[August 03, 2017] |
|
Motorola Solutions Reports Second-Quarter 2017 Financial Results
Motorola
Solutions, Inc. (NYSE: MSI) today reported its earnings results for
the second quarter of 2017. Click
here for a printable news release and financial tables.
SUPPORTING QUOTE
"Q2 was an outstanding quarter of revenue and EPS growth driven
primarily by our land mobile radio (LMR) business," said Greg Brown,
chairman and CEO of Motorola Solutions. "Additionally, I'm pleased with
our strong backlog position and recent acquisitions that provide the
foundation for continued success."
KEY FINANCIAL RESULTS (presented in millions, except per share
data and percentages)
|
|
|
|
Q2 2017
|
|
|
Q2 2016
|
|
|
% Change
|
Sales
|
|
|
$1,497
|
|
|
$1,430
|
|
|
5
|
%
|
GAAP
|
|
|
|
|
|
|
|
|
|
Operating Earnings
|
|
|
$257
|
|
|
$224
|
|
|
15
|
%
|
% of Sales
|
|
|
17.2%
|
|
|
15.7%
|
|
|
|
EPS
|
|
|
$0.78
|
|
|
$0.61
|
|
|
28
|
%
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
Operating Earnings
|
|
|
$328
|
|
|
$324
|
|
|
1
|
%
|
% of Sales
|
|
|
21.9%
|
|
|
22.7%
|
|
|
|
EPS
|
|
|
$1.12
|
|
|
$1.03
|
|
|
9
|
%
|
Product Segment
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$848
|
|
|
$801
|
|
|
6
|
%
|
GAAP Operating Earnings
|
|
|
$168
|
|
|
$129
|
|
|
30
|
%
|
% of Sales
|
|
|
19.8%
|
|
|
16.1%
|
|
|
|
Non-GAAP Operating Earnings
|
|
|
$193
|
|
|
$176
|
|
|
10
|
%
|
% of Sales
|
|
|
22.8%
|
|
|
22.0%
|
|
|
|
Services Segment
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$649
|
|
|
$629
|
|
|
3
|
%
|
GAAP Operating Earnings
|
|
|
$89
|
|
|
$95
|
|
|
(6
|
)%
|
% of Sales
|
|
|
13.7%
|
|
|
15.1%
|
|
|
|
Non-GAAP Operating Earnings
|
|
|
$135
|
|
|
$148
|
|
|
(9
|
)%
|
% of Sales
|
|
|
20.8%
|
|
|
23.5%
|
|
|
|
*Non-GAAP financial information excludes the after-tax impact of
approximately $0.34 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.
-
Revenue - Sales increased 5 percent driven by the
Americas region. Products segment sales grew 6 percent with growth in
every region, driven primarily by P25 LMR systems. The Services
segment grew 3 percent driven by the Americas, with global Managed &
Support Services growth of 3 percent despite $20 million of Airwave
currency headwinds.
-
Operating margin - GAAP operating margin was 17.2
percent of sales, compared with 15.7 percent in the year-ago quarter.
The improvement reflects higher sales volume and lower other costs.
Non-GAAP operating margin was 21.9 percent of sales, compared with
22.7 percent in the year-ago quarter. As expected, the sales increase
was offset by lower gross margin associated with higher systems mix in
North America, as well as Airwave currency headwinds.
-
Cash flow - The company generated $173 million in
operating cash, a decrease of $119 million from the year-ago quarter.
Free cash flow2 was $120 million, down $81 million. Cash
flow for the quarter was down due to timing of higher working capital
primarily associated with the implementation of a new ERP system.
Year-to-date operating cash flow and free cash flow were higher than
the prior year driven by higher earnings.
-
Capital Allocation - The company ended the quarter with
cash and cash equivalents of $805 million and a net debt position of
approximately $3.7 billion3. The company repurchased
approximately $80 million of its common stock and paid approximately
$77 million in cash dividends. Additionally, the company announced the
acquisition of Airbus DS Communications (Plant Holdings, Inc.),
strengthening its command center software portfolio.
-
Backlog - The company ended the quarter with $8.5
billion of backlog, up $265 million from the year-ago quarter.
Products segment backlog is up 15 percent or $204 million, and
Services is up 1 percent or $61 million. LMR demand led by the
Americas continues to drive the backlog growth.
KEY HIGHLIGHTS
Strategic wins and awards
-
$160 million for a 10-year Managed & Support Services agreement in
Canada
-
$43 million for P25 devices in a major U.S. city
-
$40 million for P25 system in Broward County, Florida
-
$24 million for P25 system with a large utility in the northeastern
U.S.
-
$19 million for P25 system covering three Kentucky counties that
includes a 10-year Managed & Support Services agreement
-
$10 million for P25 devices in Australia
Innovation and investments in growth
-
Announced acquisition of Airbus DS Communications (Plant Holdings,
Inc.), strengthening the company's command center software portfolio.
Airbus DS Communications is a leading provider in North America of
command center software for emergency call-handling
-
Certified Public Safety LTE device LEX F10 for the AT&T FirstNet
network
-
Delivered 1,000th TETRA digital radio system and 25,000th base station
BUSINESS OUTLOOK
-
Third-quarter 2017 - Motorola Solutions expects revenue growth
of 3 to 4 percent compared with the third quarter of 2016. The company
expects non-GAAP earnings in the range of $1.36 to $1.41 per share.
-
Full-year 2017 - The company now expects revenue growth of
approximately 3 to 4 percent versus the prior outlook of approximately
2 percent, and non-GAAP earnings per share now in the range of $5.20
to $5.30 from the prior outlook of $5.08 to $5.23. This assumes
current foreign exchange rates and approximately 170 million fully
diluted shares for the full year.
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, Aug. 3. The conference
call will be webcast live at www.motorolasolutions.com/investor.
CONSOLIDATED GAAP RESULTS (presented in millions, except per share
data) A comparison of results from operations is as follows:
|
|
|
|
Q2 2017
|
|
|
Q2 2016
|
Net sales
|
|
|
$1,497
|
|
|
$1,430
|
Gross margin
|
|
|
690
|
|
|
676
|
Operating earnings
|
|
|
257
|
|
|
224
|
Amounts attributable to Motorola Solutions, Inc. common
stockholders
|
|
|
|
|
|
|
Net earnings
|
|
|
131
|
|
|
107
|
Diluted EPS
|
|
|
$0.78
|
|
|
$0.61
|
Weighted average diluted common shares outstanding
|
|
|
169.0
|
|
|
174.8
|
|
|
|
|
|
|
|
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 2017.
|
|
(per diluted common share)
|
|
|
Q2 2017
|
|
|
|
|
|
|
GAAP Earnings
|
|
|
$0.78
|
|
Highlighted Items:
|
|
|
|
|
Share-based compensation expense
|
|
|
0.07
|
|
Reorganization of business charges
|
|
|
0.02
|
|
Intangibles amortization expense
|
|
|
0.17
|
|
Non-US pension settlement loss
|
|
|
0.08
|
|
Legal settlement
|
|
|
(0.01
|
)
|
Sale of business
|
|
|
0.01
|
|
Total Highlighted Items
|
|
|
$0.34
|
|
|
|
|
|
|
Non-GAAP Diluted EPS
|
|
|
$1.12
|
|
|
|
|
|
|
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 including, but not limited to, acquisition-related
transaction costs, tangible and intangible asset impairments,
restructuring or reorganization of business charges, non-cash pension
adjustments, significant litigation and other contingencies, significant
gains and losses on investments, and the income tax effects of
significant tax matters, 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. For the purposes of management's internal analysis over
operating performance, the company uses financial statements that
exclude highlighted items, as these charges do not contribute to a
meaningful evaluation of the company's current operating performance or
comparisons to the company's past operating performance. Specifically in
regards to its restructuring plans, the company has incurred significant
reorganization of business charges as it reduced operating expenses over
the past four years.
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 third quarter and full year of 2017
and the impact of acquisitions on our business. Motorola Solutions
cautions the reader that the risk factors below, as well as those on
pages 9 through 21 in Item 1A of Motorola Solutions 2016 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 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; (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 use of third party vendors for various
activities, including certain manufacturing operations, information
technology and administrative functions; (22) the implementation of a
new enterprise resource planning 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 Q2 Non-GAAP financial information excludes the after-tax
impact of approximately $0.34 per diluted share related to share-based
compensation, intangible assets amortization expense and highlighted
items for the fourth-quarter. Details on these non-GAAP adjustments and
the use of non-GAAP measures are included in this news release. 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. ©2017 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 1, 2017
|
|
July 2, 2016
|
Net sales from products
|
|
$
|
848
|
|
|
$
|
801
|
|
Net sales from services
|
|
|
649
|
|
|
|
629
|
|
Net sales
|
|
|
1,497
|
|
|
|
1,430
|
|
|
|
|
|
|
Costs of products sales
|
|
|
392
|
|
|
|
361
|
|
Costs of services sales
|
|
|
415
|
|
|
|
393
|
|
Costs of sales
|
|
|
807
|
|
|
|
754
|
|
|
|
|
|
|
Gross margin
|
|
|
690
|
|
|
|
676
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
242
|
|
|
|
240
|
|
Research and development expenditures
|
|
|
138
|
|
|
|
138
|
|
Other charges
|
|
|
16
|
|
|
|
36
|
|
Intangibles amortization
|
|
|
37
|
|
|
|
38
|
|
Operating earnings
|
|
|
257
|
|
|
|
224
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Interest expense, net
|
|
|
(51
|
)
|
|
|
(54
|
)
|
Gains (losses) on sales of investments and businesses, net
|
|
|
(1
|
)
|
|
|
1
|
|
Other
|
|
|
-
|
|
|
|
(4
|
)
|
Total other expense
|
|
|
(52
|
)
|
|
|
(57
|
)
|
Net earnings before income taxes
|
|
|
205
|
|
|
|
167
|
|
Income tax expense
|
|
|
73
|
|
|
|
59
|
|
Net earnings
|
|
|
132
|
|
|
|
108
|
|
|
|
|
|
|
Less: Earnings attributable to noncontrolling interests
|
|
|
1
|
|
|
|
1
|
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
$
|
131
|
|
|
$
|
107
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
Basic
|
|
$
|
0.80
|
|
|
$
|
0.62
|
|
Diluted
|
|
$
|
0.78
|
|
|
$
|
0.61
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
Basic
|
|
|
163.1
|
|
|
|
171.9
|
|
Diluted
|
|
|
169.0
|
|
|
|
174.8
|
|
|
|
|
|
|
|
|
Percentage of Net Sales*
|
Net sales from products
|
|
|
56.6
|
%
|
|
|
56.0
|
%
|
Net sales from services
|
|
|
43.4
|
%
|
|
|
44.0
|
%
|
Net sales
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
Costs of products sales
|
|
|
46.2
|
%
|
|
|
45.1
|
%
|
Costs of services sales
|
|
|
63.9
|
%
|
|
|
62.5
|
%
|
Costs of sales
|
|
|
53.9
|
%
|
|
|
52.7
|
%
|
|
|
|
|
|
Gross margin
|
|
|
46.1
|
%
|
|
|
47.3
|
%
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
16.2
|
%
|
|
|
16.8
|
%
|
Research and development expenditures
|
|
|
9.2
|
%
|
|
|
9.7
|
%
|
Other charges
|
|
|
1.1
|
%
|
|
|
2.5
|
%
|
Intangibles amortization
|
|
|
2.5
|
%
|
|
|
2.7
|
%
|
Operating earnings
|
|
|
17.2
|
%
|
|
|
15.7
|
%
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Interest expense, net
|
|
|
(3.4
|
)%
|
|
|
(3.8
|
)%
|
Gains (losses) on sales of investments and businesses, net
|
|
|
(0.1
|
)%
|
|
|
0.1
|
%
|
Other
|
|
|
-
|
%
|
|
|
(0.3
|
)%
|
Total other expense
|
|
|
(3.5
|
)%
|
|
|
(4.0
|
)%
|
Net earnings before income taxes
|
|
|
13.7
|
%
|
|
|
11.7
|
%
|
Income tax expense
|
|
|
4.9
|
%
|
|
|
4.1
|
%
|
Net earnings
|
|
|
8.8
|
%
|
|
|
7.6
|
%
|
|
|
|
|
|
Less: Earnings attributable to noncontrolling interests
|
|
|
0.1
|
%
|
|
|
0.1
|
%
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
|
8.8
|
%
|
|
|
7.5
|
%
|
|
* 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 1, 2017
|
|
July 2, 2016
|
Net sales from products
|
|
$
|
1,551
|
|
|
$
|
1,503
|
|
Net sales from services
|
|
|
1,226
|
|
|
|
1,120
|
|
Net sales
|
|
|
2,777
|
|
|
|
2,623
|
|
|
|
|
|
|
Costs of products sales
|
|
|
739
|
|
|
|
726
|
|
Costs of services sales
|
|
|
778
|
|
|
|
718
|
|
Costs of sales
|
|
|
1,517
|
|
|
|
1,444
|
|
|
|
|
|
|
Gross margin
|
|
|
1,260
|
|
|
|
1,179
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
475
|
|
|
|
475
|
|
Research and development expenditures
|
|
|
273
|
|
|
|
274
|
|
Other charges
|
|
|
6
|
|
|
|
55
|
|
Intangibles amortization
|
|
|
73
|
|
|
|
52
|
|
Operating earnings
|
|
|
433
|
|
|
|
323
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Interest expense, net
|
|
|
(102
|
)
|
|
|
(103
|
)
|
Gains (losses) on sales of investments and businesses, net
|
|
|
2
|
|
|
|
(20
|
)
|
Other
|
|
|
(9
|
)
|
|
|
(11
|
)
|
Total other expense
|
|
|
(109
|
)
|
|
|
(134
|
)
|
Net earnings before income taxes
|
|
|
324
|
|
|
|
189
|
|
Income tax expense
|
|
|
114
|
|
|
|
64
|
|
Net earnings
|
|
|
210
|
|
|
|
125
|
|
|
|
|
|
|
Less: Earnings attributable to noncontrolling interests
|
|
|
2
|
|
|
|
1
|
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
$
|
208
|
|
|
$
|
124
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
Basic
|
|
$
|
1.27
|
|
|
$
|
0.72
|
|
Diluted
|
|
$
|
1.23
|
|
|
$
|
0.71
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
Basic
|
|
|
163.7
|
|
|
|
173.0
|
|
Diluted
|
|
|
169.5
|
|
|
|
175.7
|
|
|
|
|
|
|
|
|
Percentage of Net Sales*
|
Net sales from products
|
|
|
55.9
|
%
|
|
|
57.3
|
%
|
Net sales from services
|
|
|
44.1
|
%
|
|
|
42.7
|
%
|
Net sales
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
Costs of products sales
|
|
|
47.6
|
%
|
|
|
48.3
|
%
|
Costs of services sales
|
|
|
63.5
|
%
|
|
|
64.1
|
%
|
Costs of sales
|
|
|
54.6
|
%
|
|
|
55.1
|
%
|
|
|
|
|
|
Gross margin
|
|
|
45.4
|
%
|
|
|
44.9
|
%
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
17.1
|
%
|
|
|
18.1
|
%
|
Research and development expenditures
|
|
|
9.8
|
%
|
|
|
10.4
|
%
|
Other charges
|
|
|
0.2
|
%
|
|
|
2.1
|
%
|
Intangibles amortization
|
|
|
2.6
|
%
|
|
|
2.0
|
%
|
Operating earnings
|
|
|
15.6
|
%
|
|
|
12.3
|
%
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Interest expense, net
|
|
|
(3.7
|
)%
|
|
|
(3.9
|
)%
|
Gains (losses) on sales of investments and businesses, net
|
|
|
0.1
|
%
|
|
|
(0.8
|
)%
|
Other
|
|
|
(0.3
|
)%
|
|
|
(0.4
|
)%
|
Total other expense
|
|
|
(3.9
|
)%
|
|
|
(5.1
|
)%
|
Net earnings before income taxes
|
|
|
11.7
|
%
|
|
|
7.2
|
%
|
Income tax expense
|
|
|
4.1
|
%
|
|
|
2.4
|
%
|
Net earnings
|
|
|
7.6
|
%
|
|
|
4.8
|
%
|
|
|
|
|
|
Less: Earnings attributable to noncontrolling interests
|
|
|
0.1
|
%
|
|
|
-
|
%
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
|
7.5
|
%
|
|
|
4.7
|
%
|
* Percentages may not add up due to rounding
|
GAAP-3
|
Motorola Solutions, Inc. and Subsidiaries
|
Condensed Consolidated Balance Sheets
|
(In millions)
|
|
|
|
|
|
|
|
July 1, 2017
|
|
December 31, 2016
|
Assets
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
742
|
|
|
$
|
967
|
|
Restricted cash
|
|
|
63
|
|
|
|
63
|
|
Total cash and cash equivalents
|
|
|
805
|
|
|
|
1,030
|
|
Accounts receivable, net
|
|
|
1,211
|
|
|
|
1,410
|
|
Inventories, net
|
|
|
391
|
|
|
|
273
|
|
Other current assets
|
|
|
804
|
|
|
|
755
|
|
Total current assets
|
|
|
3,211
|
|
|
|
3,468
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
859
|
|
|
|
789
|
|
Investments
|
|
|
248
|
|
|
|
238
|
|
Deferred income taxes
|
|
|
2,160
|
|
|
|
2,219
|
|
Goodwill
|
|
|
749
|
|
|
|
728
|
|
Intangible Assets
|
|
|
868
|
|
|
|
821
|
|
Other assets
|
|
|
200
|
|
|
|
200
|
|
Total assets
|
|
$
|
8,295
|
|
|
$
|
8,463
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
46
|
|
|
$
|
4
|
|
Accounts payable
|
|
|
440
|
|
|
|
553
|
|
Accrued liabilities
|
|
|
1,924
|
|
|
|
2,111
|
|
Total current liabilities
|
|
|
2,410
|
|
|
|
2,668
|
|
|
|
|
|
|
Long-term debt
|
|
|
4,421
|
|
|
|
4,392
|
|
Other liabilities
|
|
|
2,440
|
|
|
|
2,355
|
|
|
|
|
|
|
Total Motorola Solutions, Inc. stockholders' equity (deficit)
|
|
|
(988
|
)
|
|
|
(964
|
)
|
|
|
|
|
|
Noncontrolling interests
|
|
|
12
|
|
|
|
12
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
8,295
|
|
|
$
|
8,463
|
|
|
|
|
|
|
Financial Ratios:
|
|
|
|
|
Net cash (debt)*
|
|
$
|
(3,662
|
)
|
|
$
|
(3,366
|
)
|
|
|
|
|
|
*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 1, 2017
|
|
July 2, 2016
|
Operating
|
|
|
|
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
$
|
131
|
|
|
$
|
107
|
|
Earnings attributable to noncontrolling interests
|
|
|
1
|
|
|
|
1
|
|
Net earnings
|
|
|
132
|
|
|
|
108
|
|
Adjustments to reconcile Net earnings to Net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
86
|
|
|
|
82
|
|
Non-cash other charges
|
|
|
6
|
|
|
|
24
|
|
Non-U.S. pension settlement loss
|
|
|
16
|
|
|
|
-
|
|
Share-based compensation expense
|
|
|
16
|
|
|
|
18
|
|
Losses (gains) on sales of investments and businesses, net
|
|
|
1
|
|
|
|
(1
|
)
|
Deferred income taxes
|
|
|
40
|
|
|
|
35
|
|
Changes in assets and liabilities, net of effects of acquisitions,
dispositions, and foreign currency translation adjustments:
|
|
|
|
|
Accounts receivable
|
|
|
(117
|
)
|
|
|
50
|
|
Inventories
|
|
|
(43
|
)
|
|
|
2
|
|
Other current assets
|
|
|
38
|
|
|
|
(22
|
)
|
Accounts payable and accrued liabilities
|
|
|
(33
|
)
|
|
|
1
|
|
Other assets and liabilities
|
|
|
31
|
|
|
|
(5
|
)
|
Net cash provided by operating activities
|
|
|
173
|
|
|
|
292
|
|
Investing
|
|
|
|
|
Acquisitions and investments, net
|
|
|
(34
|
)
|
|
|
(67
|
)
|
Proceeds from sales of investments and businesses, net
|
|
|
19
|
|
|
|
72
|
|
Capital expenditures
|
|
|
(53
|
)
|
|
|
(91
|
)
|
Proceeds from sales of property, plant and equipment
|
|
|
-
|
|
|
|
46
|
|
Net cash used for investing activities
|
|
|
(68
|
)
|
|
|
(40
|
)
|
Financing
|
|
|
|
|
Repayment of debt
|
|
|
(5
|
)
|
|
|
(1
|
)
|
Proceeds from financing through capital leases
|
|
|
7
|
|
|
|
-
|
|
Issuance of common stock
|
|
|
6
|
|
|
|
(1
|
)
|
Purchase of common stock
|
|
|
(80
|
)
|
|
|
(555
|
)
|
Payment of dividends
|
|
|
(77
|
)
|
|
|
(72
|
)
|
Payment of dividend to non-controlling interest
|
|
|
(2
|
)
|
|
|
-
|
|
Net cash used for financing activities
|
|
|
(151
|
)
|
|
|
(629
|
)
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
22
|
|
|
|
(18
|
)
|
Net decrease in cash and cash equivalents
|
|
|
(24
|
)
|
|
|
(395
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
829
|
|
|
|
1,940
|
|
Cash and cash equivalents, end of period
|
|
$
|
805
|
|
|
$
|
1,545
|
|
|
|
|
|
|
Financial Ratios:
|
|
|
|
|
Free cash flow*
|
|
$
|
120
|
|
|
$
|
201
|
|
|
|
|
|
|
*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 1, 2017
|
|
July 2, 2016
|
Operating
|
|
|
|
|
Net earnings attributable to Motorola Solutions, Inc.
|
|
$
|
208
|
|
|
$
|
124
|
|
Earnings attributable to noncontrolling interests
|
|
|
2
|
|
|
|
1
|
|
Net earnings
|
|
|
210
|
|
|
|
125
|
|
Adjustments to reconcile Net earnings to Net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
166
|
|
|
|
144
|
|
Non-cash other charges
|
|
|
21
|
|
|
|
35
|
|
Non-U.S. pension settlement loss
|
|
|
25
|
|
|
|
-
|
|
Share-based compensation expense
|
|
|
33
|
|
|
|
35
|
|
Losses (gains) on sales of investments and businesses, net
|
|
|
(2
|
)
|
|
|
20
|
|
Deferred income taxes
|
|
|
63
|
|
|
|
71
|
|
Changes in assets and liabilities, net of effects of acquisitions,
dispositions, and foreign currency translation adjustments:
|
|
|
|
|
Accounts receivable
|
|
|
251
|
|
|
|
327
|
|
Inventories
|
|
|
(112
|
)
|
|
|
(2
|
)
|
Other current assets
|
|
|
(21
|
)
|
|
|
(65
|
)
|
Accounts payable and accrued liabilities
|
|
|
(340
|
)
|
|
|
(362
|
)
|
Other assets and liabilities
|
|
|
21
|
|
|
|
(24
|
)
|
Net cash provided by operating activities
|
|
|
315
|
|
|
|
304
|
|
Investing
|
|
|
|
|
Acquisitions and investments, net
|
|
|
(140
|
)
|
|
|
(1,120
|
)
|
Proceeds from sales of investments and businesses, net
|
|
|
72
|
|
|
|
553
|
|
Capital expenditures
|
|
|
(121
|
)
|
|
|
(143
|
)
|
Proceeds from sales of property, plant and equipment
|
|
|
-
|
|
|
|
46
|
|
Net cash used for investing activities
|
|
|
(189
|
)
|
|
|
(664
|
)
|
Financing
|
|
|
|
|
Repayment of debt
|
|
|
(6
|
)
|
|
|
(2
|
)
|
Net proceeds from issuance of debt
|
|
|
-
|
|
|
|
673
|
|
Proceeds from financing through capital leases
|
|
|
7
|
|
|
|
-
|
|
Issuance of common stock
|
|
|
28
|
|
|
|
40
|
|
Purchase of common stock
|
|
|
(258
|
)
|
|
|
(619
|
)
|
Payment of dividends
|
|
|
(154
|
)
|
|
|
(143
|
)
|
Payment of dividend to non-controlling interest
|
|
|
(2
|
)
|
|
|
-
|
|
Net cash used for financing activities
|
|
|
(385
|
)
|
|
|
(51
|
)
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
34
|
|
|
|
(24
|
)
|
Net decrease in cash and cash equivalents
|
|
|
(225
|
)
|
|
|
(435
|
)
|
Cash and cash equivalents, beginning of period
|
|
|
1,030
|
|
|
|
1,980
|
|
Cash and cash equivalents, end of period
|
|
$
|
805
|
|
|
$
|
1,545
|
|
|
|
|
|
|
Financial Ratios:
|
|
|
|
|
Free cash flow*
|
|
$
|
194
|
|
|
$
|
161
|
|
|
|
|
|
|
*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 1, 2017
|
|
July 2, 2016
|
|
% Change
|
|
Products
|
|
$
|
848
|
|
|
$
|
801
|
|
|
6
|
%
|
|
Services
|
|
|
649
|
|
|
|
629
|
|
|
3
|
%
|
|
Total Motorola Solutions
|
|
$
|
1,497
|
|
|
$
|
1,430
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2017
|
|
July 2, 2016
|
|
% Change
|
|
Products
|
|
$
|
1,551
|
|
|
$
|
1,503
|
|
|
3
|
%
|
|
Services
|
|
|
1,226
|
|
|
|
1,120
|
|
|
9
|
%
|
|
Total Motorola Solutions
|
|
$
|
2,777
|
|
|
$
|
2,623
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2017
|
|
July 2, 2016
|
|
% Change
|
|
Products
|
|
$
|
168
|
|
|
$
|
129
|
|
|
30
|
%
|
|
Services
|
|
|
89
|
|
|
|
95
|
|
|
(6
|
)%
|
|
Total Motorola Solutions
|
|
$
|
257
|
|
|
$
|
224
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2017
|
|
July 2, 2016
|
|
% Change
|
|
Products
|
|
$
|
257
|
|
|
$
|
179
|
|
|
44
|
%
|
|
Services
|
|
|
176
|
|
|
|
144
|
|
|
22
|
%
|
|
Total Motorola Solutions
|
|
$
|
433
|
|
|
$
|
323
|
|
|
34
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings %
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2017
|
|
July 2, 2016
|
|
|
|
Products
|
|
|
19.8
|
%
|
|
|
16.1
|
%
|
|
|
|
Services
|
|
|
13.7
|
%
|
|
|
15.1
|
%
|
|
|
|
Total Motorola Solutions
|
|
|
17.2
|
%
|
|
|
15.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2017
|
|
July 2, 2016
|
|
|
|
Products
|
|
|
16.6
|
%
|
|
|
11.9
|
%
|
|
|
|
Services
|
|
|
14.4
|
%
|
|
|
12.9
|
%
|
|
|
|
Total Motorola Solutions
|
|
|
15.6
|
%
|
|
|
12.3
|
%
|
|
|
|
Non-GAAP-1
|
|
Motorola Solutions, Inc. and Subsidiaries
|
|
Non-GAAP Adjustments (Intangibles Amortization Expense,
Share-Based Compensation Expense and Highlighted Items)
|
|
|
|
Q1 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
19
|
|
|
|
4
|
|
|
|
15
|
|
|
|
0.09
|
|
|
Intangibles amortization expense
|
|
Intangibles amortization
|
|
|
36
|
|
|
|
9
|
|
|
|
27
|
|
|
|
0.16
|
|
|
Gain on legal settlement
|
|
Other charges
|
|
|
(42
|
)
|
|
|
(16
|
)
|
|
|
(26
|
)
|
|
|
(0.15
|
)
|
|
Building impairment
|
|
Other charges
|
|
|
8
|
|
|
|
-
|
|
|
|
8
|
|
|
|
0.05
|
|
|
Non-US pension settlement loss
|
|
Other charges
|
|
|
9
|
|
|
|
-
|
|
|
|
9
|
|
|
|
0.05
|
|
|
Sale of investments
|
|
Sale of Investment or Business (Gain) or Loss
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
|
(2
|
)
|
|
|
(0.01
|
)
|
|
Acquisition-related transaction fees
|
|
Other charges
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impact on Net earnings
|
|
|
|
$
|
45
|
|
|
$
|
2
|
|
|
$
|
43
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
16
|
|
|
$
|
5
|
|
|
$
|
11
|
|
|
$
|
0.07
|
|
|
Reorganization of business charges
|
|
Cost of sales and Other charges
|
|
|
3
|
|
|
|
-
|
|
|
|
3
|
|
|
|
0.02
|
|
|
Intangibles amortization expense
|
|
Intangibles amortization
|
|
|
37
|
|
|
|
9
|
|
|
|
28
|
|
|
|
0.17
|
|
|
Non-US pension settlement loss
|
|
Other charges
|
|
|
16
|
|
|
|
-
|
|
|
|
16
|
|
|
|
0.08
|
|
|
Legal settlement
|
|
Other charges
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
(0.01
|
)
|
|
Sale of business
|
|
Sale of Investment or Business (Gain) or Loss
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impact on Net earnings
|
|
|
|
$
|
72
|
|
|
$
|
14
|
|
|
$
|
58
|
|
|
$
|
0.34
|
|
|
Non-GAAP-2
|
Motorola Solutions, Inc. and Subsidiaries
|
Non-GAAP Segment Information
|
(In millions)
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2017
|
|
July 2, 2016
|
|
% Change
|
|
Products
|
|
$
|
848
|
|
|
$
|
801
|
|
|
6
|
%
|
|
Services
|
|
|
649
|
|
|
|
629
|
|
|
3
|
%
|
|
Total Motorola Solutions
|
|
$
|
1,497
|
|
|
$
|
1,430
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2017
|
|
July 2, 2016
|
|
% Change
|
|
Products
|
|
$
|
1,551
|
|
|
$
|
1,503
|
|
|
3
|
%
|
|
Services
|
|
|
1,226
|
|
|
|
1,120
|
|
|
9
|
%
|
|
Total Motorola Solutions
|
|
$
|
2,777
|
|
|
$
|
2,623
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Earnings
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2017
|
|
July 2, 2016
|
|
% Change
|
|
Products
|
|
$
|
193
|
|
|
$
|
176
|
|
|
10
|
%
|
|
Services
|
|
|
135
|
|
|
|
148
|
|
|
(9
|
)%
|
|
Total Motorola Solutions
|
|
$
|
328
|
|
|
$
|
324
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2017
|
|
July 2, 2016
|
|
% Change
|
|
Products
|
|
$
|
294
|
|
|
$
|
260
|
|
|
13
|
%
|
|
Services
|
|
|
258
|
|
|
|
230
|
|
|
12
|
%
|
|
Total Motorola Solutions
|
|
$
|
552
|
|
|
$
|
490
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Earnings %
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2017
|
|
July 2, 2016
|
|
|
|
Products
|
|
|
22.8
|
%
|
|
|
22.0
|
%
|
|
|
|
Services
|
|
|
20.8
|
%
|
|
|
23.5
|
%
|
|
|
|
Total Motorola Solutions
|
|
|
21.9
|
%
|
|
|
22.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2017
|
|
July 2, 2016
|
|
|
|
Products
|
|
|
19.0
|
%
|
|
|
17.3
|
%
|
|
|
|
Services
|
|
|
21.0
|
%
|
|
|
20.5
|
%
|
|
|
|
Total Motorola Solutions
|
|
|
19.9
|
%
|
|
|
18.7
|
%
|
|
|
|
Non-GAAP-3
|
Motorola Solutions, Inc. and Subsidiaries
|
Operating Earnings after Non-GAAP Adjustments
|
|
Q1 2017
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
Products
|
|
Services
|
Net sales
|
|
$
|
1,281
|
|
|
$
|
703
|
|
|
$
|
578
|
|
Operating earnings ("OE")
|
|
$
|
176
|
|
|
$
|
89
|
|
|
$
|
87
|
|
|
|
|
|
|
|
|
Above-OE non-GAAP adjustments:
|
|
|
|
|
|
|
Share-based compensation expense
|
|
|
17
|
|
|
|
11
|
|
|
|
6
|
|
Reorganization of business charges
|
|
|
19
|
|
|
|
13
|
|
|
|
6
|
|
Intangibles amortization expense
|
|
|
36
|
|
|
|
6
|
|
|
|
30
|
|
Acquisition-related transaction fees
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
Gain on legal settlement
|
|
|
(42
|
)
|
|
|
(30
|
)
|
|
|
(12
|
)
|
Building impairment
|
|
|
8
|
|
|
|
6
|
|
|
|
2
|
|
Non-US pension settlement loss
|
|
|
9
|
|
|
|
6
|
|
|
|
3
|
|
Total above-OE non-GAAP adjustments
|
|
|
48
|
|
|
|
12
|
|
|
|
36
|
|
|
|
|
|
|
|
|
Operating earnings after non-GAAP adjustments
|
|
$
|
224
|
|
|
$
|
101
|
|
|
$
|
123
|
|
|
|
|
|
|
|
|
Operating earnings as a percentage of net sales - GAAP
|
|
|
13.7
|
%
|
|
|
12.7
|
%
|
|
|
15.1
|
%
|
Operating earnings as a percentage of net sales - after non-GAAP
adjustments
|
|
|
17.5
|
%
|
|
|
14.4
|
%
|
|
|
21.3
|
%
|
|
Q2 2017
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
Products
|
|
Services
|
Net sales
|
|
$
|
1,497
|
|
|
$
|
848
|
|
|
$
|
649
|
|
Operating earnings ("OE")
|
|
$
|
257
|
|
|
$
|
168
|
|
|
$
|
89
|
|
|
|
|
|
|
|
|
Above-OE non-GAAP adjustments:
|
|
|
|
|
|
|
Share-based compensation expense
|
|
|
16
|
|
|
|
11
|
|
|
|
5
|
|
Reorganization of business charges
|
|
|
3
|
|
|
|
3
|
|
|
|
-
|
|
Intangibles amortization expense
|
|
|
37
|
|
|
|
1
|
|
|
|
36
|
|
Legal Settlement
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
-
|
|
Non-US pension settlement loss
|
|
|
16
|
|
|
|
11
|
|
|
|
5
|
|
Total above-OE non-GAAP adjustments
|
|
|
71
|
|
|
|
25
|
|
|
|
46
|
|
|
|
|
|
|
|
|
Operating earnings after non-GAAP adjustments
|
|
$
|
328
|
|
|
$
|
193
|
|
|
$
|
135
|
|
|
|
|
|
|
|
|
Operating earnings as a percentage of net sales - GAAP
|
|
|
17.2
|
%
|
|
|
19.8
|
%
|
|
|
13.7
|
%
|
Operating earnings as a percentage of net sales - after non-GAAP
adjustments
|
|
|
21.9
|
%
|
|
|
22.8
|
%
|
|
|
20.8
|
%
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170803006393/en/
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