[August 05, 2015] |
|
Motorola Solutions Reports Second-Quarter 2015 Financial Results
Motorola
Solutions, Inc. (NYSE: MSI) today reported its earnings results for
the second quarter of 2015. Click
here for a printable news release and financial tables.
SUPPORTING QUOTE
"The company delivered double-digit earnings and free cash flow per
share growth in the second quarter, driven by strong North America
results and improved operating leverage," said Greg Brown, chairman and
CEO of Motorola Solutions.
"We believe the partnership with Silver Lake will accelerate growth in
our smart public safety solutions and services businesses and represents
a strong vote of confidence in our company's strategy. We also announced
our intent to repurchase up to $2 billion of our stock through a tender
offer. These steps reflect our confidence in the future value of our
business while allowing us to maintain considerable financial
flexibility to pursue further growth."
KEY FINANCIAL RESULTS (presented in millions, except per share data
and percentages)
|
|
|
|
|
|
|
|
|
Q2 2015
|
|
Q2 2014
|
|
% Change
|
Sales
|
|
$1,368
|
|
$1,393
|
|
(2)%
|
GAAP
|
|
|
|
|
|
|
Operating Earnings
|
|
$254
|
|
$138
|
|
84%
|
% of Sales
|
|
18.6%
|
|
9.9%
|
|
|
EPS from continuing operations
|
|
$0.72
|
|
$0.30
|
|
140%
|
Non-GAAP
|
|
|
|
|
|
|
Operating Earnings
|
|
$260
|
|
$201
|
|
29%
|
% of Sales
|
|
19.0%
|
|
14.4%
|
|
|
EPS from continuing operations
|
|
$0.68
|
|
$0.47
|
|
45%
|
Product Segment
|
|
|
|
|
|
|
Sales
|
|
$867
|
|
$887
|
|
(2)%
|
GAAP Operating Earnings
|
|
$171
|
|
$95
|
|
80%
|
% of Sales
|
|
19.7%
|
|
10.7%
|
|
|
Non-GAAP Operating Earnings
|
|
$176
|
|
$133
|
|
32%
|
% of Sales
|
|
20.3%
|
|
15.0%
|
|
|
Services Segment
|
|
|
|
|
|
|
Sales
|
|
$501
|
|
$506
|
|
(1)%
|
GAAP Operating Earnings
|
|
$83
|
|
$43
|
|
93%
|
% of Sales
|
|
16.6%
|
|
8.5%
|
|
|
Non-GAAP Operating Earnings
|
|
$84
|
|
$68
|
|
24%
|
% of Sales
|
|
16.8%
|
|
13.4%
|
|
|
|
|
|
|
|
|
|
* Non-GAAP financial information excludes the after-tax
impact of approximately $0.04 per diluted share related to share-based
compensation, 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 news release.
OTHER SELECTED FINANCIAL RESULTS
-
Revenue - Sales declined 2 percent, including $53 million of
unfavorable foreign currency impact. Sales increased 2 percent in
constant currency. These results reflect 5 percent growth in North
America driven by increased product sales. Overall product sales
declined 2 percent due to currency headwinds and weakness in Europe
and Africa and Latin America, while Services declined 1 percent
primarily due to unfavorable currency impact and lower iDEN revenue.
-
Operating margin - GAAP operating margin was 18.6
percent of sales in the second quarter of 2015, compared with 9.9
percent in the second quarter of 2014; non-GAAP operating margin was
19.0 percent of sales, compared with 14.4 percent in the second
quarter of 2014. These results were driven by $69 million in lower
operating expenses compared with the second quarter of 2014, due
largely to cost reduction and simplification initiatives across all
categories as well as lower pension expense and a stronger dollar.
-
Taxes - The second quarter of 2015 GAAP effective tax
rate was 30 percent. This compares with a tax rate of 20 percent in
the second quarter of 2014, which included $30 million of net tax
benefit associated with the net reduction in previously unrecognized
tax benefits. The second quarter of 2015 non-GAAP tax rate was 35
percent, compared with a tax rate of 25 percent in the second quarter
of 2014. The full-year non-GAAP tax rate is expected to be
approximately 33 percent. The full-year cash tax rate3 is
expected to be approximately 15 percent.
-
Cash flow - The company generated $140 million in
operating cash from continuing operations during the quarter,
reflecting an increase of $22 million over the prior year. Free cash
flow was $92 million in the quarter. The increase was largely driven
by improved earnings and lower pension contributions.
-
Cash and cash equivalents - The company ended the quarter with
cash and cash equivalents of $3.1 billion and a net debt position of
approximately $300 million4. The company repurchased $285
million of common stock in the second quarter of 2015 and paid $72
million in cash dividends.
-
Backlog - The company grew sequential backlog for the third
straight quarter, ending at $6 billion. These results were primarily
due to growth in North America, Asia Pacific and the Middle East
regions.
STRATEGIC PARTNERSHIP WITH SILVER LAKE
Silver Lake, the global leader in technology investing, intends to
invest $1 billion in Motorola Solutions to accelerate the company's
growth of smart public safety solutions and services businesses through
strategic partnerships, investments, and acquisitions. As part of the
partnership with Silver Lake, Egon Durban and Greg Mondre, managing
partners of Silver Lake, will be appointed to Motorola Solutions' board
of directors when the transaction closes, which is expected to occur in
the third quarter of 2015.
COMPANY ANNOUNCES INTENTION TO COMMENCE TENDER OFFER
Motorola Solutions also announced today that its board of directors
approved proceeding with a tender offer to repurchase up to $2 billion
of common stock (subject to a customary increase if the tender offer is
oversubscribed). The company intends to commence a modified "Dutch
Auction" tender offer at a specified price range to be determined. The
company expects to commence the tender offer on or about August 7.
The company will fund the tender offer with a combination of existing
cash on the company's balance sheet and a portion of the proceeds from
the $1 billion strategic investment by Silver Lake.
After these actions, the company will maintain robust liquidity and a
strong balance sheet and investment grade credit ratings.
KEY HIGHLIGHTS
Strategic wins
Significant wins in core business
-
$112 million P25 system upgrade for King County in Washington covering
39 cities and 25,000 radio users. By leveraging the customer's
existing technology, the system upgrade will remain cost-effective and
will keep the system fully operational and at the current release
until the year 2039.
-
$45 million of orders with two law enforcement agencies for the APX
8000, the company's newest P25 radio that integrates LMR and broadband
via WiFi enabling customers to continually and efficiently upgrade
their devices over-the-air with new software features
-
$29 million contract with Bell Mobility for a province-wide P25
system, subscribers, and 10 years of hardware and software support for
the government of New Brunswick in Canada
Significant wins in key growth areas
-
$153 million of multi-year managed and lifecycle services contracts
for 10 customers in North America, Asia and Europe
-
$66 million in key vertical expansion areas of petro-chemical and
utility industries, with four separate customers worldwide
-
$12.5 million purchase from the U.S. Federal Government for WAVE
push-to-talk software application related to the company's recent
acquisition of Twisted Pair
Innovation and investments in growth
-
Opened multi-tenant network operations center in North America to
support managed services growth
-
Strengthened Smart Public Safety analytics offerings by partnering
with Wynyard Group on big data analysis to help customers solve crimes
faster and more efficiently
-
Announced new line of intrinsically safe TETRA radios specifically
built for safety in hazardous working conditions in target verticals
of Oil & Gas, Fire & Rescue, Mining and Airports
BUSINESS OUTLOOK
-
Third quarter 2015 - Motorola Solutions expects a revenue
decline of 1 to 3 percent compared with the third quarter of 2014.
This assumes a $50 million unfavorable currency impact5,
which translates to revenue of flat to 2 percent in constant currency.
The company expects non-GAAP earnings per share from continuing
operations in the range of $0.68 to $0.73 per share.
-
Full-year 2015 - The company revenue outlook remains unchanged
as revenue is expected to be flat to down 2 percent compared to 2014.
This outlook translates to revenue growth of 1 to 3 percent in
constant currency. The company still expects non-GAAP earnings per
share from continuing operations in the range of $3.20 to $3.40 per
share.
CONFERENCE CALL AND WEBCAST
Motorola Solutions will host its quarterly conference call beginning at
7:30 a.m. U.S. Central Daylight Time (8:30 a.m. U.S. Eastern Daylight
Time) Wednesday, August 5. The conference call will be webcast live with
audio and slides at http://investors.motorolasolutions.com/.
CONSOLIDATED GAAP RESULTS (presented in millions, except per
share data)
A comparison of results from operations is as follows:
|
|
|
|
|
|
|
Q2 2015
|
|
Q2 2014
|
Net sales
|
|
$1,368
|
|
$1,393
|
Gross margin
|
|
648
|
|
656
|
Operating earnings
|
|
254
|
|
138
|
Amounts attributable to Motorola Solutions, Inc. common
stockholders
|
|
|
|
|
Earnings from continuing operations, net of tax
|
|
150
|
|
78
|
Net earnings
|
|
142
|
|
824
|
Diluted EPS from continuing operations
|
|
$0.72
|
|
$0.30
|
Weighted average diluted common shares outstanding
|
|
209.5
|
|
256.2
|
HIGHLIGHTED ITEMS AND SHARE-BASED COMPENSATION EXPENSE
The table below includes highlighted items, share-based compensation
expense and intangible amortization for the second quarter of 2015.
|
|
|
(per diluted common share)
|
|
Q2 2015
|
|
|
|
GAAP Earnings from Continuing Operations
|
|
$0.72
|
|
|
|
Highlighted Items:
|
|
|
Share-based compensation expense and intangible amortization
|
|
0.06
|
|
Reorganization of business charges
|
|
0.05
|
|
Non-U.S. pension curtailment gain
|
|
(0.15
|
)
|
Total Highlighted Items
|
|
(0.04
|
)
|
|
|
|
Non-GAAP Diluted EPS from Continuing Operations
|
|
$0.68
|
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. The
company has provided these non-GAAP measurements to help investors
better understand its core operating performance, enhance comparisons of
core operating performance from period to period and allow better
comparisons of operating performance to its 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 generally accepted accounting
principles.
Highlighted items: The company has excluded the effects of
highlighted items (and any reversals of highlighted items recorded in
prior periods) from its non-GAAP operating expenses and net income
measurements because the company believes that these historical items do
not reflect expected future operating earnings or expenses and do not
contribute to a meaningful evaluation of the company's current operating
performance or comparisons to the company's past operating performance.
Share-based compensation expense: The company has excluded
share-based compensation expense from its non-GAAP operating expenses
and net income measurements. Although share-based compensation is a key
incentive offered to the company's employees and the company believes
such compensation contributed to the revenue earned during the periods
presented and also believes it will contribute to the generation of
future period revenues, the company continues to evaluate its
performance excluding share-based compensation expense primarily because
it represents a significant non-cash expense. Share-based compensation
expense will recur in future periods.
Intangible assets amortization expense: The company has excluded
intangible assets amortization expense from its Non-GAAP operating
expenses and net earnings measurements, primarily because it represents
a non-cash expense and because the company evaluates its performance
excluding intangible assets amortization expense. Amortization of
intangible assets is consistent in amount and frequency but is
significantly affected by the timing and size of the company's
acquisitions. Investors should note that the use of intangible assets
contributed to the company's revenues earned during the periods
presented and will contribute to the company's future period revenues as
well. Intangible assets amortization expense will recur in future
periods.
Details of the above items and reconciliations of the non-GAAP
measurements to the corresponding GAAP measurements can be found at the
end of this press release.
BUSINESS RISKS
This press release contains "forward-looking statements" within the
meaning of applicable federal securities law. These statements are made
pursuant to the safe harbor provisions of the applicable federal
securities laws and generally include words such as "believes,"
"expects," "intends," "anticipates," "estimates" and similar
expressions. The company can give no assurance that any actual or future
results or events discussed in these statements will be achieved. Any
forward-looking statements represent the company's views only as of
today and should not be relied upon as representing the company's views
as of any subsequent date. Readers are cautioned that such
forward-looking statements are subject to a variety of risks and
uncertainties that could cause the company's actual results to differ
materially from the statements contained in this release. Such
forward-looking statements include, but are not limited to, Motorola
Solutions' expected full-year non-GAAP tax rate, full-year cash tax rate
and financial outlook for the third quarter and full year of 2015,
including the impact of currency rates, as well as statements relating
to the investment by Silver Lake and the use of the proceeds and
benefits thereof, the intent to commence a tender offer and our intent
to maintain liquidity and investment grade ratings. Motorola Solutions
cautions the reader that the risk factors below, as well as those on
pages 9 through 20 in Item 1A of Motorola Solutions, Inc.'s 2014 Annual
Report on Form 10-K and in its other SEC filings available for free on
the SEC's website at www.sec.gov
and on Motorola Solutions' website at www.motorolasolutions.com,
could cause Motorola Solutions' actual results to differ materially from
those estimated or predicted in the forward-looking statements. Many of
these risks and uncertainties cannot be controlled by Motorola Solutions
and factors that may impact forward-looking statements include, but are
not limited to: (1) the economic outlook for the government
communications industry; (2) the impact of foreign currency fluctuations
on the company; (3) the level of demand for the company's products; (4)
the company's ability to introduce new products and technologies in a
timely manner; (5) negative impact on the company's business from global
economic and political conditions, which may include: (i) continued
deferment or cancellation of purchase orders by customers; (ii) the
inability of customers to obtain financing for purchases of the
company's products; (iii) increased demand to provide vendor financing
to customers; (iv) increased financial pressures on third-party dealers,
distributors and retailers; (v) the viability of the company's suppliers
that may no longer have access to necessary financing; (vi) counterparty
failures negatively impacting the company's financial position; (vii)
changes in the value of investments held by the company's pension plan
and other defined benefit plans, which could impact future required or
voluntary pension contributions; and (viii) the company's ability to
access the capital markets on acceptable terms and conditions; (6) the
impact of a security breach or other significant disruption in the
company's IT systems, those of our partners or suppliers or those we
sell to or operate or maintain for our customers; (7) the outcome of
ongoing and future tax matters; (8) the company's ability to purchase
sufficient materials, parts and components to meet customer demand,
particularly in light of global economic conditions and reductions in
the company's purchasing power; (9) risks related to dependence on
certain key suppliers, subcontractors, third-party distributors and
other representatives; (10) the impact on the company's performance and
financial results from strategic acquisitions or divestitures; (11)
risks related to the company's manufacturing and business operations in
foreign countries; (12) the creditworthiness of the company's customers
and distributors, particularly purchasers of large infrastructure
systems; (13) exposure under large systems and managed services
contracts, including risks related to the fact that certain customers
require that the company build, own and operate their systems, often
over a multi-year period; (14) the ownership of certain logos,
trademarks, trade names and service marks including "MOTOROLA" by
Motorola Mobility Holdings, Inc.; (15) variability in income received
from licensing the company's intellectual property to others, as well as
expenses incurred when the company licenses intellectual property from
others; (16) unexpected liabilities or expenses, including unfavorable
outcomes to any pending or future litigation or regulatory or similar
proceedings; (17) the impact of the percentage of cash and cash
equivalents held outside of the United States; (18) the ability of the
company to pay future dividends due to possible adverse market
conditions or adverse impacts on the company's cash flow; (19) the
ability of the company to repurchase shares under its repurchase program
due to possible adverse market conditions or adverse impacts on the
company's cash flow; (20) the impact of changes in governmental
policies, laws or regulations; (21) negative consequences from the
company's outsourcing of various activities, including certain business
operations, information technology and administrative functions; (22)
the impact of the sale of the company's enterprise legacy information
systems, including components of the enterprise resource planning (ERP)
system and the implementation of a new ERP system; (23) the satisfaction
of the conditions to closing the investment by Silver Lake; (24) the
ability of Motorola Solutions to commence and complete the intended
tender offer for its shares, including the amount of such tender offer ;
and (25) the ability of Motorola Solutions to maintain liquidity and an
investment grade rating. 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.
ADDITIONAL INFORMATION REGARDING THE TENDER OFFER
This communication is for informational purposes only, is not a
recommendation to buy or sell Motorola Solutions common stock, and does
not constitute an offer to buy or the solicitation to sell shares of
Motorola Solutions common stock. The tender offer described in this
communication has not yet commenced, and there can be no assurances that
Motorola Solutions will commence the tender offer on the terms described
in this communication or at all. The tender offer will be made only
pursuant to the Offer to Purchase, Letter of Transmittal and related
materials that Motorola Solutions expects to file with the Securities
and Exchange Commission upon commencement of the tender offer.
STOCKHOLDERS ARE URGED TO CAREFULLY READ THE OFFER TO PURCHASE, LETTER
OF TRANSMITTAL AND RELATED MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE
THEY CONTAIN IMPORTANT INFORMATION, INCLUDING THE VARIOUS TERMS OF, AND
CONDITIONS TO, THE TENDER OFFER, THAT STOCKHOLDERS SHOULD CONSIDER
BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR SHARES. Once the
tender offer is commenced, stockholders will be able to obtain a free
copy of the tender offer statement on Schedule TO, the Offer to
Purchase, Letter of Transmittal and other documents that Motorola
Solutions will be filing with the Securities and Exchange Commission at
the Commission's website at www.sec.gov.
Additional copies of these materials may be obtained for free by
contacting Motorola Solutions at 1303 E. Algonquin Road, Schaumburg,
Illinois, 60196, Attn: Investor Relations or Alliance Advisors, LLC, the
information agent for the tender offer, at 855-737-3180.
DEFINITIONS
1 Amounts attributable to Motorola Solutions, Inc. common
shareholders.
2 Free cash flow represents operating cash flow less capex
3 Cash tax rate represents taxes paid divided by pre-tax
income
4Net debt represents cash and cash equivalents less long-term
debt, including current portion
5 Based on currency rates as of August 3, 2015.
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. ©2015 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
|
|
|
July 4, 2015
|
|
June 28, 2014
|
Net sales from products
|
|
$ 867
|
|
$ 887
|
Net sales from services
|
|
501
|
|
506
|
Net sales
|
|
1,368
|
|
1,393
|
|
|
|
|
|
Costs of products sales
|
|
385
|
|
400
|
Costs of services sales
|
|
335
|
|
337
|
Costs of sales
|
|
720
|
|
737
|
|
|
|
|
|
Gross margin
|
|
648
|
|
656
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
254
|
|
308
|
Research and development expenditures
|
|
156
|
|
176
|
Other charges (income)
|
|
(19)
|
|
33
|
Intangibles amortization
|
|
3
|
|
1
|
Operating earnings
|
|
254
|
|
138
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Interest expense, net:
|
|
(39)
|
|
(29)
|
Gains (losses) on sales of investments, net
|
|
4
|
|
(4)
|
Other
|
|
(4)
|
|
(7)
|
Total other expense
|
|
(39)
|
|
(40)
|
Earnings from continuing operations before income taxes
|
|
215
|
|
98
|
Income tax expense
|
|
64
|
|
20
|
Earnings from continuing operations
|
|
151
|
|
78
|
|
|
|
|
|
Earnings (loss) from discontinued operations, net of tax
|
|
(8)
|
|
746
|
Net earnings
|
|
143
|
|
824
|
|
|
|
|
|
Less: Earnings attributable to noncontrolling interests
|
|
1
|
|
-
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
$ 142
|
|
$ 824
|
|
|
|
|
|
Amounts attributable to Motorola Solutions, Inc. common stockholders
|
|
|
Earnings from continuing operations, net of tax
|
|
$ 150
|
|
$ 78
|
Earnings (loss) from discontinued operations, net of tax
|
|
(8)
|
|
746
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
$ 142
|
|
$ 824
|
|
|
|
|
|
Earnings (loss) per common share
|
|
|
|
|
Basic:
|
|
|
|
|
Continuing operations
|
|
$ 0.72
|
|
$ 0.31
|
Discontinued operations
|
|
(0.04)
|
|
2.94
|
|
|
$ 0.68
|
|
$ 3.25
|
|
|
|
|
|
Diluted:
|
|
|
|
|
Continuing operations
|
|
$ 0.72
|
|
$ 0.30
|
Discontinued operations
|
|
(0.04)
|
|
2.92
|
|
|
$ 0.68
|
|
$ 3.22
|
Weighted average common shares outstanding
|
|
|
Basic
|
|
208.0
|
|
253.7
|
Diluted
|
|
209.5
|
|
256.2
|
|
|
|
|
|
|
|
Percentage of Net Sales*
|
Net sales from products
|
|
63.4 %
|
|
63.7 %
|
Net sales from services
|
|
36.6 %
|
|
36.3 %
|
Net sales
|
|
100.0 %
|
|
100.0 %
|
|
|
|
|
|
Costs of products sales
|
|
44.4 %
|
|
45.1 %
|
Costs of services sales
|
|
66.9 %
|
|
66.6 %
|
Costs of sales
|
|
52.6 %
|
|
52.9 %
|
|
|
|
|
|
Gross margin
|
|
47.4 %
|
|
47.1 %
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
18.6 %
|
|
22.1 %
|
Research and development expenditures
|
|
11.4 %
|
|
12.6 %
|
Other charges (income)
|
|
(1.4)%
|
|
2.4 %
|
Intangibles amortization
|
|
0.2 %
|
|
0.1 %
|
Operating earnings
|
|
18.6 %
|
|
9.9 %
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Interest expense, net:
|
|
(2.9)%
|
|
(2.1)%
|
Gains (losses) on sales of investments, net
|
|
0.3 %
|
|
(0.3)%
|
Other
|
|
(0.3)%
|
|
(0.5)%
|
Total other expense
|
|
(2.9)%
|
|
(2.9)%
|
Earnings from continuing operations before income taxes
|
|
15.7 %
|
|
7.0 %
|
Income tax expense
|
|
4.7 %
|
|
1.4 %
|
Earnings from continuing operations
|
|
11.0 %
|
|
5.6 %
|
Earnings (loss) from discontinued operations, net of tax
|
|
(0.6)%
|
|
53.6 %
|
Net earnings
|
|
10.5 %
|
|
59.2 %
|
|
|
|
|
|
Less: Earnings attributable to noncontrolling interests
|
|
0.1 %
|
|
-%
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
10.4 %
|
|
59.2 %
|
* 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)
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
July 4, 2015
|
|
June 28, 2014
|
Net sales from products
|
|
$ 1,626
|
|
$ 1,640
|
Net sales from services
|
|
965
|
|
982
|
Net sales
|
|
2,591
|
|
2,622
|
|
|
|
|
|
Costs of products sales
|
|
745
|
|
751
|
Costs of services sales
|
|
650
|
|
638
|
Costs of sales
|
|
1,395
|
|
1,389
|
|
|
|
|
|
Gross margin
|
|
1,196
|
|
1,233
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
510
|
|
615
|
Research and development expenditures
|
|
315
|
|
350
|
Other charges (income)
|
|
(6)
|
|
21
|
Intangibles amortization
|
|
4
|
|
2
|
Operating earnings
|
|
373
|
|
245
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Interest expense, net:
|
|
(79)
|
|
(54)
|
Gains on sales of investments, net
|
|
50
|
|
4
|
Other
|
|
(1)
|
|
(9)
|
Total other expense
|
|
(30)
|
|
(59)
|
Earnings from continuing operations before income taxes
|
|
343
|
|
186
|
Income tax expense
|
|
104
|
|
23
|
Earnings from continuing operations
|
|
239
|
|
163
|
|
|
|
|
|
Earnings (loss) from discontinued operations, net of tax
|
|
(21)
|
|
788
|
Net earnings
|
|
218
|
|
951
|
|
|
|
|
|
Less: Earnings attributable to noncontrolling interests
|
|
1
|
|
-
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
$ 217
|
|
$ 951
|
|
|
|
|
|
Amounts attributable to Motorola Solutions, Inc. common stockholders
|
|
|
Earnings from continuing operations, net of tax
|
|
$ 238
|
|
$ 163
|
Earnings (loss) from discontinued operations, net of tax
|
|
(21)
|
|
788
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
$ 217
|
|
$ 951
|
|
|
|
|
|
Earnings (loss) per common share
|
|
|
|
|
Basic:
|
|
|
|
|
Continuing operations
|
|
$ 1.12
|
|
$ 0.64
|
Discontinued operations
|
|
(0.09)
|
|
3.11
|
|
|
$ 1.03
|
|
$ 3.75
|
|
|
|
|
|
Diluted:
|
|
|
|
|
Continuing operations
|
|
$ 1.11
|
|
$ 0.63
|
Discontinued operations
|
|
(0.10)
|
|
3.07
|
|
|
$ 1.01
|
|
$ 3.70
|
Weighted average common shares outstanding
|
|
|
Basic
|
|
211.7
|
|
253.8
|
Diluted
|
|
213.8
|
|
257.2
|
|
|
|
|
|
|
|
Percentage of Net Sales*
|
Net sales from products
|
|
62.8 %
|
|
62.5 %
|
Net sales from services
|
|
37.2 %
|
|
37.5 %
|
Net sales
|
|
100.0 %
|
|
100.0 %
|
|
|
|
|
|
Costs of products sales
|
|
45.8 %
|
|
45.8 %
|
Costs of services sales
|
|
67.4 %
|
|
65.0 %
|
Costs of sales
|
|
53.8 %
|
|
53.0 %
|
|
|
|
|
|
Gross margin
|
|
46.2 %
|
|
47.0 %
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
19.7 %
|
|
23.5 %
|
Research and development expenditures
|
|
12.2 %
|
|
13.3 %
|
Other charges (income)
|
|
(0.2)%
|
|
0.8 %
|
Intangibles amortization
|
|
0.2 %
|
|
0.1 %
|
Operating earnings
|
|
14.4 %
|
|
9.3 %
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Interest expense, net:
|
|
(3.0)%
|
|
(2.1)%
|
Gains on sales of investments, net
|
|
1.9 %
|
|
0.2 %
|
Other
|
|
-%
|
|
(0.3)%
|
Total other expense
|
|
(1.2)%
|
|
(2.3)%
|
Earnings from continuing operations before income taxes
|
|
13.2 %
|
|
7.1 %
|
Income tax expense
|
|
4.0 %
|
|
0.9 %
|
Earnings from continuing operations
|
|
9.2 %
|
|
6.2 %
|
Earnings (loss) from discontinued operations, net of tax
|
|
(0.8)%
|
|
30.1 %
|
Net earnings
|
|
8.4 %
|
|
36.3 %
|
|
|
|
|
|
Less: Earnings attributable to noncontrolling interests
|
|
-%
|
|
-%
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
8.4 %
|
|
36.3 %
|
* Percentages may not add up due to rounding
|
|
|
|
|
|
|
|
|
|
GAAP-3
|
Motorola Solutions, Inc. and Subsidiaries
|
Condensed Consolidated Balance Sheets
|
(In millions)
|
|
|
|
|
|
|
|
July 4, 2015
|
|
December 31, 2014
|
Assets
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
3,112
|
|
|
$
|
3,954
|
Accounts receivable, net
|
|
|
1,141
|
|
|
|
1,409
|
Inventories, net
|
|
|
364
|
|
|
|
345
|
Deferred income taxes
|
|
|
422
|
|
|
|
431
|
Other current assets
|
|
|
593
|
|
|
|
740
|
Total current assets
|
|
|
5,632
|
|
|
|
6,879
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
542
|
|
|
|
549
|
Investments
|
|
|
285
|
|
|
|
316
|
Deferred income taxes
|
|
|
2,118
|
|
|
|
2,151
|
Goodwill
|
|
|
423
|
|
|
|
383
|
Other assets
|
|
|
160
|
|
|
|
145
|
Total assets
|
|
$
|
9,160
|
|
|
$
|
10,423
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
4
|
|
|
$
|
4
|
Accounts payable
|
|
|
417
|
|
|
|
540
|
Accrued liabilities
|
|
|
1,550
|
|
|
|
1,706
|
Total current liabilities
|
|
|
1,971
|
|
|
|
2,250
|
|
|
|
|
|
Long-term debt
|
|
|
3,393
|
|
|
|
3,396
|
Other liabilities
|
|
|
1,973
|
|
|
|
2,011
|
|
|
|
|
|
Total Motorola Solutions, Inc. stockholders' equity
|
|
|
1,815
|
|
|
|
2,735
|
|
|
|
|
|
Noncontrolling interests
|
|
|
8
|
|
|
|
31
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
9,160
|
|
|
$
|
10,423
|
|
|
|
|
|
Financial Ratios:
|
|
|
|
|
Net cash (debt)*
|
|
$
|
(285
|
)
|
|
$
|
554
|
|
|
|
|
|
*Net cash (debt) = Total cash - Current portion of long-term debt
- Long-term debt
|
|
|
|
|
|
|
|
|
|
GAAP-4
|
Motorola Solutions, Inc. and Subsidiaries
|
Condensed Consolidated Statements of Cash Flows
|
(In millions)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
July 4, 2015
|
|
June 28, 2014
|
Operating
|
|
|
|
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
$
|
142
|
|
|
$
|
824
|
|
Earnings attributable to noncontrolling interests
|
|
|
1
|
|
|
|
-
|
|
Net earnings
|
|
|
143
|
|
|
|
824
|
|
Earnings (loss) from discontinued operations, net of tax
|
|
|
(8
|
)
|
|
|
746
|
|
Earnings from continuing operations, net of tax
|
|
|
151
|
|
|
|
78
|
|
Adjustments to reconcile Earnings from continuing operations to Net
cash provided by operating activities from continuing operations:
|
|
|
|
|
Depreciation and amortization
|
|
|
40
|
|
|
|
46
|
|
Non-cash other charges (income)
|
|
|
4
|
|
|
|
(1
|
)
|
Non-U.S. pension curtailment gain
|
|
|
(32
|
)
|
|
|
-
|
|
Share-based compensation expense
|
|
|
19
|
|
|
|
25
|
|
Loss (gains) on sales of investments and businesses, net
|
|
|
(4
|
)
|
|
|
4
|
|
Deferred income taxes
|
|
|
32
|
|
|
|
(16
|
)
|
Changes in assets and liabilities, net of effects of acquisitions,
dispositions, and foreign currency translation adjustments:
|
|
|
|
|
Accounts receivable
|
|
|
(54
|
)
|
|
|
30
|
|
Inventories
|
|
|
19
|
|
|
|
29
|
|
Other current assets
|
|
|
3
|
|
|
|
60
|
|
Accounts payable and accrued liabilities
|
|
|
(11
|
)
|
|
|
(124
|
)
|
Other assets and liabilities
|
|
|
(27
|
)
|
|
|
(13
|
)
|
Net cash provided by operating activities from continuing operations
|
|
|
140
|
|
|
|
118
|
|
Investing
|
|
|
|
|
Acquisitions and investments, net
|
|
|
(19
|
)
|
|
|
(6
|
)
|
Proceeds from sales of investments and businesses, net
|
|
|
23
|
|
|
|
10
|
|
Capital expenditures
|
|
|
(48
|
)
|
|
|
(42
|
)
|
Net cash used for investing activities from continuing operations
|
|
|
(44
|
)
|
|
|
(38
|
)
|
Financing
|
|
|
|
|
Repayment of debt
|
|
|
(1
|
)
|
|
|
(1
|
)
|
Issuance of common stock
|
|
|
4
|
|
|
|
71
|
|
Purchase of common stock
|
|
|
(285
|
)
|
|
|
(416
|
)
|
Excess tax benefit from share-based compensation
|
|
|
-
|
|
|
|
1
|
|
Payment of dividends
|
|
|
(72
|
)
|
|
|
(79
|
)
|
Distributions from discontinued operations
|
|
|
-
|
|
|
|
74
|
|
Net cash used for financing activities from continuing operations
|
|
|
(354
|
)
|
|
|
(350
|
)
|
Discontinued Operations
|
|
|
|
|
Net cash provided by operating activities from discontinued
operations
|
|
|
-
|
|
|
|
55
|
|
Net cash provided by investing activities from discontinued
operations
|
|
|
-
|
|
|
|
19
|
|
Net cash used for financing activities from discontinued operations
|
|
|
-
|
|
|
|
(74
|
)
|
Net cash provided by discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents from
continuing operations
|
|
|
17
|
|
|
|
5
|
|
Net decrease in cash and cash equivalents
|
|
|
(241
|
)
|
|
|
(265
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
3,353
|
|
|
|
3,141
|
|
Cash and cash equivalents, end of period
|
|
$
|
3,112
|
|
|
$
|
2,876
|
|
|
|
|
|
|
Financial Ratios:
|
|
|
|
|
Free cash flow*
|
|
$
|
92
|
|
|
$
|
76
|
|
|
|
|
|
|
*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)
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
July 4, 2015
|
|
June 28, 2014
|
Operating
|
|
|
|
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
$
|
217
|
|
|
$
|
951
|
|
Earnings attributable to noncontrolling interests
|
|
|
1
|
|
|
|
-
|
|
Net earnings
|
|
|
218
|
|
|
|
951
|
|
Earnings (loss) from discontinued operations, net of tax
|
|
|
(21
|
)
|
|
|
788
|
|
Earnings from continuing operations, net of tax
|
|
|
239
|
|
|
|
163
|
|
Adjustments to reconcile Earnings from continuing operations to Net
cash provided by operating activities from continuing operations:
|
|
|
|
|
Depreciation and amortization
|
|
|
81
|
|
|
|
86
|
|
Gain on sale of building and land
|
|
|
-
|
|
|
|
(21
|
)
|
Non-cash other charges (income)
|
|
|
5
|
|
|
|
(5
|
)
|
Non-U.S. pension curtailment gain
|
|
|
(32
|
)
|
|
|
-
|
|
Share-based compensation expense
|
|
|
40
|
|
|
|
54
|
|
Gains on sales of investments and businesses, net
|
|
|
(50
|
)
|
|
|
(4
|
)
|
Deferred income taxes
|
|
|
55
|
|
|
|
6
|
|
Changes in assets and liabilities, net of effects of acquisitions,
dispositions, and foreign currency translation adjustments:
|
|
|
|
|
Accounts receivable
|
|
|
255
|
|
|
|
190
|
|
Inventories
|
|
|
(25
|
)
|
|
|
17
|
|
Other current assets
|
|
|
28
|
|
|
|
76
|
|
Accounts payable and accrued liabilities
|
|
|
(263
|
)
|
|
|
(299
|
)
|
Other assets and liabilities
|
|
|
(42
|
)
|
|
|
(133
|
)
|
Net cash provided by operating activities from continuing operations
|
|
|
291
|
|
|
|
130
|
|
Investing
|
|
|
|
|
Acquisitions and investments, net
|
|
|
(93
|
)
|
|
|
(11
|
)
|
Proceeds from sales of investments and businesses, net
|
|
|
111
|
|
|
|
21
|
|
Capital expenditures
|
|
|
(81
|
)
|
|
|
(82
|
)
|
Proceeds from sales of property, plant and equipment
|
|
|
1
|
|
|
|
24
|
|
Net cash used for investing activities from continuing operations
|
|
|
(62
|
)
|
|
|
(48
|
)
|
Financing
|
|
|
|
|
Repayment of debt
|
|
|
(2
|
)
|
|
|
(2
|
)
|
Net proceeds from issuance of debt
|
|
|
-
|
|
|
|
4
|
|
Issuance of common stock
|
|
|
51
|
|
|
|
85
|
|
Purchase of common stock
|
|
|
(938
|
)
|
|
|
(473
|
)
|
Excess tax benefit from share-based compensation
|
|
|
1
|
|
|
|
6
|
|
Payment of dividends
|
|
|
(148
|
)
|
|
|
(158
|
)
|
Distributions from discontinued operations
|
|
|
-
|
|
|
|
100
|
|
Net cash used for financing activities from continuing operations
|
|
|
(1,036
|
)
|
|
|
(438
|
)
|
Discontinued Operations
|
|
|
|
|
Net cash provided by operating activities from discontinued
operations
|
|
|
-
|
|
|
|
89
|
|
Net cash provided by investing activities from discontinued
operations
|
|
|
-
|
|
|
|
11
|
|
Net cash used for financing activities from discontinued operations
|
|
|
-
|
|
|
|
(100
|
)
|
Net cash provided by discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents from
continuing operations
|
|
|
(35
|
)
|
|
|
7
|
|
Net decrease in cash and cash equivalents
|
|
|
(842
|
)
|
|
|
(349
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
3,954
|
|
|
|
3,225
|
|
Cash and cash equivalents, end of period
|
|
$
|
3,112
|
|
|
$
|
2,876
|
|
|
|
|
|
|
Financial Ratios:
|
|
|
|
|
Free cash flow*
|
|
$
|
210
|
|
|
$
|
48
|
|
|
|
|
|
|
*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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4, 2015
|
|
June 28, 2014
|
|
% Change
|
|
Products
|
|
$
|
867
|
|
|
$
|
887
|
|
|
(2
|
)%
|
|
Services
|
|
|
501
|
|
|
|
506
|
|
|
(1
|
)%
|
|
Total Motorola Solutions
|
|
$
|
1,368
|
|
|
$
|
1,393
|
|
|
(2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4, 2015
|
|
June 28, 2014
|
|
% Change
|
|
Products
|
|
$
|
1,626
|
|
|
$
|
1,640
|
|
|
(1
|
)%
|
|
Services
|
|
|
965
|
|
|
|
982
|
|
|
(2
|
)%
|
|
Total Motorola Solutions
|
|
$
|
2,591
|
|
|
$
|
2,622
|
|
|
(1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4, 2015
|
|
June 28, 2014
|
|
% Change
|
|
Products
|
|
$
|
171
|
|
|
$
|
95
|
|
|
80
|
%
|
|
Services
|
|
|
83
|
|
|
|
43
|
|
|
93
|
%
|
|
Total Motorola Solutions
|
|
$
|
254
|
|
|
$
|
138
|
|
|
84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4, 2015
|
|
June 28, 2014
|
|
% Change
|
|
Products
|
|
$
|
235
|
|
|
$
|
134
|
|
|
75
|
%
|
|
Services
|
|
|
138
|
|
|
|
111
|
|
|
24
|
%
|
|
Total Motorola Solutions
|
|
$
|
373
|
|
|
$
|
245
|
|
|
52
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings %
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4, 2015
|
|
June 28, 2014
|
|
|
|
Products
|
|
|
19.7
|
%
|
|
|
10.7
|
%
|
|
|
|
Services
|
|
|
16.6
|
%
|
|
|
8.5
|
%
|
|
|
|
Total Motorola Solutions
|
|
|
18.6
|
%
|
|
|
9.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4, 2015
|
|
June 28, 2014
|
|
|
|
Products
|
|
|
14.5
|
%
|
|
|
8.2
|
%
|
|
|
|
Services
|
|
|
14.3
|
%
|
|
|
11.3
|
%
|
|
|
|
Total Motorola Solutions
|
|
|
14.4
|
%
|
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP-1
|
Motorola Solutions, Inc. and Subsidiaries
|
Non-GAAP Adjustments (Intangibles Amortization Expense,
Share-Based Compensation Expense and Highlighted Items)
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
21
|
|
|
|
7
|
|
|
$
|
14
|
|
|
|
0.06
|
|
Reorganization of business charges
|
|
Cost of sales and Other charges
|
|
|
14
|
|
|
|
4
|
|
|
|
10
|
|
|
|
0.05
|
|
Intangibles amortization expense
|
|
Intangibles amortization
|
|
|
2
|
|
|
|
1
|
|
|
|
1
|
|
|
|
-
|
|
Gain on sale of equity investment
|
|
Gains on sales of investments and businesses, net
|
|
|
(46
|
)
|
|
|
(17
|
)
|
|
|
(29
|
)
|
|
|
(0.13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total impact on Net earnings
|
|
|
|
$
|
(9
|
)
|
|
$
|
(5
|
)
|
|
$
|
(4
|
)
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
19
|
|
|
|
6
|
|
|
$
|
13
|
|
|
|
0.06
|
|
Reorganization of business charges
|
|
Cost of sales and Other charges
|
|
|
16
|
|
|
|
6
|
|
|
$
|
10
|
|
|
|
0.05
|
|
Intangibles amortization expense
|
|
Intangibles amortization
|
|
|
3
|
|
|
|
1
|
|
|
$
|
2
|
|
|
|
-
|
|
Non-U.S. pension curtailment gain
|
|
Other charges (income)
|
|
|
(32
|
)
|
|
|
-
|
|
|
$
|
(32
|
)
|
|
|
(0.15
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total impact on Net earnings
|
|
|
|
$
|
6
|
|
|
$
|
13
|
|
|
$
|
(7
|
)
|
|
$
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP-2
|
Motorola Solutions, Inc. and Subsidiaries
|
Segment Information
|
(In millions)
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4, 2015
|
|
June 28, 2014
|
|
% Change
|
|
Products
|
|
$
|
867
|
|
|
$
|
887
|
|
|
(2
|
)%
|
|
Services
|
|
|
501
|
|
|
|
506
|
|
|
(1
|
)%
|
|
Total Motorola Solutions
|
|
$
|
1,368
|
|
|
$
|
1,393
|
|
|
(2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4, 2015
|
|
June 28, 2014
|
|
% Change
|
|
Products
|
|
$
|
1,626
|
|
|
$
|
1,640
|
|
|
(1
|
)%
|
|
Services
|
|
|
965
|
|
|
|
982
|
|
|
(2
|
)%
|
|
Total Motorola Solutions
|
|
$
|
2,591
|
|
|
$
|
2,622
|
|
|
(1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Earnings
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4, 2015
|
|
June 28, 2014
|
|
% Change
|
|
Products
|
|
$
|
176
|
|
|
$
|
133
|
|
|
32
|
%
|
|
Services
|
|
|
84
|
|
|
|
68
|
|
|
24
|
%
|
|
Total Motorola Solutions
|
|
$
|
260
|
|
|
$
|
201
|
|
|
29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4, 2015
|
|
June 28, 2014
|
|
% Change
|
|
Products
|
|
$
|
266
|
|
|
$
|
185
|
|
|
44
|
%
|
|
Services
|
|
|
150
|
|
|
|
142
|
|
|
6
|
%
|
|
Total Motorola Solutions
|
|
$
|
416
|
|
|
$
|
327
|
|
|
27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Earnings %
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4, 2015
|
|
June 28, 2014
|
|
|
|
Products
|
|
|
20.3
|
%
|
|
|
15.0
|
%
|
|
|
|
Services
|
|
|
16.8
|
%
|
|
|
13.4
|
%
|
|
|
|
Total Motorola Solutions
|
|
|
19.0
|
%
|
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 4, 2015
|
|
June 28, 2014
|
|
|
|
Products
|
|
|
16.4
|
%
|
|
|
11.3
|
%
|
|
|
|
Services
|
|
|
15.5
|
%
|
|
|
14.5
|
%
|
|
|
|
Total Motorola Solutions
|
|
|
16.1
|
%
|
|
|
12.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP-3
|
Motorola Solutions, Inc. and Subsidiaries
|
Operating Earnings after Non-GAAP Adjustments
|
|
|
|
|
|
|
|
Q1 2015
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
Products
|
|
Services
|
Net sales
|
|
$ 1,223
|
|
$ 758
|
|
$ 465
|
Operating earnings ("OE")
|
|
$ 119
|
|
$ 64
|
|
$ 55
|
|
|
|
|
|
|
|
Above-OE non-GAAP adjustments:
|
|
|
|
|
|
|
Share-based compensation expense
|
|
21
|
|
14
|
|
7
|
Reorganization of business charges
|
|
14
|
|
10
|
|
4
|
Intangibles amortization expense
|
|
2
|
|
2
|
|
-
|
Total above-OE non-GAAP adjustments
|
|
37
|
|
26
|
|
11
|
|
|
|
|
|
|
|
Operating earnings after non-GAAP adjustments
|
|
$ 156
|
|
$ 90
|
|
$ 66
|
|
|
|
|
|
|
|
Operating earnings as a percentage of net sales - GAAP
|
|
9.7 %
|
|
8.4 %
|
|
11.8 %
|
Operating earnings as a percentage of net sales - after non-GAAP
adjustments
|
|
12.8 %
|
|
11.9 %
|
|
14.2 %
|
|
|
|
|
|
|
|
Q2 2015
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
Products
|
|
Services
|
Net sales
|
|
$ 1,368
|
|
$ 867
|
|
$ 501
|
Operating earnings ("OE")
|
|
$ 254
|
|
$ 171
|
|
$ 83
|
|
|
|
|
|
|
|
Above-OE non-GAAP adjustments:
|
|
|
|
|
|
|
Share-based compensation expense
|
|
19
|
|
12
|
|
7
|
Reorganization of business charges
|
|
16
|
|
12
|
|
4
|
Intangibles amortization expense
|
|
3
|
|
3
|
|
-
|
Non-U.S. pension curtailment gain
|
|
(32)
|
|
(22)
|
|
(10)
|
Total above-OE non-GAAP adjustments
|
|
6
|
|
5
|
|
1
|
|
|
|
|
|
|
|
Operating earnings after non-GAAP adjustments
|
|
$ 260
|
|
$ 176
|
|
$ 84
|
|
|
|
|
|
|
|
Operating earnings as a percentage of net sales - GAAP
|
|
18.6 %
|
|
19.7 %
|
|
16.6 %
|
Operating earnings as a percentage of net sales - after non-GAAP
adjustments
|
|
19.0 %
|
|
20.3 %
|
|
16.8 %
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150805005744/en/
[ Back To TMCnet.com's Homepage ]
|