Company Achieves Record Full-Year Sales,
Earnings, Operating Cash Flow and Backlog
- Sales of $2.3 billion, up 2% from Q4 in the prior year; up 10%
for full year
- Software and Services segment sales grew 8% in Q4; up 13% for
full year
- Record backlog of $13.6 billion, up $1.3 billion in Software
and Services and up $886 million in Products and Systems
Integration from a year ago
- GAAP Q4 earnings per share (EPS) of $2.30; $7.17 for full
year
- Non-GAAP Q4 EPS* of $2.85; $9.15 for full year, up 19% from a
year ago
- Record full year operating cash flow of $1.8 billion
Motorola Solutions, Inc. (NYSE: MSI) today reported its earnings
results for the fourth quarter and full year of 2021. Click here
for a printable news release and financial tables.
“Our 2021 results, highlighted by strong growth in both
segments, reflect the criticality of our solutions and our team's
unwavering execution in a challenging and fluid supply chain
environment,” said Greg Brown, chairman and CEO, Motorola
Solutions. “Our record backlog and continued robust demand
positions us very well for sustained strong growth this year and
beyond.”
KEY FINANCIAL RESULTS (presented in millions, except per
share data and percentages)
Fourth Quarter
Full Year
Q4 2021
Q4 2020
% Change
2021
2020
% Change
Sales
$2,320
$2,273
2%
$8,171
$7,414
10%
GAAP
Operating Earnings
$549
$555
(1)%
$1,667
$1,383
21%
% of Sales
23.7%
24.4%
20.4%
18.7%
EPS
$2.30
2.37
(3)%
$7.17
$5.45
32%
Non-GAAP*
Operating Earnings
$670
$667
—%
$2,117
$1,835
15%
% of Sales
28.9%
29.3%
25.9%
24.8%
EPS
$2.85
$2.86
—%
$9.15
$7.69
19%
Products and Systems Integration
Segment
Sales
$1,495
$1,510
(1)%
$5,033
$4,634
9%
GAAP Operating Earnings
$320
$351
(9)%
$760
$656
16%
% of Sales
21.4%
23.2%
15.1%
14.2%
Non-GAAP Operating Earnings*
$378
$408
(7)%
$976
$880
11%
% of Sales
25.3%
27.0%
19.4%
19.0%
Software and Services Segment
Sales
$825
$763
8%
$3,138
$2,780
13%
GAAP Operating Earnings
$229
$204
12%
$907
$727
25%
% of Sales
27.8%
26.7%
28.9%
26.2%
Non-GAAP Operating Earnings*
$292
$259
13%
$1,141
$955
19%
% of Sales
35.4%
33.9%
36.4%
34.3%
*Non-GAAP financial information excludes
the after-tax impact of approximately $0.55 for Q4 and $1.98 for FY
per diluted share related to highlighted items, including
share-based compensation expenses and intangible assets
amortization expense. Details regarding these non-GAAP adjustments
and the use of non-GAAP measures are included later in this news
release.
OTHER SELECT FOURTH-QUARTER FINANCIAL RESULTS
- Revenue - Fourth-quarter sales were $2.3 billion, up 2%
from the year-ago quarter driven by growth in North America. The
Products and Systems Integration segment declined 1% primarily due
to supply constraints. Growth in video security and public safety
land mobile radio (LMR), was offset by a decline in professional
and commercial radio (PCR). The Software and Services segment grew
8% driven by growth in LMR services, video security and command
center software. Sales from acquisitions were $10 million, and the
impact of favorable currency rates was $6 million.
- Operating margin - GAAP operating margin was 23.7% of
sales, down from 24.4% in the year-ago quarter. Non-GAAP operating
margin was 28.9% of sales, down from 29.3% in the year-ago quarter.
The decline in operating margin was primarily due to higher
operating expenses related to incentive compensation and
acquisitions as well as lower sales in the Products and Systems
Integration segment, partially offset by higher sales and improved
operating leverage in the Software and Services segment.
- Taxes - The GAAP effective tax rate was 22.4%, compared
to 20.9% in the year-ago quarter. The non-GAAP effective tax rate
was 22.3%, compared to 21.0% in the year-ago quarter. The
year-over-year increase in the tax rate was primarily due to higher
benefits from stock-based compensation in the year-ago
quarter.
- Cash flow - The company generated $703 million in
operating cash in both the current and year-ago quarters. Free cash
flow was $635 million, compared with $637 million in the year-ago
quarter.
- Capital allocation - During the quarter, the company
repurchased $119 million of its common stock, paid $120 million in
dividends and incurred $68 million in capital expenditures.
Additionally, the company closed the acquisitions of Envysion and
911 Datamaster for $124 million and $35 million, net of cash
acquired, respectively.
OTHER SELECT FULL-YEAR FINANCIAL RESULTS
- Revenue - Full-year sales were $8.2 billion, up 10%
driven by growth in North America and International. The Products
and Systems Integration segment grew 9% primarily due to higher
sales of video security, public safety LMR products and PCR. The
Software and Services segment grew 13% driven by growth in LMR
services, video security and command center software. The impact of
favorable currency rates was $130 million and sales from
acquisitions was $120 million.
- Operating margin - For the full year, GAAP operating
margin was 20.4% of sales, compared to 18.7% for the prior year.
The increase was primarily driven by higher sales, improved
operating leverage, inclusive of higher incentive compensation, and
lower reorganization charges in both segments. Non-GAAP operating
margin was 25.9% of sales, compared to 24.8% for the prior year,
driven by higher sales and improved operating leverage, inclusive
of higher incentive compensation, in both segments.
- Taxes - The 2021 GAAP effective tax rate was 19.5%,
compared to 18.8% for the prior year. The non-GAAP effective tax
rate was 21.0% compared to 20.0% in the previous year. The
year-over-year increase in the tax rate was primarily driven by the
higher benefit of discrete items, including benefits from
stock-based compensation, booked in the prior year.
- Cash flow - The company generated $1.8 billion in
operating cash, compared to $1.6 billion in the prior year. Free
cash flow was $1.6 billion, compared to $1.4 billion in the prior
year. The increase in cash flow was driven by higher sales and
earnings in the current year, partially offset by higher cash taxes
paid in the current year.
- Backlog - The company ended the year with record backlog
of $13.6 billion, up $2.2 billion from the prior year. Software and
Services segment backlog was up 15% or $1.3 billion, primarily
driven by the U.K. Home Office decision to extend the Airwave
network through 2026 and growth in software and services contracts
in North America. Products and Systems Integrations segment backlog
was up 28% or $886 million driven by record LMR orders.
- Capital allocation - In 2021, the company repurchased
$528 million of its common stock at an average price of $208.41,
paid $482 million in dividends and used $457 million for
acquisitions. Additionally during the year, the company issued $850
million of new long-term debt, redeemed $324 million outstanding of
its senior notes due 2023, entered into a new upsized $2.25 billion
revolving credit facility and announced a $2 billion increase to
the share repurchase program.
NOTABLE WINS & ACHIEVEMENTS IN Q4
Software and Services
- $25 million P25 multi-year services contract with Cook County,
IL
- $17 million P25 multi-year software upgrade agreement for ICI
Systems Authority in California
- $17 million body-worn camera as-a-service order for the City of
Houston, TX police department
- $15 million P25 multi-year software upgrade agreement for
Orange County, CA
- $14 million additional body-worn camera order for the French
MOI
- $11 million command center software hybrid cloud order for
North Carolina Department of Public Safety
- 27% growth in video security and access control software
Products and Systems
Integration
- $98 million P25 upgrade order for the Commonwealth of
Massachusetts
- $94 million of APX NEXT device orders in North America
- $68 million P25 device upgrade for the District of
Columbia
- $28 million P25 upgrade order for a large U.S. customer
- $21 million fixed video security order for a large North
America utility customer
- $19 million additional TETRA order from the German MOD
- $17 million TETRA device upgrade for a customer in Asia
Pacific
BUSINESS OUTLOOK
- First-quarter 2022 - The company expects revenue growth
of approximately 3% compared with the first quarter of 2021. The
company expects non-GAAP earnings per share in the range of $1.53
to $1.59 per share. This assumes current foreign exchange rates,
between 173 million and 174 million fully diluted shares, and an
effective tax rate of approximately 17%.
- Full-year 2022 - The company expects revenue growth of
approximately 7% and non-GAAP earnings per share in the range of
$9.80 to $9.95 per share. This assumes current foreign exchange
rates, approximately 174 million fully diluted shares and a
non-GAAP effective tax rate of 21% to 22%.
The company has not quantitatively reconciled its guidance for
forward-looking non-GAAP measurements in this news release to their
most comparable GAAP measurements because the company does not
provide specific guidance for the various reconciling items as
certain items that impact these measures have not occurred, are out
of the company’s control, or cannot be reasonably predicted.
Accordingly, a reconciliation to the most comparable GAAP financial
measurement is not available without unreasonable effort. Please
note that the unavailable reconciling items could significantly
impact the company’s results.
COVID-19
The company continues to monitor the daily evolution of the
COVID-19 pandemic, including the spread of the omicron variant, and
adhere to its plans to keep its employees and customers healthy and
safe, including encouraging office workers to work remotely,
reducing employee travel, withdrawing from certain industry events,
increasing the frequency of cleaning services, encouraging face
coverings and using thermal scanning.
Additionally, in September 2021, the President of the United
States signed a series of executive orders, and related guidance
was issued that, together, required certain employers to implement
COVID-19 precautions, including mandatory COVID-19 vaccines for
employees (subject to medical and religious exemptions). As a
federal contractor, the company was required to implement a
mandatory vaccine policy. In January 2022, in response to various
legal challenges to these orders, the company suspended its
requirement that its U.S. employees (subject to the exemptions
described above) be vaccinated by February 9, 2022. The company
continues to evaluate its internal policy and the potential impact
of the executive orders and legal responses to such executive
orders on its business.
As the company progressed through 2021, its supply chain has
been increasingly impacted by global issues related to the effects
of the COVID-19 pandemic, particularly with respect to materials in
the semiconductor market, including part shortages, increased
freight costs, diminished transportation capacity and labor
constraints. This has resulted in disruptions in the company's
supply chain, as well as difficulties and delays in procuring
certain semiconductor components. During the latter part of the
fourth quarter of 2021, costs increased driven by delivery delays
and the need to purchase semiconductor components from alternative
sources, including brokers. The company anticipates increased costs
to procure materials within the semiconductor market to continue
into 2022, and currently estimates that this will add an additional
$120 million of costs to 2022, of which the company expects $50
million in the first quarter. The company is closely monitoring its
supply chain and has maintained an active dialogue, and in some
cases developed plans, with key suppliers in an effort to mitigate
supply chain risks or otherwise minimize the impact from those
risks. The company will continue to actively manage its supply
chain in an effort to prevent major delays in selling its products
and services.
Although the COVID-19 pandemic continued to introduce challenges
throughout 2021, the company is encouraged by customer demand for
its products and services. Specifically, in the Software and
Services segment, with the largely recurring nature of the business
and the company's strong backlog position, the company continues to
expect that the impacts on net sales and operating margin will be
limited throughout 2022. Within the Products and Systems
Integration segment, while the company is encouraged by strong LMR
backlog and the resiliency of the Video Security and Access Control
technology that experienced growth in 2021, supply constraints
continue to impact the company's LMR business and the company
expects demand for its products will continue to out-pace its
ability to obtain supply throughout 2022. In addition, in March
2021, the President of the United States signed into law the
American Rescue Plan Act of 2021 ("ARPA"), which is intended to
provide economic stimulus, specifically additional funding to state
and local governments, education and healthcare, as well as other
funding relief provisions, in order to address the impact of the
COVID-19 pandemic. The company experienced the positive impact of
the ARPA funding on its business and results of operations during
2021 and anticipates that the ARPA will continue to have a positive
impact throughout 2022.
CONFERENCE CALL AND WEBCAST Motorola Solutions will host
its quarterly conference call beginning at 4 p.m. U.S. Central
Standard Time (5 p.m. U.S. Eastern Standard Time) on Wednesday,
February 9. The conference call will be webcast live with audio and
slides at www.motorolasolutions.com/investor. An archive of the
webcast will be available for a limited period of time
thereafter.
CONSOLIDATED GAAP RESULTS (presented in millions,
except per share data)
A comparison of results from operations is as follows:
Fourth Quarter
Full Year
2021
2020
2021
2020
Net sales
$2,320
$2,273
$8,171
$7,414
Gross margin
1,183
1,146
4,040
3,608
Operating earnings
549
555
1,667
1,383
Amounts attributable to Motorola
Solutions, Inc. common stockholders
Net earnings
401
412
1,245
949
Diluted EPS from continuing operations
$2.30
$2.37
$7.17
$5.45
Weighted average diluted common shares
outstanding
174.2
173.5
173.6
174.1
HIGHLIGHTED ITEMS
The table below includes highlighted items, including
share-based compensation expenses and intangible assets
amortization expense, for the fourth quarter and full year of
2021.
(per diluted common share)
Q4 2021
FY21
GAAP EPS
$2.30
$7.17
Highlighted Items:
Intangible assets amortization expense
0.26
1.08
Share-based compensation expenses
0.20
0.66
Reorganization of business charges
0.01
0.14
Hytera-related legal expenses
0.02
0.11
Acquisition-related transaction fees
0.05
0.09
Loss from extinguishment of long-term
debt
—
0.08
Operating lease asset impairments
0.01
0.05
Fair value adjustments to equity
investments
0.01
0.03
Legal settlements
—
0.01
Sale of investments
(0.01
)
(0.01
)
Adjustments to uncertain tax positions
(0.03
)
(0.10
)
Release of valuation allowance on deferred
tax assets
—
(0.20
)
Impact of tax rate changes on deferred tax
balances
0.01
0.02
Undistributed foreign earnings from prior
periods
0.02
0.02
Non-GAAP EPS
$2.85
$9.15
USE OF NON-GAAP FINANCIAL INFORMATION
In addition to the results presented in accordance with
accounting principles generally accepted in the U.S. ("GAAP")
included in this news release, Motorola Solutions also has included
non-GAAP measurements of results, including free cash flow,
non-GAAP operating earnings, non-GAAP EPS, non-GAAP operating
margin, non-GAAP tax rate and organic revenue. 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 that of its competitors.
Among other things, management uses these operating results,
excluding the identified items, to evaluate performance of its
businesses and to evaluate results relative to certain incentive
compensation targets. Management uses operating results excluding
these items because it believes these measurements enable it to
make better period-to-period evaluations of the financial
performance of its 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 GAAP.
Reconciliations: Details and reconciliations of such non-GAAP
measurements to the corresponding GAAP measurements can be found at
the end of this news release.
Free cash flow: Free cash flow represents net cash provided by
operating activities less capital expenditures. The company
believes that free cash flow is also useful to investors as the
basis for comparing its performance and coverage ratios with other
companies in the company's industries, although its measure of free
cash flow may not be directly comparable to similar measures used
by other companies. This measure is also used as a component of
incentive compensation.
Organic Revenue: Organic revenue reflects net sales calculated
under GAAP excluding net sales from acquired business owned for
less than four full quarters. The company believes non-GAAP organic
revenue growth provides useful information for evaluating the
periodic growth of the business on a consistent basis and provides
for a meaningful period-to-period comparison and analysis of trends
in the business.
Non-GAAP operating earnings, non-GAAP EPS and non-GAAP operating
margin each excludes highlighted items, including share-based
compensation expenses and intangible assets amortization expense,
as follows:
Highlighted items: The company has excluded the effects of
highlighted items including, but not limited to,
acquisition-related transaction fees, tangible and intangible asset
impairments, reorganization of business charges, certain non-cash
pension adjustments, legal settlements and other contingencies,
gains and losses on investments and businesses, Hytera-related
legal expenses, 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.
Hytera-Related Legal Expenses: On March 14, 2017, the company
filed a complaint in the U.S. District Court for the Northern
District of Illinois (the “Court”) against Hytera Communications
Corporation Limited of Shenzhen, China; Hytera America, Inc.; and
Hytera Communications America (West), Inc. (collectively,
“Hytera”), alleging trade secret theft and copyright infringement
and seeking, among other things, injunctive relief, compensatory
damages, and punitive damages. On February 14, 2020, the company
announced that a jury decided in the company's favor in its trade
secret theft and copyright infringement case. In connection with
this verdict, the jury awarded the company $345.8 million in
compensatory damages and $418.8 million in punitive damages, for a
total of $764.6 million. The Court denied Hytera’s motion for a new
trial on October 20, 2020. On December 17, 2020, the Court denied
the company’s motion for a permanent injunction, finding instead
that Hytera must pay the company a forward-looking reasonable
royalty on products that use the company’s stolen trade secrets. As
the parties were unable to agree on a reasonable royalty rate, the
Court entered an order favorable to the company on December 15,
2021 and, consistent with the company's requests, set royalty rates
for Hytera's sale of relevant products from July 1, 2019 forward.
The Court also ordered the parties to jointly file by February 22,
2022, a proposed royalty agreement for the Court's review and
approval.
On January 8, 2021, the Court granted Hytera’s motion for
certain equitable relief and reduced the $764.6 million judgment
award to $543.7 million. That same day, the Court also granted the
company’s motion for pre-judgment interest. On August 10, 2021, the
Court ruled that Hytera must pay the company $51.1 million in
pre-judgment interest and $2.6 million in costs. On March 25, 2021,
the Court entered rulings favorable to the company with respect to
several of the company's post-trial motions, including the
company's motion for attorneys' fees and its motion to require
Hytera to turn over certain assets in satisfaction of the company’s
judgment award. On September 29, 2021, the company filed two
additional motions with the Court, requesting the Court to
reconsider its order denying the company’s request for an
injunction, and requesting that the Court enforce its ruling
requiring Hytera to turn over certain assets in satisfaction of the
company's judgment award, or, in the alternative, hold Hytera in
contempt. On October 15, 2021, the Court granted the company’s
request for $34.2 million in attorneys’ fees against Hytera.
On September 7, 2021, Hytera filed a notice of appeal of the
Court’s judgment with the U.S. Court of Appeals for the Seventh
Circuit (the "Court of Appeals"). The parties have briefed a
jurisdictional issue raised by the Court of Appeals in response to
Hytera's notice of appeal and await the Court's determination.
On May 27, 2020, Hytera America, Inc. and Hytera Communications
America (West), Inc. each filed for Chapter 11 bankruptcy
protection in the U.S. Bankruptcy Court for the Central District of
California (the “Bankruptcy Court”). The company filed motions in
the Bankruptcy Court to dismiss the bankruptcy proceedings in July
2020. On January 22, 2021, the Bankruptcy Court entered an agreed
order, allowing a partial sale of Hytera's U.S. assets in the
bankruptcy proceedings. The proposed sale does not include Hytera
inventory accused of including the company’s intellectual
property.
Management typically considers legal expenses associated with
defending our intellectual property as “normal and recurring” and
accordingly, Hytera-related legal expenses were included in both
our GAAP and non-GAAP operating income for fiscal years 2017, 2018
and 2019. We anticipate further expenses associated with
Hytera-related litigation; however, we believe that these expenses
are no longer a part of the “normal and recurring” legal expenses
incurred to operate our business. In addition, if any contingent or
actual gain associated with the Hytera litigation is recognized in
the future, it will be similarly excluded from our non-GAAP
operating income. We believe after the jury award, the presentation
of excluding both Hytera-related legal expenses and gains related
to awards better aligns with how management evaluates our ongoing
underlying business performance.
For comparative purposes, $5 million, or $0.02 of earnings per
share, net of tax, of Hytera-related legal expense was included in
our fourth quarter 2019 non-GAAP operating earnings and $43
million, or $0.20 of earnings per share, net of tax, was included
in 2019 non-GAAP operating earnings.
Share-based compensation expenses: 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.
FORWARD LOOKING STATEMENTS
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 first quarter and full-year of 2022; the
impact of the COVID-19 pandemic and the ARPA on Motorola Solutions'
business and results of operations; and the impact of global supply
chain issues on Motorola Solutions' business and results of
operations. Motorola Solutions cautions the reader that the risks
and uncertainties below, as well as those in Part I Item 1A of
Motorola Solutions’ 2020 Annual Report on Form 10-K, Part II Item
1A of Motorola Solutions’ 2021 Third Quarter Report on Form 10-Q,
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: (i) the impact including increased costs and
potential liabilities, associated with changes in laws and
regulations regarding privacy, data protection and information
security; (ii) challenges relating to existing or future
legislation and regulations pertaining to artificial intelligence
(“AI”) and AI-enabled products; (iii) the impact of government
regulation of radio frequencies; (iv) audits and regulations and
laws applicable to our U.S. government customer contracts and
grants; (v) continuing impacts of, and associated responses to,
COVID-19 and other catastrophic events; (vi) increased risk and
competition associated with the expansion of our platforms within
our Products and Systems Integration and Software and Services
segments; (vii) the effectiveness of our investments in new
products and technologies; (viii) the effectiveness of our
integrations of acquired businesses; (ix) a security breach or
other significant disruption of our IT systems; (x) our inability
to protect our intellectual property or potential infringement of
intellectual property rights of third parties; (xi) our license of
the MOTOROLA, MOTO, MOTOROLA SOLUTIONS and the Stylized M logo and
all derivatives and formatives thereof from Motorola Trademark
Holdings, LLC; (xii) the global nature of our employees, customers,
suppliers and outsource partners; (xiii) our use of third-parties
to develop, design and/or manufacture many of our components and
some of our products, and to perform portions of our business
operations; (xiv) the inability of our subcontractors to perform in
a timely and compliant manner; (xv) our inability to purchase at
acceptable prices a sufficient amount of materials, parts, and
components, as well as software and services, to meet the demands
of our customers; (xvi) risks related to our large, multi-year
system and services contracts; (xvii) the inability of our products
to meet our customers’ expectations or regulatory or industry
standards; (xviii) impact of current global economic and political
conditions in the markets in which we operate; (xix) impact of
returns on pension and retirement plan assets and interest rate
changes; (xx) inability to attract and retain senior management and
key employees; (xxi) impact of product regulatory and safety,
consumer, worker safety and environmental laws; (xxii) inability to
access the capital markets for financing on acceptable terms and
conditions; and (xxiii) impact of tax matters. 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
ABOUT MOTOROLA SOLUTIONS
Motorola Solutions is a global leader in public safety and
enterprise security. Our solutions in land mobile radio
communications, video security & access control and command
center software, bolstered by managed & support services,
create an integrated technology ecosystem to help make communities
safer and help businesses stay productive and secure. At Motorola
Solutions, we’re ushering in a new era in public safety and
security. Learn more at www.motorolasolutions.com.
GAAP-1 Motorola Solutions, Inc. and Subsidiaries
Consolidated Statements of Operations (In millions,
except per share amounts) Three Months Ended
December 31, 2021 December 31, 2020 Net sales from
products
$
1,358
$
1,326
Net sales from services
962
947
Net sales
2,320
2,273
Costs of products sales
589
568
Costs of services sales
548
559
Costs of sales
1,137
1,127
Gross margin
1,183
1,146
Selling, general and administrative expenses
368
343
Research and development expenditures
189
182
Other charges
13
9
Intangibles amortization
64
57
Operating earnings
549
555
Other income (expense): Interest expense, net
(54
)
(53
)
Gains (losses) on sales of investments and businesses, net
1
(1
)
Other, net
22
21
Total other expense
(31
)
(33
)
Net earnings before income taxes
518
522
Income tax expense
116
109
Net earnings
402
413
Less: Earnings attributable to non-controlling interests
1
1
Net earnings attributable to Motorola Solutions, Inc.
$
401
$
412
Earnings per common share: Basic
$
2.38
$
2.43
Diluted
$
2.30
$
2.37
Weighted average common shares
outstanding: Basic
168.8
169.5
Diluted
174.2
173.5
Percentage of Net Sales* Net sales from
products
58.5
%
58.3
%
Net sales from services
41.5
%
41.7
%
Net sales
100.0
%
100.0
%
Costs of products sales
43.4
%
42.8
%
Costs of services sales
57.0
%
59.0
%
Costs of sales
49.0
%
49.6
%
Gross margin
51.0
%
50.4
%
Selling, general and administrative expenses
15.9
%
15.1
%
Research and development expenditures
8.1
%
8.0
%
Other charges
0.6
%
0.4
%
Intangibles amortization
2.8
%
2.5
%
Operating earnings
23.7
%
24.4
%
Other income (expense): Interest expense, net
(2.3
)%
(2.3
)%
Gains (losses) on sales of investments and businesses, net
-
%
-
%
Other, net
0.9
%
0.9
%
Total other expense
(1.3
)%
(1.5
)%
Net earnings before income taxes
22.3
%
23.0
%
Income tax expense
5.0
%
4.8
%
Net earnings
17.3
%
18.2
%
Less: Earnings attributable to non-controlling interests
-
%
0.1
%
Net earnings attributable to Motorola Solutions, Inc.
17.3
%
18.1
%
* Percentages may not add up due to rounding
GAAP-2
Motorola Solutions, Inc. and Subsidiaries Consolidated
Statements of Operations (In millions, except per share
amounts) Years Ended December 31, 2021
December 31, 2020 December 31, 2019 Net sales from
products
$
4,606
$
4,087
$
4,746
Net sales from services
3,565
3,327
3,141
Net sales
8,171
7,414
7,887
Costs of products sales
2,104
1,872
2,049
Costs of services sales
2,027
1,934
1,907
Costs of sales
4,131
3,806
3,956
Gross margin
4,040
3,608
3,931
Selling, general and administrative expenses
1,353
1,293
1,403
Research and development expenditures
734
686
687
Other charges
50
31
52
Intangibles amortization
236
215
208
Operating earnings
1,667
1,383
1,581
Other income (expense): Interest expense, net
(208
)
(220
)
(220
)
Gains (losses) on sales of investments and businesses, net
1
(2
)
5
Other, net
92
13
(365
)
Total other expense
(115
)
(209
)
(580
)
Net earnings before income taxes
1,552
1,174
1,001
Income tax expense
302
221
130
Net earnings
1,250
953
871
Less: Earnings attributable to noncontrolling interests
5
4
3
Net earnings attributable to Motorola Solutions, Inc.
$
1,245
$
949
$
868
Earnings per common share: Basic:
$
7.36
$
5.58
$
5.21
Diluted:
$
7.17
$
5.45
$
4.95
Weighted average common shares
outstanding: Basic
169.2
170.0
166.6
Diluted
173.6
174.1
175.6
Percentage of Net Sales* Net sales from products
56.4
%
55.1
%
60.2
%
Net sales from services
43.6
%
44.9
%
39.8
%
Net sales
100.0
%
100.0
%
100.0
%
Costs of products sales
45.7
%
45.8
%
43.2
%
Costs of services sales
56.9
%
58.1
%
60.7
%
Costs of sales
50.6
%
51.3
%
50.2
%
Gross margin
49.4
%
48.7
%
49.8
%
Selling, general and administrative expenses
16.6
%
17.4
%
17.8
%
Research and development expenditures
9.0
%
9.3
%
8.7
%
Other charges
0.6
%
0.4
%
0.7
%
Intangibles amortization
2.9
%
2.9
%
2.6
%
Operating earnings
20.4
%
18.7
%
20.0
%
Other income (expense): Interest expense, net
(2.5
)%
(3.0
)%
(2.8
)%
Gains (losses) on sales of investments and businesses, net
-
%
-
%
0.1
%
Other, net
1.1
%
0.2
%
(4.6
)%
Total other expense
(1.4
)%
(2.8
)%
(7.4
)%
Net earnings before income taxes
19.0
%
15.8
%
12.7
%
Income tax expense
3.7
%
3.0
%
1.6
%
Net earnings
15.3
%
12.9
%
11.0
%
Less: Earnings attributable to noncontrolling interests
0.1
%
0.1
%
-
%
Net earnings attributable to Motorola Solutions, Inc.
15.2
%
12.8
%
11.0
%
* Percentages may not add up due to rounding
GAAP-3
Motorola Solutions, Inc. and Subsidiaries Consolidated
Balance Sheets (In millions) December 31,
2021 December 31, 2020 Assets Cash and cash equivalents
$
1,874
$
1,254
Accounts receivable, net
1,386
1,390
Contract assets
1,105
933
Inventories, net
788
508
Other current assets
259
242
Total current assets
5,412
4,327
Property, plant and equipment, net
1,042
1,022
Operating lease assets
382
468
Investments
209
158
Deferred income taxes
916
966
Goodwill
2,565
2,219
Intangible assets, net
1,105
1,234
Other assets
558
482
Total assets
$
12,189
$
10,876
Liabilities and Stockholders' Equity (Deficit) Current portion of
long-term debt
$
5
$
12
Accounts payable
851
612
Contract liabilities
1,650
1,554
Accrued liabilities
1,557
1,311
Total current liabilities
4,063
3,489
Long-term debt
5,688
5,163
Operating lease liabilities
313
402
Other liabilities
2,148
2,363
Total Motorola Solutions, Inc. stockholders’ equity (deficit)
(40
)
(558
)
Non-controlling interests
17
17
Total liabilities and stockholders’ equity (deficit)
$
12,189
$
10,876
GAAP-4 Motorola Solutions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (In millions)
Three Months Ended December 31, 2021
December 31, 2020 Operating Net earnings
$
402
$
413
Adjustments to reconcile Net earnings to Net cash provided by
operating activities: Depreciation and amortization
113
109
Non-cash other charges
9
15
Share-based compensation expenses
35
29
Losses (gains) on sales of investments and businesses, net
(1
)
1
Changes in assets and liabilities, net of effects of acquisitions,
dispositions, and foreign currency translation adjustments:
Accounts receivable
(186
)
(222
)
Inventories
(185
)
(16
)
Other current assets and contract assets
(69
)
168
Accounts payable, accrued liabilities, and contract liabilities
617
263
Other assets and liabilities
(64
)
(8
)
Deferred income taxes
32
(49
)
Net cash provided by operating activities
703
703
Investing Acquisitions and investments, net
(161
)
(4
)
Proceeds from sales of investments
12
3
Capital expenditures
(68
)
(66
)
Net cash used for investing activities
(217
)
(67
)
Financing Repayments of debt
(2
)
(4
)
Repayment of revolving credit facility draw
-
(200
)
Issuances of common stock
3
49
Purchases of common stock
(131
)
(171
)
Payments of dividends
(120
)
(109
)
Net cash used for financing activities
(250
)
(435
)
Effect of exchange rate changes on total cash and cash equivalents
(15
)
46
Net increase in total cash and cash equivalents
221
247
Cash and cash equivalents, beginning of period
1,653
1,007
Cash and cash equivalents, end of period
$
1,874
$
1,254
Reconciliation of Net cash provided by operating
activities to Free cash flow Net cash provided by
operating activities
$
703
$
703
Capital expenditures
(68
)
(66
)
Free cash flow*
$
635
$
637
*Free cash flow is a non-GAAP financial measure and is calculated
as Net cash provided by operating activities - Capital expenditures
GAAP-5 Motorola Solutions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (In millions)
Years Ended December 31, 2021 December 31,
2020 December 31, 2019 Operating Net earnings
$
1,250
$
953
$
871
Adjustments to reconcile Net earnings to Net cash provided by
operating activities: Depreciation and amortization
438
409
394
Non-cash other charges (income)
3
(13
)
35
U.S. pension settlement loss
-
-
359
Gain from the extinguishment of 2.00% senior convertible notes
-
-
(4
)
Share-based compensation expense
129
129
118
Losses (gains) on sales of investments and businesses, net
(1
)
2
(5
)
Losses from the extinguishment of long-term debt
18
56
50
Changes in assets and liabilities, net of effects of acquisitions,
dispositions, and foreign currency translation adjustments:
Accounts receivable
3
90
(79
)
Inventories
(284
)
(14
)
(74
)
Other current assets and contract assets
(205
)
167
49
Accounts payable, accrued liabilities, and contract liabilities
578
(116
)
198
Other assets and liabilities
(126
)
(25
)
(5
)
Deferred income taxes
34
(25
)
(84
)
Net cash provided by operating activities
1,837
1,613
1,823
Investing Acquisitions and investments, net
(521
)
(287
)
(709
)
Proceeds from sales of investments
16
11
16
Capital expenditures
(243
)
(217
)
(248
)
Proceeds from sales of property, plant and equipment
6
56
7
Net cash used for investing activities
(742
)
(437
)
(934
)
Financing Net proceeds from issuance of debt
844
892
1,804
Repayment of debt
(353
)
(914
)
(2,039
)
Proceeds from unsecured revolving credit facility draw
-
800
-
Repayment of unsecured revolving credit facility draw
-
(800
)
-
Revolving credit facility renewal fees
(7
)
-
-
Issuances of common stock
102
108
114
Purchases of common stock
(528
)
(612
)
(315
)
Settlement of conversion premium on 2.00% senior convertible notes
-
-
(326
)
Payment of dividends
(482
)
(436
)
(379
)
Payment of dividends to noncontrolling interest
(5
)
(4
)
(3
)
Net cash used for financing activities
(429
)
(966
)
(1,144
)
Effect of exchange rate changes on cash and cash equivalents
(46
)
43
(1
)
Net increase (decrease) in cash and cash equivalents
620
253
(256
)
Cash and cash equivalents, beginning of period
1,254
1,001
1,257
Cash and cash equivalents, end of period
$
1,874
$
1,254
$
1,001
Reconciliation of Net cash provided by operating
activities to Free cash flow Net cash provided by
operating activities
$
1,837
$
1,613
$
1,823
Capital expenditures
(243
)
(217
)
(248
)
Free cash flow*
$
1,594
$
1,396
$
1,575
*Free cash flow is a non-GAAP financial measure and is calculated
as Net cash provided by operating activities - Capital expenditures
GAAP-6 Motorola Solutions, Inc. and Subsidiaries
Segment Information (In millions) Net
Sales Three Months Ended December 31,
2021 December 31, 2020 % Change Products and
Systems Integration
$
1,495
$
1,510
(1)%
Software and Services
825
763
8%
Total Motorola Solutions
$
2,320
$
2,273
2%
Years Ended December 31, 2021
December 31, 2020 % Change Products and Systems
Integration
$
5,033
$
4,634
9%
Software and Services
3,138
2,780
13%
Total Motorola Solutions
$
8,171
$
7,414
10%
Operating Earnings Three Months Ended
December 31, 2021 December 31, 2020 %
Change Products and Systems Integration
$
320
$
351
(9)%
Software and Services
229
204
12%
Total Motorola Solutions
$
549
$
555
(1)%
Years Ended December 31, 2021
December 31, 2020 % Change Products and Systems
Integration
$
760
$
656
16%
Software and Services
907
727
25%
Total Motorola Solutions
$
1,667
$
1,383
21%
Operating Earnings % Three Months Ended
December 31, 2021 December 31, 2020 Products
and Systems Integration
21.4
%
23.2
%
Software and Services
27.8
%
26.7
%
Total Motorola Solutions
23.7
%
24.4
%
Years Ended December 31, 2021
December 31, 2020 Products and Systems Integration
15.1
%
14.2
%
Software and Services
28.9
%
26.2
%
Total Motorola Solutions
20.4
%
18.7
%
Non-GAAP-1
Motorola Solutions, Inc. and Subsidiaries Non-GAAP
Adjustments (Intangible Assets Amortization Expense, Share-Based
Compensation Expenses, and Other Highlighted Items) (In
millions) Q1 2021 Non-GAAP
Adjustments Statement Line PBT(Inc)/Exp
TaxInc/(Exp) PAT(Inc)/Exp EPS Impact
Intangible assets amortization expense Intangibles amortization
$
58
$
13
$
45
$
0.26
Share-based compensation expenses Cost of sales, SG&A and
R&D
29
6
23
0.13
Reorganization of business charges Cost of sales and Other charges
(income)
16
3
13
0.07
Operating lease asset impairments Other charges (income)
7
1
6
0.03
Hytera-related legal expenses SG&A
2
1
1
0.01
Acquisition-related transaction fees Other charges (income)
1
-
1
0.01
Fair value adjustments to equity investments Other income (expense)
(5
)
(1
)
(4
)
(0.02
)
Adjustments to uncertain tax positions Other income (expense) and
Income tax expense
(1
)
4
(5
)
(0.03
)
Total impact on Net earnings
$
107
$
27
$
80
$
0.46
Q2 2021 Non-GAAP Adjustments
Statement Line PBT(Inc)/Exp TaxInc/(Exp)
PAT(Inc)/Exp EPS impact Intangible assets
amortization expense Intangibles amortization
$
58
$
9
$
49
$
0.28
Share-based compensation expenses Cost of sales, SG&A and
R&D
31
2
29
0.17
Loss from extinguishment of long-term debt Other income (expense)
18
4
14
0.08
Reorganization of business charges Cost of sales and Other charges
(income)
9
2
7
0.04
Hytera-related legal expenses SG&A
8
1
7
0.04
Acquisition-related transaction fees Other charges (income)
3
-
3
0.02
Legal settlements Other charges (income)
3
1
2
0.01
Impact of tax rate changes on deferred tax balances Income tax
expense
-
(2
)
2
0.01
Fair value adjustments to equity investments Other income (expense)
(8
)
(2
)
(6
)
(0.03
)
Adjustments to uncertain tax positions Other income (expense) and
Income tax expense
(9
)
(1
)
(8
)
(0.05
)
Release of valuation allowance on deferred tax assets Income tax
expense
-
33
(33
)
(0.19
)
Total impact on Net earnings
$
113
$
47
$
66
$
0.38
Q3 2021 Non-GAAP Adjustments
Statement Line PBT(Inc)/Exp TaxInc/(Exp)
PAT(Inc)/Exp EPS impact Intangible assets
amortization expense Intangibles amortization
$
56
$
9
$
47
$
0.27
Share-based compensation expenses Cost of sales, SG&A and
R&D
34
6
28
0.16
Fair value adjustments to equity investments Other income (expense)
18
4
14
0.08
Hytera-related legal expenses SG&A
8
1
7
0.04
Reorganization of business charges Cost of sales and Other charges
(income)
4
-
4
0.02
Acquisition-related transaction fees Other charges (income)
2
-
2
0.02
Adjustments to uncertain tax positions Other income (expense) and
Income tax expense
1
-
1
0.01
Release of valuation allowance on deferred tax assets Income tax
expense
-
1
(1
)
(0.01
)
Total impact on Net earnings
$
123
$
21
$
102
$
0.59
Q4 2021 Non-GAAP Adjustments
Statement Line PBT(Inc)/Exp TaxInc/(Exp)
PAT(Inc)/Exp EPS impact Intangible assets
amortization expense Intangibles amortization
$
64
$
18
$
46
$
0.26
Share-based compensation expenses Cost of sales, SG&A and
R&D
35
1
34
0.20
Acquisition-related transaction fees Other charges (income)
9
-
9
0.05
Hytera-related legal expenses SG&A
8
4
4
0.02
Reorganization of business charges Cost of sales and Other charges
(income)
3
2
1
0.01
Fair value adjustments to equity investments Other income (expense)
3
2
1
0.01
Operating lease asset impairments Other charges (income)
3
1
2
0.01
Sale of investments (Gains) or losses on sales of investments and
businesses, net
(1
)
-
(1
)
(0.01
)
Adjustments to uncertain tax positions Other income (expense) and
Income tax expense
(1
)
4
(5
)
(0.03
)
Impact of tax rate changes on deferred tax balances Income tax
expense
-
(2
)
2
0.01
Undistributed foreign earnings from prior periods Income tax
expense
-
(3
)
3
0.02
Total impact on Net earnings
$
123
$
27
$
96
$
0.55
FY 2021 Non-GAAP Adjustments
Statement Line PBT(Inc)/Exp TaxInc/(Exp)
PAT(Inc)/Exp EPS impact Intangible assets
amortization expense Intangibles amortization
$
236
$
49
$
187
$
1.08
Share-based compensation expenses Cost of sales, SG&A and
R&D
129
15
114
0.66
Reorganization of business charges Cost of sales and Other charges
(income)
32
7
25
0.14
Hytera-related legal expenses SG&A
26
7
19
0.11
Loss from extinguishment of long-term debt Other income (expense)
18
4
14
0.08
Acquisition-related transaction fees Other charges (income)
15
-
15
0.09
Operating lease asset impairments Other charges (income)
10
2
8
0.05
Fair value adjustments to equity investments Other income
8
3
5
0.03
Legal settlements Other charges (income)
3
1
2
0.01
Sale of investments (Gains) or losses on sales of investments and
businesses, net
(1
)
-
(1
)
(0.01
)
Adjustments to uncertain tax positions Other income and Income tax
expense
(10
)
7
(17
)
(0.10
)
Release of valuation allowance on deferred tax assets Income tax
expense
-
34
(34
)
(0.20
)
Impact of tax rate changes on deferred tax balances Income tax
expense
-
(4
)
4
0.02
Undistributed foreign earnings from prior periods Income tax
expense
-
(3
)
3
0.02
Total impact on Net earnings
$
466
$
122
$
344
$
1.98
Non-GAAP-2
Motorola Solutions, Inc. and Subsidiaries Non-GAAP
Segment Information (In millions) Net
Sales Three Months Ended December 31,
2021 December 31, 2020 % Change Products and
Systems Integration
$
1,495
$
1,510
(1)%
Software and Services
825
763
8%
Total Motorola Solutions
$
2,320
$
2,273
2%
Years Ended December 31, 2021
December 31, 2020 % Change Products and Systems
Integration
$
5,033
$
4,634
9%
Software and Services
3,138
2,780
13%
Total Motorola Solutions
$
8,171
$
7,414
10%
Non-GAAP Operating Earnings Three Months
Ended December 31, 2021 December 31, 2020
% Change Products and Systems Integration
$
378
$
408
(7)%
Software and Services
292
259
13%
Total Motorola Solutions
$
670
$
667
-%
Years Ended December 31, 2021
December 31, 2020 % Change Products and Systems
Integration
$
976
$
880
11%
Software and Services
1,141
955
19%
Total Motorola Solutions
$
2,117
$
1,835
15%
Non-GAAP Operating Earnings % Three Months
Ended December 31, 2021 December 31, 2020
Products and Systems Integration
25.3
%
27.0
%
Software and Services
35.4
%
33.9
%
Total Motorola Solutions
28.9
%
29.3
%
Years Ended December 31, 2021
December 31, 2020 Products and Systems Integration
19.4
%
19.0
%
Software and Services
36.4
%
34.3
%
Total Motorola Solutions
25.9
%
24.8
%
Non-GAAP-3 Motorola Solutions, Inc. and Subsidiaries
Operating Earnings after Non-GAAP Adjustments (In
millions) Q1 2021 TOTAL Products
andSystems Integration Software andServices Net sales
$
1,773
$
1,015
$
758
Operating earnings ("OE")
$
298
$
77
$
221
Above-OE non-GAAP adjustments: Intangible assets amortization
expense
58
13
45
Share-based compensation expenses
29
22
7
Reorganization of business charges
16
12
4
Operating lease asset impairment
7
5
2
Hytera-related legal expenses
2
2
-
Acquisition-related transaction fees
1
-
1
Total above-OE non-GAAP adjustments
113
54
59
Operating earnings after non-GAAP adjustments
$
411
$
131
$
280
Operating earnings as a percentage of net sales - GAAP
16.8
%
7.6
%
29.1
%
Operating earnings as a percentage of net sales - after non-GAAP
adjustments
23.2
%
12.9
%
36.9
%
Q2 2021 TOTAL Products andSystems
Integration Software andServices Net sales
$
1,971
$
1,198
$
773
Operating earnings ("OE")
$
370
$
139
$
231
Above-OE non-GAAP adjustments: Intangible assets amortization
expense
58
13
45
Share-based compensation expenses
31
24
7
Reorganization of business charges
9
7
2
Hytera-related legal expenses
8
8
-
Legal settlements
3
2
1
Acquisition-related transaction fees
3
1
2
Total above-OE non-GAAP adjustments
112
55
57
Operating earnings after non-GAAP adjustments
$
482
$
194
$
288
Operating earnings as a percentage of net sales - GAAP
18.8
%
11.6
%
29.9
%
Operating earnings as a percentage of net sales - after non-GAAP
adjustments
24.4
%
16.2
%
37.2
%
Q3 2021 TOTAL Products andSystems
Integration Software andServices Net sales
$
2,107
$
1,325
$
782
Operating earnings ("OE")
451
224
227
Above-OE non-GAAP adjustments: Intangible assets amortization
expense
56
13
43
Share-based compensation expenses
34
25
9
Hytera-related legal expenses
8
8
-
Reorganization of business charges
4
3
1
Acquisition-related transaction fees
2
-
2
Total above-OE non-GAAP adjustments
104
49
55
Operating earnings after non-GAAP adjustments
$
555
$
273
$
282
Operating earnings as a percentage of net sales - GAAP
21.4
%
16.9
%
29.1
%
Operating earnings as a percentage of net sales - after non-GAAP
adjustments
26.3
%
20.6
%
36.0
%
Q4 2021 TOTAL Products andSystems
Integration Software andServices Net sales
$
2,320
$
1,495
$
825
Operating earnings ("OE")
$
549
$
320
$
229
Above-OE non-GAAP adjustments: Intangible assets amortization
expense
64
15
49
Share-based compensation expenses
35
28
7
Acquisition-related transaction fees
9
3
6
Hytera-related legal expenses
8
8
-
Reorganization of business charges
3
3
-
Operating lease asset impairment
3
2
1
Sale of investments
(1
)
(1
)
-
Total above-OE non-GAAP adjustments
121
58
63
Operating earnings after non-GAAP adjustments
$
670
$
378
$
292
Operating earnings as a percentage of net sales - GAAP
23.7
%
21.4
%
27.8
%
Operating earnings as a percentage of net sales - after non-GAAP
adjustments
28.9
%
25.3
%
35.4
%
FY 2021 TOTAL Products andSystems
Integration Software andServices Net sales
$
8,171
$
5,033
$
3,138
Operating earnings ("OE")
$
1,667
$
760
$
907
Above-OE non-GAAP adjustments: Intangible assets amortization
expense
236
54
182
Share-based compensation expenses
129
99
30
Reorganization of business charges
32
25
7
Hytera-related legal expenses
26
26
-
Acquisition-related transaction fees
15
4
11
Operating lease asset impairment
10
7
3
Legal settlements
3
2
1
Sale of investments
(1
)
(1
)
-
Total above-OE non-GAAP adjustments
450
216
234
Operating earnings after non-GAAP adjustments
$
2,117
$
976
$
1,141
Operating earnings as a percentage of net sales - GAAP
20.4
%
15.1
%
28.9
%
Operating earnings as a percentage of net sales - after non-GAAP
adjustments
25.9
%
19.4
%
36.4
%
Non-GAAP-4
Motorola Solutions, Inc. and Subsidiaries Reconciliation
of Revenue to Non-GAAP Organic Revenue (In millions)
Three Months Ended December 31, 2021
December 31, 2020 % Change Net sales
$
2,320
$
2,273
2%
Non-GAAP adjustments: Sales from acquisitions
10
-
Organic revenue
$
2,310
$
2,273
2%
Year Ended December 31, 2021
December 31, 2020 % Change Net sales
$
8,171
7,414
10%
Non-GAAP adjustments: Sales from acquisitions
152
32
Organic revenue
$
8,019
$
7,382
9%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220209006009/en/
MEDIA CONTACT Alexandra Reynolds Motorola Solutions +1
312-965-3968 Alexandra.Reynolds@motorolasolutions.com
INVESTOR CONTACT Tim Yocum Motorola Solutions +1
847-576-6899 Tim.Yocum@motorolasolutions.com
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