EX-99.1 2 d583722dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Motorola Solutions, Inc. and Subsidiaries

Segment Realignment

 

Total Motorola Solutions

 
    Annual     Quarters (Unaudited)     Annual     Quarter
(Unaudited)
 
    2016     April 1,
2017
    July 1,
2017
    September 30,
2017
    December 31,
2017
    2017     March 31,
2018
 

Net sales from products, as reported

  $ 3,649     $ 703     $ 848     $ 989     $ 1,233     $ 3,772     $ 801  

Net sales from services, as reported

    2,389       578       649       656       724       2,608       667  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net sales, as reported

    6,038       1,281       1,497       1,645       1,957       6,380       1,468  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP operating earnings (“OE”) from products, as reported

    725       88       172       260       399       919       89  

GAAP OE from services, as reported

    323       85       89       87       104       365       82  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP OE, as reported

    1,048       173       261       347       503       1,284       171  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP OE from products, as reported

    882       94       186       280       418       978       127  

Non-GAAP OE from services, as reported

    500       118       130       132       148       528       133  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP OE, as reported

    1,382       212       316       412       566       1,506       260  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Realigned Segments (Unaudited)

 

Net sales from products and systems integration (“SI”)

    4,394       855       1,047       1,174       1,437       4,513       952  

Net sales from services and software

    1,644       426       450       471       520       1,867       516  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net sales

    6,038       1,281       1,497       1,645       1,957       6,380       1,468  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP OE from products and SI

    762       97       190       266       416       969       90  

GAAP OE services and software

    286       76       71       81       87       315       81  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP OE

    1,048       173       261       347       503       1,284       171  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP OE from products and SI

    921       102       204       285       435       1,026       125  

Non-GAAP OE from services and software

    461       110       112       127       131       480       135  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP OE

  $ 1,382     $ 212     $ 316     $ 412     $ 566     $ 1,506     $ 260  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


Non-GAAP

Motorola Solutions, Inc. and Subsidiaries

Segment Realignment Operating Earnings after Non-GAAP Adjustments

 

FY 2016

 
     TOTAL     Products
and Systems
Integration
    Services and
Software
 

Net sales

   $ 6,038     $ 4,394     $ 1,644  

Operating earnings (“OE”)

   $ 1,048     $ 762     $ 286  
  

 

 

   

 

 

   

 

 

 

Above-OE non-GAAP adjustments:

      

Share-based compensation expense

     68       50       18  

Reorganization of business charges

     138       105       33  

Intangibles amortization expense

     113       2       111  

Acquisition related transaction fees

     13       —         13  

Building impairment

     2       2       —    
  

 

 

   

 

 

   

 

 

 

Total above-OE non-GAAP adjustments

     334       159       175  
  

 

 

   

 

 

   

 

 

 

Operating earnings after non-GAAP adjustments

   $ 1,382     $ 921     $ 461  
  

 

 

   

 

 

   

 

 

 

Operating earnings as a percentage of net sales – GAAP

     17.4     17.3     17.4

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

     22.9     21.0     28.0
  

 

 

   

 

 

   

 

 

 

Q1 2017

 
     TOTAL     Products
and Systems
Integration
    Services and
Software
 

Net sales

   $ 1,281     $ 855     $ 426  

Operating earnings (“OE”)

   $ 173     $ 97     $ 76  
  

 

 

   

 

 

   

 

 

 

Above-OE non-GAAP adjustments:

      

Share-based compensation expense

     17       12       5  

Reorganization of business charges

     19       15       4  

Intangibles amortization expense

     36       1       35  

Acquisition-related transaction fees

     1       —         1  

Gain on legal settlement

     (42     (29     (13

Building impairment

     8       6       2  
  

 

 

   

 

 

   

 

 

 

Total above-OE non-GAAP adjustments

     39       5       34  
  

 

 

   

 

 

   

 

 

 

Operating earnings after non-GAAP adjustments

   $ 212     $ 102     $ 110  
  

 

 

   

 

 

   

 

 

 

Operating earnings as a percentage of net sales – GAAP

     13.5     11.3     17.8

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

     16.5     11.9     25.8
  

 

 

   

 

 

   

 

 

 


Q2 2017

 
     TOTAL     Products
and Systems
Integration
    Services and
Software
 

Net sales

   $ 1,497     $ 1,047     $ 450  

Operating earnings (“OE”)

   $ 261     $ 190     $ 71  
  

 

 

   

 

 

   

 

 

 

Above-OE non-GAAP adjustments:

      

Share-based compensation expense

     16       12       4  

Reorganization of business charges

     3       2       1  

Intangibles amortization expense

     37       1       36  

Gain on legal settlement

     (1     (1     —    
  

 

 

   

 

 

   

 

 

 

Total above-OE non-GAAP adjustments

     55       14       41  
  

 

 

   

 

 

   

 

 

 

Operating earnings after non-GAAP adjustments

   $ 316     $ 204     $ 112  
  

 

 

   

 

 

   

 

 

 

Operating earnings as a percentage of net sales – GAAP

     17.4     18.1     15.8

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

     21.1     19.5     24.9
  

 

 

   

 

 

   

 

 

 

Q3 2017

 
     TOTAL     Products
and Systems
Integration
    Services and
Software
 

Net sales

   $ 1,645     $ 1,174     $ 471  

Operating earnings (“OE”)

   $ 347     $ 266     $ 81  
  

 

 

   

 

 

   

 

 

 

Above-OE non-GAAP adjustments:

      

Share-based compensation expense

     16       12       4  

Reorganization of business charges

     8       6       2  

Intangibles amortization expense

     39       1       38  

Asset impairment

     2       —         2  
  

 

 

   

 

 

   

 

 

 

Total above-OE non-GAAP adjustments

     65       19       46  
  

 

 

   

 

 

   

 

 

 

Operating earnings after non-GAAP adjustments

   $ 412     $ 285     $ 127  
  

 

 

   

 

 

   

 

 

 

Operating earnings as a percentage of net sales – GAAP

     21.1     22.7     17.2

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

     25.0     24.3     27.0
  

 

 

   

 

 

   

 

 

 


Q4 2017

 
     TOTAL     Products
and Systems
Integration
    Services and
Software
 

Net sales

   $ 1,957     $ 1,437     $ 520  

Operating earnings (“OE”)

   $ 503     $ 416     $ 87  
  

 

 

   

 

 

   

 

 

 

Above-OE non-GAAP adjustments:

      

Share-based compensation expense

     17       12       5  

Reorganization of business charges

     12       10       2  

Gain on legal settlements

     (5     (4     (1

Intangibles amortization expense

     39       1       38  
  

 

 

   

 

 

   

 

 

 

Total above-OE non-GAAP adjustments

     63       19       44  
  

 

 

   

 

 

   

 

 

 

Operating earnings after non-GAAP adjustments

   $ 566     $ 435     $ 131  
  

 

 

   

 

 

   

 

 

 

Operating earnings as a percentage of net sales – GAAP

     25.7     28.9     16.7

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

     28.9     30.3     25.2
  

 

 

   

 

 

   

 

 

 

FY 2017

 
     TOTAL     Products
and Systems
Integration
    Services and
Software
 

Net sales

   $ 6,380     $ 4,513     $ 1,867  

Operating earnings (“OE”)

   $ 1,284     $ 969     $ 315  
  

 

 

   

 

 

   

 

 

 

Above-OE non-GAAP adjustments:

      

Share-based compensation expense

     66       49       17  

Reorganization of business charges

     42       32       10  

Intangibles amortization expense

     151       3       148  

Acquisition-related transaction fees

     1       —         1  

Gain on legal settlements

     (48     (33     (15

Building impairment

     8       6       2  

Asset impairment

     2             2  
  

 

 

   

 

 

   

 

 

 

Total above-OE non-GAAP adjustments

     222       57       165  
  

 

 

   

 

 

   

 

 

 

Operating earnings after non-GAAP adjustments

   $ 1,506     $ 1,026     $ 480  
  

 

 

   

 

 

   

 

 

 

Operating earnings as a percentage of net sales – GAAP

     20.1     21.5     16.9

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

     23.6     22.7     25.7
  

 

 

   

 

 

   

 

 

 


Q1 2018

 
     TOTAL     Products
and Systems
Integration
    Services and
Software
 

Net sales

   $ 1,468     $ 952     $ 516  

Operating earnings (“OE”)

   $ 171     $ 90     $ 81  
  

 

 

   

 

 

   

 

 

 

Above-OE non-GAAP adjustments:

      

Share-based compensation expense

     17       12       5  

Reorganization of business charges

     13       9       4  

Intangibles amortization expense

     41       1       40  

Acquisition-related transaction fees

     17       12       5  

Loss on legal settlements

     1       1       —    
  

 

 

   

 

 

   

 

 

 

Total above-OE non-GAAP adjustments

     89       35       54  
  

 

 

   

 

 

   

 

 

 

Operating earnings after non-GAAP adjustments

   $ 260     $ 125     $ 135  
  

 

 

   

 

 

   

 

 

 

Operating earnings as a percentage of net sales – GAAP

     11.6     9.5     15.7

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

     17.7     13.1     26.2