Zebra Technologies Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Zebra Technologies Corp. has filed its 2023 annual report (10-K) detailing its financial performance and business operations.</b>

AI Summary

ZEBRA TECHNOLOGIES CORP (ZBRA) filed a Annual Report (10-K) with the SEC on February 15, 2024. Zebra Technologies Corp. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 3 Overlook Point, Lincolnshire, IL 60069. Zebra Technologies Corp. is classified under SIC code 3560 (General Industrial Machinery & Equipment). The filing was made on February 15, 2024.

Why It Matters

For investors and stakeholders tracking ZEBRA TECHNOLOGIES CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Zebra Technologies' financial health, operational strategies, and risk factors for the fiscal year 2023, which is crucial for investors to assess the company's performance and future outlook. The detailed financial statements and disclosures within the report are essential for stakeholders to understand the company's revenue streams, profitability, and balance sheet strength, enabling informed investment decisions.

Risk Assessment

Risk Level: — ZEBRA TECHNOLOGIES CORP shows moderate risk based on this filing. The company's business is subject to various risks, including those related to the general industrial machinery and equipment sector, as indicated by its SIC code and the nature of a 10-K filing which inherently details potential risks.

Analyst Insight

Investors should review the detailed risk factors and financial statements in the 10-K to understand potential challenges and opportunities for Zebra Technologies.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-02-15 — Filing Date (Date the 10-K was filed)

Key Players & Entities

• ZEBRA TECHNOLOGIES CORP (company) — Filer name
• 3 OVERLOOK POINT (address) — Business and mailing address
• LINCOLNSHIRE (location) — Business and mailing address
• IL (location) — Business and mailing address
• 60069 (postal_code) — Business and mailing address
• 3560 (sic_code) — Standard Industrial Classification

FAQ

Industry Context

Zebra Technologies Corp. operates within the General Industrial Machinery & Equipment sector, providing a range of products and services.

Regulatory Implications

As a publicly traded company, Zebra Technologies Corp. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of annual reports on Form 10-K.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management discussion.
2. Analyze the risk factors section to understand potential challenges facing Zebra Technologies.
3. Compare Zebra Technologies' 2023 performance against previous years using data from this filing.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-15: Filing Date — Date Zebra Technologies Corp. filed its 10-K.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ended December 31, 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $881 million — Electronic Systems Ltd. ("Matrox") for $881 million in cash, net of Matrox's cash on-hand.
• $145 million — ntuit Holdings Pte. Ltd. ("Antuit") for $145 million in cash, net of cash acquired. Antuit i
• $301 m — ired Fetch Robotics, Inc. ("Fetch") for $301 million, which consisted of $290 million
• $290 million — ") for $301 million, which consisted of $290 million in cash paid, net of cash acquired, and
• $11 m — minority ownership interest in Fetch of $11 million, as remeasured upon acquisition.
• $18 million — sion Sp. z o.o. ("Adaptive Vision") for $18 million in cash, net of cash acquired. Adaptive

Filing Documents

• zbra-20231231.htm (10-K) — 2219KB
• exhibit21-subsidiariesofth.htm (EX-21) — 18KB
• ex23consentofernstyoungllp.htm (EX-23) — 5KB
• a311exhibit-signedq42023.htm (EX-31.1) — 10KB
• a312exhibit-signedq42023.htm (EX-31.2) — 10KB
• a321exhibit-signedq42023.htm (EX-32.1) — 5KB
• a322exhibit-signedq42023.htm (EX-32.2) — 5KB
• zbraclawbackpolicy.htm (EX-97) — 17KB
• zbra-20231231_g1.jpg (GRAPHIC) — 312KB
• zbraclawbackpolicy001.jpg (GRAPHIC) — 244KB
• zbraclawbackpolicy002.jpg (GRAPHIC) — 226KB
• zbraclawbackpolicy003.jpg (GRAPHIC) — 184KB
• zbraclawbackpolicy004.jpg (GRAPHIC) — 198KB
• zbraclawbackpolicy005.jpg (GRAPHIC) — 229KB
• 0000877212-24-000029.txt (&nbsp;) — 14324KB
• zbra-20231231.xsd (EX-101.SCH) — 74KB
• zbra-20231231_cal.xml (EX-101.CAL) — 132KB
• zbra-20231231_def.xml (EX-101.DEF) — 363KB
• zbra-20231231_lab.xml (EX-101.LAB) — 1018KB
• zbra-20231231_pre.xml (EX-101.PRE) — 676KB
• zbra-20231231_htm.xml (XML) — 2072KB

Risk Factors

Item 1A. Risk Factors 13

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 23 Item 1C. Cybersecurity 23

Properties

Item 2. Properties 24

Legal Proceedings

Item 3. Legal Proceedings 24

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 24 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25

[Reserved]

Item 6. [Reserved] 27

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Overview 28 Results of Operations 30 Liquidity and Capital Resources 33 Critical Accounting Estimates 36 New Accounting Pronouncements 37 Non-GAAP Measures 37

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 38

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 39 Report of Independent Registered Public Accounting Firm 40 Consolidated Balance Sheets 42 Consolidated Statements of Operations 43 Consolidated Statements of Comprehensive Income 44 Consolidated Statements of Stockholders' Equity 45 Consolidated Statements of Cash Flows 46

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 47 Note 1: Description of Business and Basis of Presentation 47 Note 2: Significant Accounting Policies 47 Note 3: Revenues 51 Note 4: Inventories 53 Note 5: Business Acquisitions 53 Note 6: Goodwill and Other Intangibles 56 Note 7: Property, Plant and Equipment 56 Note 8: Investments 57 Note 9: Exit and Restructuring Costs 57 Note 10: Fair Value Measurements 57 Note 11: Derivative Instruments 58 Note 12: Long-Term Debt 61 Note 13: Leases 62 Note 14: Accrued Liabilities, Commitments and Contingencies 63 Note 15: Share-Based Compensation 64 Note 16: Income Taxes 67 2 Table of Contents Note 17: Earnings Per Share 70 Note 18: Accumulated Other Comprehensive (Loss) Income 71 Note 19: Accounts Receivables Factoring 71 Note 20: Segment Information & Geographic Data 72

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 75

Controls and Procedures

Item 9A. Controls and Procedures 75

Other Information

Item 9B. Other Information 77

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 77 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 78

Executive Compensation

Item 11. Executive Compensation 78

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 78

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 78

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 78 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 79

Form 10-K Summary

Item 16. Form 10-K Summary 82

Signatures

Signatures 83 3 Table of Contents PART I References in this document to "the Company," "we," "us," or "our" refer to Zebra Technologies Corporation and its subsidiaries, unless the context specifically indicates otherwise. Safe Harbor Forward-looking statements contained in this filing are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995 and are highly dependent upon a variety of important factors, which could cause actual results to differ materially from those expressed or implied in such forward-looking statements. When used in this document and documents referenced, the words "anticipate," "believe," "intend," "estimate," "will," and "expect" and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements but are not the exclusive means of identifying these statements. The forward-looking statements include, but are not limited to, the Company's financial outlook for the first quarter and full year of 2024. These forward-looking statements are based on current expectations, forecasts and assumptions, and are subject to the risks and uncertainties inherent in the Company's industry, market conditions, general domestic and international economic conditions, and other factors. These factors include: Market acceptance of the Company's products, services and solution offerings and competitors' offerings and the potential effects of emerging technologies and changes in customer requirements, The effect of global market conditions, including the North America; EMEA; Latin America; and Asia-Pacific regions in which we do business, The impact of changes in foreign exchange rates, customs duties and trade policies due to the large percentage of our sales and operations being outside the U.S., Our ability to control manufacturing and operating costs, Risks related to the manufacturing of the Company's products and conducting business operations in non-

Business

Item 1. Business The Company We are a global leader in the Automatic Identification and Data Capture ("AIDC") industry. The AIDC market consists of mobile computing, data capture, radio frequency identification devices ("RFID"), barcode printing, and other workflow automation products and services. The Company's solutions are proven to help our customers and end-users digitize and automate their workflows to achieve their critical business objectives, including improved productivity and operational efficiency, optimized regulatory compliance, and better customer experiences. We design, manufacture, and sell a broad range of AIDC products, including: mobile computers, barcode scanners and imagers, RFID readers, specialty printers for barcode labeling and personal identification, real-time location systems ("RTLS"), related accessories and supplies, such as labels and other consumables, and related software applications. We also provide machine vision and robotics automation solutions; a full range of services, including maintenance, technical support, repair, managed and professional services; as well as cloud-based software subscriptions. End-users of our products, solutions and services include those in the retail and e-commerce, manufacturing, transportation and logistics, healthcare, public sector, and other 4 Table of Contents industries. We operate in 122 facilities with approximately 9,750 employees worldwide. We provide our products, solutions and services globally through a direct sales force and extensive network of over 10,000 channel partners, operating in approximately 185 countries. We continue to advance our Enterprise Asset Intelligence ("EAI") vision: every asset and front-line worker visible, connected, and fully optimized. Through continual innovation, we have expanded beyond the traditional AIDC market to transform activities such as factory production, packages moving through a supply chain, retail shopping, and the hospital patient j

View Full Filing

View this 10-K filing on SEC EDGAR