Motorola Solutions (MSI) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Non-GAAP-1

Motorola Solutions, Inc. and Subsidiaries

Pro forma Non-GAAP Adjustments Bridge

(In millions)

Q1 2012
	TOTAL
Net sales	$	1,387
Operating earnings (“OE”)	$	151
Above-OE non-GAAP adjustments:
Share-based compensation expense		34
Reorganization of business charges		7
Total above-OE non-GAAP adjustments		41
Operating earnings after non-GAAP adjustments	$	192
Operating earnings as a percentage of net sales—GAAP		10.9	%
Operating earnings as a percentage of net sales—after non-GAAP adjustments		13.8	%
Q2 2012
	TOTAL
Net sales	$	1,537
Operating earnings	$	190
Above-OE non-GAAP adjustments:
Share-based compensation expense		42
Reorganization of business charges		9
Total above-OE non-GAAP adjustments		51
Operating earnings after non-GAAP adjustments	$	241
Operating earnings as a percentage of net sales—GAAP		12.4	%
Operating earnings as a percentage of net sales—after non-GAAP adjustments		15.7	%
Q3 2012
	TOTAL
Net sales	$	1,580
Operating earnings	$	252
Above-OE non-GAAP adjustments:
Share-based compensation expense		35
Reorganization of business charges		8
Total above-OE non-GAAP adjustments		43
Operating earnings after non-GAAP adjustments	$	295
Operating earnings as a percentage of net sales—GAAP		15.9	%
Operating earnings as a percentage of net sales—after non-GAAP adjustments		18.7	%
Q4 2012
	TOTAL
Net sales	$	1,764
Operating earnings	$	327
Above-OE non-GAAP adjustments:
Share-based compensation expense		36
Reorganization of business charges		9
Legal matter		(16	)
Total above-OE non-GAAP adjustments		29
Operating earnings after non-GAAP adjustments	$	356
Operating earnings as a percentage of net sales—GAAP		18.5	%
Operating earnings as a percentage of net sales—after non-GAAP adjustments		20.2	%
FY 2012
	TOTAL
Net sales	$	6,269
Operating earnings	$	920
Above-OE non-GAAP adjustments:
Share-based compensation expense		147
Reorganization of business charges		33
Intangibles amortization expense		1
Legal matter		(16	)
Total above-OE non-GAAP adjustments		165
Operating earnings after non-GAAP adjustments	$	1,085
Operating earnings as a percentage of net sales—GAAP		14.7	%
Operating earnings as a percentage of net sales—after non-GAAP adjustments		17.3	%

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

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

Non-GAAP-2

Motorola Solutions, Inc. and Subsidiaries

Pro forma Non-GAAP Adjustments Bridge

(In millions)

Q1 2013
	TOTAL
Net sales	$	1,396
Operating earnings (“OE”)	$	173
Above-OE non-GAAP adjustments:
Share-based compensation expense		36
Reorganization of business charges		7
Total above-OE non-GAAP adjustments		43
Operating earnings after non-GAAP adjustments	$	216
Operating earnings as a percentage of net sales—GAAP		12.4	%
Operating earnings as a percentage of net sales—after non-GAAP adjustments		15.5	%
Q2 2013
	TOTAL
Net sales	$	1,497
Operating earnings	$	203
Above-OE non-GAAP adjustments:
Share-based compensation expense		27
Reorganization of business charges		18
Total above-OE non-GAAP adjustments		45
Operating earnings after non-GAAP adjustments	$	248
Operating earnings as a percentage of net sales—GAAP		13.6	%
Operating earnings as a percentage of net sales—after non-GAAP adjustments		16.6	%
Q3 2013
	TOTAL
Net sales	$	1,517
Operating earnings	$	244
Above-OE non-GAAP adjustments:
Share-based compensation expense		30
Reorganization of business charges		21
Intangibles amortization expense		1
Total above-OE non-GAAP adjustments		52
Operating earnings after non-GAAP adjustments	$	296
Operating earnings as a percentage of net sales—GAAP		16.1	%
Operating earnings as a percentage of net sales—after non-GAAP adjustments		19.5	%
Q4 2013
	TOTAL
Net sales	$	1,817
Operating earnings	$	325
Above-OE non-GAAP adjustments:
Share-based compensation expense		30
Reorganization of business charges		41
Total above-OE non-GAAP adjustments		71
Operating earnings after non-GAAP adjustments	$	396
Operating earnings as a percentage of net sales—GAAP		17.9	%
Operating earnings as a percentage of net sales—after non-GAAP adjustments		21.8	%
FY 2013
	TOTAL
Net sales	$	6,227
Operating earnings	$	946
Above-OE non-GAAP adjustments:
Share-based compensation expense		123
Reorganization of business charges		86
Intangibles amortization expense		1
Total above-OE non-GAAP adjustments		210
Operating earnings after non-GAAP adjustments	$	1,156
Operating earnings as a percentage of net sales—GAAP		15.2	%
Operating earnings as a percentage of net sales—after non-GAAP adjustments		18.6	%

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

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

Non-GAAP-3

Motorola Solutions, Inc. and Subsidiaries

Pro forma Non-GAAP Adjustments Bridge

(In millions)

Q1 2014
	TOTAL
Net sales	$	1,228
Operating earnings (“OE”)	$	102
Above-OE non-GAAP adjustments:
Share-based compensation expense		29
Reorganization of business charges		15
Intangibles amortization expense		1
Gain on sale of building and land		(21	)
Total above-OE non-GAAP adjustments		24
Operating earnings after non-GAAP adjustments	$	126
Operating earnings as a percentage of net sales—GAAP		8.3	%
Operating earnings as a percentage of net sales—after non-GAAP adjustments		10.3	%

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

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