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8-K - 8-K - Motorola Solutions, Inc.d719518d8k.htm

Exhibit 99.1

Non-GAAP-1

Motorola Solutions, Inc. and Subsidiaries

Pro forma Non-GAAP Adjustments Bridge

(In millions)

 

Q1 2012   
     TOTAL  

Net sales

   $ 1,387   

Operating earnings (“OE”)

   $ 151   
  

 

 

 

Above-OE non-GAAP adjustments:

  

Share-based compensation expense

     34   

Reorganization of business charges

     7   
  

 

 

 

Total above-OE non-GAAP adjustments

     41   
  

 

 

 

Operating earnings after non-GAAP adjustments

   $ 192   
  

 

 

 

Operating earnings as a percentage of net sales—GAAP

     10.9

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

     13.8
  

 

 

 
Q2 2012   
     TOTAL  

Net sales

   $ 1,537   

Operating earnings

   $ 190   
  

 

 

 

Above-OE non-GAAP adjustments:

  

Share-based compensation expense

     42   

Reorganization of business charges

     9   
  

 

 

 

Total above-OE non-GAAP adjustments

     51   
  

 

 

 

Operating earnings after non-GAAP adjustments

   $ 241   
  

 

 

 

Operating earnings as a percentage of net sales—GAAP

     12.4

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

     15.7
  

 

 

 
Q3 2012   
     TOTAL  

Net sales

   $ 1,580   

Operating earnings

   $ 252   
  

 

 

 

Above-OE non-GAAP adjustments:

  

Share-based compensation expense

     35   

Reorganization of business charges

     8   
  

 

 

 

Total above-OE non-GAAP adjustments

     43   
  

 

 

 

Operating earnings after non-GAAP adjustments

   $ 295   
  

 

 

 

Operating earnings as a percentage of net sales—GAAP

     15.9

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

     18.7
  

 

 

 
Q4 2012   
     TOTAL  

Net sales

   $ 1,764   

Operating earnings

   $ 327   
  

 

 

 

Above-OE non-GAAP adjustments:

  

Share-based compensation expense

     36   

Reorganization of business charges

     9   

Legal matter

     (16
  

 

 

 

Total above-OE non-GAAP adjustments

     29   
  

 

 

 

Operating earnings after non-GAAP adjustments

   $ 356   
  

 

 

 

Operating earnings as a percentage of net sales—GAAP

     18.5

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

     20.2
  

 

 

 
FY 2012   
     TOTAL  

Net sales

   $ 6,269   

Operating earnings

   $ 920   
  

 

 

 

Above-OE non-GAAP adjustments:

  

Share-based compensation expense

     147   

Reorganization of business charges

     33   

Intangibles amortization expense

     1   

Legal matter

     (16
  

 

 

 

Total above-OE non-GAAP adjustments

     165   
  

 

 

 

Operating earnings after non-GAAP adjustments

   $ 1,085   
  

 

 

 

Operating earnings as a percentage of net sales—GAAP

     14.7

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

     17.3
  

 

 

 

The pro forma financial data presented above reflects the removal of: (i) the pro forma results of the Enterprise business as a result of the Company’s anticipated sale of its Enterprise business, excluding the iDEN business and other specific assets and liabilities, as discussed in the Report on Form 8-K furnished with the Securities and Exchange Commission on April 15, 2014, and (ii) certain estimated costs previously allocated to the Enterprise business which will remain with Motorola Solutions after the anticipated sale. This financial data was prepared on a pro forma basis and, accordingly, the discontinued operations of the Enterprise business and the financial results of Motorola Solutions’ continuing operations may differ from what is provided above.

The pro forma financial data also contains non-GAAP financial measures within the meaning of Regulation G promulgated by the SEC. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. The non-GAAP adjustments to Operating Earnings presented above include share-based compensation expense, intangible assets amortization, and highlighted items (significant, nonrecurring items impacting operating income or expenses). The Company has provided these non-GAAP adjustments to Operating Earnings as an estimate of the financial results of the Company on a going forward basis. These non-GAAP measures are intended to help investors better understand the Company’s core operating performance, enhance comparisons of core operating performance from period to period and allow better comparisons of operating performance to its competitors on a going forward basis. These measures should be considered in addition to results prepared in accordance with GAAP, but are not a substitute for GAAP results.


Non-GAAP-2

Motorola Solutions, Inc. and Subsidiaries

Pro forma Non-GAAP Adjustments Bridge

(In millions)

 

Q1 2013   
     TOTAL  

Net sales

   $ 1,396   

Operating earnings (“OE”)

   $ 173   
  

 

 

 

Above-OE non-GAAP adjustments:

  

Share-based compensation expense

     36   

Reorganization of business charges

     7   
  

 

 

 

Total above-OE non-GAAP adjustments

     43   
  

 

 

 

Operating earnings after non-GAAP adjustments

   $ 216   
  

 

 

 

Operating earnings as a percentage of net sales—GAAP

     12.4

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

     15.5
  

 

 

 
Q2 2013   
     TOTAL  

Net sales

   $ 1,497   

Operating earnings

   $ 203   
  

 

 

 

Above-OE non-GAAP adjustments:

  

Share-based compensation expense

     27   

Reorganization of business charges

     18   
  

 

 

 

Total above-OE non-GAAP adjustments

     45   
  

 

 

 

Operating earnings after non-GAAP adjustments

   $ 248   
  

 

 

 

Operating earnings as a percentage of net sales—GAAP

     13.6

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

     16.6
  

 

 

 
Q3 2013   
     TOTAL  

Net sales

   $ 1,517   

Operating earnings

   $ 244   
  

 

 

 

Above-OE non-GAAP adjustments:

  

Share-based compensation expense

     30   

Reorganization of business charges

     21   

Intangibles amortization expense

     1   
  

 

 

 

Total above-OE non-GAAP adjustments

     52   
  

 

 

 

Operating earnings after non-GAAP adjustments

   $ 296   
  

 

 

 

Operating earnings as a percentage of net sales—GAAP

     16.1

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

     19.5
  

 

 

 
Q4 2013   
     TOTAL  

Net sales

   $ 1,817   

Operating earnings

   $ 325   
  

 

 

 

Above-OE non-GAAP adjustments:

  

Share-based compensation expense

     30   

Reorganization of business charges

     41   
  

 

 

 

Total above-OE non-GAAP adjustments

     71   
  

 

 

 

Operating earnings after non-GAAP adjustments

   $ 396   
  

 

 

 

Operating earnings as a percentage of net sales—GAAP

     17.9

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

     21.8
  

 

 

 
FY 2013   
     TOTAL  

Net sales

   $ 6,227   

Operating earnings

   $ 946   
  

 

 

 

Above-OE non-GAAP adjustments:

  

Share-based compensation expense

     123   

Reorganization of business charges

     86   

Intangibles amortization expense

     1   
  

 

 

 

Total above-OE non-GAAP adjustments

     210   
  

 

 

 

Operating earnings after non-GAAP adjustments

   $ 1,156   
  

 

 

 

Operating earnings as a percentage of net sales—GAAP

     15.2

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

     18.6
  

 

 

 

The pro forma financial data presented above reflects the removal of: (i) the pro forma results of the Enterprise business as a result of the Company’s anticipated sale of its Enterprise business, excluding the iDEN business and other specific assets and liabilities, as discussed in the Report on Form 8-K furnished with the Securities and Exchange Commission on April 15, 2014, and (ii) certain estimated costs previously allocated to the Enterprise business which will remain with Motorola Solutions after the anticipated sale. This financial data was prepared on a pro forma basis and, accordingly, the discontinued operations of the Enterprise business and the financial results of Motorola Solutions’ continuing operations may differ from what is provided above.

The pro forma financial data also contains non-GAAP financial measures within the meaning of Regulation G promulgated by the SEC. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. The non-GAAP adjustments to Operating Earnings presented above include share-based compensation expense, intangible assets amortization, and highlighted items (significant, nonrecurring items impacting operating income or expenses). The Company has provided these non-GAAP adjustments to Operating Earnings as an estimate of the financial results of the Company on a going forward basis. These non-GAAP measures are intended to help investors better understand the Company’s core operating performance, enhance comparisons of core operating performance from period to period and allow better comparisons of operating performance to its competitors on a going forward basis. These measures should be considered in addition to results prepared in accordance with GAAP, but are not a substitute for GAAP results.


Non-GAAP-3

Motorola Solutions, Inc. and Subsidiaries

Pro forma Non-GAAP Adjustments Bridge

(In millions)

 

Q1 2014   
     TOTAL  

Net sales

   $ 1,228   

Operating earnings (“OE”)

   $ 102   
  

 

 

 

Above-OE non-GAAP adjustments:

  

Share-based compensation expense

     29   

Reorganization of business charges

     15   

Intangibles amortization expense

     1   

Gain on sale of building and land

     (21
  

 

 

 

Total above-OE non-GAAP adjustments

     24   
  

 

 

 

Operating earnings after non-GAAP adjustments

   $ 126   
  

 

 

 

Operating earnings as a percentage of net sales—GAAP

     8.3

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

     10.3
  

 

 

 

The pro forma financial data presented above reflects the removal of: (i) the pro forma results of the Enterprise business as a result of the Company’s anticipated sale of its Enterprise business, excluding the iDEN business and other specific assets and liabilities, as discussed in the Report on Form 8-K furnished with the Securities and Exchange Commission on April 15, 2014, and (ii) certain estimated costs previously allocated to the Enterprise business which will remain with Motorola Solutions after the anticipated sale. This financial data was prepared on a pro forma basis and, accordingly, the discontinued operations of the Enterprise business and the financial results of Motorola Solutions’ continuing operations may differ from what is provided above.

The pro forma financial data also contains non-GAAP financial measures within the meaning of Regulation G promulgated by the SEC. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. The non-GAAP adjustments to Operating Earnings presented above include share-based compensation expense, intangible assets amortization, and highlighted items (significant, nonrecurring items impacting operating income or expenses). The Company has provided these non-GAAP adjustments to Operating Earnings as an estimate of the financial results of the Company on a going forward basis. These non-GAAP measures are intended to help investors better understand the Company’s core operating performance, enhance comparisons of core operating performance from period to period and allow better comparisons of operating performance to its competitors on a going forward basis. These measures should be considered in addition to results prepared in accordance with GAAP, but are not a substitute for GAAP results.