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.
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 press 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 first quarter and full year of
2015, the impact of currency rates, regional growth or contraction, iDEN
revenues, and the impact of simplifying our organization and
rationalizing our cost structure. Motorola Solutions cautions the reader
that the risk factors below, as well as those on pages 10 through 21 in
Item 1A of Motorola Solutions, Inc.'s 2013 Annual Report on Form 10-K,
on Page 31 in Part II, Item 1A of Motorola Solutions, Inc.’s Quarterly
Report on Form 10-Q for the period ended March 29, 2014, 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 level of demand for the company's
products; (3) the company's ability to introduce new products and
technologies in a timely manner; (4) 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; (5) the impact of foreign currency fluctuations on the
company; (6) the impact of a security breach or other significant
disruption in the company’s IT systems, those of our partners or
suppliers or those we sell to or operate or maintain for our 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 outsourcing of various activities, including certain business
operations, information technology and administrative functions; (22)
the impact of the sale of the company’s enterprise 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 return proceeds of the sale of the Enterprise
business to shareholders and the timing thereof. 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.