangibles amortization expense | 30 | 2 | 28 | |||||||||
| Total above-OE non-GAAP adjustments | 138 | 77 | 61 | |||||||||
| Operating earnings after non-GAAP adjustments | $ | 541 | $ | 407 | $ | 134 | ||||||
| Operating earnings as a percentage of net sales - GAAP | 21.4 | % | 26.9 | % | 11.1 | % | ||||||
| Operating earnings as a percentage of net sales - after non-GAAP adjustments | 28.7 | % | 33.2 | % | 20.4 | % | ||||||
| FY 2016 | ||||||||||||
| TOTAL | Products | Services | ||||||||||
| Net sales | $ | 6,038 | $ | 3,649 | $ | 2,389 | ||||||
| Operating earnings ("OE") | $ | 1,067 | $ | 734 | $ | 333 | ||||||
| Above-OE non-GAAP adjustments: | ||||||||||||
| Share-based compensation expense | 68 | 44 | 24 | |||||||||
| Reorganization of business charges | 123 | 94 | 29 | |||||||||
| Loss on Non-U.S. pension plan settlement | 26 | 18 | 8 | |||||||||
| Intangibles amortization expense | 113 | 8 | 105 | |||||||||
| Acquisition related transaction fees | 13 | — | 13 | |||||||||
| Building impairment | 17 | 12 | 5 | |||||||||
| Total above-OE non-GAAP adjustments | 360 | 176 | 184 | |||||||||
| Operating earnings after non-GAAP adjustments | $ | 1,427 | $ | 910 | $ | 517 | ||||||
| Operating earnings as a percentage of net sales - GAAP | 17.7 | % | 20.1 | % | 13.9 | % | ||||||
| Operating earnings as a percentage of net sales - after non-GAAP adjustments | 23.6 | % | 24.9 | % | 21.6 | % | ||||||
