falsedesktopZBRA2020-09-26000087721220000169{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large accelerated filer\t☒\tAccelerated filer\t☐\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_1": "\t\tPAGE\nPART I - FINANCIAL INFORMATION\t\t3\nItem 1.\tConsolidated Financial Statements\t3\n\tConsolidated Balance Sheets as of September 26 2020 (unaudited) and December 31 2019\t3\n\tConsolidated Statements of Operations (unaudited) for the three and nine months ended September 26 2020 and September 28 2019\t4\n\tConsolidated Statements of Comprehensive Income (unaudited) for the three and nine months ended September 26 2020 and September 28 2019\t5\n\tConsolidated Statements of Stockholders' Equity (unaudited) for the three and nine months ended September 26 2020 and September 28 2019\t6\n\tConsolidated Statements of Cash Flows (unaudited) for the nine months ended September 26 2020 and September 28 2019\t8\n\tNotes to Consolidated Financial Statements (unaudited)\t9\n\tNote 1: Description of Business and Basis of Presentation\t9\n\tNote 2: Significant Accounting Policies\t9\n\tNote 3: Revenues\t10\n\tNote 4: Inventories\t11\n\tNote 5: Acquisition\t11\n\tNote 6: Investments\t12\n\tNote 7: Exit and Restructuring Costs\t12\n\tNote 8: Fair Value Measurements\t13\n\tNote 9: Derivative Instruments\t13\n\tNote 10: Long-Term Debt\t16\n\tNote 11: Commitments and Contingencies\t18\n\tNote 12: Income Taxes\t18\n\tNote 13: Earnings Per Share\t19\n\tNote 14: Accumulated Other Comprehensive Income (Loss)\t19\n\tNote 15: Accounts Receivable Factoring\t20\n\tNote 16: Segment Information & Geographic Data\t21\nItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t23\n\tOverview\t23\n\tResults of Operations\t25\n\tResults of Operations by Segment\t27\n\tNew Accounting Pronouncements\t30\n\tLiquidity and Capital Resources\t30\n\tSignificant Customers\t32\n\tSafe Harbor\t33\n\tNon-GAAP Measures\t33\nItem 3.\tQuantitative and Qualitative Disclosures About Market Risk\t34\nItem 4.\tControls and Procedures\t34\nPART II - OTHER INFORMATION\t\t35\nItem 1.\tLegal Proceedings\t35\nItem 1A.\tRisk Factors\t35\nItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t36\nItem 6.\tExhibits\t37\nSignatures\t\t38\n", "q10k_tbl_2": "\tSeptember 26 2020\tDecember 31 2019\n\t(Unaudited)\t\nAssets\t\t\nCurrent assets:\t\t\nCash and cash equivalents\t39\t30\nAccounts receivable net of allowances for doubtful accounts of $2 million as of September 26 2020 and December 31 2019\t535\t613\nInventories net\t484\t474\nIncome tax receivable\t59\t32\nPrepaid expenses and other current assets\t75\t46\nTotal Current assets\t1192\t1195\nProperty plant and equipment net\t265\t259\nRight-of-use lease assets\t113\t107\nGoodwill\t2998\t2622\nOther intangibles net\t427\t275\nDeferred income taxes\t84\t127\nOther long-term assets\t166\t126\nTotal Assets\t5245\t4711\nLiabilities and Stockholders' Equity\t\t\nCurrent liabilities:\t\t\nCurrent portion of long-term debt\t481\t197\nAccounts payable\t546\t552\nAccrued liabilities\t443\t379\nDeferred revenue\t286\t238\nIncome taxes payable\t9\t38\nTotal Current liabilities\t1765\t1404\nLong-term debt\t1086\t1080\nLong-term lease liabilities\t110\t100\nLong-term deferred revenue\t248\t221\nOther long-term liabilities\t105\t67\nTotal Liabilities\t3314\t2872\nStockholders' Equity:\t\t\nPreferred stock $.01 par value; authorized 10000000 shares; none issued\t0\t0\nClass A common stock $.01 par value; authorized 150000000 shares; issued 72151857 shares\t1\t1\nAdditional paid-in capital\t372\t339\nTreasury stock at cost 18853395 and 18148925 shares as of September 26 2020 and December 31 2019 respectively\t(917)\t(689)\nRetained earnings\t2537\t2232\nAccumulated other comprehensive loss\t(62)\t(44)\nTotal Stockholders' Equity\t1931\t1839\nTotal Liabilities and Stockholders' Equity\t5245\t4711\n", "q10k_tbl_3": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 26 2020\tSeptember 28 2019\tSeptember 26 2020\tSeptember 28 2019\nNet sales:\t\t\t\t\nTangible products\t972\t981\t2684\t2868\nServices and software\t160\t149\t456\t425\nTotal Net sales\t1132\t1130\t3140\t3293\nCost of sales:\t\t\t\t\nTangible products\t543\t497\t1480\t1456\nServices and software\t96\t98\t275\t281\nTotal Cost of sales\t639\t595\t1755\t1737\nGross profit\t493\t535\t1385\t1556\nOperating expenses:\t\t\t\t\nSelling and marketing\t119\t124\t350\t373\nResearch and development\t113\t110\t316\t329\nGeneral and administrative\t71\t78\t219\t244\nAmortization of intangible assets\t20\t26\t52\t84\nAcquisition and integration costs\t19\t12\t21\t20\nExit and restructuring costs\t1\t0\t7\t2\nTotal Operating expenses\t343\t350\t965\t1052\nOperating income\t150\t185\t420\t504\nOther expenses:\t\t\t\t\nForeign exchange (loss) gain\t(3)\t2\t(15)\t(2)\nInterest expense net\t(10)\t(28)\t(69)\t(85)\nOther net\t1\t0\t8\t2\nTotal Other expenses net\t(12)\t(26)\t(76)\t(85)\nIncome before income tax\t138\t159\t344\t419\nIncome tax expense\t22\t23\t39\t44\nNet income\t116\t136\t305\t375\nBasic earnings per share\t2.18\t2.52\t5.70\t6.95\nDiluted earnings per share\t2.16\t2.50\t5.65\t6.87\n", "q10k_tbl_4": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 26 2020\tSeptember 28 2019\tSeptember 26 2020\tSeptember 28 2019\nNet income\t116\t136\t305\t375\nOther comprehensive income (loss) net of tax:\t\t\t\t\nChanges in unrealized gains and losses on anticipated sales hedging transactions\t(8)\t15\t(14)\t7\nChanges in unrealized gains and losses on forward interest rate swap hedging transactions\t0\t(1)\t0\t0\nForeign currency translation adjustment\t4\t(5)\t(4)\t(3)\nComprehensive income\t112\t145\t287\t379\n", "q10k_tbl_5": "\tClass A Common Stock Shares\tClass A Common Stock Value\tAdditional Paid-in Capital\tTreasury Stock\tRetained Earnings\tAccumulated Other Comprehensive Loss\tTotal\nBalance at December 31 2019\t54002932\t1\t339\t(689)\t2232\t(44)\t1839\nIssuances of treasury shares related to share-based compensation plans net of forfeitures\t15792\t0\t0\t0\t0\t0\t0\nShares withheld to fund withholding tax obligations related to share-based compensation plans\t(4361)\t0\t0\t(1)\t0\t0\t(1)\nShare-based compensation\t0\t0\t7\t0\t0\t0\t7\nRepurchases of common stock\t(948740)\t0\t0\t(200)\t0\t0\t(200)\nNet income\t0\t0\t0\t0\t89\t0\t89\nChanges in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes)\t0\t0\t0\t0\t0\t2\t2\nForeign currency translation adjustment\t0\t0\t0\t0\t0\t(9)\t(9)\nBalance at March 28 2020\t53065623\t1\t346\t(890)\t2321\t(51)\t1727\nIssuances of treasury shares related to share-based compensation plans net of forfeitures\t399634\t0\t(9)\t13\t0\t0\t4\nShares withheld to fund withholding tax obligations related to share-based compensation plans\t(142206)\t0\t0\t(34)\t0\t0\t(34)\nShare-based compensation\t0\t0\t13\t0\t0\t0\t13\nNet income\t0\t0\t0\t0\t100\t0\t100\nChanges in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes)\t0\t0\t0\t0\t0\t(8)\t(8)\nForeign currency translation adjustment\t0\t0\t0\t0\t0\t1\t1\nBalance at June 27 2020\t53323051\t1\t350\t(911)\t2421\t(58)\t1803\nIssuances of treasury shares related to share-based compensation plans net of forfeitures\t(22960)\t0\t9\t(6)\t0\t0\t3\nShares withheld to fund withholding tax obligations related to share-based compensation plans\t(1629)\t0\t0\t0\t0\t0\t0\nShare-based compensation\t0\t0\t13\t0\t0\t0\t13\nNet income\t0\t0\t0\t0\t116\t0\t116\nChanges in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes)\t0\t0\t0\t0\t0\t(8)\t(8)\nForeign currency translation adjustment\t0\t0\t0\t0\t0\t4\t4\nBalance at September 26 2020\t53298462\t1\t372\t(917)\t2537\t(62)\t1931\n", "q10k_tbl_6": "\tClass A Common Stock Shares\tClass A Common Stock Value\tAdditional Paid-in Capital\tTreasury Stock\tRetained Earnings\tAccumulated Other Comprehensive Loss\tTotal\nBalance at December 31 2018\t53871184\t1\t294\t(613)\t1688\t(35)\t1335\nIssuances of treasury shares related to share-based compensation plans net of forfeitures\t110382\t0\t1\t3\t0\t0\t4\nShares withheld to fund withholding tax obligations related to share-based compensation plans\t(5829)\t0\t0\t(1)\t0\t0\t(1)\nShare-based compensation\t0\t0\t10\t0\t0\t0\t10\nNet income\t0\t0\t0\t0\t115\t0\t115\nChanges in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes)\t0\t0\t0\t0\t0\t4\t4\nBalance at March 30 2019\t53975737\t1\t305\t(611)\t1803\t(31)\t1467\nIssuances of treasury shares related to share-based compensation plans net of forfeitures\t345067\t0\t(5)\t9\t0\t0\t4\nShares withheld to fund withholding tax obligations related to share-based compensation plans\t(212975)\t0\t0\t(41)\t0\t0\t(41)\nShare-based compensation\t0\t0\t14\t0\t0\t0\t14\nNet income\t0\t0\t0\t0\t124\t0\t124\nChanges in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes)\t0\t0\t0\t0\t0\t(12)\t(12)\nChanges in unrealized gains and losses on forward interest rate swap hedging transactions (net of income taxes)\t0\t0\t0\t0\t0\t1\t1\nForeign currency translation adjustment\t0\t0\t0\t0\t0\t2\t2\nBalance at June 29 2019\t54107829\t1\t314\t(643)\t1927\t(40)\t1559\nIssuances of treasury shares related to share-based compensation plans net of forfeitures\t44215\t0\t(2)\t1\t0\t0\t(1)\nShares withheld to fund withholding tax obligations related to share-based compensation plans\t(3864)\t0\t0\t(1)\t0\t0\t(1)\nShare-based compensation\t0\t0\t12\t0\t0\t0\t12\nRepurchases of common stock\t(101062)\t0\t0\t(20)\t0\t0\t(20)\nNet income\t0\t0\t0\t0\t136\t0\t136\nChanges in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes)\t0\t0\t0\t0\t0\t15\t15\nChanges in unrealized gains and losses on forward interest rate swap hedging transactions (net of income taxes)\t0\t0\t0\t0\t0\t(1)\t(1)\nForeign currency translation adjustment\t0\t0\t0\t0\t0\t(5)\t(5)\nBalance at September 28 2019\t54047118\t1\t324\t(663)\t2063\t(31)\t1694\n", "q10k_tbl_7": "\tNine Months Ended\t\n\tSeptember 26 2020\tSeptember 28 2019\nCash flows from operating activities:\t\t\nNet income\t305\t375\nAdjustments to reconcile net income to net cash provided by operating activities:\t\t\nDepreciation and amortization\t103\t139\nAmortization of debt issuance costs and discounts\t2\t6\nShare-based compensation\t33\t36\nDeferred income taxes\t(2)\t0\nUnrealized loss on forward interest rate swaps\t37\t28\nOther net\t(5)\t(4)\nChanges in operating assets and liabilities:\t\t\nAccounts receivable net\t96\t(73)\nInventories net\t(7)\t65\nOther assets\t3\t(20)\nAccounts payable\t(7)\t(51)\nAccrued liabilities\t(40)\t(62)\nDeferred revenue\t58\t43\nIncome taxes\t(58)\t(58)\nOther operating activities\t13\t(4)\nNet cash provided by operating activities\t531\t420\nCash flows from investing activities:\t\t\nAcquisition of businesses net of cash acquired\t(548)\t(255)\nPurchases of property plant and equipment\t(49)\t(44)\nProceeds from sale of long-term investments\t6\t10\nPurchases of long-term investments\t(32)\t(21)\nNet cash used in investing activities\t(623)\t(310)\nCash flows from financing activities:\t\t\nPayment of debt issuance costs and discounts\t(1)\t(5)\nPayments of long-term debt\t(103)\t(661)\nProceeds from issuance of long-term debt\t389\t593\nPayments of debt extinguishment costs\t0\t(1)\nPayments for repurchases of common stock\t(200)\t(20)\nNet payments related to share-based compensation plans\t(28)\t(36)\nChange in unremitted cash collections from servicing factored receivables\t73\t8\nOther financing activities\t1\t2\nNet cash provided by (used in) financing activities\t131\t(120)\nEffect of exchange rate changes on cash and cash equivalents including restricted cash\t(1)\t(1)\nNet increase (decrease) in cash and cash equivalents including restricted cash\t38\t(11)\nCash and cash equivalents including restricted cash at beginning of period\t30\t44\nCash and cash equivalents including restricted cash at end of period\t68\t33\nLess restricted cash included in Prepaid expenses and other current assets\t(29)\t0\nCash and cash equivalents at end of period\t39\t33\nSupplemental disclosures of cash flow information:\t\t\nIncome taxes paid\t100\t102\nInterest paid\t28\t49\n", "q10k_tbl_8": "\tThree Months Ended\t\t\t\t\t\n\tSeptember 26 2020\t\t\tSeptember 28 2019\t\t\nSegment\tTangible Products\tServices and Software\tTotal\tTangible Products\tServices and Software\tTotal\nAIT\t314\t32\t346\t337\t36\t373\nEVM\t658\t130\t788\t644\t113\t757\nCorporate eliminations(1)\t0\t(2)\t(2)\t0\t0\t0\nTotal\t972\t160\t1132\t981\t149\t1130\n", "q10k_tbl_9": "\tNine Months Ended\t\t\t\t\t\n\tSeptember 26 2020\t\t\tSeptember 28 2019\t\t\nSegment\tTangible Products\tServices and Software\tTotal\tTangible Products\tServices and Software\tTotal\nAIT\t898\t94\t992\t1001\t99\t1100\nEVM\t1786\t364\t2150\t1867\t326\t2193\nCorporate eliminations(1)\t0\t(2)\t(2)\t0\t0\t0\nTotal\t2684\t456\t3140\t2868\t425\t3293\n", "q10k_tbl_10": "\tSeptember 26 2020\tDecember 31 2019\nRaw material\t120\t128\nWork in process\t4\t4\nFinished goods\t360\t342\nTotal Inventories net\t484\t474\n", "q10k_tbl_11": "Identifiable intangible assets\t204\nAccounts receivable\t20\nProperty plant and equipment\t10\nOther assets acquired\t17\nDeferred revenue\t(16)\nDeferred tax liabilities\t(49)\nOther liabilities assumed\t(14)\nNet assets acquired\t172\nGoodwill on acquisition\t376\nTotal purchase consideration\t548\n", "q10k_tbl_12": "\tLevel 1\tLevel 2\tLevel 3\tTotal\nAssets:\t\t\t\t\nMoney market investments related to the deferred compensation plan\t26\t0\t0\t26\nTotal Assets at fair value\t26\t0\t0\t26\nLiabilities:\t\t\t\t\nForeign exchange contracts (1)\t0\t14\t0\t14\nForward interest rate swap contracts (2)\t0\t50\t0\t50\nLiabilities related to the deferred compensation plan\t26\t0\t0\t26\nTotal Liabilities at fair value\t26\t64\t0\t90\n", "q10k_tbl_13": "\tLevel 1\tLevel 2\tLevel 3\tTotal\nAssets:\t\t\t\t\nForeign exchange contracts (1)\t0\t3\t0\t3\nMoney market investments related to the deferred compensation plan\t24\t0\t0\t24\nTotal Assets at fair value\t24\t3\t0\t27\nLiabilities:\t\t\t\t\nForward interest rate swap contracts (2)\t0\t13\t0\t13\nLiabilities related to the deferred compensation plan\t24\t0\t0\t24\nTotal Liabilities at fair value\t24\t13\t0\t37\n", "q10k_tbl_14": "\t(Liability) Asset\t\t\n\t\tFair Values as of\t\n\tBalance Sheet Classification\tSeptember 26 2020\tDecember 31 2019\nDerivative instruments designated as hedges:\t\t\t\nForeign exchange contracts\tPrepaid expenses and other current assets\t0\t3\nForeign exchange contracts\tAccrued liabilities\t(14)\t0\nTotal derivative instruments designated as hedges\t\t(14)\t3\nDerivative instruments not designated as hedges:\t\t\t\nForward interest rate swaps\tAccrued liabilities\t(17)\t(5)\nForward interest rate swaps\tOther long-term liabilities\t(33)\t(8)\nTotal derivative instruments not designated as hedges\t\t(50)\t(13)\nTotal net derivative liability\t\t(64)\t(10)\n", "q10k_tbl_15": "\tLosses Recognized in Income\t\t\t\t\n\t\tThree Months Ended\t\tNine Months Ended\t\n\tStatements of Operations Classification\tSeptember 26 2020\tSeptember 28 2019\tSeptember 26 2020\tSeptember 28 2019\nDerivative instruments not designated as hedges:\t\t\t\t\t\nForeign exchange contracts\tForeign exchange (loss) gain\t(1)\t(1)\t(9)\t(4)\nForward interest rate swaps\tInterest expense net\t(4)\t(4)\t(46)\t(27)\nTotal losses recognized in income\t\t(5)\t(5)\t(55)\t(31)\n", "q10k_tbl_16": "\tSeptember 26 2020\t\tDecember 31 2019\t\nNotional balance of outstanding contracts:\t\t\t\t\nBritish Pound/U.S. Dollar\t£\t11\t£\t14\nEuro/U.S. Dollar\t€\t24\t€\t36\nCanadian Dollar/U.S. Dollar\t1\t\t1\t\nAustralian Dollar/U.S. Dollar\tA$\t4\tA$\t42\nJapanese Yen/U.S. Dollar\t¥\t233\t¥\t264\nSingapore Dollar/U.S. Dollar\tS$\t14\tS$\t19\nMexican Peso/U.S. Dollar\tMex$\t114\tMex$\t115\nChinese Yuan/U.S. Dollar\t¥\t46\t¥\t0\nSouth African Rand/U.S. Dollar\tR\t46\tR\t42\nNet fair value of assets of outstanding contracts\t0\t\t0\t\n", "q10k_tbl_17": "\tSeptember 26 2020\tDecember 31 2019\nTerm Loan A\t917\t917\nRevolving Credit Facility\t194\t103\nReceivables Financing Facilities\t264\t266\n2020 Term Loan\t200\t0\nTotal debt\t1575\t1286\nLess: Debt issuance costs\t(5)\t(6)\nLess: Unamortized discounts\t(3)\t(3)\nLess: Current portion of debt\t(481)\t(197)\nTotal long-term debt\t1086\t1080\n", "q10k_tbl_18": "2020\t78\n2021\t416\n2022\t56\n2023\t81\n2024\t944\nTotal future debt maturities\t1575\n", "q10k_tbl_19": "\tNine Months Ended\t\n\tSeptember 26 2020\tSeptember 28 2019\nBalance at the beginning of the period\t21\t22\nWarranty expense\t22\t18\nWarranties fulfilled\t(20)\t(18)\nBalance at the end of the period\t23\t22\n", "q10k_tbl_20": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 26 2020\tSeptember 28 2019\tSeptember 26 2020\tSeptember 28 2019\nBasic:\t\t\t\t\nNet income\t116\t136\t305\t375\nWeighted-average shares outstanding\t53300036\t54085500\t53460891\t53999044\nBasic earnings per share\t2.18\t2.52\t5.70\t6.95\nDiluted:\t\t\t\t\nNet income\t116\t136\t305\t375\nWeighted-average shares outstanding\t53300036\t54085500\t53460891\t53999044\nDilutive shares\t416270\t552323\t486895\t611047\nDiluted weighted-average shares outstanding\t53716306\t54637823\t53947786\t54610091\nDiluted earnings per share\t2.16\t2.50\t5.65\t6.87\n", "q10k_tbl_21": "\tUnrealized (loss) gain on sales hedging\tUnrealized gain (loss) on forward interest rate swaps\tForeign currency translation adjustments\tTotal\nBalance at December 31 2018\t12\t0\t(47)\t(35)\nOther comprehensive income (loss) before reclassifications\t41\t0\t(3)\t38\nAmounts reclassified from AOCI(1)\t(32)\t2\t0\t(30)\nTax effect\t(2)\t(2)\t0\t(4)\nOther comprehensive income (loss) net of tax\t7\t0\t(3)\t4\nBalance at September 28 2019\t19\t0\t(50)\t(31)\nBalance at December 31 2019\t2\t0\t(46)\t(44)\nOther comprehensive loss before reclassifications\t(11)\t0\t(4)\t(15)\nAmounts reclassified from AOCI(1)\t(6)\t0\t0\t(6)\nTax effect\t3\t0\t0\t3\nOther comprehensive loss net of tax\t(14)\t0\t(4)\t(18)\nBalance at September 26 2020\t(12)\t0\t(50)\t(62)\n", "q10k_tbl_22": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 26 2020\tSeptember 28 2019\tSeptember 26 2020\tSeptember 28 2019\nNet sales:\t\t\t\t\nAIT\t346\t373\t992\t1100\nEVM\t788\t757\t2150\t2193\nTotal segment Net sales\t1134\t1130\t3142\t3293\nCorporate eliminations(1)\t(2)\t0\t(2)\t0\nTotal Net sales\t1132\t1130\t3140\t3293\nOperating income:\t\t\t\t\nAIT(2)\t79\t93\t216\t269\nEVM(2)\t120\t133\t301\t347\nTotal segment operating income\t199\t226\t517\t616\nCorporate eliminations(1)\t(49)\t(41)\t(97)\t(112)\nTotal Operating income\t150\t185\t420\t504\n", "q10k_tbl_23": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 26 2020\tSeptember 28 2019\tSeptember 26 2020\tSeptember 28 2019\nNorth America\t629\t591\t1650\t1641\nEMEA\t340\t346\t1034\t1082\nAsia-Pacific\t115\t133\t322\t399\nLatin America\t48\t60\t134\t171\nTotal Net sales\t1132\t1130\t3140\t3293\n", "q10k_tbl_24": "\tThree Months Ended\t\t\t\tNine Months Ended\t\t\t\n\tSeptember 26 2020\tSeptember 28 2019\t Change\t% Change\tSeptember 26 2020\tSeptember 28 2019\t Change\t% Change\nNet sales\t1132\t1130\t2\t0.2%\t3140\t3293\t(153)\t(4.6)%\nGross profit\t493\t535\t(42)\t(7.9)%\t1385\t1556\t(171)\t(11.0)%\nGross margin\t43.6%\t47.3%\t\t(370) bps\t44.1%\t47.3%\t\t(320) bps\nOperating expenses\t343\t350\t(7)\t(2.0)%\t965\t1052\t(87)\t(8.3)%\nOperating income\t150\t185\t(35)\t(18.9)%\t420\t504\t(84)\t(16.7)%\n", "q10k_tbl_25": "\tThree Months Ended\t\t\t\tNine Months Ended\t\t\t\n\tSeptember 26 2020\tSeptember 28 2019\t Change\t% Change\tSeptember 26 2020\tSeptember 28 2019\t Change\t% Change\nNorth America\t629\t591\t38\t6.4%\t1650\t1641\t9\t0.5%\nEMEA\t340\t346\t(6)\t(1.7)%\t1034\t1082\t(48)\t(4.4)%\nAsia-Pacific\t115\t133\t(18)\t(13.5)%\t322\t399\t(77)\t(19.3)%\nLatin America\t48\t60\t(12)\t(20.0)%\t134\t171\t(37)\t(21.6)%\nTotal net sales\t1132\t1130\t2\t0.2%\t3140\t3293\t(153)\t(4.6)%\n", "q10k_tbl_26": "\tThree Months Ended\t\t\t\t\t\t\tNine Months Ended\t\t\t\t\n\tSeptember 26 2020\t\tSeptember 28 2019\t\tAs a % of Net sales\t\t\tSeptember 26 2020\t\tSeptember 28 2019\tAs a % of Net sales\t\n\t\t2020\t\t2019\t\t\t2020\t\t2019\nSelling and marketing\t119\t\t124\t\t10.5%\t11.0%\t\t350\t\t373\t11.1%\t11.3%\nResearch and development\t113\t\t110\t\t10.0%\t9.7%\t\t316\t\t329\t10.1%\t10.0%\nGeneral and administrative\t71\t\t78\t\t6.3%\t6.9%\t\t219\t\t244\t7.0%\t7.4%\nAmortization of intangible assets\t20\t\t26\t\tNM\tNM\t\t52\t\t84\tNM\tNM\nAcquisition and integration costs\t19\t\t12\t\tNM\tNM\t\t21\t\t20\tNM\tNM\nExit and restructuring costs\t1\t\t0\t\tNM\tNM\t\t7\t\t2\tNM\tNM\nTotal operating expenses\t343\t\t350\t\t30.3%\t31.0%\t\t965\t\t1052\t30.7%\t31.9%\n", "q10k_tbl_27": "\tThree Months Ended\tNine Months Ended\n\tSeptember 26 2020\tSeptember 26 2020\nReported GAAP Consolidated Net sales growth\t0.2%\t(4.6)%\nAdjustments:\t\t\nImpact of foreign currency translation (1)\t0.4%\t0.9%\nImpact of acquisitions (2)\t(0.3)%\t(0.5)%\nConsolidated Organic Net sales growth\t0.3%\t(4.2)%\n", "q10k_tbl_28": "\tThree Months Ended\t\t\t\tNine Months Ended\t\t\t\n\tSeptember 26 2020\tSeptember 28 2019\t Change\t% Change\tSeptember 26 2020\tSeptember 28 2019\t Change\t% Change\nNet sales\t346\t373\t(27)\t(7.2)%\t992\t1100\t(108)\t(9.8)%\nGross profit\t162\t187\t(25)\t(13.4)%\t466\t553\t(87)\t(15.7)%\nGross margin\t46.8%\t50.1%\t\t(330) bps\t47.0%\t50.3%\t\t(330) bps\nOperating expenses\t83\t94\t(11)\t(11.7)%\t250\t284\t(34)\t(12.0)%\nOperating income\t79\t93\t(14)\t(15.1)%\t216\t269\t(53)\t(19.7)%\n", "q10k_tbl_29": "\tThree Months Ended\tNine Months Ended\n\tSeptember 26 2020\tSeptember 26 2020\nAIT Reported GAAP Net sales growth\t(7.2)%\t(9.8)%\nAdjustments:\t\t\nImpact of foreign currency translation (1)\t0.1%\t0.6%\nImpact of acquisition (2)\t-%\t(0.6)%\nAIT Organic Net sales growth\t(7.1)%\t(9.8)%\n", "q10k_tbl_30": "\tThree Months Ended\t\t\t\tNine Months Ended\t\t\t\n\tSeptember 26 2020\tSeptember 28 2019\t Change\t% Change\tSeptember 26 2020\tSeptember 28 2019\t Change\t% Change\nNet sales\t788\t757\t31\t4.1%\t2150\t2193\t(43)\t(2.0)%\nGross profit\t334\t351\t(17)\t(4.8)%\t925\t1009\t(84)\t(8.3)%\nGross margin\t42.4%\t46.4%\t\t(400) bps\t43.0%\t46.0%\t\t(300) bps\nOperating expenses\t214\t218\t(4)\t(1.8)%\t624\t662\t(38)\t(5.7)%\nOperating income\t120\t133\t(13)\t(9.8)%\t301\t347\t(46)\t(13.3)%\n", "q10k_tbl_31": "\tThree Months Ended\tNine Months Ended\n\tSeptember 26 2020\tSeptember 26 2020\nEVM Reported GAAP Net sales growth\t4.1%\t(2.0)%\nAdjustments:\t\t\nImpact of foreign currency translation (1)\t0.6%\t1.1%\nImpact of acquisitions (2)\t(0.7)%\t(0.5)%\nEVM Organic Net sales growth\t4.0%\t(1.4)%\n", "q10k_tbl_32": "\tNine Months Ended\t\t\nCash flows provided by (used in) from:\tSeptember 26 2020\tSeptember 28 2019\t Change\nOperating activities\t531\t420\t111\nInvesting activities\t(623)\t(310)\t(313)\nFinancing activities\t131\t(120)\t251\nEffect of exchange rates on cash\t(1)\t(1)\t0\nNet increase (decrease) in cash and cash equivalents including restricted cash\t38\t(11)\t49\n", "q10k_tbl_33": "\tSeptember 26 2020\tDecember 31 2019\nTerm Loan A\t917\t917\nRevolving Credit Facility\t194\t103\nReceivables Financing Facilities\t264\t266\n2020 Term Loan\t200\t0\nTotal debt\t1575\t1286\nLess: Debt issuance costs\t(5)\t(6)\nLess: Unamortized discounts\t(3)\t(3)\nLess: Current portion of debt\t(481)\t(197)\nTotal long-term debt\t1086\t1080\n", "q10k_tbl_34": "\tNine Months Ended\t\t\t\t\t\n\tSeptember 26 2020\t\t\tSeptember 28 2019\t\t\n\tAIT\tEVM\tTotal\tAIT\tEVM\tTotal\nCustomer A\t4.8%\t11.6%\t16.4%\t5.5%\t13.1%\t18.6%\nCustomer B\t4.6%\t7.6%\t12.2%\t4.8%\t9.1%\t13.9%\nCustomer C\t6.1%\t12.6%\t18.7%\t6.3%\t10.2%\t16.5%\n", "q10k_tbl_35": "Period\tTotal Number of Shares Purchased\tAverage Price Paid per Share\tTotal Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)\tApproximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) (1)\nJune 28 2020 - July 25 2020\t0\t0\t0\t753\nJuly 26 2020 - August 22 2020\t0\t0\t0\t753\nAugust 23 2020 - September 26 2020\t0\t0\t0\t753\nTotal\t0\t0\t0\t753\n", "q10k_tbl_36": "10\t364-Day Credit Agreement dated September 1 2020 by and among Zebra the lenders party thereto and JPMorgan Chase Bank N.A.\n31.1\tRule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer\n31.2\tRule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer\n32.1\tCertification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002\n32.2\tCertification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002\n101\tThe following financial information from Zebra Technologies Corporation Quarterly Report on Form 10-Q for the quarter ended September 26 2020 formatted in Inline XBRL: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statements of Comprehensive Income; (iv) the Consolidated Statements of Stockholders' Equity; (v) the Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements. The instance document does not appear in the interactive data file because Inline XBRL tags are embedded in the iXBRL document.\n104\tThe cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 26 2020 formatted in Inline XBRL (included in Exhibit 101).\n"}{"bs": "q10k_tbl_2", "is": "q10k_tbl_3", "cf": "q10k_tbl_7"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 26, 2020
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 000-19406
Zebra Technologies Corporation
(Exact name of registrant as specified in its charter)
Delaware
36-2675536
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
3 Overlook Point, Lincolnshire, IL60069
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code:(847) 634-6700
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of exchange on which registered
Class A Common Stock, par value $.01 per share
ZBRA
The NASDAQ Stock Market, LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of October 27, 2020, there were 53,316,406 shares of Class A Common Stock, $.01 par value, outstanding.
Note 1 Description of Business and Basis of Presentation
Zebra Technologies Corporation and its subsidiaries (“Zebra” or the “Company”) is a global leader providing innovative Enterprise Asset Intelligence solutions in the automatic identification and data capture solutions industry. We design, manufacture, and sell a broad range of products that capture and move data. We also provide a full range of services, including maintenance, technical support, repair, and managed services, including cloud-based subscriptions and solutions. End-users of our products and services include those in retail and e-commerce, transportation and logistics, manufacturing, healthcare, hospitality, warehouse and distribution, energy and utilities, and education industries around the world. We provide our products and services globally through a direct sales force and an extensive network of channel partners.
Management prepared these unaudited interim consolidated financial statements according to the rules and regulations of the Securities and Exchange Commission for interim financial information and notes. As permitted under Article 10 of Regulation S-X and the instructions of Form 10-Q, these consolidated financial statements do not include all the information and notes required by United States Generally Accepted Accounting Principles (“GAAP”) for complete financial statements, although management believes that the disclosures made are adequate to make the information not misleading. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2019.
In the opinion of the Company, these interim financial statements include all adjustments (of a normal, recurring nature) necessary to fairly present its Consolidated Balance Sheet as of September 26, 2020, the Consolidated Statements of Operations, Comprehensive Income, and Stockholders’ Equity for the three and nine months ended September 26, 2020 and September 28, 2019, and the Consolidated Statements of Cash Flows for the nine months ended September 26, 2020 and September 28, 2019. These results, however, are not necessarily indicative of the results expected for the full fiscal year ending December 31, 2020.
Note 2 Significant Accounting Policies
Recently Adopted Accounting Pronouncements
On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires the measurement and recognition of expected credit losses for financialassets held at amortized cost. It replaces the existing incurred loss impairment model with an expected loss methodology, whichwill result in more timely recognition of credit losses. With respect to the Company’s financial assets, including trade receivables and contract assets, a cumulative effect transition approach was applied. In order to determine the transition impact of ASU 2016-13, the Company considered historical loss experience, the short duration of its trade receivables and durations of other financial assets, and expectations of the future economic environment. The adoption of ASU 2016-13 did not have a significant impact to the Company’s financial statements upon transition or for the nine months ended September 26, 2020.
Recently Issued Accounting Pronouncements Not Yet Adopted
In March 2020, the Financial Accounting Standards Board issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). Subject to meeting certain criteria, ASU 2020-04 provides optional expedients and exceptions to applying contract modification accounting under existing generally accepted accounting principles, for contracts that are modified to address the expected phase out of the London Inter-bank Offered Rate (“LIBOR”) by the end of 2021. Some of the Company’s contracts with respect to its borrowings and interest rate swap contracts already contain comparable alternative reference rates that would automatically take effect upon the phasing out of LIBOR, while for others, the Company anticipates negotiating comparable replacement rates with its counterparties. At this stage of its contract assessment, the Company does not expect ASU 2020-04 to have a material impact to its financial statements.
The Company recognizes revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration which it expects to receive for providing those goods or services.
We recognize revenue arising from performance obligations outlined in contracts with our customers that are satisfied at a point in time and over time. Substantially all revenue for tangible products is recognized at a point in time, whereby revenue for services and software is predominantly recognized over time.
Disaggregation of Revenue
The following table presents our Net sales disaggregated by category for each of our segments, Asset Intelligence & Tracking (“AIT”) and Enterprise Visibility & Mobility (“EVM”), for the three and nine months ended September 26, 2020 and September 28, 2019 (in millions):