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Exhibit 99.1

Motorola Solutions Reports Fourth-Quarter

and Full-Year 2011 Financial Results

Record Fourth-Quarter and Full-Year Sales and Operating Earnings

 

   

Fourth-quarter sales of $2.3 billion, up 5 percent from a year ago

 

   

Fourth-quarter Government sales of $1.5 billion, up 6 percent from a year ago

 

   

Fourth-quarter Enterprise sales of $753 million, up 3 percent from a year ago

 

   

Repurchased $366 million of shares in the quarter; $1.1 billion for the full year

 

   

Contributed an incremental $250 million to the U.S. pension plan in the quarter, with U.S. contributions for the full year totaling $480 million

 

   

Ended the quarter with total cash* of $5.1 billion

 

(In millions, except

earnings per share)

   Fourth Quarter     Full Year  
   2011      2010      Change     2011      2010      Change  

Total sales

   $ 2,300       $ 2,185         5   $ 8,203       $ 7,617         8

GAAP operating earnings

   $ 276       $ 272         1   $ 858       $ 751         14

Non-GAAP operating earnings

   $ 444       $ 346         28   $ 1,373       $ 1,064         29

GAAP EPS from continuing operations**

   $ 0.54       $ 0.49         10   $ 2.20       $ 0.72         206

Non-GAAP*** EPS from continuing operations**

   $ 0.87       $ 0.64         36   $ 2.61       $ 1.84         42

Click here for printable press release and financial tables.

SCHAUMBURG, Ill. – Jan. 25, 2012 – Motorola Solutions, Inc. (NYSE: MSI) announced today its fourth-quarter and full-year 2011 results highlighted by fourth-quarter sales of $2.3 billion, up 5 percent from the fourth quarter of 2010 and full-year sales of $8.2 billion, up 8 percent from 2010. The revenue growth reflects solid demand in all regions across both the Government and Enterprise segments.

“Our record fourth quarter capped a very strong and exciting year for our company,” said Greg Brown, chairman and CEO of Motorola Solutions. “We streamlined and strengthened our portfolio, grew operating earnings more than five times revenue growth, expanded operating margins, generated strong cash flow and prioritized return of capital to our shareholders.”

GAAP operating earnings in the fourth quarter of 2011 were $276 million or 12 percent of sales, compared to $272 million or 12 percent of sales in the fourth quarter of 2010. GAAP earnings per share from continuing operations** were $0.54, compared to a GAAP earnings of $0.49 in the fourth quarter of 2010. For the full year 2011, GAAP operating earnings were $858 million or 10 percent of sales, compared to $751 million or 10 percent of sales in 2010. GAAP earnings per share from continuing operations** were $2.20, compared to GAAP earnings of $0.72 in 2010.

Non-GAAP*** operating earnings in the fourth quarter of 2011 were $444 million or 19 percent of sales, compared to $346 million or 16 percent of sales in the fourth quarter of 2010. Non-GAAP earnings per share from continuing operations were $0.87, compared to $0.64 in the fourth quarter of 2010. Non-GAAP financial information excludes after-tax net charges of approximately $0.33 per diluted share related to stock-based


compensation expense, intangible assets amortization expense and highlighted items. Details on these Non-GAAP adjustments and the use of Non-GAAP measures are included later in this press release. For the full year 2011, Non-GAAP operating earnings were $1.4 billion or 17 percent of sales, compared to $1.1 billion or 14 percent of sales in 2010. Non-GAAP earnings per share from continuing operations were $2.61, compared to $1.84 in 2010.

During the fourth quarter of 2011, the company generated $44 million in operating cashflow from continuing operations, which included a $250 million incremental contribution to the U.S. pension plan. The company ended the quarter with total cash of $5.1 billion while returning $366 million to shareholders through share repurchases during the quarter.

Government segment sales were $1.5 billion, up 6 percent from the year-ago quarter. GAAP operating earnings were $226 million or 15 percent of sales compared to $181 million or 12 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $307 million or 20 percent of sales compared to $221 million or 15 percent of sales in the year-ago quarter.

For the full year 2011, Government segment sales were $5.4 billion, up 6 percent from 2010. GAAP operating earnings were $616 million or 11 percent of sales compared to $534 million or 11 percent of sales in 2010. Non-GAAP operating earnings were $833 million or 16 percent of sales compared to $637 million or 13 percent of sales in 2010.

Government highlights:

 

   

Secured multi-million dollar contracts with City of Atlanta; St. Louis County in Missouri; St. Johns, Seminole and Osceola counties in Florida; the state of Tennessee; the Washington State Patrol; the Western Australia Police Service; the Ecuador National Police; and the Mexico Federal Electric Commission

 

   

Expanded award-winning APX™ mission-critical radio series to include the APX 4000 portable radio for public works, utilities and rural public safety users, making APX the first complete portfolio of Project 25 Phase 2 TDMA two-way portable radios in the industry

 

   

Continued to demonstrate leadership by completing first commercial release of standards-based LTE technology for public safety and secured an additional LTE contract win in Irving, Texas

Enterprise segment sales were $753 million, up 3 percent from the year-ago quarter, which included a $37 million decline in iDEN sales. GAAP operating earnings were $50 million or 7 percent of sales compared to $91 million or 12 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $137 million or 18 percent of sales compared to $125 million or 17 percent of sales in the year-ago quarter.

For the full year 2011, Enterprise segment sales were $2.8 billion, up 11 percent from 2010. GAAP operating earnings were $242 million or 9 percent of sales compared to $217 million or 8 percent of sales in 2010. Non-GAAP operating earnings were $540 million or 19 percent of sales compared to $427 million or 17 percent of sales in 2010.


Enterprise highlights:

 

   

Continued growth with demand in retail and transportation & logistics from key customers such as Lord & Taylor, UPS and Poste Italiane

 

   

Launched the ET1 tablet, the first in an emerging category of enterprise-class tablet computers that brings the familiarity and popularity of a consumer-class user experience to a true enterprise-class device

 

   

Introduced RhoElements, a state-of-the-art web-based application framework that allows businesses to quickly and cost-effectively develop and deploy web-based applications on mobile computers

Results from Discontinued Operations

The fourth-quarter GAAP profit from discontinued operations was $7 million, which substantially relates to the divestiture of the company’s Point-to-Point (Orthogon) and Point-to-Multipoint (Canopy) wireless broadband networks businesses.

First-Quarter and Full-Year Outlook

Motorola Solutions’ outlook for the first quarter of 2012 is for revenue growth of approximately 4 percent compared with the first quarter of 2011 and earnings per share from continuing operations of $0.50 to $0.55 per share. For the full-year 2012, the company expects revenue growth of approximately 5 percent compared with 2011 and operating earnings of approximately 17 percent of sales. This outlook excludes stock-based compensation expense, intangible assets amortization expense and charges associated with items of the variety typically highlighted by the company in its quarterly earnings releases.

Consolidated GAAP Results

A comparison of results from operations is as follows:

 

     Fourth Quarter      Full Year  
(In millions, except per share amounts)    2011      2010      2011      2010  

Net sales

     2,300         2,185         8,203         7,617   

Gross margin

     1,160         1,089         4,146         3,812   

Operating earnings

     276         272         858         751   

Earnings from continuing operations**

     177         167         747         244   

Net earnings **

     184         292         1,158         633   

Diluted earnings per common share from continuing operations: **

   $ 0.54       $ 0.49       $ 2.20       $ 0.72   

Weighted average diluted common shares outstanding

     328.4         341.3         339.7         338.1   


Highlighted Items, Stock-Based Compensation Expense and Intangible Assets Amortization Expense

The table below includes highlighted items, stock-based compensation expense and intangible assets amortization expense for the fourth quarter of 2011.

 

(per diluted common share)    Fourth
Quarter
2011
 

GAAP Earnings per Common Share from Continuing Operations

   $ 0.54   
  

 

 

 

Highlighted Items:

  

Legal matter

     0.08   

Reorganization of business charges

     0.05   

Long-term financing receivable reserve

     0.02   

Tax expense related to undistributed foreign earnings

     0.05   

Tax benefit from audit settlements and agreements

     (0.05
  

 

 

 

Total Highlighted Items

     0.15   
  

 

 

 

Stock-based compensation expense

     0.09   

Intangible assets amortization expense

     0.09   
  

 

 

 

Stock-Based Compensation Expense and Intangible Assets Amortization Expense

     0.18   
  

 

 

 

Total Non-GAAP Adjustments

     0.33   
  

 

 

 

Non-GAAP Earnings per Common Share

   $ 0.87   
  

 

 

 

Conference Call and Webcast

Motorola Solutions will host its quarterly conference call beginning at 7 a.m. U.S. Central Daylight Time (8 a.m. U.S. Eastern Daylight Time) on Wednesday, Jan. 25. The conference call will be webcast live with audio and slides at www.motorolasolutions.com/investor.

Use of Non-GAAP Financial Information

In addition to the GAAP results included in this presentation, Motorola Solutions also has included non-GAAP measurements of results. We have provided these non-GAAP measurements to help investors better understand our core operating performance,


enhance comparisons of core operating performance from period to period and allow better comparisons of operating performance to our competitors. Among other things, management uses these operating results, excluding the identified items, to evaluate performance of the businesses and to evaluate results relative to certain incentive compensation targets. Management uses operating results excluding these items because it believes this measurement enables it to make better period-to-period evaluations of the financial performance of core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and the company compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP.

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.

Stock-based compensation expense: The company has excluded stock-based compensation expense from its non-GAAP operating expenses and net income measurements. Although stock-based compensation is a key incentive offered to our 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 stock-based compensation expense primarily because it represents a significant non-cash expense. Stock-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 income measurements, primarily because it represents a significant 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. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our 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 our actual


results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to, Motorola Solutions’ financial outlook for the first quarter and full year of 2012. Motorola Solutions cautions the reader that the risk factors below, as well as those on pages 12 through 25 in Item 1A of Motorola Solutions, Inc.’s 2010 Annual Report on Form 10-K, on page 46 in Item 1A of Motorola Solutions, Inc.’s First Quarter 2011 Quarterly Report on Form 10-Q, on page 50 in Item 1A of Motorola Solutions, Inc.’s Third Quarter 2011 Quarterly Report on Form 10-Q, 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 and enterprise communications industries; (2) the level of demand for the company’s products, particularly if businesses and governments defer or cancel purchases in response to tighter credit; (3) the company’s ability to introduce new products and technologies in a timely manner; (4) negative impact on the company’s business from global economic conditions, which may include: (i) potential 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; and (viii) the company’s ability to access the capital markets on acceptable terms and conditions; (5) the company’s ability to purchase sufficient materials, parts and components to meet customer demand, particularly in light of global economic conditions; (6) risks related to dependence on certain key suppliers, subcontractors, third-party distributors and other representatives; (7) the impact on the company’s performance and financial results from strategic acquisitions or divestitures, including those that may occur in the future; (8) risks related to the company’s manufacturing and business operations in foreign countries; (9) the creditworthiness of the company’s customers and distributors, particularly purchasers of large infrastructure systems; (10) 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; (11) the ownership of certain logos, trademarks, trade names and service marks including “MOTOROLA” by Motorola Mobility Holdings, Inc.; (12) 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; (13) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation or regulatory or similar proceedings; (14) the impact of foreign currency fluctuations, including the negative impact of a strengthening U.S. dollar on the company when competing for business in foreign markets; (15) the impact of the percentage of cash and cash equivalents held outside of the United States; (16) the ability of the company to pay future dividends due to possible adverse market conditions or adverse impacts on the company’s cash flow; (17) 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; (18) the impact of changes in governmental policies, laws or regulations; (19) the outcome of currently ongoing and future tax matters; and (20) negative consequences from the company’s outsourcing of various activities, including certain manufacturing, information technology and administrative functions. 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.


Definitions

* Total cash = Cash and cash equivalents + Sigma Fund (current and non-current) and short-term investments

** Amounts attributable to Motorola Solutions, Inc. common stockholders

*** Non-GAAP financial information excludes from GAAP results the effects of stock-based compensation expense, intangible assets amortization expense and highlighted items

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 media center or subscribe to our news feed.

Media Contacts

Nick Sweers

Motorola Solutions

+1 847-576-2462

nicholas.sweers@motorolasolutions.com

Tama McWhinney

Motorola Solutions

+1 847-538-1865

tama.mcwhinney@motorolasolutions.com

Investor Contacts

Shep Dunlap

Motorola Solutions

+1 847-576-6899

shep.dunlap@motorolasolutions.com

Jason Winkler

Motorola Solutions

+1 847-576-4995

jason.winkler@motorolasolutions.com

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. ©2012 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, 2011     December 31, 2010  

Net sales from products

   $ 1,689      $ 1,626   

Net sales from services

     611        559   
  

 

 

   

 

 

 

Net sales

     2,300        2,185   

Costs of products sales

     774        743   

Costs of services sales

     366        353   
  

 

 

   

 

 

 

Costs of sales

     1,140        1,096   
  

 

 

   

 

 

 

Gross margin

     1,160        1,089   
  

 

 

   

 

 

 

Selling, general and administrative expenses

     498        515   

Research and development expenditures

     266        271   

Other charges (income)

     70        (20

Intangibles amortization

     50        51   
  

 

 

   

 

 

 

Operating earnings

     276        272   
  

 

 

   

 

 

 

Other income (expense):

    

Interest expense, net

     (15     (32

Gain on sales of investments and businesses, net

     2        5   

Other

     4        3   
  

 

 

   

 

 

 

Total other income (expense)

     (9     (24
  

 

 

   

 

 

 

Earnings from continuing operations before income taxes

     267        248   

Income tax expense

     90        69   
  

 

 

   

 

 

 

Earnings from continuing operations

     177        179   

Earnings from discontinued operations, net of tax

     7        125   
  

 

 

   

 

 

 

Net earnings

     184        304   

Less: Earnings attributable to noncontrolling interests

     —          12   
  

 

 

   

 

 

 

Net earnings attributable to Motorola Solutions, Inc.

   $ 184      $ 292   
  

 

 

   

 

 

 

Amounts attributable to Motorola Solutions, Inc. common shareholders

    

Earnings from continuing operations, net of tax

   $ 177      $ 167   

Earnings from discontinued operations, net of tax

     7        125   
  

 

 

   

 

 

 

Net earnings

   $ 184      $ 292   
  

 

 

   

 

 

 

Earnings per common share

    

Basic:

    

Continuing operations

   $ 0.55      $ 0.50   

Discontinued operations

     0.02        0.37   
  

 

 

   

 

 

 
   $ 0.57      $ 0.87   
  

 

 

   

 

 

 

Diluted:

    

Continuing operations

   $ 0.54      $ 0.49   

Discontinued operations

     0.02        0.37   
  

 

 

   

 

 

 
   $ 0.56      $ 0.86   
  

 

 

   

 

 

 

Weighted average common shares outstanding

    

Basic

     323.1        335.9   

Diluted

     328.4        341.3   
  

 

 

   

 

 

 
     Percentage of Net Sales*  

Net sales from products

     73.4     74.4

Net sales from services

     26.6     25.6
  

 

 

   

 

 

 

Net sales

     100     100
  

 

 

   

 

 

 

Costs of products sales

     45.8     45.7

Costs of services sales

     59.9     63.1
  

 

 

   

 

 

 

Costs of sales

     49.6     50.2
  

 

 

   

 

 

 

Gross margin

     50.4     49.8
  

 

 

   

 

 

 

Selling, general and administrative expenses

     21.7     23.6

Research and development expenditures

     11.6     12.4

Other charges

     3.0     -0.9

Intangibles amortization

     2.2     2.3
  

 

 

   

 

 

 

Operating earnings

     12.0     12.4
  

 

 

   

 

 

 

Other income (expense):

    

Interest expense, net

     -0.7     -1.5

Gain on sales of investments and businesses, net

     0.1     0.2

Other

     0.2     0.1
  

 

 

   

 

 

 

Total other income (expense)

     -0.4     -1.1
  

 

 

   

 

 

 

Earnings from continuing operations before income taxes

     11.6     11.4

Income tax expense

     3.9     3.2
  

 

 

   

 

 

 

Earnings from continuing operations

     7.7     8.2

Earnings from discontinued operations, net of tax

     0.3     5.7
  

 

 

   

 

 

 

Net earnings

     8.0     13.9

Less: Earnings attributable to noncontrolling interests

     0.0     0.5
  

 

 

   

 

 

 

Net earnings attributable to Motorola Solutions, Inc.

     8.0     13.4
  

 

 

   

 

 

 

 

* 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)

 

     Year Ended  
     December 31, 2011     December 31, 2010     December 31, 2009  

Net sales from products

   $ 6,068      $ 5,616      $ 5,026   

Net sales from services

     2,135        2,001        1,921   
  

 

 

   

 

 

   

 

 

 

Net sales

     8,203        7,617        6,947   

Costs of products sales

     2,723        2,523        2,221   

Costs of services sales

     1,334        1,282        1,249   
  

 

 

   

 

 

   

 

 

 

Costs of sales

     4,057        3,805        3,470   
  

 

 

   

 

 

   

 

 

 

Gross margin

     4,146        3,812        3,477   
  

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses

     1,912        1,874        1,662   

Research and development expenditures

     1,035        1,037        993   

Other charges (income)

     141        (53     37   

Intangibles amortization

     200        203        218   
  

 

 

   

 

 

   

 

 

 

Operating earnings

     858        751        567   
  

 

 

   

 

 

   

 

 

 

Other income (expense):

      

Interest expense, net

     (74     (129     (133

Gain on sales of investments and businesses, net

     23        49        108   

Other

     (69     (7     91   
  

 

 

   

 

 

   

 

 

 

Total other income (expense)

     (120     (87     66   
  

 

 

   

 

 

   

 

 

 

Earnings from continuing operations before income taxes

     738        664        633   

Income tax expense (benefit)

     (3     403        188   
  

 

 

   

 

 

   

 

 

 

Earnings from continuing operations

     741        261        445   

Earnings (loss) from discontinued operations, net of tax

     411        389        (473
  

 

 

   

 

 

   

 

 

 

Net earnings

     1,152        650        (28

Less: Earnings (loss) attributable to noncontrolling interests

     (6     17        23   
  

 

 

   

 

 

   

 

 

 

Net earnings attributable to Motorola Solutions, Inc.

   $ 1,158      $ 633      $ (51
  

 

 

   

 

 

   

 

 

 

Amounts attributable to Motorola Solutions, Inc. common shareholders

      

Earnings from continuing operations, net of tax

   $ 747      $ 244      $ 422   

Earnings (loss) from discontinued operations, net of tax

     411        389        (473
  

 

 

   

 

 

   

 

 

 

Net earnings (loss)

   $ 1,158      $ 633      $ (51
  

 

 

   

 

 

   

 

 

 

Earnings per common share

      

Basic:

      

Continuing operations

   $ 2.24      $ 0.73      $ 1.29   

Discontinued operations

     1.23        1.17        (1.45
  

 

 

   

 

 

   

 

 

 
   $ 3.47      $ 1.90      $ (0.16
  

 

 

   

 

 

   

 

 

 

Diluted:

      

Continuing operations

   $ 2.20      $ 0.72      $ 1.28   

Discontinued operations

     1.21        1.15        (1.43
  

 

 

   

 

 

   

 

 

 
   $ 3.41      $ 1.87      $ (0.15
  

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding

      

Basic

     333.8        333.3        327.9   

Diluted

     339.7        338.1        329.9   
  

 

 

   

 

 

   

 

 

 
     Percentage of Net Sales*  

Net sales from products

     74.0     73.7     72.3

Net sales from services

     26.0     26.3     27.7
  

 

 

   

 

 

   

 

 

 

Net sales

     100     100     100
  

 

 

   

 

 

   

 

 

 

Costs of products sales

     44.9     44.9     44.2

Costs of services sales

     62.5     64.1     65.0
  

 

 

   

 

 

   

 

 

 

Costs of sales

     49.5     50.0     49.9
  

 

 

   

 

 

   

 

 

 

Gross margin

     50.5     50.0     50.1
  

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses

     23.3     24.6     23.9

Research and development expenditures

     12.6     13.6     14.3

Other charges (income)

     1.7     -0.7     0.5

Intangibles amortization

     2.4     2.7     3.1
  

 

 

   

 

 

   

 

 

 

Operating earnings

     10.5     9.9     8.2
  

 

 

   

 

 

   

 

 

 

Other income (expense):

      

Interest expense, net

     -0.9     -1.7     -1.9

Gain on sales of investments and businesses, net

     0.3     0.6     1.6

Other

     -0.8     -0.1     1.3
  

 

 

   

 

 

   

 

 

 

Total other income (expense)

     -1.5     -1.1     1.0
  

 

 

   

 

 

   

 

 

 

Earnings from continuing operations before income taxes

     9.0     8.7     9.1

Income tax expense (benefit)

     0.0     5.3     2.7
  

 

 

   

 

 

   

 

 

 

Earnings from continuing operations

     9.0     3.4     6.4

Earnings (loss) from discontinued operations, net of tax

     5.0     5.1     -6.8
  

 

 

   

 

 

   

 

 

 

Net earnings

     14.0     8.5     -0.4

Less: Earnings (loss) attributable to noncontrolling interests

     -0.1     0.2     0.3
  

 

 

   

 

 

   

 

 

 

Net earnings attributable to Motorola Solutions, Inc.

     14.1     8.3     -0.7
  

 

 

   

 

 

   

 

 

 

 

* Percentages may not add up due to rounding


GAAP-3

Motorola Solutions, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In millions)

 

     December 31,
2011
     December 31,
2010
 

Assets

     

Cash and cash equivalents

   $ 1,881       $ 4,208   

Sigma Fund and short-term investments

     3,210         4,655   

Accounts receivable, net

     1,866         1,547   

Inventories, net

     512         521   

Deferred income taxes

     613         871   

Other current assets

     676         748   

Current assets held for disposition

     10         4,604   
  

 

 

    

 

 

 

Total current assets

     8,768         17,154   
  

 

 

    

 

 

 

Property, plant and equipment, net

     896         922   

Sigma Fund

     —           70   

Investments

     166         172   

Deferred income taxes

     2,375         1,920   

Goodwill

     1,428         1,429   

Other assets

     294         734   

Non-current assets held for disposition

     2         3,176   
  

 

 

    

 

 

 

Total assets

   $ 13,929       $ 25,577   
  

 

 

    

 

 

 

Liabilities and Stockholders’ Equity

     

Notes payable and current portion of long-term debt

   $ 405       $ 605   

Accounts payable

     677         731   

Accrued liabilities

     2,721         2,574   

Current liabilities held for disposition

     12         4,800   
  

 

 

    

 

 

 

Total current liabilities

     3,815         8,710   
  

 

 

    

 

 

 

Long-term debt

     1,130         2,098   

Other liabilities

     3,710         3,045   

Non-current liabilities held for disposition

     —           737   

Total Motorola Solutions, Inc. stockholders’ equity

     5,214         10,885   
  

 

 

    

 

 

 

Noncontrolling interests

     60         102   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 13,929       $ 25,577   
  

 

 

    

 

 

 

Total cash*

   $ 5,091       $ 8,933   

Net cash**

     3,556         6,230   

 

* Total cash = Cash and cash equivalents + Sigma Fund (current and non-current) + Short-term investments
** Net cash = Total cash - Notes payable and 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, 2011     December 31, 2010  

Operating

    

Net earnings attributable to Motorola Solutions, Inc.

   $ 184      $ 292   

Earnings attributable to noncontrolling interests

     —          12   
  

 

 

   

 

 

 

Net earnings

     184        304   

Earnings from discontinued operations, net of tax

     7        125   
  

 

 

   

 

 

 

Earnings from continuing operations

     177        179   

Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities:

    

Depreciation and amortization

     93        85   

Non-cash other income

     (6     (13

Share-based compensation expense

     45        36   

Gain on sales of investments and businesses, net

     (1     (6

Deferred income taxes

     32        (14

Changes in assets and liabilities, net of effects of acquisitions and dispositions:

    

Accounts receivable

     (332     (3

Inventories

     23        (21

Other current assets

     68        5   

Accounts payable and accrued liabilities

     40        151   

Other assets and liabilities

     (95     (66
  

 

 

   

 

 

 

Net cash provided by operating activities from continuing operations

     44        333   
  

 

 

   

 

 

 

Investing

    

Acquisitions and investments, net

     (5     (16

Proceeds from sales of investments and businesses, net

     59        26   

Capital expenditures

     (83     (81

Sales of Sigma Fund investments, net

     1,283        423   
  

 

 

   

 

 

 

Net cash provided by investing activities from continuing operations

     1,254        352   
  

 

 

   

 

 

 

Financing

    

Repayment of debt

     (601     (527

Contributions to Motorola Mobility

     (150     —     

Issuance of common stock

     44        27   

Purchase of common stock

     (366     —     

Excess tax benefits from share-based compensation

     3        —     

Payment of dividends

     (72     —     

Distributions from (to) discontinued operations

     (37     152   
  

 

 

   

 

 

 

Net cash used for financing activities from continuing operations

     (1,179     (348
  

 

 

   

 

 

 

Discontinued Operations

    

Net cash provided by (used for) operating activities from discontinued operations

     (38     321   

Net cash used for investing activities from discontinued operations

     —          (183

Net cash provided by (used for) financing activities from discontinued operations

     37        (152

Effect of exchange rate changes on cash and cash equivalents from discontinued operations

     1        14   
  

 

 

   

 

 

 

Net cash provided by (used for) financing activities from discontinued operations

     —          —     
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents from continuing operations

     (23     23   
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     96        360   

Cash and cash equivalents, beginning of period

     1,785        3,848   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 1,881      $ 4,208   
  

 

 

   

 

 

 

Financial Ratios:

    

Free cash flow*

   $ (39   $ 252   

 

* 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)

 

     Year Ended  
     December 31, 2011     December 31, 2010     December 31, 2009  

Operating

      

Net earnings (loss) attributable to Motorola Solutions, Inc.

   $ 1,158      $ 633      $ (51

Earnings (loss) attributable to noncontrolling interests

     (6     17        23   
  

 

 

   

 

 

   

 

 

 

Net earnings (loss)

     1,152        650        (28

Earnings (loss) from discontinued operations, net of tax

     411        389        (473
  

 

 

   

 

 

   

 

 

 

Earnings from continuing operations

     741        261        445   

Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities:

      

Depreciation and amortization

     366        342        388   

Non-cash other charges (income)

     34        (74     (72

Share-based compensation expense

     168        144        137   

Gain on sales of investments and businesses, net

     (21     (49     (108

Gain (Loss) from the extinguishment of long-term debt

     81        12        (67

Deferred income taxes

     63        384        47   

Changes in assets and liabilities, net of effects of acquisitions and dispositions:

      

Accounts receivable

     (250     (83     102   

Inventories

     (14     (111     111   

Other current assets

     61        (48     276   

Accounts payable and accrued liabilities

     (191     333        (621

Other assets and liabilities

     (190     (308     (11
  

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities from continuing operations

     848        803        627   
  

 

 

   

 

 

   

 

 

 

Investing

      

Acquisitions and investments, net

     (32     (23     (17

Proceeds from sales of investments and businesses, net

     1,123        264        357   

Capital expenditures

     (186     (192     (136

Proceeds from sales of property, plant and equipment

     6        27        1   

Sales from (purchases of) Sigma Fund investments, net

     1,509        453        (922

Proceeds from sales (purchases of) short-term investments, net

     6        (6     186   
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) investing activities from continuing operations

     2,426        523        (531
  

 

 

   

 

 

   

 

 

 

Financing

      

Repayment of short-term borrowings, net

     —          (5     (86

Repayment of debt

     (1,219     (1,011     (132

Contributions to Motorola Mobility

     (3,425     —          —     

Issuance of common stock

     192        179        116   

Purchase of common stock

     (1,110     —          —     

Excess tax benefits from share-based compensation

     42        —          —     

Payment of dividends

     (72     —          (114

Distributions from (to) discontinued operations

     64        797        (67

Other, net

     —          —          6   
  

 

 

   

 

 

   

 

 

 

Net cash used for financing activities from continuing operations

     (5,528     (40     (277
  

 

 

   

 

 

   

 

 

 

Discontinued Operations

      

Net cash provided by operating activities from discontinued operations

     26        1,169        2   

Net cash used for investing activities from discontinued operations

     (8     (343     (137

Net cash provided by (used for) financing activities from discontinued operations

     (64     (797     67   

Effect of exchange rate changes on cash and cash equivalents from
discontinued operations

     46        (29     68   
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) financing activities from discontinued operations

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents from continuing operations

     (73     53        (14
  

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (2,327     1,339        (195

Cash and cash equivalents, beginning of period

     4,208        2,869        3,064   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 1,881      $ 4,208      $ 2,869   
  

 

 

   

 

 

   

 

 

 

Financial Ratios:

      

Free cash flow*

   $ 662      $ 611      $ 491   

 

* Free cash flow = Net cash provided by operating activities - Capital expenditures


GAAP-6

Motorola Solutions, Inc. and Subsidiaries

Segment Information

(In millions)

Summarized below are the Company’s Net sales and Operating earnings by reportable segment for the three months and year ended December 31, 2011 and December 31, 2010.

 

Net Sales   
     Three Months Ended         
     December 31, 2011      December 31, 2010      % Change  

Government

   $ 1,547       $ 1,454         6

Enterprise

     753         731         3
  

 

 

    

 

 

    

 

 

 

Company Total

   $ 2,300       $ 2,185         5
  

 

 

    

 

 

    

 

 

 
     Year Ended         
     December 31, 2011      December 31, 2010      % Change  

Government

   $ 5,358       $ 5,049         6

Enterprise

     2,845         2,568         11
  

 

 

    

 

 

    

 

 

 

Company Total

   $ 8,203       $ 7,617         8
  

 

 

    

 

 

    

 

 

 
Operating Earnings   
     Three Months Ended         
     December 31, 2011      December 31, 2010      % Change  

Government

   $ 226       $ 181         25

Enterprise

     50         91         -45
  

 

 

    

 

 

    

 

 

 

Company Total

   $ 276       $ 272         1
  

 

 

    

 

 

    

 

 

 
     Year Ended         
     December 31, 2011      December 31, 2010      % Change  

Government

   $ 616       $ 534         15

Enterprise

     242         217         12
  

 

 

    

 

 

    

 

 

 

Company Total

   $ 858       $ 751         14
  

 

 

    

 

 

    

 

 

 


Non-GAAP-1

Motorola Solutions, Inc. and Subsidiaries

Non-GAAP Adjustments Bridge

(In millions, except per share amounts)

 

    Three Months  Ended
December 31, 2011
    Three Months  Ended
December 31, 2010
 
    GAAP Results     Non-GAAP
Adjustments and
Discontinued
Operations
    Non-GAAP Results     GAAP Results     Non-GAAP
Adjustments and
Discontinued
Operations
    Non-GAAP Results  

Net sales

  $ 2,300      $ —        $ 2,300      $ 2,185      $ —        $ 2,185   

Costs of sales

    1,140        9        1,131        1,096        11        1,085   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

    1,160        (9     1,169        1,089        (11     1,100   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses

    498        29        469        515        20        495   

Research and development expenditures

    266        10        256        271        12        259   

Other charges

    70        70        —          (20     (20     —     

Intangibles amortization

    50        50        —          51        51        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating earnings

    276        (168     444        272        (74     346   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expense):

           

Interest expense, net

    (15     —          (15     (32     —          (32

Gain on sales of investments and businesses, net

    2        —          2        5        —          5   

Other

    4        —          4        3        —          3   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense)

    (9     —          (9     (24     —          (24
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from continuing operations before income taxes

    267        (168     435        248        (74     322   

Income tax expense

    90        (59     149        69        (23     92   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from continuing operations

    177        (109     286        179        (51     230   

Earnings from discontinued operations, net of tax

    7        7        —          125        125        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

    184        (102     286        304        74        230   

Less: Earnings attributable to noncontrolling interests

    —          —          —          12        —          12   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings attributable to Motorola Solutions, Inc.

  $ 184      $ (102   $ 286      $ 292      $ 74      $ 218   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from continuing operations, net of tax

  $ 177      $ (109   $ 286      $ 167      $ (51   $ 218   

Earnings from discontinued operations, net of tax

    7        7        —          125        125        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

  $ 184      $ (102   $ 286      $ 292      $ 74      $ 218   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share

           

Basic:

           

Continuing operations

  $ 0.55      $ (0.34   $ 0.89      $ 0.50      $ (0.15   $ 0.65   

Discontinued
operations

    0.02        0.02        —          0.37        0.37        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 0.57      $ (0.32   $ 0.89      $ 0.87      $ 0.22      $ 0.65   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted:

           

Continuing operations

  $ 0.54      $ (0.33   $ 0.87      $ 0.49      $ (0.15   $ 0.64   

Discontinued operations

    0.02        0.02        —          0.37        0.37        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 0.56      $ (0.31   $ 0.87      $ 0.86      $ 0.22      $ 0.64   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding

           

Basic

    323.1        323.1        323.1        335.9        335.9        335.9   

Diluted

    328.4        328.4        328.4        341.3        341.3        341.3   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Percentage of Net Sales*            

Net sales

    100       100     100       100

Costs of sales

    49.6       49.2     50.2       49.7
 

 

 

     

 

 

   

 

 

     

 

 

 

Gross margin

    50.4       50.8     49.8       50.3
 

 

 

     

 

 

   

 

 

     

 

 

 

Selling, general and administrative expenses

    21.7       20.4     23.6       22.7

Research and development expenditures

    11.6       11.1     12.4       11.9

Other charges

    3.0       0.0     -0.9       0.0

Intangibles amortization

    2.2       0.0     2.3       0.0
 

 

 

     

 

 

   

 

 

     

 

 

 

Operating earnings

    12.0       19.3     12.4       15.8
 

 

 

     

 

 

   

 

 

     

 

 

 

Other income (expense):

           

Interest expense, net

    -0.7       -0.7     -1.5       -1.5

Gain on sales of investments and businesses, net

    0.1       0.1     0.2       0.2

Other

    0.2       0.2     0.1       0.1
 

 

 

     

 

 

   

 

 

     

 

 

 

Total other income (expense)

    -0.4       -0.4     -1.1       -1.1
 

 

 

     

 

 

   

 

 

     

 

 

 

Earnings from continuing operations before income taxes

    11.6       18.9     11.4       14.7

Income tax expense

    3.9       6.5     3.2       4.2
 

 

 

     

 

 

   

 

 

     

 

 

 

Earnings from continuing operations

    7.7       12.4     8.2       10.5

Earnings from discontinued operations, net of tax

    0.3       0.0     5.7       0.0
 

 

 

     

 

 

   

 

 

     

 

 

 

Net earnings

    8.0       12.4     13.9       10.5

Less: Earnings attributable to noncontrolling interests

    0.0       0.0     0.5       0.5
 

 

 

     

 

 

   

 

 

     

 

 

 

Net earnings attributable to Motorola Solutions, Inc.

    8.0       12.4     13.4       10.0
 

 

 

     

 

 

   

 

 

     

 

 

 

 

* Percentages may not add up due to rounding


Non-GAAP-2

Motorola Solutions, Inc. and Subsidiaries

Non-GAAP Adjustments Bridge

(In millions, except per share amounts)

 

    Year Ended
December 31, 2011
    Year Ended
December 31, 2010
 
    GAAP Results     Non-GAAP
Adjustments and
Discontinued
Operations
    Non-GAAP Results     GAAP Results     Non-GAAP
Adjustments and
Discontinued
Operations
    Non-GAAP Results  

Net sales

  $ 8,203      $ —        $ 8,203      $ 7,617      $ —        $ 7,617   

Costs of sales

    4,057        26        4,031        3,805        37        3,768   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

    4,146        (26     4,172        3,812        (37     3,849   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses

    1,912        83        1,829        1,874        82        1,792   

Research and development expenditures

    1,035        65        970        1,037        44        993   

Other charges

    141        141        —          (53     (53     —     

Intangibles amortization

    200        200        —          203        203        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating earnings

    858        (515     1,373        751        (313     1,064   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expense):

           

Interest expense, net

    (74     —          (74     (129     —          (129

Gain on sales of investments and businesses, net

    23        —          23        49        31        18   

Other

    (69     (81     12        (7     —          (7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense)

    (120     (81     (39     (87     31        (118
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from continuing operations before income taxes

    738        (596     1,334        664        (282     946   

Income tax expense

    (3     (455     452        403        97        306   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from continuing operations

    741        (141     882        261        (379     640   

Earnings from discontinued operations, net of tax

    411        411        —          389        389        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

    1,152        270        882        650        10        640   

Less: Earnings (loss) attributable to noncontrolling interests

    (6     —          (6     17        —          17   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings attributable to Motorola Solutions, Inc.

  $ 1,158      $ 270      $ 888      $ 633      $ 10      $ 623   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from continuing operations, net of tax

  $ 747      $ (141   $ 888      $ 244      $ (379   $ 623   

Earnings from discontinued operations, net of tax

    411        411        —          389        389        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

  $ 1,158      $ 270      $ 888      $ 633      $ 10      $ 623   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share

           

Basic:

           

Continuing operations

  $ 2.24      $ (0.42   $ 2.66      $ 0.73      $ (1.14   $ 1.87   

Discontinued operations

    1.23        1.23        —          1.17        1.17        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 3.47      $ 0.81      $ 2.66      $ 1.90      $ 0.03      $ 1.87   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted:

           

Continuing operations

  $ 2.20      $ (0.41   $ 2.61      $ 0.72      $ (1.12   $ 1.84   

Discontinued operations

    1.21        1.21        —          1.15        1.15        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 3.41      $ 0.80      $ 2.61      $ 1.87      $ 0.03      $ 1.84   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding

           

Basic

    333.8        333.8        333.8        333.3        333.3        333.3   

Diluted

    339.7        339.7        339.7        338.1        338.1        338.1   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Percentage of Net Sales*            

Net sales

    100       100     100       100

Costs of sales

    49.5       49.1     50.0       49.5
 

 

 

     

 

 

   

 

 

     

 

 

 

Gross margin

    50.5       50.9     50.0       50.5
 

 

 

     

 

 

   

 

 

     

 

 

 

Selling, general and administrative expenses

    23.3       22.3     24.6       23.5

Research and development expenditures

    12.6       11.8     13.6       13.0

Other charges

    1.7       0.0     -0.7       0.0

Intangibles amortization

    2.4       0.0     2.7       0.0
 

 

 

     

 

 

   

 

 

     

 

 

 

Operating earnings

    10.5       16.7     9.9       14.0
 

 

 

     

 

 

   

 

 

     

 

 

 

Other income (expense):

           

Interest expense, net

    -0.9       -0.9     -1.7       -1.7

Gain on sales of investments and businesses, net

    0.3       0.3     0.6       0.2

Other

    -0.8       0.1     -0.1       -0.1
 

 

 

     

 

 

   

 

 

     

 

 

 

Total other income (expense)

    -1.5       -0.5     -1.1       -1.5
 

 

 

     

 

 

   

 

 

     

 

 

 

Earnings from continuing operations before income taxes

    9.0       16.3     8.7       12.4

Income tax expense

    0.0       5.5     5.3       4.0
 

 

 

     

 

 

   

 

 

     

 

 

 

Earnings from continuing operations

    9.0       10.8     3.4       8.4

Earnings from discontinued operations, net of tax

    5.0       0.0     5.1       0.0
 

 

 

     

 

 

   

 

 

     

 

 

 

Net earnings

    14.0       10.8     8.5       8.4

Less: Earnings attributable to noncontrolling interests

    -0.1       -0.1     0.2       0.2
 

 

 

     

 

 

   

 

 

     

 

 

 

Net earnings attributable to Motorola Solutions, Inc.

    14.1       10.8     8.3       8.2
 

 

 

     

 

 

   

 

 

     

 

 

 

 

* Percentages may not add up due to rounding


Non-GAAP-3

Motorola Solutions, Inc. and Subsidiaries

Operating Earnings after Non-GAAP Adjustments

 

Q1 2011   
          TOTAL     Government     Enterprise  

Net sales

      $ 1,834      $ 1,167      $ 667   

Operating earnings

      $ 169      $ 99      $ 70   
     

 

 

   

 

 

   

 

 

 

Above-OE non-GAAP adjustments by P&L statement line:

   Statement Line       

Reorganization of business charges

   Cost of sales      3        3        —     

Stock-based compensation expense

   Cost of sales      3        2        1   

Stock-based compensation expense

   SG&A and R&D      36        24        12   

Reorganization of business charges

   Other charges (income)      5        5        —     

Intangibles amortization expense

   Intangibles amortization      50        1        49   
     

 

 

   

 

 

   

 

 

 

Less: Total above-OE non-GAAP adjustments

        97        35        62   
     

 

 

   

 

 

   

 

 

 

Operating earnings after non-GAAP adjustments

      $ 266      $ 134      $ 132   
     

 

 

   

 

 

   

 

 

 

Operating earnings as a percentage of net sales - GAAP

        9.2     8.5     10.5

Operating earnings as a percentage of net sales - after non-GAAP adjustments

        14.5     11.5     19.8
     

 

 

   

 

 

   

 

 

 
Q2 2011   
          TOTAL     Government     Enterprise  

Net sales

      $ 1,984      $ 1,284      $ 700   

Operating earnings

      $ 159      $ 105      $ 54   
     

 

 

   

 

 

   

 

 

 

Above-OE non-GAAP adjustments by P&L statement line:

   Statement Line       

Stock-based compensation expense

   Cost of sales      5        3        2   

Stock-based compensation expense

   SG&A and R&D      34        23        11   

Legal matters, net

   Other charges      48        32        16   

Reorganization of business charges

   Other charges      17        10        7   

Pension plan adjustments, net

   Other charges      (9     (6     (3

Intangibles amortization expense

   Intangibles amortization      50        1        49   
     

 

 

   

 

 

   

 

 

 

Less: Total above-OE non-GAAP adjustments

        145        63        82   
     

 

 

   

 

 

   

 

 

 

Operating earnings after non-GAAP adjustments

      $ 304      $ 168      $ 136   
     

 

 

   

 

 

   

 

 

 

Earnings (loss) from discontinued operations, net of tax

        8.0     8.2     7.7

Operating earnings as a percentage of net sales - after non-GAAP adjustments

        15.3     13.1     19.4
     

 

 

   

 

 

   

 

 

 
Q3 2011   
          TOTAL     Government     Enterprise  

Net sales

      $ 2,085      $ 1,360      $ 725   

Operating earnings

      $ 254      $ 186      $ 68   
     

 

 

   

 

 

   

 

 

 

Above-OE non-GAAP adjustments by P&L statement line:

   Statement Line       

Stock-based compensation expense

   Cost of sales      6        4        2   

Stock-based compensation expense

   SG&A and R&D      39        26        13   

Reorganization of business charges

   Other charges      10        7        3   

Intangibles amortization expense

   Intangibles amortization      50        1        49   
     

 

 

   

 

 

   

 

 

 

Less: Total above-OE non-GAAP adjustments

        105        38        67   
     

 

 

   

 

 

   

 

 

 

Operating earnings after non-GAAP adjustments

      $ 359      $ 224      $ 135   
     

 

 

   

 

 

   

 

 

 

Operating earnings as a percentage of net sales - GAAP

        12.2     13.7     9.4

Operating earnings as a percentage of net sales - after non-GAAP adjustments

        17.2     16.5     18.6
     

 

 

   

 

 

   

 

 

 
Q4 2011   
          TOTAL     Government     Enterprise  

Net sales

      $ 2,300      $ 1,547      $ 753   

Operating earnings

      $ 276      $ 226      $ 50   
     

 

 

   

 

 

   

 

 

 

Above-OE non-GAAP adjustments by P&L statement line:

   Statement Line       

Reorganization of business charges

   Cost of sales    $ 3      $ 2      $ 1   

Stock-based compensation expense

   Cost of sales      6        4        2   

Stock-based compensation expense

   SG&A and R&D      39        25        14   

Legal matters, net

   Other charges      40        26        14   

Reorganization of business charges

   Other charges      20        13        7   

Long-term financing receivable reserve

   Other charges      10        10        —     

Intangibles amortization expense

   Intangibles amortization      50        1        49   
     

 

 

   

 

 

   

 

 

 

Less: Total above-OE non-GAAP adjustments

        168        81        87   
     

 

 

   

 

 

   

 

 

 

Operating earnings after non-GAAP adjustments

      $ 444      $ 307      $ 137   
     

 

 

   

 

 

   

 

 

 

Operating earnings as a percentage of net sales - GAAP

        12.0     14.6     6.6

Operating earnings as a percentage of net sales - after non-GAAP adjustments

        19.3     19.8     18.2
     

 

 

   

 

 

   

 

 

 
FY 2011   
          TOTAL     Government     Enterprise  

Net sales

      $ 8,203      $ 5,358      $ 2,845   

Operating earnings

      $ 858      $ 616      $ 242   
     

 

 

   

 

 

   

 

 

 

Above-OE non-GAAP adjustments by P&L statement line:

   Statement Line       

Reorganization of business charges

   Cost of sales    $ 6      $ 5      $ 1   

Stock-based compensation expense

   Cost of sales      20        13        7   

Stock-based compensation expense

   SG&A and R&D      148        98        50   

Legal matters, net

   Other charges      88        58        30   

Reorganization of business charges

   Other charges      52        35        17   

Pension plan adjustments, net

   Other charges      (9     (6     (3

Long-term financing receivable reserve

   Other charges      10        10        0   

Intangibles amortization expense

   Intangibles amortization      200        4        196   
     

 

 

   

 

 

   

 

 

 

Less: Total above-OE non-GAAP adjustments

        515        217        298   
     

 

 

   

 

 

   

 

 

 

Operating earnings after non-GAAP adjustments

      $ 1,373      $ 833      $ 540   
     

 

 

   

 

 

   

 

 

 

Operating earnings as a percentage of net sales - GAAP

        10.5     11.5     8.5

Operating earnings as a percentage of net sales - after non-GAAP adjustments

        16.7     15.5     19.0
     

 

 

   

 

 

   

 

 

 


Non-GAAP-4

Motorola Solutions, Inc. and Subsidiaries

Non-GAAP Adjustments (Intangibles Amortization Expense, Stock-Based Compensation Expense and Highlighted Items)

 

Q1 2011   

Highlighted Items

  

Statement Line

   PBT
(Inc)/Exp
    Tax
Inc/(Exp)
    PAT
(Inc)/Exp
    EPS impact  

Intangibles amortization expense

  

Intangibles amortization

   $ 50      $ 18      $ 32        0.09   

Stock-based compensation expense

  

Cost of sales, SG&A and R&D

     39        11        28        0.08   

Reorganization of business charges

  

Cost of sales and Other charges (income)

     8        4        4        0.01   

Reduction in deferred tax valuation allowance

  

Income tax benefit

     —          244        (244     (0.71
     

 

 

   

 

 

   

 

 

   

 

 

 

Total continuing operations impact

      $ 97      $ 277      $ (180   $ (0.53
Q2 2011   

Highlighted Items

  

Statement Line

   PBT
(Inc)/Exp
    Tax
Inc/(Exp)
    PAT
(Inc)/Exp
    EPS impact  

Debt extinguishment loss

  

Other income (expense)

   $ 81      $ 30      $ 51        0.14   

Intangibles amortization expense

  

Intangibles amortization

     50        18        32        0.09   

Legal matters, net

  

Other charges

     48        18        30        0.08   

Stock-based compensation expense

  

Cost of sales, SG&A and R&D

     39        12        27        0.08   

Reorganization of business charges

  

Other charges

     17        4        13        0.04   

Pension plan adjustments, net

  

Other charges

     (9     2        (11     (0.03
     

 

 

   

 

 

   

 

 

   

 

 

 

Total continuing operations impact

      $ 226      $ 84      $ 142      $ 0.40   
Q3 2011   

Highlighted Items

  

Statement Line

   PBT
(Inc)/Exp
    Tax
Inc/(Exp)
    PAT
(Inc)/Exp
    EPS impact  

Intangibles amortization expense

  

Intangibles amortization

     50        18        32        0.10   

Stock-based compensation expense

  

Cost of sales, SG&A and R&D

     45        14        31        0.09   

Reorganization of business charges

  

Other charges

     10        3        7        0.02   
     

 

 

   

 

 

   

 

 

   

 

 

 

Total continuing operations impact

      $ 105      $ 35      $ 70      $ 0.21   
Q4 2011   

Highlighted Items

  

Statement Line

   PBT
(Inc)/Exp
    Tax
Inc/(Exp)
    PAT
(Inc)/Exp
    EPS impact  

Intangibles amortization expense

  

Intangibles amortization

     50        18        32        0.09   

Stock-based compensation expense

  

Cost of sales, SG&A and R&D

     45        14        31        0.09   

Legal matters, net

  

Other charges

     40        15        25        0.08   

Reorganization of business charges

  

Cost of sales and ‘Other charges

     23        7        16        0.05   

Long-term financing receivable reserve

  

Other charges

     10        4        6        0.02   

Tax expense related to undistributed foreign earnings

  

Income tax (expense) benefit

     —          (17     17        0.05   

Tax benefit from audit settlements and agreements

  

Income tax (expense) benefit

     —          18        (18     (0.05
     

 

 

   

 

 

   

 

 

   

 

 

 

Total continuing operations impact

      $ 168      $ 59      $ 109      $ 0.33   

 

FY 2011   

Highlighted Items

  

Statement Line

   PBT
(Inc)/Exp
    Tax
Inc/(Exp)
    PAT
(Inc)/Exp
    EPS impact  

Intangibles amortization expense

  

Intangibles amortization

     200        72        128        0.37   

Stock-based compensation expense

  

Cost of sales, SG&A and R&D

     168        51        117        0.34   

Legal matters, net

  

Other charges

     88        33        55        0.16   

Debt extinguishment loss

  

Other income (expense)

     81        30        51        0.15   

Reorganization of business charges

  

Cost of sales and ‘Other charges

     58        18        40        0.12   

Long-term financing receivable reserve

  

Other charges

     10        4        6        0.02   

Pension plan adjustments, net

  

Other charges

     (9     2        (11     (0.03

Reduction in deferred tax valuation allowance

  

Income tax benefit

     —          244        (244     (0.72

Tax expense related to undistributed foreign earnings

  

Income tax (expense) benefit

     —          (17     17        0.05   

Tax benefit from audit settlements and agreements

  

Income tax (expense) benefit

       18        (18     (0.05
     

 

 

   

 

 

   

 

 

   

 

 

 

Total continuing operations impact

      $ 596      $ 455      $ 141      $ 0.41