Exhibit 99.1
Motorola Solutions, Inc. and Subsidiaries
Segment Realignment
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Total Motorola Solutions | |
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| | 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 | |
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Net sales, as reported | | | 6,038 | | | | 1,281 | | | | 1,497 | | | | 1,645 | | | | 1,957 | | | | 6,380 | | | | 1,468 | |
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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 | |
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GAAP OE, as reported | | | 1,048 | | | | 173 | | | | 261 | | | | 347 | | | | 503 | | | | 1,284 | | | | 171 | |
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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 | |
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Non-GAAP OE, as reported | | | 1,382 | | | | 212 | | | | 316 | | | | 412 | | | | 566 | | | | 1,506 | | | | 260 | |
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|
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 | |
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Net sales | | | 6,038 | | | | 1,281 | | | | 1,497 | | | | 1,645 | | | | 1,957 | | | | 6,380 | | | | 1,468 | |
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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 | |
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GAAP OE | | | 1,048 | | | | 173 | | | | 261 | | | | 347 | | | | 503 | | | | 1,284 | | | | 171 | |
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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 | |
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Non-GAAP OE | | $ | 1,382 | | | $ | 212 | | | $ | 316 | | | $ | 412 | | | $ | 566 | | | $ | 1,506 | | | $ | 260 | |
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Non-GAAP
Motorola Solutions, Inc. and Subsidiaries
Segment Realignment Operating Earnings after Non-GAAP Adjustments
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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 | |
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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 | | | | — | |
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Total above-OE non-GAAP adjustments | | | 334 | | | | 159 | | | | 175 | |
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Operating earnings after non-GAAP adjustments | | $ | 1,382 | | | $ | 921 | | | $ | 461 | |
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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 | % |
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Q1 2017 | |
| | TOTAL | | | Products and Systems Integration | | | Services and Software | |
Net sales | | $ | 1,281 | | | $ | 855 | | | $ | 426 | |
Operating earnings (“OE”) | | $ | 173 | | | $ | 97 | | | $ | 76 | |
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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 | |
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Total above-OE non-GAAP adjustments | | | 39 | | | | 5 | | | | 34 | |
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Operating earnings after non-GAAP adjustments | | $ | 212 | | | $ | 102 | | | $ | 110 | |
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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 | % |
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Q2 2017 | |
| | TOTAL | | | Products and Systems Integration | | | Services and Software | |
Net sales | | $ | 1,497 | | | $ | 1,047 | | | $ | 450 | |
Operating earnings (“OE”) | | $ | 261 | | | $ | 190 | | | $ | 71 | |
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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 | ) | | | — | |
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Total above-OE non-GAAP adjustments | | | 55 | | | | 14 | | | | 41 | |
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Operating earnings after non-GAAP adjustments | | $ | 316 | | | $ | 204 | | | $ | 112 | |
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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 | % |
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Q3 2017 | |
| | TOTAL | | | Products and Systems Integration | | | Services and Software | |
Net sales | | $ | 1,645 | | | $ | 1,174 | | | $ | 471 | |
Operating earnings (“OE”) | | $ | 347 | | | $ | 266 | | | $ | 81 | |
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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 | |
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Total above-OE non-GAAP adjustments | | | 65 | | | | 19 | | | | 46 | |
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Operating earnings after non-GAAP adjustments | | $ | 412 | | | $ | 285 | | | $ | 127 | |
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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 | % |
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Q4 2017 | |
| | TOTAL | | | Products and Systems Integration | | | Services and Software | |
Net sales | | $ | 1,957 | | | $ | 1,437 | | | $ | 520 | |
Operating earnings (“OE”) | | $ | 503 | | | $ | 416 | | | $ | 87 | |
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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 | |
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Total above-OE non-GAAP adjustments | | | 63 | | | | 19 | | | | 44 | |
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Operating earnings after non-GAAP adjustments | | $ | 566 | | | $ | 435 | | | $ | 131 | |
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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 | % |
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|
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 | |
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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 | |
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Total above-OE non-GAAP adjustments | | | 222 | | | | 57 | | | | 165 | |
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Operating earnings after non-GAAP adjustments | | $ | 1,506 | | | $ | 1,026 | | | $ | 480 | |
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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 | % |
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Q1 2018 | |
| | TOTAL | | | Products and Systems Integration | | | Services and Software | |
Net sales | | $ | 1,468 | | | $ | 952 | | | $ | 516 | |
Operating earnings (“OE”) | | $ | 171 | | | $ | 90 | | | $ | 81 | |
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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 | | | | — | |
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Total above-OE non-GAAP adjustments | | | 89 | | | | 35 | | | | 54 | |
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Operating earnings after non-GAAP adjustments | | $ | 260 | | | $ | 125 | | | $ | 135 | |
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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 | % |
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