Summary
Motorola Solutions, Inc. (MSI) filed an 8-K on July 31, 2014, primarily to provide updated financial information reflecting significant strategic changes. The company is preparing to divest its Enterprise business to Zebra Technologies, Inc. for $3.45 billion cash, a transaction expected to close by the end of 2014. Consequently, the Enterprise business results, along with certain excluded assets and liabilities, will be reported as discontinued operations and assets/liabilities held for sale starting in Q2 2014. This move aims to allow investors a clearer view of the company's ongoing operations. Furthermore, MSI is realigning its remaining Government business into two distinct reporting segments: 'Products' and 'Services.' This segmentation will impact historical financial reporting, with revised pro forma information for fiscal years 2011, 2012, and 2013, as well as quarterly data, provided to facilitate comparison. The company also clarifies its use of non-GAAP financial measures, excluding items like share-based compensation and intangible asset amortization, to better present core operating performance.
Key Highlights
- 1Motorola Solutions is selling its Enterprise business to Zebra Technologies for $3.45 billion cash, expected to close by year-end 2014.
- 2The Enterprise business will be treated as discontinued operations, with assets and liabilities classified as held for sale, starting in Q2 2014.
- 3The remaining Government business is being restructured into two new reporting segments: 'Products' and 'Services.'
- 4Revised pro forma financial information for 2011-2013 and Q1 2014 is provided to reflect these strategic and reporting changes.
- 5The company explains its use of non-GAAP financial measures, excluding share-based compensation and amortization of intangibles, to highlight core performance.
- 6This filing aims to provide investors with more comparable historical financial data in light of the upcoming divestiture and segment realignment.