Restatement

During the first half of 2016, the Company identified certain errors in its 2015 annual consolidated financial statements primarily related to the underaccrual of certain estimates in 2015, most notably for its sales commission plan, which were partially offset by tax-related items. These errors were originally corrected in the first half of 2016 by recording $11 million of additional pre-tax expenses, primarily within operating expenses, which when combined with tax-related items resulted in a $7 million increase to the net loss within the consolidated statement of operations as of the six months ended July 2, 2016. During the third quarter of 2016, the Company identified additional income tax errors related to 2015 and an error to the net realizable value of trade receivables acquired in connection with the Company's acquisition of the Enterprise business of Motorola Solutions, Inc impacting goodwill and general and administrative expenses. The Company has concluded that these errors were material, in the aggregate, to the consolidated financial statements for the year ended December 31, 2015.

By restating our financial statements to correct the errors discussed above, we are making adjustments for previously identified accounting errors deemed immaterial with respect to the year ended December 31, 2015, which were recorded in the Company's 2016 financial results. In conjunction with the restatement, we have determined that it is appropriate within this Amendment to reflect these adjustments in the year ended December 31, 2015 consolidated financial statements.

The Consolidated Balance Sheet, Consolidated Statement of Operations, Consolidated Statement of Comprehensive Loss, Consolidated Statement of Stockholders’ Equity, and Consolidated Statement of Cash Flows, Notes 4, 7, 8, 10, 11, 12, 13, 14, 18, 20, 21, 22, and 24 in these financial statements as well as the Financial Statement Schedule II were updated to reflect the restatement.

The tables below present the impact of the restatement on the Company's financial statement line items:

Impacted Consolidated Balance Sheet Accounts (dollars in millions)




	As of December 31, 2015
	As Previously Reported			Restatement Adjustments			As Restated
Accounts receivable, net	$	674		$	(3	)	$	671
Inventories, net	394			3			397
Prepaid expenses and other current assets	68			2			70
Total Current assets	1,332			2			1,334
Goodwill	2,493			(3		)	2,490
Long-term deferred income taxes	52			18			70
Other long-term assets	92			(1		)	91
Total Assets	5,024			16			5,040
Accrued liabilities	358			9			367
Deferred revenue	198			(1		)	197
Income tax payable	31			11			42
Total Current liabilities	876			19			895
Other long-term liabilities	98			17			115
Total liabilities	4,111			36			4,147
Retained earnings	1,398			(21		)	1,377
Accumulated other comprehensive loss	(49		)	1			(48		)
Total Stockholders' Equity	913			(20		)	893
Total Liabilities and Stockholders' Equity	5,024			16			5,040

Impacted Consolidated Statement of Operations Accounts (dollars in millions, except per share data)



	For the year ended December 31, 2015
	As Previously Reported			Restatement Adjustments			As Restated
Net sales of tangible products	$	3,133		$	(2	)	$	3,131
Cost of sales of tangible products	1,631			(2		)	1,629
Selling and marketing	486			8			494
General and administrative	277			6			283
Acquisition and integration costs	144			1			145
Exit and restructuring costs	39			1			40
Operating income	53			(16		)	37
Foreign exchange loss	(22		)	(1		)	(23		)
Interest expense, net	(194		)	1			(193		)
Loss before income taxes	(164		)	(16		)	(180		)
Income tax (benefit) expense	(27		)	5			(22		)
Net loss	(137		)	(21		)	(158		)

Basic loss per share	$	(2.69	)	$	(0.41	)	$	(3.10	)
Diluted loss per share	$	(2.69	)	$	(0.41	)	$	(3.10	)

Impacted Consolidated Statement of Cash Flows (dollars in millions)



	For the year ended December 31, 2015
	As Previously Reported			Restatement Adjustments			As Restated
Net loss	$	(137	)	$	(21	)	$	(158	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred income taxes	(124		)	(18		)	(142		)
Changes in assets and liabilities, net of business acquired:
Accounts receivable	(6		)	8			2
Inventories	(10		)	(3		)	(13		)
Other assets	(6		)	(1		)	(7		)
Accrued liabilities	(13		)	8			(5		)
Deferred revenue	17			(1		)	16
Income taxes	38			9			47
Other operating activities	8			18			26
Net cash provided by operating activities	111			(1		)	110
Effect of foreign exchange rate changes on cash	(16		)	1			(15		)

The Consolidated Statements of Comprehensive Loss and Stockholders' Equity were corrected for the $21 million increase in net loss and $1 million error in foreign currency translation.