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 2015 estimates, 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 would be appropriate within this Amendment to reflect these adjustments in the year ended December 31, 2015 Consolidated Financial Statements.

The Consolidated Balance Sheet, Consolidated Statements of Operations, Comprehensive Loss, and Cash Flows, and Notes 5, 6, 7, 8, 9, 10, 14, 16, 17, and 18 in these financial statements were updated to reflect the restatement.

The tables below present the impact of the changes to the Company's financial statement line items:

Impacted Consolidated balance sheet amounts (in millions)




	As of April 2, 2016
	As Previously Reported		Restatement Adjustments			As Restated
Goodwill	$	2,495	$	(3	)	$	2,492
Long-term deferred income taxes	56		18			74
Total Assets	4,921		15			4,936
Accrued liabilities	349		1			350
Income taxes payable	—		14			14
Total Current liabilities	873		15			888
Other long-term liabilities	114		18			132
Total Liabilities	4,042		33			4,075
Retained earnings	1,369		(18		)	1,351
Total Stockholders' Equity	879		(18		)	861
Total Liabilities and Stockholders' Equity	4,921		15			4,936

Impacted Consolidated statement of operations amounts (in millions, except per share data)



	Three months ended April 2, 2016
	As Previously Reported			Restatement Adjustments			As Restated
Net sales of tangible products	$	714		$	2		$	716
Cost of sales of tangible products	373			2			375
Selling and marketing	121			(8		)	113
Acquisition and integration costs	37			(1		)	36
Exit and restructuring costs	6			(1		)	5
Operating income	—			10			10
Foreign exchange gain (loss)	1			1			2
Interest expense and other, net	(50		)	(1		)	(51		)
Loss before income taxes	(49		)	10			(39		)
Income tax benefit	(20		)	7			(13		)
Net loss	(29		)	3			(26		)

Basic loss per share	$	(0.56	)	$	0.06		$	(0.50	)
Diluted loss per share	$	(0.56	)	$	0.06		$	(0.50	)

Impacted Consolidated statement of cash flows amounts (in millions)



	Three months ended April 2, 2016
	As Previously Reported			Restatement Adjustments			As Restated
Net loss	$	(29	)	$	3		$	(26	)
Changes in assets and liabilities, net of business acquired:
Accounts receivable	68			(3		)	65
Inventories	9			3			12
Other assets	(1		)	1			—
Accrued liabilities	(28		)	(7		)	(35		)
Deferred revenue	3			1			4
Income taxes	(50		)	3			(47		)
Net cash provided by operating activities	95			1			96
Effect of foreign exchange rate changes on cash	4			(1		)	3

The Consolidated Statement of Comprehensive Loss was corrected for the $3 million decrease in net loss and $1 million error in foreign currency translation adjustment.