[November 03, 2016] |
|
Motorola Solutions Reports Third-Quarter 2016 Financial Results
Motorola
Solutions, Inc. (NYSE: MSI) today reported its earnings results for
the third quarter of 2016. Click
here for a printable news release and financial tables.
The company also today announced that its board of directors has
increased its regular quarterly dividend by 15 percent to 47 cents per
share. The next quarterly dividend will be payable in cash on Jan. 13,
2017, to stockholders of record at the close of business on Dec. 15,
2016.
"Q3 was an excellent quarter," said Greg Brown, chairman and CEO of
Motorola Solutions. "I'm pleased with our revenue growth and continued
strong performance in earnings and cash flow generation."
|
KEY FINANCIAL RESULTS (presented in millions, except per
share data and percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2016
|
|
|
Q3 2015
|
|
|
% Change
|
Sales
|
|
|
$1,532
|
|
|
$1,422
|
|
|
8
|
%
|
GAAP
|
|
|
|
|
|
|
|
|
|
Operating Earnings
|
|
|
$341
|
|
|
$231
|
|
|
48
|
%
|
% of Sales
|
|
|
22.3%
|
|
|
16.2%
|
|
|
|
EPS from continuing operations
|
|
|
$1.13
|
|
|
$0.63
|
|
|
79
|
%
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
Operating Earnings
|
|
|
$396
|
|
|
$292
|
|
|
36
|
%
|
% of Sales
|
|
|
25.8%
|
|
|
20.5%
|
|
|
|
EPS from continuing operations
|
|
|
$1.37
|
|
|
$0.82
|
|
|
67
|
%
|
Products Segment
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$920
|
|
|
$925
|
|
|
(1
|
)%
|
GAAP Operating Earnings
|
|
|
$225
|
|
|
$178
|
|
|
26
|
%
|
% of Sales
|
|
|
24.5%
|
|
|
19.2%
|
|
|
|
Non-GAAP Operating Earnings
|
|
|
$243
|
|
|
$221
|
|
|
10
|
%
|
% of Sales
|
|
|
26.4%
|
|
|
23.9%
|
|
|
|
Services Segment
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$612
|
|
|
$497
|
|
|
23
|
%
|
GAAP Operating Earnings
|
|
|
$116
|
|
|
$53
|
|
|
119
|
%
|
% of Sales
|
|
|
19.0%
|
|
|
10.7%
|
|
|
|
Non-GAAP Operating Earnings
|
|
|
$153
|
|
|
$71
|
|
|
115
|
%
|
% of Sales
|
|
|
25.0%
|
|
|
14.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Non-GAAP financial information excludes the after-tax impact of
approximately $0.24 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 increased 8 percent, including $131
million in Airwave sales. Products segment sales declined 1 percent
due to softness in Africa and China. The Services segment grew 23
percent including Airwave, while Managed and Support Services grew 5
percent excluding Airwave.
-
Operating margin - GAAP operating margin was 22.3
percent of sales, compared with 16.2 percent in the year-ago quarter.
The improvement reflects higher sales and gross margin associated with
Airwave, as well as lower operating expenses. Non-GAAP operating
margin was 25.8 percent of sales, compared with 20.5 percent in the
year-ago quarter, driven by higher sales and gross margin as well as
$27 million in lower operating expenses compared with the year-ago
quarter.
-
Taxes - The GAAP effective tax rate was 34 percent, compared
with a tax rate of 36 percent in the year-ago quarter. The non-GAAP
tax rate was 33 percent, compared with a non-GAAP tax rate of 35
percent in the year-ago quarter.
-
Cash flow - The company generated $348 million in
operating cash from continuing operations, reflecting an increase of
$47 million from the year-ago quarter. Free cash flow2 was
up $29 million to $280 million, driven by higher earnings.
-
Cash and cash equivalents - The company ended the
quarter with cash and cash equivalents of $1.7 billion and a net debt
position of approximately $3.4 billion3. The company
repurchased approximately $109 million of its common stock and paid
approximately $70 million in cash dividends.
KEY HIGHLIGHTS
Strategic wins
-
$37 million to expand a nationwide TETRA network in North Africa
-
$34 million in two P25 contracts with the U.S. federal government
-
$28 million for a P25 network in Latin America
-
$20 million for a P25 network with U.S. utility provider Xcel Energy
-
$12 million for call-taking and computer-aided dispatch (CAD)
solutions, including five-year service contract with Los Angeles
Police Department
Innovation and investments in growth
-
Announced plans to acquire Spillman Technologies, a provider of
comprehensive law enforcement and public safety software solutions for
computer-aided dispatch and records management systems. Spillman
complements our high tier command center software offerings, which
will help us meet the needs of a broader customer base
-
Announced new APXTM 8500 P25 all-band mobile radio, updated
P25 network features and IMPRESTM 2 energy management system
BUSINESS OUTLOOK
Motorola Solutions expects fourth quarter revenue growth of 9 to 10
percent compared with the fourth quarter of 2015. This includes
approximately $120 million of Airwave revenue. The company expects
fourth-quarter non-GAAP earnings per share from continuing operations in
the range of $1.82 to $1.87 per share.
CONFERENCE CALL AND WEBCAST
Motorola Solutions will host its quarterly conference call beginning at
4 p.m. U.S. Central Daylight Time (5 p.m. U.S. Eastern Daylight Time) on
Thursday, Nov 3. The conference call will be webcast live with audio and
slides at www.motorolasolutions.com/investor.
|
CONSOLIDATED GAAP RESULTS (presented in millions, except per
share data)
|
A comparison of results from operations is as follows:
|
|
|
|
|
|
|
|
|
|
|
Q3 2016
|
|
|
Q3 2015
|
Net sales
|
|
|
$1,532
|
|
|
$1,422
|
Gross margin
|
|
|
762
|
|
|
685
|
Operating earnings
|
|
|
341
|
|
|
231
|
Amounts attributable to Motorola Solutions, Inc. common
stockholders
|
|
|
|
|
|
|
Earnings from continuing operations, net of tax
|
|
|
192
|
|
|
126
|
Net earnings
|
|
|
192
|
|
|
115
|
Diluted EPS from continuing operations
|
|
|
$1.13
|
|
|
$0.63
|
Weighted average diluted common shares outstanding
|
|
|
169.6
|
|
|
201.3
|
|
|
|
|
|
|
|
HIGHLIGHTED ITEMS AND SHARE-BASED COMPENSATION EXPENSE
|
The table below includes highlighted items, share-based
compensation expense and intangible amortization for the third
quarter of 2016.
|
|
|
|
|
(per diluted common share)
|
|
|
Q3 2016
|
|
|
|
|
GAAP Earnings from Continuing Operations
|
|
|
$1.13
|
Highlighted Items:
|
|
|
|
Share-based compensation expense
|
|
|
0.07
|
Reorganization of business charges
|
|
|
0.03
|
Intangibles amortization expense
|
|
|
0.14
|
Total Highlighted Items
|
|
|
0.24
|
|
|
|
|
Non-GAAP Diluted EPS from Continuing Operations
|
|
|
$1.37
|
|
|
|
|
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 news release contains "forward-looking statements" within the
meaning of applicable federal securities law. These statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and generally include words such as
"believes," "expects," "intends," "anticipates," "estimates" and similar
expressions. The company can give no assurance that any actual or future
results or events discussed in these statements will be achieved. Any
forward-looking statements represent the company's views only as of
today and should not be relied upon as representing the company's views
as of any subsequent date. Readers are cautioned that such
forward-looking statements are subject to a variety of risks and
uncertainties that could cause the company's actual results to differ
materially from the statements contained in this release. Such
forward-looking statements include, but are not limited to, Motorola
Solutions' financial outlook for the fourth quarter 2016 and incremental
revenues of Airwave. Motorola Solutions cautions the reader that the
risk factors below, as well as those on pages 9 through 22 in Item 1A of
Motorola Solutions 2015 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/investor,
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 refresh existing and 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 its
partners or suppliers or those it sells to or operates or maintains for
its 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, including the acquisition of
Airwave; (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
manufacturing operations, information technology and administrative
functions; (22) the impact of the sale of the company's legacy
information systems, including components of the enterprise resource
planning (ERP) system and the implementation of a new ERP system; and
(23) the company's ability to settle the par value of its Senior
Convertible Notes in cash. 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
1 Amounts attributable to Motorola Solutions, Inc. common
shareholders
2 Free cash flow represents operating cash flow less capital
expenditures
3 Net debt represents cash and cash equivalents less
long-term debt, including current portion
ABOUT MOTOROLA SOLUTIONS
Motorola Solutions (NYSE: MSI) creates innovative, mission-critical
communication solutions and services that help public safety and
commercial customers build safer cities and thriving communities. For
ongoing news, visit www.motorolasolutions.com/newsroom
or subscribe to a news
feed.
MOTOROLA, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or
registered trademarks of Motorola Trademark Holdings, LLC and are used
under license. All other trademarks are the property of their respective
owners. ©2016 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
|
|
|
|
October 1, 2016
|
|
|
October 3, 2015
|
Net sales from products
|
|
|
$
|
920
|
|
|
|
$
|
925
|
|
Net sales from services
|
|
|
|
612
|
|
|
|
|
497
|
|
Net sales
|
|
|
|
1,532
|
|
|
|
|
1,422
|
|
|
|
|
|
|
|
|
Costs of products sales
|
|
|
|
398
|
|
|
|
|
395
|
|
Costs of services sales
|
|
|
|
372
|
|
|
|
|
342
|
|
Costs of sales
|
|
|
|
770
|
|
|
|
|
737
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
762
|
|
|
|
|
685
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
247
|
|
|
|
|
259
|
|
Research and development expenditures
|
|
|
|
137
|
|
|
|
|
153
|
|
Other charges
|
|
|
|
6
|
|
|
|
|
40
|
|
Intangibles amortization
|
|
|
|
31
|
|
|
|
|
2
|
|
Operating earnings
|
|
|
|
341
|
|
|
|
|
231
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
(54
|
)
|
|
|
|
(43
|
)
|
Gains on sales of investments and businesses, net
|
|
|
|
7
|
|
|
|
|
10
|
|
Other
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
Total other expense
|
|
|
|
(48
|
)
|
|
|
|
(34
|
)
|
Earnings from continuing operations before income taxes
|
|
|
|
293
|
|
|
|
|
197
|
|
Income tax expense
|
|
|
|
100
|
|
|
|
|
71
|
|
Earnings from continuing operations
|
|
|
|
193
|
|
|
|
|
126
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of tax
|
|
|
|
-
|
|
|
|
|
(11
|
)
|
Net earnings
|
|
|
|
193
|
|
|
|
|
115
|
|
|
|
|
|
|
|
|
Less: Earnings attributable to noncontrolling interests
|
|
|
|
1
|
|
|
|
|
-
|
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
|
$
|
192
|
|
|
|
$
|
115
|
|
|
|
|
|
|
|
|
Amounts attributable to Motorola Solutions, Inc. common
stockholders:
|
|
|
|
Earnings from continuing operations, net of tax
|
|
|
$
|
192
|
|
|
|
$
|
126
|
|
Loss from discontinued operations, net of tax
|
|
|
|
-
|
|
|
|
|
(11
|
)
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
|
$
|
192
|
|
|
|
$
|
115
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share:
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
1.15
|
|
|
|
$
|
0.63
|
|
Discontinued operations
|
|
|
|
-
|
|
|
|
|
(0.05
|
)
|
|
|
|
$
|
1.15
|
|
|
|
$
|
0.58
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
1.13
|
|
|
|
$
|
0.63
|
|
Discontinued operations
|
|
|
|
-
|
|
|
|
|
(0.06
|
)
|
|
|
|
$
|
1.13
|
|
|
|
$
|
0.57
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
|
166.3
|
|
|
|
|
199.2
|
|
Diluted
|
|
|
|
169.6
|
|
|
|
|
201.3
|
|
|
|
|
|
|
|
|
Percentage of Net Sales*
|
Net sales from products
|
|
|
|
60.1
|
%
|
|
|
|
65.0
|
%
|
Net sales from services
|
|
|
|
39.9
|
%
|
|
|
|
35.0
|
%
|
Net sales
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
Costs of products sales
|
|
|
|
43.3
|
%
|
|
|
|
42.7
|
%
|
Costs of services sales
|
|
|
|
60.8
|
%
|
|
|
|
68.8
|
%
|
Costs of sales
|
|
|
|
50.3
|
%
|
|
|
|
51.8
|
%
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
49.7
|
%
|
|
|
|
48.2
|
%
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
16.1
|
%
|
|
|
|
18.2
|
%
|
Research and development expenditures
|
|
|
|
8.9
|
%
|
|
|
|
10.8
|
%
|
Other charges
|
|
|
|
0.4
|
%
|
|
|
|
2.8
|
%
|
Intangibles amortization
|
|
|
|
2.0
|
%
|
|
|
|
0.1
|
%
|
Operating earnings
|
|
|
|
22.3
|
%
|
|
|
|
16.2
|
%
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
(3.5
|
)%
|
|
|
|
(3.0
|
)%
|
Gains on sales of investments and businesses, net
|
|
|
|
0.5
|
%
|
|
|
|
0.7
|
%
|
Other
|
|
|
|
(0.1
|
)%
|
|
|
|
(0.1
|
)%
|
Total other expense
|
|
|
|
(3.1
|
)%
|
|
|
|
(2.4
|
)%
|
Earnings from continuing operations before income taxes
|
|
|
|
19.1
|
%
|
|
|
|
13.9
|
%
|
Income tax expense
|
|
|
|
6.5
|
%
|
|
|
|
5.0
|
%
|
Earnings from continuing operations
|
|
|
|
12.6
|
%
|
|
|
|
8.9
|
%
|
Loss from discontinued operations, net of tax
|
|
|
|
-
|
%
|
|
|
|
(0.8
|
)%
|
Net earnings
|
|
|
|
12.6
|
%
|
|
|
|
8.1
|
%
|
|
|
|
|
|
|
|
Less: Earnings attributable to noncontrolling interests
|
|
|
|
0.1
|
%
|
|
|
|
-
|
%
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
|
|
12.5
|
%
|
|
|
|
8.1
|
%
|
* 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)
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
October 1, 2016
|
|
|
October 3, 2015
|
Net sales from products
|
|
|
$
|
2,423
|
|
|
|
$
|
2,550
|
|
Net sales from services
|
|
|
|
1,732
|
|
|
|
|
1,463
|
|
Net sales
|
|
|
|
4,155
|
|
|
|
|
4,013
|
|
|
|
|
|
|
|
|
Costs of products sales
|
|
|
|
1,124
|
|
|
|
|
1,139
|
|
Costs of services sales
|
|
|
|
1,090
|
|
|
|
|
993
|
|
Costs of sales
|
|
|
|
2,214
|
|
|
|
|
2,132
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
1,941
|
|
|
|
|
1,881
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
722
|
|
|
|
|
769
|
|
Research and development expenditures
|
|
|
|
411
|
|
|
|
|
468
|
|
Other charges
|
|
|
|
61
|
|
|
|
|
33
|
|
Intangibles amortization
|
|
|
|
83
|
|
|
|
|
6
|
|
Operating earnings
|
|
|
|
664
|
|
|
|
|
605
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
(157
|
)
|
|
|
|
(122
|
)
|
Gains (losses) on sales of investments and businesses, net
|
|
|
|
(13
|
)
|
|
|
|
60
|
|
Other
|
|
|
|
(12
|
)
|
|
|
|
(3
|
)
|
Total other expense
|
|
|
|
(182
|
)
|
|
|
|
(65
|
)
|
Earnings from continuing operations before income taxes
|
|
|
|
482
|
|
|
|
|
540
|
|
Income tax expense
|
|
|
|
164
|
|
|
|
|
175
|
|
Earnings from continuing operations
|
|
|
|
318
|
|
|
|
|
365
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of tax
|
|
|
|
-
|
|
|
|
|
(32
|
)
|
Net earnings
|
|
|
|
318
|
|
|
|
|
333
|
|
|
|
|
|
|
|
|
Less: Earnings attributable to noncontrolling interests
|
|
|
|
1
|
|
|
|
|
2
|
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
|
$
|
317
|
|
|
|
$
|
331
|
|
|
|
|
|
|
|
|
Amounts attributable to Motorola Solutions, Inc. common
stockholders:
|
|
|
|
Earnings from continuing operations, net of tax
|
|
|
$
|
317
|
|
|
|
$
|
363
|
|
Loss from discontinued operations, net of tax
|
|
|
|
-
|
|
|
|
|
(32
|
)
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
|
$
|
317
|
|
|
|
$
|
331
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share:
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
1.85
|
|
|
|
$
|
1.75
|
|
Discontinued operations
|
|
|
|
-
|
|
|
|
|
(0.15
|
)
|
|
|
|
$
|
1.85
|
|
|
|
$
|
1.60
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
1.82
|
|
|
|
$
|
1.74
|
|
Discontinued operations
|
|
|
|
-
|
|
|
|
|
(0.16
|
)
|
|
|
|
$
|
1.82
|
|
|
|
$
|
1.58
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
|
171.0
|
|
|
|
|
207.2
|
|
Diluted
|
|
|
|
174.0
|
|
|
|
|
209.2
|
|
|
|
|
|
|
|
|
Percentage of Net Sales*
|
Net sales from products
|
|
|
|
58.3
|
%
|
|
|
|
63.5
|
%
|
Net sales from services
|
|
|
|
41.7
|
%
|
|
|
|
36.5
|
%
|
Net sales
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
Costs of products sales
|
|
|
|
46.4
|
%
|
|
|
|
44.7
|
%
|
Costs of services sales
|
|
|
|
62.9
|
%
|
|
|
|
67.9
|
%
|
Costs of sales
|
|
|
|
53.3
|
%
|
|
|
|
53.1
|
%
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
46.7
|
%
|
|
|
|
46.9
|
%
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
17.4
|
%
|
|
|
|
19.2
|
%
|
Research and development expenditures
|
|
|
|
9.9
|
%
|
|
|
|
11.7
|
%
|
Other charges
|
|
|
|
1.5
|
%
|
|
|
|
0.8
|
%
|
Intangibles amortization
|
|
|
|
2.0
|
%
|
|
|
|
0.1
|
%
|
Operating earnings
|
|
|
|
16.0
|
%
|
|
|
|
15.1
|
%
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
(3.8
|
)%
|
|
|
|
(3.0
|
)%
|
Gains (losses) on sales of investments and businesses, net
|
|
|
|
(0.3
|
)%
|
|
|
|
1.5
|
%
|
Other
|
|
|
|
(0.3
|
)%
|
|
|
|
(0.1
|
)%
|
Total other expense
|
|
|
|
(4.4
|
)%
|
|
|
|
(1.6
|
)%
|
Earnings from continuing operations before income taxes
|
|
|
|
11.6
|
%
|
|
|
|
13.5
|
%
|
Income tax expense
|
|
|
|
3.9
|
%
|
|
|
|
4.4
|
%
|
Earnings from continuing operations
|
|
|
|
7.7
|
%
|
|
|
|
9.1
|
%
|
Loss from discontinued operations, net of tax
|
|
|
|
-
|
%
|
|
|
|
(0.8
|
)%
|
Net earnings
|
|
|
|
7.7
|
%
|
|
|
|
8.3
|
%
|
|
|
|
|
|
|
|
Less: Earnings attributable to noncontrolling interests
|
|
|
|
-
|
%
|
|
|
|
-
|
%
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
|
|
7.6
|
%
|
|
|
|
8.2
|
%
|
* Percentages may not add up due to rounding
|
|
GAAP-3
|
Motorola Solutions, Inc. and Subsidiaries
|
Condensed Consolidated Balance Sheets
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
October 1, 2016
|
|
|
December 31, 2015
|
Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
1,687
|
|
|
|
$
|
1,980
|
|
Accounts receivable, net
|
|
|
|
1,164
|
|
|
|
|
1,362
|
|
Inventories, net
|
|
|
|
283
|
|
|
|
|
296
|
|
Other current assets
|
|
|
|
670
|
|
|
|
|
954
|
|
Current assets held for disposition
|
|
|
|
-
|
|
|
|
|
27
|
|
Total current assets
|
|
|
|
3,804
|
|
|
|
|
4,619
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
780
|
|
|
|
|
487
|
|
Investments
|
|
|
|
238
|
|
|
|
|
231
|
|
Deferred income taxes
|
|
|
|
2,187
|
|
|
|
|
2,278
|
|
Goodwill
|
|
|
|
597
|
|
|
|
|
420
|
|
Other assets
|
|
|
|
1,013
|
|
|
|
|
271
|
|
Non-current assets held for disposition
|
|
|
|
-
|
|
|
|
|
40
|
|
Total assets
|
|
|
$
|
8,619
|
|
|
|
$
|
8,346
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
$
|
5
|
|
|
|
$
|
4
|
|
Accounts payable
|
|
|
|
406
|
|
|
|
|
518
|
|
Accrued liabilities
|
|
|
|
1,750
|
|
|
|
|
1,671
|
|
Total current liabilities
|
|
|
|
2,161
|
|
|
|
|
2,193
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
5,044
|
|
|
|
|
4,345
|
|
Other liabilities
|
|
|
|
2,062
|
|
|
|
|
1,904
|
|
|
|
|
|
|
|
|
Total Motorola Solutions, Inc. stockholders' equity (deficit)
|
|
|
|
(659
|
)
|
|
|
|
(106
|
)
|
|
|
|
|
|
|
|
Noncontrolling interests
|
|
|
|
11
|
|
|
|
|
10
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
8,619
|
|
|
|
$
|
8,346
|
|
|
|
|
|
|
|
|
Financial Ratios:
|
|
|
|
|
|
|
Net cash (debt)*
|
|
|
$
|
(3,362
|
)
|
|
|
$
|
(2,369
|
)
|
|
|
|
|
|
|
|
*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
|
|
|
|
October 1, 2016
|
|
|
October 3, 2015
|
Operating
|
|
|
|
|
|
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
|
$
|
192
|
|
|
|
$
|
115
|
|
Earnings attributable to noncontrolling interests
|
|
|
|
1
|
|
|
|
|
-
|
|
Net earnings
|
|
|
|
193
|
|
|
|
|
115
|
|
Loss from discontinued operations, net of tax
|
|
|
|
-
|
|
|
|
|
(11
|
)
|
Earnings from continuing operations, net of tax
|
|
|
|
193
|
|
|
|
|
126
|
|
Adjustments to reconcile Earnings from continuing operations to Net
cash provided by operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
76
|
|
|
|
|
32
|
|
Non-cash other charges
|
|
|
|
8
|
|
|
|
|
38
|
|
Share-based compensation expense
|
|
|
|
16
|
|
|
|
|
18
|
|
Gains on sales of investments and businesses, net
|
|
|
|
(7
|
)
|
|
|
|
(10
|
)
|
Deferred income taxes
|
|
|
|
72
|
|
|
|
|
72
|
|
Changes in assets and liabilities, net of effects of acquisitions,
dispositions, and foreign currency translation adjustments:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(82
|
)
|
|
|
|
(88
|
)
|
Inventories
|
|
|
|
2
|
|
|
|
|
4
|
|
Other current assets
|
|
|
|
(37
|
)
|
|
|
|
10
|
|
Accounts payable and accrued liabilities
|
|
|
|
138
|
|
|
|
|
96
|
|
Other assets and liabilities
|
|
|
|
(31
|
)
|
|
|
|
3
|
|
Net cash provided by operating activities
|
|
|
|
348
|
|
|
|
|
301
|
|
Investing
|
|
|
|
|
|
|
Acquisitions and investments, net
|
|
|
|
(95
|
)
|
|
|
|
(57
|
)
|
Proceeds from sales of investments and businesses, net
|
|
|
|
84
|
|
|
|
|
39
|
|
Capital expenditures
|
|
|
|
(68
|
)
|
|
|
|
(50
|
)
|
Proceeds from sales of property, plant and equipment
|
|
|
|
22
|
|
|
|
|
1
|
|
Net cash used for investing activities
|
|
|
|
(57
|
)
|
|
|
|
(67
|
)
|
Financing
|
|
|
|
|
|
|
Repayment of debt
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
Net proceeds from issuance of debt
|
|
|
|
-
|
|
|
|
|
976
|
|
Issuance of common stock
|
|
|
|
41
|
|
|
|
|
33
|
|
Purchase of common stock
|
|
|
|
(109
|
)
|
|
|
|
(2,058
|
)
|
Payment of dividends
|
|
|
|
(70
|
)
|
|
|
|
(70
|
)
|
Net cash used for financing activities
|
|
|
|
(139
|
)
|
|
|
|
(1,120
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
(10
|
)
|
|
|
|
(26
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
142
|
|
|
|
|
(912
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
|
1,545
|
|
|
|
|
3,112
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
1,687
|
|
|
|
$
|
2,200
|
|
|
|
|
|
|
|
|
Financial Ratios:
|
|
|
|
|
|
|
Free cash flow*
|
|
|
$
|
280
|
|
|
|
$
|
251
|
|
|
|
|
|
|
|
|
*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)
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
October 1, 2016
|
|
|
October 3, 2015
|
Operating
|
|
|
|
|
|
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
|
$
|
317
|
|
|
|
$
|
331
|
|
Earnings attributable to noncontrolling interests
|
|
|
|
1
|
|
|
|
|
2
|
|
Net earnings
|
|
|
|
318
|
|
|
|
|
333
|
|
Loss from discontinued operations, net of tax
|
|
|
|
-
|
|
|
|
|
(32
|
)
|
Earnings from continuing operations, net of tax
|
|
|
|
318
|
|
|
|
|
365
|
|
Adjustments to reconcile Earnings from continuing operations to Net
cash provided by operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
220
|
|
|
|
|
113
|
|
Non-cash other charges
|
|
|
|
43
|
|
|
|
|
43
|
|
Non-U.S. pension curtailment gain
|
|
|
|
-
|
|
|
|
|
(32
|
)
|
Share-based compensation expense
|
|
|
|
52
|
|
|
|
|
58
|
|
Losses (gains) on sales of investments and businesses, net
|
|
|
|
13
|
|
|
|
|
(60
|
)
|
Deferred income taxes
|
|
|
|
143
|
|
|
|
|
127
|
|
Changes in assets and liabilities, net of effects of acquisitions,
dispositions, and foreign currency translation adjustments:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
245
|
|
|
|
|
167
|
|
Inventories
|
|
|
|
-
|
|
|
|
|
(21
|
)
|
Other current assets
|
|
|
|
(102
|
)
|
|
|
|
38
|
|
Accounts payable and accrued liabilities
|
|
|
|
(224
|
)
|
|
|
|
(152
|
)
|
Other assets and liabilities
|
|
|
|
(56
|
)
|
|
|
|
(39
|
)
|
Net cash provided by operating activities
|
|
|
|
652
|
|
|
|
|
607
|
|
Investing
|
|
|
|
|
|
|
Acquisitions and investments, net
|
|
|
|
(1,215
|
)
|
|
|
|
(150
|
)
|
Proceeds from sales of investments and businesses, net
|
|
|
|
637
|
|
|
|
|
150
|
|
Capital expenditures
|
|
|
|
(211
|
)
|
|
|
|
(131
|
)
|
Proceeds from sales of property, plant and equipment
|
|
|
|
68
|
|
|
|
|
2
|
|
Net cash used for investing activities
|
|
|
|
(721
|
)
|
|
|
|
(129
|
)
|
Financing
|
|
|
|
|
|
|
Repayment of debt
|
|
|
|
(3
|
)
|
|
|
|
(3
|
)
|
Net proceeds from issuance of debt
|
|
|
|
673
|
|
|
|
|
976
|
|
Issuance of common stock
|
|
|
|
80
|
|
|
|
|
69
|
|
Purchase of common stock
|
|
|
|
(728
|
)
|
|
|
|
(2,996
|
)
|
Excess tax benefit from share-based compensation
|
|
|
|
-
|
|
|
|
|
1
|
|
Payment of dividends
|
|
|
|
(213
|
)
|
|
|
|
(218
|
)
|
Net cash used for financing activities
|
|
|
|
(191
|
)
|
|
|
|
(2,171
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
(33
|
)
|
|
|
|
(61
|
)
|
Net decrease in cash and cash equivalents
|
|
|
|
(293
|
)
|
|
|
|
(1,754
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
|
1,980
|
|
|
|
|
3,954
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
1,687
|
|
|
|
$
|
2,200
|
|
|
|
|
|
|
|
|
Financial Ratios:
|
|
|
|
|
|
|
Free cash flow*
|
|
|
$
|
441
|
|
|
|
$
|
476
|
|
|
|
|
|
|
|
|
*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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2016
|
|
|
October 3, 2015
|
|
|
% Change
|
Products
|
|
|
$
|
920
|
|
|
|
$
|
925
|
|
|
|
(1
|
)%
|
Services
|
|
|
|
612
|
|
|
|
|
497
|
|
|
|
23
|
%
|
Total Motorola Solutions
|
|
|
$
|
1,532
|
|
|
|
$
|
1,422
|
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2016
|
|
|
October 3, 2015
|
|
|
% Change
|
Products
|
|
|
$
|
2,423
|
|
|
|
$
|
2,550
|
|
|
|
(5
|
)%
|
Services
|
|
|
|
1,732
|
|
|
|
|
1,463
|
|
|
|
18
|
%
|
Total Motorola Solutions
|
|
|
$
|
4,155
|
|
|
|
$
|
4,013
|
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2016
|
|
|
October 3, 2015
|
|
|
% Change
|
Products
|
|
|
$
|
225
|
|
|
|
$
|
178
|
|
|
|
26
|
%
|
Services
|
|
|
|
116
|
|
|
|
|
53
|
|
|
|
119
|
%
|
Total Motorola Solutions
|
|
|
$
|
341
|
|
|
|
$
|
231
|
|
|
|
48
|
%
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2016
|
|
|
October 3, 2015
|
|
|
% Change
|
Products
|
|
|
$
|
404
|
|
|
|
$
|
413
|
|
|
|
(2
|
)%
|
Services
|
|
|
|
260
|
|
|
|
|
192
|
|
|
|
35
|
%
|
Total Motorola Solutions
|
|
|
$
|
664
|
|
|
|
$
|
605
|
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings %
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2016
|
|
|
October 3, 2015
|
|
|
|
Products
|
|
|
|
24.5
|
%
|
|
|
|
19.2
|
%
|
|
|
|
Services
|
|
|
|
19.0
|
%
|
|
|
|
10.7
|
%
|
|
|
|
Total Motorola Solutions
|
|
|
|
22.3
|
%
|
|
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2016
|
|
|
October 3, 2015
|
|
|
|
Products
|
|
|
|
16.7
|
%
|
|
|
|
16.2
|
%
|
|
|
|
Services
|
|
|
|
15.0
|
%
|
|
|
|
13.1
|
%
|
|
|
|
Total Motorola Solutions
|
|
|
|
16.0
|
%
|
|
|
|
15.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP-1
|
Motorola Solutions, Inc. and Subsidiaries
|
Non-GAAP Adjustments (Intangibles Amortization Expense,
Share-Based Compensation Expense and Highlighted Items)
|
|
Q1 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
Statement Line
|
|
|
PBT
(Inc)/Exp
|
|
|
Tax
Inc/(Exp)
|
|
|
PAT
(Inc)/Exp
|
|
|
EPS impact
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense
|
|
|
Cost of sales, SG&A and R&D
|
|
|
$
|
17
|
|
|
$
|
6
|
|
|
$
|
11
|
|
|
$
|
0.06
|
Reorganization of business charges
|
|
|
Cost of sales and Other charges
|
|
|
|
23
|
|
|
|
8
|
|
|
|
15
|
|
|
|
0.08
|
Intangibles amortization expense
|
|
|
Intangibles amortization
|
|
|
|
13
|
|
|
|
3
|
|
|
|
10
|
|
|
|
0.06
|
Acquisition related transaction fees
|
|
|
Other charges
|
|
|
|
13
|
|
|
|
-
|
|
|
|
13
|
|
|
|
0.07
|
Loss on investment in United Kingdom treasuries
|
|
|
Other expense (income)
|
|
|
|
19
|
|
|
|
7
|
|
|
|
12
|
|
|
|
0.07
|
Realized foreign currency loss on acquisition
|
|
|
Other expense (income)
|
|
|
|
10
|
|
|
|
3
|
|
|
|
7
|
|
|
|
0.04
|
Loss on sale of Malaysia facility and operations
|
|
|
Other expense (income)
|
|
|
|
7
|
|
|
|
-
|
|
|
|
7
|
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impact on Net earnings
|
|
|
|
|
|
$
|
102
|
|
|
$
|
27
|
|
|
$
|
75
|
|
|
$
|
0.42
|
|
Q2 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
Statement Line
|
|
|
PBT
(Inc)/Exp
|
|
|
Tax
Inc/(Exp)
|
|
|
PAT
(Inc)/Exp
|
|
|
EPS impact
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense
|
|
|
Cost of sales, SG&A and R&D
|
|
|
$
|
18
|
|
|
$
|
6
|
|
|
$
|
12
|
|
|
$
|
0.07
|
Reorganization of business charges
|
|
|
Cost of sales and Other charges
|
|
|
|
27
|
|
|
|
7
|
|
|
|
20
|
|
|
|
0.12
|
Intangibles amortization expense
|
|
|
Intangibles amortization
|
|
|
|
38
|
|
|
|
8
|
|
|
|
30
|
|
|
|
0.17
|
Building impairment
|
|
|
Other charges
|
|
|
|
17
|
|
|
|
6
|
|
|
|
11
|
|
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impact on Net earnings
|
|
|
|
|
|
$
|
100
|
|
|
$
|
27
|
|
|
$
|
73
|
|
|
$
|
0.42
|
|
Q3 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
Statement Line
|
|
|
PBT
(Inc)/Exp
|
|
|
Tax
Inc/(Exp)
|
|
|
PAT
(Inc)/Exp
|
|
|
EPS impact
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense
|
|
|
Cost of sales, SG&A and R&D
|
|
|
$
|
17
|
|
|
$
|
5
|
|
|
$
|
12
|
|
|
$
|
0.07
|
Reorganization of business charges
|
|
|
Cost of sales and Other charges
|
|
|
|
7
|
|
|
|
2
|
|
|
|
5
|
|
|
|
0.03
|
Intangibles amortization expense
|
|
|
Intangibles amortization
|
|
|
|
31
|
|
|
|
7
|
|
|
|
24
|
|
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impact on Net earnings
|
|
|
|
|
|
$
|
55
|
|
|
$
|
14
|
|
|
$
|
41
|
|
|
$
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP-2
|
Motorola Solutions, Inc. and Subsidiaries
|
Non-GAAP Segment Information
|
(In millions)
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2016
|
|
October 3, 2015
|
|
|
% Change
|
Products
|
|
|
$
|
920
|
|
|
$
|
925
|
|
|
|
(1
|
)%
|
Services
|
|
|
|
612
|
|
|
|
497
|
|
|
|
23
|
%
|
Total Motorola Solutions
|
|
|
$
|
1,532
|
|
|
$
|
1,422
|
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2016
|
|
October 3, 2015
|
|
|
% Change
|
Products
|
|
|
$
|
2,423
|
|
|
$
|
2,550
|
|
|
|
(5
|
)%
|
Services
|
|
|
|
1,732
|
|
|
|
1,463
|
|
|
|
18
|
%
|
Total Motorola Solutions
|
|
|
$
|
4,155
|
|
|
$
|
4,013
|
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Earnings
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2016
|
|
October 3, 2015
|
|
|
% Change
|
Products
|
|
|
$
|
243
|
|
|
$
|
221
|
|
|
|
10
|
%
|
Services
|
|
|
|
153
|
|
|
|
71
|
|
|
|
115
|
%
|
Total Motorola Solutions
|
|
|
$
|
396
|
|
|
$
|
292
|
|
|
|
36
|
%
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2016
|
|
October 3, 2015
|
|
|
% Change
|
Products
|
|
|
$
|
503
|
|
|
$
|
487
|
|
|
|
3
|
%
|
Services
|
|
|
|
383
|
|
|
|
221
|
|
|
|
73
|
%
|
Total Motorola Solutions
|
|
|
$
|
886
|
|
|
$
|
708
|
|
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Earnings %
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2016
|
|
October 3, 2015
|
|
|
|
Products
|
|
|
|
26.4
|
%
|
|
|
23.9
|
%
|
|
|
|
Services
|
|
|
|
25.0
|
%
|
|
|
14.3
|
%
|
|
|
|
Total Motorola Solutions
|
|
|
|
25.8
|
%
|
|
|
20.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 1, 2016
|
|
October 3, 2015
|
|
|
|
Products
|
|
|
|
20.8
|
%
|
|
|
19.1
|
%
|
|
|
|
Services
|
|
|
|
22.1
|
%
|
|
|
15.1
|
%
|
|
|
|
Total Motorola Solutions
|
|
|
|
21.3
|
%
|
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP-3
|
Motorola Solutions, Inc. and Subsidiaries
|
Operating Earnings after Non-GAAP Adjustments
|
|
Q1 2016
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
Products
|
|
Services
|
Net sales
|
|
$
|
1,193
|
|
|
$
|
702
|
|
|
$
|
491
|
|
Operating earnings ("OE")
|
|
$
|
100
|
|
|
$
|
51
|
|
|
$
|
49
|
|
|
|
|
|
|
|
|
Above-OE non-GAAP adjustments:
|
|
|
|
|
|
|
Share-based compensation expense
|
|
|
17
|
|
|
|
11
|
|
|
|
6
|
|
Reorganization of business charges
|
|
|
23
|
|
|
|
21
|
|
|
|
2
|
|
Intangibles amortization expense
|
|
|
13
|
|
|
|
1
|
|
|
|
12
|
|
Acquisition related transaction fees
|
|
|
13
|
|
|
|
-
|
|
|
|
13
|
|
Total above-OE non-GAAP adjustments
|
|
|
66
|
|
|
|
33
|
|
|
|
33
|
|
|
|
|
|
|
|
|
Operating earnings after non-GAAP adjustments
|
|
$
|
166
|
|
|
$
|
84
|
|
|
$
|
82
|
|
|
|
|
|
|
|
|
Operating earnings as a percentage of net sales - GAAP
|
|
|
8.4
|
%
|
|
|
7.3
|
%
|
|
|
10.0
|
%
|
Operating earnings as a percentage of net sales - after non-GAAP
adjustments
|
|
|
13.9
|
%
|
|
|
12.0
|
%
|
|
|
16.7
|
%
|
|
Q2 2016
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
Products
|
|
Services
|
Net sales
|
|
$
|
1,430
|
|
|
$
|
801
|
|
|
$
|
629
|
|
Operating earnings ("OE")
|
|
$
|
224
|
|
|
$
|
129
|
|
|
$
|
95
|
|
|
|
|
|
|
|
|
Above-OE non-GAAP adjustments:
|
|
|
|
|
|
|
Share-based compensation expense
|
|
|
18
|
|
|
|
12
|
|
|
|
6
|
|
Reorganization of business charges
|
|
|
27
|
|
|
|
21
|
|
|
|
6
|
|
Intangibles amortization expense
|
|
|
38
|
|
|
|
2
|
|
|
|
36
|
|
Building impairment
|
|
|
17
|
|
|
|
12
|
|
|
|
5
|
|
Total above-OE non-GAAP adjustments
|
|
|
100
|
|
|
|
47
|
|
|
|
53
|
|
|
|
|
|
|
|
|
Operating earnings after non-GAAP adjustments
|
|
$
|
324
|
|
|
$
|
176
|
|
|
$
|
148
|
|
|
|
|
|
|
|
|
Operating earnings as a percentage of net sales - GAAP
|
|
|
15.7
|
%
|
|
|
16.1
|
%
|
|
|
15.1
|
%
|
Operating earnings as a percentage of net sales - after non-GAAP
adjustments
|
|
|
22.7
|
%
|
|
|
22.0
|
%
|
|
|
23.5
|
%
|
|
Q3 2016
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
Products
|
|
Services
|
Net sales
|
|
$
|
1,532
|
|
|
$
|
920
|
|
|
$
|
612
|
|
Operating earnings ("OE")
|
|
$
|
341
|
|
|
$
|
225
|
|
|
$
|
116
|
|
|
|
|
|
|
|
|
Above-OE non-GAAP adjustments:
|
|
|
|
|
|
|
Share-based compensation expense
|
|
|
17
|
|
|
|
11
|
|
|
|
6
|
|
Reorganization of business charges
|
|
|
7
|
|
|
|
5
|
|
|
|
2
|
|
Intangibles amortization expense
|
|
|
31
|
|
|
|
2
|
|
|
|
29
|
|
Total above-OE non-GAAP adjustments
|
|
|
55
|
|
|
|
18
|
|
|
|
37
|
|
|
|
|
|
|
|
|
Operating earnings after non-GAAP adjustments
|
|
$
|
396
|
|
|
$
|
243
|
|
|
$
|
153
|
|
|
|
|
|
|
|
|
Operating earnings as a percentage of net sales - GAAP
|
|
|
22.3
|
%
|
|
|
24.5
|
%
|
|
|
19.0
|
%
|
Operating earnings as a percentage of net sales - after non-GAAP
adjustments
|
|
|
25.8
|
%
|
|
|
26.4
|
%
|
|
|
25.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161103006695/en/
[ Back To TMCnet.com's Homepage ]
|