New answers tagged grids-graticules
As mkennedy noted, you're trying to format a projected coordinate (in metres) as a geographic coordinate in degrees. That's not possible! You'll need to change the grid annotation format to either "decimal" or "decimal with suffix".
It sounds like you have already created the report that you want to place on your layout. The ArcGIS 10.2 Online Help has a page entitled Creating a report which says: From the Report Viewer, you can click the Add Report To Layout button to place the report on the map layout
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