Motorola 2012 Annual Report Download - page 119

Download and view the complete annual report

Please find page 119 of the 2012 Motorola annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

USE OF NON-GAAP FINANCIAL INFORMATION
In addition to the GAAP results included in this Annual Report, we provide additional measures of operating earnings and earnings per share, adjusted to
exclude certain costs, stock-based compensation expense and intangible assets amortization expense. We have provided these Non-GAAP measurements to
help investors better understand our core operating performance, enhance comparisons of core operating performance from period to period and allow better
comparisons of operating performance to our competitors. Among other things, management uses these Non-GAAP measures 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. Although
stock-based compensation and intangibles amortization expense are recurring expenses, the company continues to evaluate its performance excluding these
expenses primarily because they are significant non-cash expenses. Any analysis of Non-GAAP financial measures should be used only in conjunction with
results presented in accordance with GAAP. A reconciliation of these non-GAAP financial measures with the most directly comparable financial measures
calculated in accordance with GAAP follows:
NON-GAAP OPERATING EARNINGS RECONCILIATION
2010 2011 2012
GAAP Operating earnings (“OE”) $ 751 $ 858 $ 1,256
Non-GAAP OE Adjustments:
Stock-based compensation expense 144 168 184
Reorganization of business charges 73 58 50
Intangibles amortization expense 203 200 29
Intellectual property settlements and reserve adjustment (78) - -
Legal and related insurance matters, net (29) 88 (16)
Pension plan adjustments, net - (9) -
Long-term financing receivable reserve - 10 -
Total Non-GAAP OE Adjustments $ 313 $ 515 $ 247
Non-GAAP OE $ 1,064 $ 1,373 $ 1,503
GAAP OE% 9.9% 10.5% 14.5%
Non-GAAP Adj % 4.1% 6.2% 2.8%
Non-GAAP OE % 14.0% 16.7% 17.3%
NON-GAAP EPS RECONCILIATION
2010 2011 2012
GAAP Earnings from cont. operations $ 244 $ 747 $ 878
Non-GAAP Adjustments:
Non-GAAP OE adjustments 313 515 247
Gain on sale of equity investment (31) - (29)
Debt extinguishment loss - 81 -
Tax effect of Non-GAAP adjustments (87) (210) (72)
Tax expense related to undistributed foreign earnings 219 17 -
Tax benefits from audit settlements and agreements (53) (18) (13)
Reduction in deferred tax asset valuation allowance - (244) (60)
Impact of Medicare Part D Subsidy tax law change 18 - -
Total Non-GAAP Adjustments $ 379 $ 141 $ 73
TOTAL Non-GAAP Earnings from cont. operations $ 623 $ 888 $ 951
GAAP Continuing EPS $ 0.72 $ 2.20 $ 2.95
Non-GAAP Continuing EPS adjustments $ 1.12 $ 0.41 $ 0.25
Non-GAAP Continuing EPS $ 1.84 $ 2.61 $ 3.20
Diluted, weighted average shares outstanding 338.1 339.7 297.4