Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 08, 2024 | Jul. 01, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-19406 | ||
Entity Registrant Name | Zebra Technologies Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-2675536 | ||
Entity Address, Address Line One | 3 Overlook Point | ||
Entity Address, City or Town | Lincolnshire | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60069 | ||
City Area Code | 847 | ||
Local Phone Number | 634-6700 | ||
Title of 12(b) Security | Class A Common Stock, par value $.01 per share | ||
Trading Symbol | ZBRA | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | true | ||
Document Financial Statement Restatement Recovery Analysis | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 15 | ||
Entity Common Stock, Shares Outstanding | 51,381,409 | ||
Documents Incorporated by Reference | Certain sections of the Registrant’s definitive proxy statement for its Annual Meeting of Stockholders to be held on May 9, 2024, are incorporated by reference into Part III of this report, as indicated herein. The definitive proxy statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000877212 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Chicago, Illinois |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 137 | $ 105 |
Accounts receivable, net of allowances for doubtful accounts of $1 million each as of December 31, 2023 and 2022 | 521 | 768 |
Inventories, net | 804 | 860 |
Income tax receivable | 63 | 26 |
Prepaid expenses and other current assets | 147 | 124 |
Total Current assets | 1,672 | 1,883 |
Property, plant and equipment, net | 309 | 278 |
Right-of-use lease assets | 169 | 156 |
Goodwill | 3,895 | 3,899 |
Other intangibles, net | 527 | 630 |
Deferred income taxes | 438 | 407 |
Other long-term assets | 296 | 276 |
Total Assets | 7,306 | 7,529 |
Current liabilities: | ||
Current portion of long-term debt | 173 | 214 |
Accounts payable | 456 | 811 |
Accrued liabilities | 504 | 744 |
Deferred revenue | 458 | 425 |
Income taxes payable | 7 | 138 |
Total Current liabilities | 1,598 | 2,332 |
Long-term debt | 2,047 | 1,809 |
Long-term lease liabilities | 152 | 139 |
Deferred income taxes | 67 | 75 |
Long-term deferred revenue | 312 | 333 |
Other long-term liabilities | 94 | 108 |
Total Liabilities | 4,270 | 4,796 |
Stockholders’ Equity: | ||
Preferred stock, $.01 par value; authorized 10,000,000 shares; none issued | 0 | 0 |
Class A common stock, $.01 par value; authorized 150,000,000 shares; issued 72,151,857 shares | 1 | 1 |
Additional paid-in capital | 615 | 561 |
Treasury stock at cost, 20,772,995 and 20,700,357 shares as of December 31, 2023 and 2022, respectively | (1,858) | (1,799) |
Retained earnings | 4,332 | 4,036 |
Accumulated other comprehensive loss | (54) | (66) |
Total Stockholders’ Equity | 3,036 | 2,733 |
Total Liabilities and Stockholders’ Equity | $ 7,306 | $ 7,529 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1 | $ 1 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares Issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 72,151,857 | 72,151,857 |
Treasury stock, shares (in shares) | 20,772,995 | 20,700,357 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net sales: | |||
Total Net sales | $ 4,584 | $ 5,781 | $ 5,627 |
Cost of sales: | |||
Total Cost of sales | 2,461 | 3,157 | 2,999 |
Gross profit | 2,123 | 2,624 | 2,628 |
Operating expenses: | |||
Selling and marketing | 581 | 607 | 587 |
Research and development | 519 | 570 | 567 |
General and administrative | 334 | 375 | 348 |
Settlement and related costs | 0 | 372 | 0 |
Amortization of intangible assets | 104 | 136 | 115 |
Acquisition and integration costs | 6 | 21 | 25 |
Exit and restructuring costs | 98 | 14 | 7 |
Total Operating expenses | 1,642 | 2,095 | 1,649 |
Operating income | 481 | 529 | 979 |
Other (loss) income, net: | |||
Foreign exchange loss | (2) | (3) | (5) |
Interest (expense) income, net | (133) | 23 | (5) |
Other expense, net | (12) | (5) | (1) |
Total Other (expense) income, net | (147) | 15 | (11) |
Income before income tax | 334 | 544 | 968 |
Income tax expense | 38 | 81 | 131 |
Net income | $ 296 | $ 463 | $ 837 |
Basic earnings per share (in USD per share) | $ 5.75 | $ 8.86 | $ 15.66 |
Diluted earnings per share (in USD per share) | $ 5.72 | $ 8.80 | $ 15.52 |
Tangible Products | |||
Net sales: | |||
Total Net sales | $ 3,665 | $ 4,915 | $ 4,845 |
Cost of sales: | |||
Total Cost of sales | 2,012 | 2,699 | 2,590 |
Services and Software | |||
Net sales: | |||
Total Net sales | 919 | 866 | 782 |
Cost of sales: | |||
Total Cost of sales | $ 449 | $ 458 | $ 409 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 296 | $ 463 | $ 837 |
Other comprehensive income (loss), net of tax: | |||
Changes in unrealized gains and losses on anticipated sales hedging transactions | 6 | (29) | 46 |
Foreign currency translation adjustment | 6 | (8) | (6) |
Comprehensive income | $ 308 | $ 426 | $ 877 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Class A Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2020 | 53,462,082 | |||||
Beginning balance at Dec. 31, 2020 | $ 2,144 | $ 1 | $ 395 | $ (919) | $ 2,736 | $ (69) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures (in shares) | 150,097 | |||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures | (13) | (9) | (4) | |||
Shares withheld to fund withholding tax obligations related to share-based compensation plans (in shares) | (87,789) | |||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans | (43) | (43) | ||||
Share-based compensation | 76 | 76 | ||||
Repurchase of common stock (in shares) | (109,115) | |||||
Repurchase of common stock | (57) | (57) | ||||
Net income | 837 | 837 | ||||
Changes in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes) | 46 | 46 | ||||
Foreign currency translation adjustment | (6) | (6) | ||||
Ending balance (in shares) at Dec. 31, 2021 | 53,415,275 | |||||
Ending balance at Dec. 31, 2021 | 2,984 | $ 1 | 462 | (1,023) | 3,573 | (29) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures (in shares) | 126,309 | |||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures | 10 | 11 | (1) | |||
Shares withheld to fund withholding tax obligations related to share-based compensation plans (in shares) | (62,542) | |||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans | (24) | (24) | ||||
Share-based compensation | 88 | 88 | ||||
Repurchase of common stock (in shares) | (2,027,542) | |||||
Repurchase of common stock | (751) | (751) | ||||
Net income | 463 | 463 | ||||
Changes in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes) | (29) | (29) | ||||
Foreign currency translation adjustment | (8) | (8) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 51,451,500 | |||||
Ending balance at Dec. 31, 2022 | 2,733 | $ 1 | 561 | (1,799) | 4,036 | (66) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures (in shares) | 155,478 | |||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures | 2 | (1) | 3 | |||
Shares withheld to fund withholding tax obligations related to share-based compensation plans (in shares) | (33,797) | |||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans | (10) | (10) | ||||
Share-based compensation | 55 | 55 | ||||
Repurchase of common stock (in shares) | (194,319) | |||||
Repurchase of common stock | (52) | (52) | ||||
Net income | 296 | 296 | ||||
Changes in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes) | 6 | 6 | ||||
Foreign currency translation adjustment | 6 | 6 | ||||
Ending balance (in shares) at Dec. 31, 2023 | 51,378,862 | |||||
Ending balance at Dec. 31, 2023 | $ 3,036 | $ 1 | $ 615 | $ (1,858) | $ 4,332 | $ (54) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 296 | $ 463 | $ 837 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 176 | 204 | 187 |
Share-based compensation | 55 | 88 | 76 |
Deferred income taxes | (36) | (210) | (69) |
Unrealized loss (gain) on forward interest rate swaps | 17 | (89) | (30) |
Other, net | 3 | 5 | 1 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 249 | (5) | (239) |
Inventories, net | 50 | (341) | 18 |
Other assets | (25) | (48) | (23) |
Accounts payable | (365) | 92 | 96 |
Accrued liabilities | (97) | (51) | 110 |
Deferred revenue | 12 | 60 | 113 |
Income taxes | (168) | 108 | 1 |
Settlement liability | (180) | 225 | 0 |
Other operating activities | 9 | (13) | (9) |
Net cash (used in) provided by operating activities | (4) | 488 | 1,069 |
Cash flows from investing activities: | |||
Acquisition of businesses, net of cash acquired | 0 | (881) | (452) |
Purchases of property, plant and equipment | (87) | (75) | (59) |
Purchases of short-term investments | (4) | 0 | (1) |
Purchases of long-term investments | (1) | (12) | (34) |
Net cash used in investing activities | (92) | (968) | (546) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 440 | 1,284 | 46 |
Payments of long term-debt | (245) | (247) | (303) |
Payment of debt issuance costs, extinguishment costs and discounts | 0 | (8) | 0 |
Payments for repurchases of common stock | (52) | (751) | (57) |
Net payments related to share-based compensation plans | (8) | (14) | (56) |
Change in unremitted cash collections from servicing factored receivables | (18) | (11) | (1) |
Net cash provided by (used in) financing activities | 117 | 253 | (371) |
Effect of exchange rate changes on cash and cash equivalents, including restricted cash | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents, including restricted cash | 21 | (227) | 152 |
Cash and cash equivalents, including restricted cash, at beginning of period | 117 | 344 | 192 |
Cash and cash equivalents, including restricted cash, at end of period | 138 | 117 | 344 |
Less restricted cash, included in Prepaid expenses and other current assets | (1) | (12) | (12) |
Cash and cash equivalents at end of period | 137 | 105 | 332 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 252 | 168 | 199 |
Interest paid | $ 111 | $ 58 | $ 32 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | 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 (“EAI”) solutions in the automatic identification and data capture solutions industry. We design, manufacture, and sell a broad range of products and solutions, including cloud-based software subscriptions, that capture and move data. We also provide a full range of services, including maintenance, technical support, repair, managed and professional services. End-users of our products, solutions and services include those in retail and e-commerce, manufacturing, transportation and logistics, healthcare, public sector, and other industries. We provide our products, solutions and services globally through a direct sales force and an extensive network of channel partners. In the second quarter of 2023, our advanced location technology solutions business, which is primarily comprised of radio frequency identification devices (“RFID”) and real-time location solution offerings (“RTLS”), moved from our Enterprise Visibility & Mobility (“EVM”) segment into our Asset Intelligence & Tracking (“AIT”) segment contemporaneous with a change in our organizational structure and management of the business. We have reported our segment results reflecting this change, including historical periods, on a comparable basis. This change does not have an impact on the Consolidated Financial Statements. See Note 20, Segment Information & Geographic Data for additional information related to each segment’s results. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation These accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the U.S. and include the accounts of Zebra and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Fiscal Calendar The Company’s fiscal year is a 52-week period ending on December 31. Interim fiscal quarters end on a Saturday and generally include 13 weeks of operating activity. During the 2023 fiscal year, the Company’s quarter end dates were April 1, July 1, September 30, and December 31. Use of Estimates These consolidated financial statements were prepared using estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period as further discussed in the following footnotes to the Consolidated Financial Statements. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. Cash and Cash Equivalents Cash consists primarily of deposits with banks. Cash equivalents include highly liquid short-term deposits with banks and other investments with original maturities of less than or equal to three months. Cash equivalents are readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of a change in value because of changes in interest rates. Accounts Receivable Accounts receivable consist primarily of amounts due to us from our customers, net of variable consideration and an allowance for doubtful accounts, in the normal course of business. Collateral on trade accounts receivable is generally not required. The Company maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable that is based on expected credit losses. Expected credit losses are estimated based on historical loss experience, the durations of outstanding trade receivables, and expectations of the future economic environment. Accounts are written off against the allowance account when they are determined to be no longer collectible. Inventories Inventories are stated at the lower of a moving-average cost (which approximates cost on a first-in, first-out basis) and net realizable value. Manufactured inventory cost includes materials, labor, and manufacturing overhead. Purchased inventory cost also includes internal purchasing overhead costs. Raw material inventories primarily consist of product components as well as supplies used in repair operations. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable values as well as to record liabilities on non-cancellable purchase commitments. These provisions are based on forecasted demand, experience with specific customers or suppliers, the age and nature of the inventory or committed purchase, and the ability to redistribute inventory to other programs or rework it into other consumable inventory as well as renegotiate contractual terms with a supplier. Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the various classes of property, plant and equipment, which are thirty years for buildings and range from three Leases The Company recognizes right-of-use (“ROU”) assets and lease liabilities for its lease commitments with terms greater than one year. Contractual options to extend or terminate lease agreements are reflected in the lease term when they are reasonably certain to be exercised. The initial measurement of ROU assets and lease liabilities is based on the present value of future lease payments over the lease term as of the commencement date. In determining future lease payments, the Company has elected not to separate lease and non-lease components. As the Company’s lease arrangements do not provide an implicit interest rate, we apply the Company’s incremental borrowing rate based on the information available at the commencement date in determining the present value of future lease payments. Relevant information used in determining the Company’s incremental borrowing rate includes the duration of the lease, the transaction currency of the lease, and the Company’s credit risk relative to risk-free market rates. The Company’s ROU assets also include any initial direct costs incurred and exclude lease incentives. The Company’s lease agreements do not contain any significant residual value guarantees or restrictive covenants. All leases of the Company are classified as operating leases, with lease expense being recognized on a straight-line basis. Income Taxes The Company accounts for income taxes under the liability method in accordance with Accounting Standards Codification (“ASC”) 740 Topic, Income Taxes . Accordingly, deferred income taxes are provided for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities are measured using tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the benefit of tax positions when it is more likely than not to be sustained on its technical merits. The Company recognizes interest and penalties related to income tax matters as part of income tax expense. The Company has elected consolidated tax filings in certain of its jurisdictions which may allow the group to offset one member’s income with losses of other members in the current period and on a carryover basis. The income tax effects of non-inventory intra-entity asset transfers are recognized in the period in which the transfer occurs. The Company classifies its balance sheet accounts by applying jurisdictional netting principles for locations where consolidated tax filing elections are in place. U.S. tax law contains the Global Intangible Low-Taxed Income (“GILTI”), Base Erosion Anti-Avoidance Tax (“BEAT”), and Deduction for Foreign-Derived Intangible Income (“FDII”) provisions, which relate to the taxation of certain foreign income. The Company recognizes its GILTI, BEAT, and FDII inclusions, when applicable, within income tax expense in the year included in its U.S. tax return. Goodwill Goodwill is tested annually for impairment, or more frequently if indicators of impairment exist. When evaluating goodwill for impairment as part of our annual assessment, we include consideration of current events and circumstances. Our annual impairment testing also includes a comparison of the estimated fair value of each reporting unit to its carrying value. If the carrying value of a reporting unit exceeds its estimated fair value, goodwill would be considered to be impaired and reduced to its implied fair value. We estimate the fair value of reporting units by using a weighted combination of the income and market approaches. The income approach requires management to estimate projected future operating and cash flow results, economic projections, and discount rates. The market approach estimates fair value using comparable marketplace fair value data from within a comparable industry group. We most recently performed our annual goodwill impairment testing in the fourth quarter of 2023 which did not result in any impairment. See Note 6, Goodwill and Other Intangibles for additional information. Other Intangible Assets Other intangible assets consist primarily of technology and patent rights, customer and other relationships, and trade names. These assets, which are generally acquired through business combinations, are recorded at fair value upon acquisition and amortized on a straight-line basis over the asset’s useful life which typically ranges from two Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of The Company accounts for long-lived assets in accordance with the provisions of ASC Topic 360, Property, Plant and Equipment, which requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposition of the asset. If such assets are impaired, the impairment to be recognized is the excess of the carrying amount over the fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Investments in Securities The Company’s investments primarily include equity securities that are accounted for at cost, adjusted for impairment losses or changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. These investments are primarily in venture capital backed technology companies where the Company's ownership interest is less than 20% and the Company does not have the ability to exercise significant influence. See Note 8, Investments for additional information. Revenue Recognition Revenues are primarily comprised of sales of hardware, supplies, services, solutions and software offerings. We recognize revenues when we transfer control of promised goods or services to our customers in an amount that reflects the consideration that we expect to receive, which includes estimates of variable consideration, in exchange for those goods or services. We are typically the principal in all elements of our transactions and record Net sales and Cost of sales on a gross basis. Substantially all revenues for tangible products, supplies and perpetual or term software licenses are recognized at a point in time, which is generally upon shipment, when control and the risks and rewards of ownership have transferred to the customer, and the Company has a contractual right to payment. Revenues for our service offerings are recognized over time. Our service offerings include repair and maintenance service contracts, as well as professional services such as installation, integration and provisioning that typically occur in the early stages of a project. The average life of repair and maintenance service contracts is approximately three years. Professional service arrangements range in duration from a day to several weeks or months. Revenues for solutions, including Company-hosted software license and maintenance agreements, are typically recognized over time. The Company elects to exclude sales and other governmental taxes that are collected by the Company from a customer, from the transaction price. The Company also considers shipping and handling activities as part of its fulfillment costs and not as a separate performance obligation. See Note 3, Revenues for additional information. Research and Development Costs Research and development (“R&D”) costs include: • Salaries, benefits, and other R&D personnel related costs; • Consulting and other outside services used in the R&D process; • Engineering supplies; • Engineering related information systems costs; and • Allocation of building and related costs. R&D costs are expensed as incurred, including those associated with developing and maintaining software within our customer offerings. The Company typically applies a dynamic and iterative approach to developing customer product and software offerings as well as ongoing software maintenance, and feature and functionality enhancement releases, and accordingly, such costs do not meet capitalization criteria. Advertising Advertising costs are expensed as incurred. These costs totaled $31 million, $33 million and $35 million for the years ended 2023, 2022 and 2021, respectively. Warranties In general, the Company provides warranty coverage of one year on mobile computers and batteries. Printers are warrantied from one one Contingencies The Company establishes a liability for loss contingencies when the loss is both probable and estimable. See Note 14, Accrued Liabilities, Commitments and Contingencies for additional information. Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Our financial assets and liabilities that are accounted for at fair value generally include our employee deferred compensation plan investments, foreign currency forwards, and interest rate swaps. In accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”) , we recognize derivative instruments and hedging activities as either assets or liabilities on the Consolidated Balance Sheets and measure them at fair value. Accounting for the gains and losses on our derivatives resulting from changes in fair value is dependent on the use of the derivative and whether it is designated and qualifies for hedge accounting. The Company utilizes foreign currency forwards to hedge certain foreign currency exposures. We use broker quotations or market transactions, in either the listed or over-the-counter markets, to value our foreign currency exchange contracts. The Company also has interest rate swaps to hedge a portion of the variability in future cash flows on debt. We use relevant observable market inputs at quoted intervals, such as forward yield curves and the Company’s own credit risk, to value our interest rate swaps. See Note 11, Derivative Instruments for additional information on the Company’s derivatives and hedging activities. The Company’s securities held for its deferred compensation plans are measured at fair value using quoted prices in active markets for identical assets. If active markets for identical assets are not available to determine fair value, then we use quoted prices for similar assets or inputs that are observable either directly or indirectly. The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of those financial instruments. See Note 10, Fair Value Measurements for information related to financial assets and liabilities carried at fair value. Share-Based Compensation The Company has share-based compensation plans and an employee stock purchase plan under which shares of Class A Common Stock are available for future grant and purchase. The Company recognizes compensation costs over the vesting period of awards, which is typically three years, net of estimated forfeitures. Compensation costs associated with awards with graded vesting terms are recognized on a straight-line basis. See Note 15, Share-Based Compensation for additional information. Foreign Currency Translation The balance sheet accounts of the Company’s subsidiaries that have not designated the U.S. Dollar as its functional currency are translated into U.S. Dollars using the period-end exchange rate, and statement of earnings items are translated using the average exchange rate for the period. The resulting translation gains or losses are recorded in Stockholders’ equity as a cumulative translation adjustment, which is a component of AOCI within the Consolidated Balance Sheets. Acquisitions We account for acquired businesses using the acquisition method of accounting which requires that the purchase price be allocated to the identifiable assets acquired and liabilities assumed, generally measured at their estimated fair values. The excess of the purchase price over the identifiable assets acquired and liabilities assumed is recorded as goodwill. The estimates used to determine the fair values of long-lived assets, such as intangible assets, can be complex and require judgment. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from revenues and the determination of discount rates. Management’s estimates of fair value are based on estimates and assumptions utilized as part of the purchase price allocation process and are believed to be reasonable; however, elements of these estimates and assumptions are inherently uncertain and subject to refinement during the measurement period, which is up to one year after the acquisition date. Recently Adopted Accounting Pronouncements The Company did not adopt any material new accounting standards during the year ended December 31, 2023. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires retrospective disclosure of significant segment expenses and other segment items on an annual and interim basis. Additionally, it requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”). This ASU will be effective for the Company’s fiscal December 31, 2024 year-end and interim periods beginning in fiscal 2025, with early adoption permitted. We are assessing the impact of this guidance on our disclosures; it will not have an impact on our results of operations, cash flows, or financial condition. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires an annual tabular effective tax rate reconciliation disclosure including information for specified categories and jurisdiction levels, as well as, disclosure of income taxes paid, net of refunds received, disaggregated by federal, state/local, and significant foreign jurisdiction. This ASU will be effective for the Company’s fiscal December 31, 2025 year-end, with early adoption permitted. We are assessing the impact of this guidance on our disclosures; it will not have an impact on our results of operations, cash flows, or financial condition. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The Company recognizes revenue to depict the transfer of goods, solutions or services to a customer at an amount that reflects the consideration which it expects to receive for providing those goods, solutions or services. To determine total expected consideration, the Company estimates elements of variable consideration, which primarily include product rights of return, rebates, and other incentives. These estimates are developed using the expected value method and are reviewed and updated, as necessary, at each reporting period. Revenues, inclusive of variable consideration, are recognized to the extent it is probable that a significant reversal in cumulative revenues recognized will not occur in future periods. We enter into contracts that may include combinations of tangible products, services, solutions and software offerings, which are generally capable of being distinct and accounted for as separate performance obligations. We evaluate whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract has more than one performance obligation. This evaluation requires judgment, and the decision to combine a group of contracts or separate the combined or single contract into multiple distinct performance obligations may impact the amount of revenue recorded in a reporting period. We deem performance obligations to be distinct if the customer can benefit from the product or service on its own or together with readily available resources (“capable of being distinct”) and if the transfer of products, solutions or services is separately identifiable from other promises in the contract (“distinct within the context of the contract”). For contract arrangements that include multiple performance obligations, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices for each performance obligation. In general, standalone selling prices are observable for tangible products and software licenses, while standalone selling prices for professional services, repair and maintenance services, and solutions are developed primarily with an expected cost-plus margin approach. Regional pricing, marketing strategies, and business practices are evaluated to derive estimated standalone selling prices. The Company recognizes revenue for each performance obligation upon transfer of control of the promised goods or services. Control is deemed to have been transferred when the customer has the ability to direct the use of and has obtained substantially all of the remaining benefits from the goods and services. The determination of whether control transfers at a point in time or over time requires judgment and includes our consideration of the following: 1) whether the customer simultaneously receives and consumes the benefits provided as the Company performs its promises; 2) whether the Company’s performance creates or enhances an asset that is under control of the customer; and 3) whether the Company’s performance does not create an asset with an alternative use to the Company, while the Company has an enforceable right to payment for its performance completed to date. Revenues for tangible products are generally recognized upon shipment, whereas revenues for services and solution offerings are generally recognized over time by using an output or time-based method, assuming all other criteria for revenue recognition have been met. Revenues for software are recognized either upon delivery or over time using a time-based method, depending upon how control is transferred to the customer. In cases where a bundle of products, services, solutions and/or software are delivered to the customer, judgment is required to select the method of progress which best reflects the transfer of control. Disaggregation of Revenue The following table presents our Net sales disaggregated by product category for each of our segments, AIT and EVM, for the years ended December 31, 2023, 2022 and 2021 (in millions): Year Ended December 31, 2023 Segment Tangible Products Services and Software Total AIT $ 1,537 $ 114 $ 1,651 EVM 2,128 805 2,933 Total $ 3,665 $ 919 $ 4,584 Year Ended December 31, 2022 Segment Tangible Products Services and Software Total AIT $ 1,728 $ 109 $ 1,837 EVM 3,187 757 3,944 Total $ 4,915 $ 866 $ 5,781 Year Ended December 31, 2021 Segment Tangible Products Services and Software Total AIT $ 1,625 $ 109 $ 1,734 EVM 3,220 679 3,899 Corporate (1) — (6) (6) Total $ 4,845 $ 782 $ 5,627 (1) Amounts included in Corporate consist of purchase accounting adjustments. In addition, refer to Note 20, Segment Information & Geographic Data for Net sales to customers by geographic region. Performance Obligations The Company’s remaining performance obligations relate to repair and support services, as well as software solutions. The aggregated transaction price allocated to remaining performance obligations for arrangements with an original term exceeding one year was $1,127 million and $1,105 million, inclusive of deferred revenue, as of December 31, 2023 and 2022, respectively. On average, remaining performance obligations as of December 31, 2023 and 2022 are expected to be recognized over a period of approximately two years. Contract Balances Progress on satisfying performance obligations under contracts with customers related to billed revenues is reflected on the Consolidated Balance Sheets in Accounts receivable, net. Progress on satisfying performance obligations under contracts with customers related to unbilled revenues (“contract assets”) is reflected on the Consolidated Balance Sheets as Prepaid expenses and other current assets for revenues expected to be billed within the next twelve months, and Other long-term assets for revenues expected to be billed thereafter. The total contract asset balances were $16 million as of December 31, 2023 and 2022. These contract assets result from timing differences between billing and satisfying performance obligations, as well as the impact from the allocation of the transaction price among performance obligations for contracts that include multiple performance obligations. Contract assets are evaluated for impairment and no impairment losses have been recognized during the years ended December 31, 2023, 2022 and 2021. Deferred revenue on the Consolidated Balance Sheets consists of payments and billings in advance of our performance. The combined short-term and long-term deferred revenue balances were $770 million and $758 million as of December 31, 2023 and 2022, respectively. The Company recognized $432 million, $399 million and $319 million in revenue that was previously included in the beginning balance of deferred revenue during the years ended December 31, 2023, 2022 and 2021, respectively. Our payment terms vary by the type and location of our customer and the products, solutions or services offered. The time between invoicing and when payment is due is not significant. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts do not include a significant financing component. Costs to Obtain a Contract |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The categories of Inventories, net are as follows (in millions): December 31, December 31, Raw materials (1) $ 403 $ 369 Work in process 4 4 Finished goods 397 487 Total Inventories, net (2) $ 804 $ 860 (1) Raw material inventories primarily consist of product components as well as supplies used in repair operations. (2) Categories of inventories for the period ended December 31, 2022 include a change to correct an immaterial misclassification without impact to Inventories, net as presented on the Consolidated Balance Sheets. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions | Business Acquisitions Matrox On June 3, 2022, the Company acquired Matrox Electronic Systems Ltd. (“Matrox”), a developer of advanced machine vision components and software. Through its acquisition of Matrox, the Company significantly expanded its machine vision products and software offerings. The acquisition was accounted for under the acquisition method of accounting for business combinations. The Company’s final purchase consideration was $881 million comprised of cash paid, net of Matrox’s cash on-hand. The Company utilized estimated fair values as of the acquisition date to allocate the total purchase consideration to the identifiable assets acquired and liabilities assumed. The fair value of the net assets acquired was based on several estimates and assumptions, as well as customary valuation techniques, primarily the excess earnings method for customer relationships as well as the relief from royalty method for technology and patent intangible assets. The purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Identifiable intangible assets $ 297 Inventory 31 Other assets acquired 24 Deferred tax liabilities (78) Other liabilities assumed (32) Net assets acquired $ 242 Goodwill on acquisition 639 Total purchase price $ 881 The $639 million of goodwill, which is non-deductible for tax purposes, has been allocated to the EVM segment and principally relates to the planned global expansion and integration of Matrox into the Company’s machine vision offerings. The purchase price allocation to identifiable intangible assets acquired was as follows: Fair Value (in millions) Useful Life (in years) Customer and other relationships $ 232 11 Technology and patents 63 7 Trade names 2 2 Total identifiable intangible assets $ 297 Antuit On October 7, 2021, the Company acquired Antuit Holdings Pte. Ltd. (“Antuit”), a provider of demand-sensing and pricing optimization software solutions for retail and consumer products companies. Through this acquisition, the Company intends to enhance its solution offerings to customers in these industries by combining Antuit’s platform with its existing software solutions and EVM products. The acquisition was accounted for under the acquisition method of accounting for business combinations. The Company’s purchase consideration was $145 million in cash paid, net of Antuit’s cash on-hand. The Company utilized estimated fair values as of the acquisition date to allocate the total purchase consideration to the identifiable assets acquired and liabilities assumed. The fair value of the net assets acquired was based on several estimates and assumptions, as well as customary valuation techniques, primarily the excess earnings method for technology and patent intangible assets. The purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Identifiable intangible assets $ 47 Accounts receivable 9 Other assets acquired 4 Deferred tax liabilities (5) Other liabilities assumed (11) Net assets acquired $ 44 Goodwill on acquisition 101 Total purchase price $ 145 The $101 million of goodwill, which is non-deductible for tax purposes, has been allocated to the EVM segment and principally relates to the planned expansion of Antuit’s portfolio and integration with the Company’s existing solution offerings as well as expansion into current and new markets, industries and product offerings. The purchase price allocation to identifiable intangible assets acquired was as follows: Fair Value (in millions) Useful Life (in years) Technology and patents $ 39 8 Customer and other relationships 7 2 Trade names 1 2 Total identifiable intangible assets $ 47 Fetch On August 9, 2021, the Company acquired Fetch Robotics, Inc. (“Fetch”), a provider of autonomous mobile robot solutions for customers who operate in the manufacturing, distribution, and fulfillment industries, enabling customers to optimize workflows through robotic automation. Through this acquisition, the Company intends to expand its automation solution offerings within these industries. The acquisition was accounted for under the acquisition method of accounting for business combinations. The Company’s total purchase consideration was $301 million, which consisted of $290 million in cash paid, net of Fetch’s cash on-hand, and the fair value of the Company’s existing ownership interest in Fetch of $11 million, as remeasured upon acquisition. This remeasurement resulted in a $1 million gain reflected in Other (expense) income, net on the Consolidated Statements of Operations. The Company utilized estimated fair values as of the acquisition date to allocate the total purchase consideration to the identifiable assets acquired and liabilities assumed. The fair value of the net assets acquired was based on several estimates and assumptions, as well as customary valuation techniques, primarily the excess earnings method for technology and patent intangible assets. The purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Identifiable intangible assets $ 114 Right-of-use lease asset 11 Inventories 5 Deferred tax assets 6 Other assets acquired 4 Lease liability (11) Other liabilities assumed (4) Net assets acquired $ 125 Goodwill on acquisition 176 Total purchase price $ 301 The $176 million of goodwill, which is non-deductible for tax purposes, has been allocated to the EVM segment and principally relates to the planned geographic expansion and integration of Fetch into the Company’s manufacturing and warehouse automation offerings. The purchase price allocation to identifiable intangible assets acquired was as follows: Fair Value (in millions) Useful Life (in years) Technology and patents $ 100 7 Customer and other relationships 5 2 Trade names 9 5 Total identifiable intangible assets $ 114 In connection with the acquisition of Fetch, the Company granted share-based compensation awards, principally as a replacement for unvested Fetch stock options, in the form of stock-settled restricted stock units. The total fair value of approximately $23 million is attributable to post-acquisition service and will generally be expensed over a three-year service period. Adaptive Vision On May 17, 2021, the Company acquired Adaptive Vision Sp. z o.o. (“Adaptive Vision”), a provider of graphical machine vision software with applications in the manufacturing industry, as well as a provider of libraries and other offerings for machine vision developers. The acquisition was accounted for under the acquisition method of accounting for business combinations. The Company’s cash purchase consideration of $18 million, net of cash on-hand, was primarily allocated to technology-related intangible assets of $13 million and associated deferred tax liabilities, and goodwill of $7 million. The goodwill, which is non-deductible for tax purposes, has been allocated to the EVM segment and principally relates to the planned expansion of the Adaptive Vision technologies into new product offerings and markets. The operating results of each acquired company have been included in the Company’s Consolidated Balance Sheets and Statements of Operations beginning on their respective acquisition dates. The Company has not included unaudited pro forma results for the year preceding each acquisition, as doing so would not yield materially different results. Acquisition and integration costs The Company incurred $6 million, $21 million and $25 million of acquisition related costs during the years ended December 31, 2023, 2022 and 2021 , respectively. These costs are included within Acquisition and integration costs on the Consolidated Statements of Operations and are primarily related to third-party transaction and advisory fees, and integration activities associated with our business acquisitions . |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill Changes in the net carrying value of goodwill by segment were as follows (in millions): AIT EVM Total Goodwill as of December 31, 2021 $ 169 $ 3,096 $ 3,265 Matrox acquisition — 640 640 Fetch purchase price allocation adjustments — 2 2 Antuit purchase price allocation adjustments — (4) (4) Foreign exchange impact — (4) (4) Goodwill as of December 31, 2022 $ 169 $ 3,730 $ 3,899 Advanced location technology business move to AIT, effective April 2, 2023 60 (60) — Matrox purchase price allocation adjustments — (1) (1) Foreign exchange impact — (3) (3) Goodwill as of December 31, 2023 $ 229 $ 3,666 $ 3,895 See Note 5, Business Acquisitions for further details related to the Company’s acquisitions and purchase price allocation adjustments. The Company’s goodwill balance consists of four reporting units. The Company completed its annual goodwill impairment testing during the fourth quarter of 2023 utilizing a quantitative approach. The estimated fair value of each reporting unit exceeded its carrying value by at least 40%. No events occurred during the fiscal years ended 2023, 2022 or 2021 that indicated it was more likely than not that our goodwill was impaired. Other Intangibles, net The balances in Other Intangibles, net consisted of the following (in millions): As of December 31, 2023 As of December 31, 2022 Gross Carrying Amount Accumulated Net Gross Carrying Amount Accumulated Net Amortized intangible assets Technology and patents $ 951 $ (680) $ 271 $ 951 $ (621) $ 330 Customer and other relationships 861 (615) 246 860 (576) 284 Trade names 66 (56) 10 66 (50) 16 Total $ 1,878 $ (1,351) $ 527 $ 1,877 $ (1,247) $ 630 Amortization expense was $104 million, $136 million and $115 million for fiscal years ended 2023, 2022 and 2021, respectively. Estimated future intangible asset amortization expense is as follows (in millions): Year Ended December 31, 2024 $ 101 2025 95 2026 92 2027 77 2028 60 Thereafter 102 Total $ 527 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, net is comprised of the following (in millions): December 31, 2023 2022 Buildings $ 86 $ 75 Land 8 7 Machinery and equipment 343 318 Furniture and office equipment 34 24 Software and computer equipment 104 125 Leasehold improvements 112 88 Projects in progress 44 48 Property, plant and equipment, gross $ 731 $ 685 Less accumulated depreciation (422) (407) Property, plant and equipment, net $ 309 $ 278 Depreciation expense was $72 million, $68 million and $72 million for the years ended December 31, 2023, 2022 and 2021, respectively. The Company retired a significant level of substantially depreciated assets in the current year. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments |
Exit and Restructuring Costs
Exit and Restructuring Costs | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Exit and Restructuring Costs | Exit and Restructuring Costs In the current year, the Company expanded the scope of the 2022 Productivity Plan and also initiated a voluntary retirement plan (“VRP”) applicable to retirement-eligible U.S. employees. Employees who participated in the VRP agreed to retire in 2023 in exchange for cash severance and other benefits. During the first quarter of 2024, the Company committed to additional actions under the 2022 Productivity Plan which will bring the total expected cost of the programs to approximately $130 million. Total charges associated with these programs, which are classified within Exit and restructuring on the Consolidated Statements of Operations, were $110 million to date, including $98 million and $12 million for the years ended December 31, 2023 and 2022, respectively. The actions under the VRP have been completed in the current year and the remaining actions under the 2022 Productivity Plan are expected to be substantially completed in the first half of 2024. The Company’s payment obligations as of December 31, 2023 are reflected within Accrued liabilities on the Consolidated Balance Sheets. These obligations are expected to be settled by the first quarter of 2024. The Company’s liability associated with Exit and restructuring was: Balance as of December 31, 2022 $ 9 Exit and restructuring charges 98 Non-cash utilization (13) Cash payments (72) Balance as of December 31, 2023 $ 22 The Company incurred Exit and restructuring costs, under previously announced programs of $2 million and $7 million for the years ended December 31, 2022 and 2021, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial assets and liabilities are measured using inputs from three levels of the fair value hierarchy in accordance with ASC Topic 820, Fair Value Measurements . Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into the following three broad levels: • Level 1: Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs (e.g. U.S. Treasuries and money market funds). • Level 2: Observable prices that are based on inputs not quoted in active markets but corroborated by market data. • Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs. In addition, the Company considers counterparty credit risk in the assessment of fair value. The Company’s financial assets and liabilities carried at fair value as of December 31, 2023 are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Forward interest rate swap contracts (2) $ — $ 83 $ — $ 83 Investments related to the deferred compensation plan 41 — — 41 Total Assets at fair value $ 41 $ 83 $ — $ 124 Liabilities: Foreign exchange contracts (1) $ 1 $ 6 $ — $ 7 Forward interest rate swap contracts (2) — 28 — 28 Liabilities related to the deferred compensation plan 41 — — 41 Total Liabilities at fair value $ 42 $ 34 $ — $ 76 The Company’s financial assets and liabilities carried at fair value as of December 31, 2022 are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Forward interest rate swap contracts (2) $ — $ 72 $ — $ 72 Investments related to the deferred compensation plan 35 — — 35 Total Assets at fair value $ 35 $ 72 $ — $ 107 Liabilities: Foreign exchange contracts (1) $ 5 $ 14 $ — $ 19 Liabilities related to the deferred compensation plan 35 — — 35 Total Liabilities at fair value $ 40 $ 14 $ — $ 54 (1) The fair value of the foreign exchange contracts is calculated as follows: • Fair value of forward contracts associated with forecasted sales hedges is calculated using the period-end exchange rate adjusted for current forward points. • Fair value of hedges against net assets denominated in foreign currencies is calculated at the period-end exchange rate adjusted for current forward points unless the hedge has been traded but not settled at year end (Level 2). If this is the case, the fair value is calculated at the rate at which the hedge is being settled (Level 1). (2) |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments In the normal course of business, the Company is exposed to global market risks, including the effects of changes in foreign currency exchange rates and interest rates. The Company uses derivative instruments to manage its exposure to such risks and may elect to designate certain derivatives as hedging instruments under ASC Topic 815, Derivatives and Hedging (“ASC 815”). The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions. The Company does not hold or issue derivatives for trading or speculative purposes. In accordance with ASC 815, the Company recognizes derivative instruments as either assets or liabilities on the Consolidated Balance Sheets and measures them at fair value. The following table presents the fair value of its derivative instruments (in millions): Asset (Liability) Fair Values as of December 31, Balance Sheets Classification 2023 2022 Derivative instruments designated as hedges: Foreign exchange contracts Accrued liabilities $ (6) $ (14) Total derivative instruments designated as hedges $ (6) $ (14) Derivative instruments not designated as hedges: Forward interest rate swaps Prepaid expenses and other current assets $ 34 $ 25 Forward interest rate swaps Other long-term assets 49 47 Foreign exchange contracts Accrued liabilities (1) (5) Forward interest rate swaps Accrued liabilities (12) — Forward interest rate swaps Other long-term liabilities (16) — Total derivative instruments not designated as hedges $ 54 $ 67 Total net derivative asset $ 48 $ 53 The following table presents the net (losses) gains from changes in fair values of derivatives that are not designated as hedges (in millions): (Losses) Gains Recognized in Income Statements of Operations Classification Year Ended December 31, 2023 2022 2021 Derivative instruments not designated as hedges: Foreign exchange contracts Foreign exchange loss $ (4) $ 2 $ 7 Forward interest rate swaps Interest (expense) income, net 9 83 13 Total net gain recognized in income $ 5 $ 85 $ 20 Activities related to derivative instruments are reflected within Net cash (used in) provided by operating activities on the Consolidated Statements of Cash Flows. Credit and Market Risk Management Financial instruments, including derivatives, expose the Company to counterparty credit risk of nonperformance and to market risk related to currency exchange rate and interest rate fluctuations. The Company manages its exposure to counterparty credit risk by establishing minimum credit standards, diversifying its counterparties, and monitoring its concentrations of credit. The Company’s counterparties are commercial banks with expertise in derivative financial instruments. The Company evaluates the impact of market risk on the fair value and cash flows of its derivative and other financial instruments by considering reasonably possible changes in interest rates and currency exchange rates. The Company continually monitors the creditworthiness of the customers to which it grants credit terms in the normal course of business. The terms and conditions of the Company’s credit policies are designed to mitigate concentrations of credit risk. The Company’s master netting and other similar arrangements with the respective counterparties allow for net settlement under certain conditions, which are designed to reduce credit risk by permitting net settlement with the same counterparty. We present the assets and liabilities of our derivative financial instruments, for which we have net settlement agreements in place, on a net basis on the Consolidated Balance Sheets. If the derivative financial instruments had been presented gross on the Consolidated Balance Sheets, the asset and liability positions would have been increased by $1 million and $4 million as of December 31, 2023 and December 31, 2022, respectively. Foreign Currency Exchange Risk Management The Company conducts business on a multinational basis in a variety of foreign currencies. Exposure to market risk for changes in foreign currency exchange rates arises primarily from Euro-denominated external revenues, cross-border financing activities between subsidiaries, and foreign currency denominated monetary assets and liabilities. The Company manages its objective of preserving the economic value of non-functional currency denominated cash flows by initially hedging transaction exposures with natural offsets and, once these opportunities have been exhausted, through foreign exchange forward and option contracts, as deemed appropriate. The Company manages the exchange rate risk of anticipated Euro-denominated sales using forward contracts, which typically mature within twelve months of execution. The Company designates these derivative contracts as cash flow hedges. Unrealized gains and losses on these contracts are deferred in Accumulated other comprehensive income (loss) (“AOCI”) on the Consolidated Balance Sheets until the contract is settled and the hedged sale is realized. The realized gain or loss is then recorded as an adjustment to Net sales on the Consolidated Statements of Operations. Realized amounts reclassified to Net sales The Company uses forward contracts, which are not designated as hedging instruments, to manage its exposures related to net assets denominated in foreign currencies. These forward contracts typically mature within one month after execution. Monetary gains and losses on these forward contracts are recorded in income and are generally offset by the transaction gains and losses related to their net asset positions. The notional values and the net fair values of these outstanding contracts were as follows (in millions): December 31, 2023 2022 Notional balance of outstanding contracts: British Pound/U.S. Dollar £ 11 £ 11 Euro/U.S. Dollar € 80 € 191 Euro/Czech Koruna € 17 € 15 Japanese Yen/U.S. Dollar ¥ 685 ¥ — Singapore Dollar/U.S. Dollar S$ 14 S$ 5 Mexican Peso/U.S. Dollar Mex$ 144 Mex$ 372 Polish Zloty/U.S. Dollar zł 116 zł 47 Net fair value of liabilities of outstanding contracts $ 1 $ 5 Interest Rate Risk Management The Company’s debt consists of borrowings under a term loan (“Term Loan A”), Revolving Credit Facility, and Receivables Financing Facilities, which bear interest at variable rates plus applicable margins. As a result, the Company is exposed to market risk associated with the variable interest rate payments on these borrowings. See Note 12, Long-Term Debt for further details related to these borrowings. The Company manages its exposure to changes in interest rates by utilizing long-term forward interest rate swaps to hedge this exposure and to achieve a desired proportion of fixed versus variable-rate debt, based on current and projected market conditions. The Company has interest rate swap agreements with a total notional amount of $800 million to lock into a fixed SOFR interest rate base, which are subject to monthly net cash settlements effective through October 2027. In the second quarter, the Company entered into new interest rate swap agreements that contain a total notional amount of $400 million to lock into a variable interest rate base designed to offset a portion of the Company’s existing swap agreements. These agreements are subject to monthly cash settlements effective through October 2027. At the same time, the Company entered into additional new interest rate swap agreements that contain a total notional amount of $400 million to lock into a fixed SOFR interest rate base, which are subject to monthly cash settlements effective through June 2030. As a result of these transactions, the Company maintained fixed interest rates on a total notional amount of $800 million through October 2027 and a total notional amount of $400 million through June 2030. There was no cash settlement, or significant impact on the Consolidated Statement of Operations upon entering into these agreements. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following table shows the carrying value of the Company’s debt (in millions): December 31, 2023 2022 Term Loan A $ 1,684 $ 1,728 Revolving Credit Facility 413 50 Receivables Financing Facilities 129 254 Total debt $ 2,226 $ 2,032 Less: Debt issuance costs (2) (4) Less: Unamortized discounts (4) (5) Less: Current portion of debt (173) (214) Total long-term debt $ 2,047 $ 1,809 As of December 31, 2023, the future maturities of debt are as follows (in millions): 2024 $ 173 2025 66 2026 87 2027 1,900 Total future maturities of debt $ 2,226 All borrowings as of December 31, 2023 were denominated in U.S. Dollars. The estimated fair value of the Company’s debt approximated $2.2 billion and $2.0 billion as of December 31, 2023 and 2022, respectively. These fair value amounts, developed based on inputs classified as Level 2 within the fair value hierarchy, represent the estimated value at which the Company’s lenders could trade its debt within the financial markets and do not represent the settlement value of these liabilities to the Company. The fair value of debt will continue to vary each period based on a number of factors, including fluctuations in market interest rates as well as changes to the Company’s credit ratings. In May 2022, the Company refinanced its long-term credit facilities by entering into its third amendment to the Amended and Restated Credit Agreement, which increased the Company’s borrowing under Term Loan A from $875 million to $1.75 billion and the Company’s borrowing capacity under the Revolving Credit Facility from $1 billion to $1.5 billion, extended the maturities of the facilities to May 25, 2027, and replaced LIBOR with SOFR as the benchmark reference rate. Term Loan A The principal on Term Loan A is due in quarterly installments, with the next quarterly installment due in March 2024 and the majority due upon maturity in 2027. The Company may make prepayments, in whole or in part, without premium or penalty, and would be required to prepay certain outstanding amounts in the event of certain circumstances or transactions. As of December 31, 2023, the Term Loan A interest rate was 6.71%. Interest payments are made monthly and are subject to variable rates plus an applicable margin. Revolving Credit Facility The Company has a Revolving Credit Facility that is available for working capital and other general business purposes, including letters of credit. As of December 31, 2023, the Company had letters of credit totaling $11 million, which reduced funds available for borrowings under the Revolving Credit Facility from $1,500 million to $1,489 million. As of December 31, 2023, the Revolving Credit Facility had an average interest rate of 6.66%. Upon borrowing, interest payments are made monthly and are subject to variable rates plus an applicable margin. The Revolving Credit Facility matures on May 25, 2027. Receivables Financing Facilities The Company has two Receivables Financing Facilities with financial institutions that have a combined total borrowing limit of up to $280 million. As collateral, the Company pledges perfected first-priority security interests in its U.S. domestically originated accounts receivable. The Company has accounted for transactions under its facilities as secured borrowings. The Company’s first facility allows for borrowings of up to $180 million and matures on March 19, 2024. The Company’s second facility allows for borrowings of up to $100 million and matures on May 13, 2024. As of December 31, 2023, the Company’s Consolidated Balance Sheets included $483 million of gross receivables that were pledged under the facilities. As of December 31, 2023, $129 million had been borrowed and was classified as current. Borrowings under the facilities bear interest at a variable rate plus an applicable margin. As of December 31, 2023, the facilities had an average interest rate of 6.81%. Interest is paid monthly on these borrowings. Each of the Company’s borrowings described above include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. The Company uses interest rate swaps to manage the interest rate risk associated with its debt. See Note 11, Derivative Instruments for further information. As of December 31, 2023, the Company was in compliance with all debt covenants. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases various manufacturing and repair facilities, distribution centers, research facilities, sales and administrative offices, equipment, and vehicles. All leases are classified as operating leases with remaining terms of up to 10 years, with certain leases containing renewal options and termination options. The Company records ROU assets and lease liabilities on the Consolidated Balance Sheets associated with the fixed lease and non-lease payments of leases with terms greater than one year. The following table presents activities associated with our leases (in millions): December 31, 2023 2022 2021 Fixed lease expenses $ 52 $ 48 $ 39 Variable lease expenses 35 40 37 Total lease expenses $ 87 $ 88 $ 76 Cash paid for leases $ 82 $ 93 $ 76 ROU assets obtained in exchange for lease obligations $ 55 $ 72 $ 32 Reductions of ROU assets and lease liabilities (1) (4) — Net non-cash increases to ROU assets and lease liabilities $ 54 $ 68 $ 32 Variable lease expenses incurred were not included in the measurement of the Company’s ROU assets and lease liabilities. These expenses consisted primarily of distribution center service costs that were based on product distribution volumes, as well as non-fixed common area maintenance, real estate taxes, and other operating costs associated with various facility leases. Expenses related to short-term leases were not significant. Cash payments for leases are included within Net cash (used in) provided by operating activities on the Consolidated Statements of Cash Flows. ROU assets obtained in exchange for lease obligations include new lease arrangements entered into by the Company as well as contract modifications that extend lease terms and/or provide us additional rights, changes in assessments that render it reasonably certain that lease renewal options will be exercised based on facts and circumstances that arose during the period, as well as lease arrangements obtained through acquisitions. Reductions of the Company’s ROU assets and lease liabilities generally relate to modifications to lease agreements that result in a reduction to future minimum lease payments, as well as changes in assessments that render it no longer reasonably certain that lease renewal options will be exercised based on facts and circumstances that arose during the period. The Company’s reduction of ROU assets and lease liabilities during 2023, 2022 and 2021 were not significant. The weighted average remaining term of the Company’s leases was approximately 6 years each as of December 31, 2023, 2022 and 2021. The weighted average discount rate used to measure the ROU assets and lease liabilities was approximately 6% as of December 31, 2023, and 5% as of December 31, 2022 and 2021. Future minimum lease payments under non-cancellable leases as of December 31, 2023 were as follows (in millions): 2024 $ 53 2025 43 2026 35 2027 27 2028 21 Thereafter 58 Total future minimum lease payments $ 237 Less: Interest (43) Present value of lease liabilities $ 194 Reported as of December 31, 2023: Current portion of lease liabilities $ 42 Long-term lease liabilities 152 Present value of lease liabilities $ 194 The current portion of lease liabilities is included within Accrued liabilities |
Accrued Liabilities, Commitment
Accrued Liabilities, Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Accrued Liabilities, Commitments and Contingencies | Accrued Liabilities, Commitments and Contingencies Accrued Liabilities The components of Accrued liabilities are as follows (in millions): December 31, 2023 2022 Unremitted cash collections due to banks on factored accounts receivable $ 112 $ 130 Payroll and benefits 83 90 Settlement 45 180 Current portion of lease liabilities 42 37 Customer rebates 40 55 Incentive compensation 47 107 Warranty 27 26 Exit and restructuring 22 9 Freight and duty 10 19 Foreign exchange contracts 7 19 Other 69 72 Accrued liabilities $ 504 $ 744 Warranties The following table is a summary of the Company’s accrued warranty obligations (in millions): Year Ended December 31, Warranty Reserve 2023 2022 2021 Balance at the beginning of the year $ 26 $ 26 $ 24 Warranty expense 29 29 33 Warranties fulfilled (28) (29) (31) Balance at the end of the year $ 27 $ 26 $ 26 Commitments The Company has a limited number of multi-year purchase commitments, primarily related to semiconductors and cloud services, which contain minimum purchase requirements and are non-cancellable. Commitments under these multi-year contracts, which exclude routine purchase orders for goods and services, are as follows (in millions): 2024 $ 31 2025 46 2026 47 Thereafter — Total $ 124 We record a liability for non-cancellable purchase commitments for quantities in excess of our forecasted demand consistent with the assessment of net realizable value of our inventory. As of December 31, 2023 , the liability for these purchase commitments wa s $11 million and is included within Current liabilities on the Consolidated Balance Sheets. In addition, the Company recorded a $10 million charge in the current year, associated with the partial cancellation of a purchase commitment, which is also included within Current liabilities on the Consolidated Balance Sheets as of December 31, 2023. There were no significant liabilities related to purchase commitments as of December 31, 2022. Contingencies The Company is subject to a variety of investigations, claims, suits, and other legal proceedings that arise from time to time in the ordinary course of business, including but not limited to, intellectual property, employment, tort, and breach of contract matters. The Company currently believes that the outcomes of such proceedings, individually and in the aggregate, will not have a material adverse impact on its business, cash flows, financial position, or results of operations. Any legal proceedings are subject to inherent uncertainties, and the Company’s view of these matters and their potential effects may change in the future. The Company records a liability for contingencies when a loss is deemed to be probable and the loss can be reasonably estimated. During the second quarter of 2022, the Company entered into a License and Settlement Agreement (“Settlement”) to resolve certain patent-related litigation. The payment terms under the Settlement consisted of 8 quarterly payments of $45 million that began in the second quarter of 2022. The final remaining quarterly payment will be paid in the first quarter of 2024 and is included within Accrued liabilities on the Consolidated Balance Sheets. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company issues share-based compensation awards under the Zebra Technologies 2018 Long-Term Incentive Plan (“2018 Plan”), approved by shareholders in 2018 which superseded and replaced all prior share-based incentive plans. Outstanding awards issued prior to the 2018 Plan are governed by the provisions of those plans until such awards have been exercised, forfeited, cancelled, expired, or otherwise terminated in accordance with their terms. Awards available under the 2018 Plan include stock-settled awards, including stock-settled restricted stock units, stock-settled performance stock units, restricted stock awards, performance share awards, stock appreciation rights, incentive stock options, and non-qualified stock options. Awards available under the 2018 Plan also include cash-settled awards, including cash-settled stock appreciation rights, cash-settled restricted stock units, and cash-settled performance stock units. No awards remain available for future grants under previous plans. The Company uses treasury shares as its source for issuing shares under the share-based compensation programs. As of December 31, 2023, the Company had 2,274,779 shares of Class A Common stock remaining available to be issued under the 2018 Plan. The compensation expense from the Company’s share-based compensation plans and associated income tax benefit, excluding the effects of excess tax benefits or shortfalls, were included in the Consolidated Statements of Operations as follows (in millions): Year Ended December 31, Compensation costs and related income tax benefit 2023 2022 2021 Cost of sales $ 6 $ 6 $ 8 Selling and marketing 16 22 26 Research and development 25 34 28 General and administration 19 34 31 Total compensation expense $ 66 $ 96 $ 93 Income tax benefit $ 13 $ 17 $ 14 As of December 31, 2023, total unearned compensation cost related to the Company’s share-based compensation plans was $92 million, which will be recognized over the weighted average remaining service period of approximately 1.4 years. The majority of the Company’s share-based compensation awards are generally issued as part of its employee and non-employee director incentive program during the second quarter of each fiscal year. The Company also issues awards associated with business acquisitions or other off-cycle events. The majority of the Company’s share-based compensation is comprised of stock-settled awards. Stock-settled awards Beginning in 2021, the Company began issuing stock-settled restricted stock units (“stock-settled RSUs”) and stock-settled performance share units (“stock-settled PSUs”) for the majority of its share-based compensation awards. Prior to 2021, the Company primarily awarded restricted stock awards (“RSAs”) and performance share awards (“PSAs”). The Company’s awards are typically time-vested with stock-settled RSUs and RSAs vesting ratably in three Vesting for each participant is subject to restrictions, such as continuous employment, except in certain cases as set forth in each stock agreement. Upon vesting, stock-settled RSUs and PSUs convert to shares of Class A Common Stock that are released to participants. RSAs and PSAs are considered participating securities, and as such, are included as part of the Company’s Class A Common Stock outstanding at the time of grant. Compensation cost for the stock-settled RSUs, stock-settled PSUs, RSAs, and PSAs is expensed over each participant’s required service period. Compensation cost is calculated as the fair market value of the Company’s Class A Common Stock on the grant date multiplied by the number of units or awards granted, net of estimated forfeitures. The expected attainment of the performance goals for the stock-settled PSUs and PSAs is reviewed at the end of each reporting period, with adjustments recorded to compensation expense in the Consolidated Statements of Operations, as necessary. The Company also issues RSAs to non-employee directors. The number of shares granted to each non-employee director is determined by dividing the value of the annual grant by the price of a share of the Company’s Class A Common Stock. New directors in any fiscal year earn a prorated amount. During fiscal 2023, there were 6,640 shares granted to non-employee directors compared to 5,686 and 2,877 during fiscal 2022 and 2021, respectively. The shares vest immediately upon grant. A summary of the Company’s restricted and performance stock-settled awards for the years ended December 31, 2023, 2022 and 2021 is as follows: Year Ended December 31, 2023 RSUs PSUs RSAs PSAs Units Weighted-Average Grant Date Fair Value Units Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 242,732 $ 404.19 105,928 $ 406.89 46,971 $ 271.92 35,246 $ 245.79 Granted 336,168 260.31 104,620 258.57 6,640 271.77 — — Released (95,837) 412.47 (64) 482.42 (51,695) 267.66 (35,171) 245.82 Forfeited (1) (45,684) 332.66 (14,552) 313.74 (1,483) 335.98 (75) 244.97 Outstanding at end of year 437,379 $ 299.19 195,932 $ 334.59 433 $ 477.74 — $ — (1) The increase in forfeitures for RSUs and PSUs as compared to previous years was primarily due to the Company’s 2022 Productivity Plan and VRP. Year Ended December 31, 2022 RSUs PSUs RSAs PSAs Units Weighted-Average Grant Date Fair Value Units Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 130,009 $ 518.80 37,691 $ 482.42 154,322 $ 253.54 74,032 $ 225.34 Granted 181,351 359.02 70,777 367.16 6,122 321.03 — — Released (48,095) 518.64 (226) 482.42 (104,891) 248.36 (38,671) 206.62 Forfeited (20,533) 463.11 (2,314) 410.80 (8,582) 259.93 (115) 244.62 Outstanding at end of year 242,732 $ 404.19 105,928 $ 406.89 46,971 $ 271.92 35,246 $ 245.79 Year Ended December 31, 2021 RSUs PSUs RSAs PSAs Units Weighted-Average Grant Date Fair Value Units Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year — $ — — $ — 318,565 $ 228.08 126,022 $ 199.77 Granted 134,419 518.39 38,393 482.42 6,005 486.02 — — Released (674) 489.16 — — (159,702) 212.33 (49,236) 160.11 Forfeited (3,736) 509.58 (702) 482.42 (10,546) 239.78 (2,754) 236.18 Outstanding at end of year 130,009 $ 518.80 37,691 $ 482.42 154,322 $ 253.54 74,032 $ 225.34 Stock Appreciation Rights (“SARs”) SARs were previously granted primarily as part of the Company’s annual share-based compensation incentive program. Beginning in 2021, the Company no longer included SARs in its annual share-based compensation award issuances and did not issue any SARs during the years ended December 31, 2023, 2022 or 2021. The total fair value of SARs granted during the year ended December 31, 2020 was $6 million, which was estimated on the respective dates of grant using a binomial model. A summary of the Company’s SARs is as follows: 2023 2022 2021 SARs Weighted-Average Grant Date Exercise Price SARs Weighted-Average Grant Date Exercise Price SARs Weighted-Average Grant Date Exercise Price Outstanding at beginning of year 443,476 $ 122.67 474,151 $ 121.05 638,124 $ 113.98 Granted — — — — — — Exercised (42,957) 99.39 (28,659) 88.35 (159,035) 89.87 Forfeited (976) 244.15 (1,987) 229.46 (4,938) 213.80 Expired (705) 78.54 (29) 205.12 — — Outstanding at end of year 398,838 $ 124.96 443,476 $ 122.67 474,151 $ 121.05 Exercisable at end of year 385,305 $ 120.35 400,351 $ 110.14 383,273 $ 97.29 The following table summarizes information about SARs outstanding as of December 31, 2023: Outstanding Exercisable Aggregate intrinsic value (in millions) $ 60 $ 59 Weighted-average remaining contractual life (in years) 1.7 1.7 The intrinsic value of SARs exercised during fiscal 2023, 2022 and 2021 was $8 million, $8 million and $69 million, respectively. The total fair value of SARs that vested during fiscal 2023, 2022 and 2021 was $2 million, $3 million and $5 million, respectively. Cash-settled awards The Company also issues cash-settled share-based compensation awards, including cash-settled stock appreciation rights, cash-settled restricted stock units and cash-settled performance stock units that are classified as liability awards. These awards are expensed over the vesting period of the related award, which is typically three years. Compensation cost is calculated as the fair value on grant date multiplied by the number of share-equivalents granted. The expected attainment of the performance goals for the cash-settled performance stock units is reviewed at the end of each reporting period, with adjustments recorded to compensation expense in the Consolidated Statements of Operations, as necessary. Cash settlement is based on the fair value of share equivalents at the time of vesting, which was $9 million, $5 million and $11 million in 2023, 2022 and 2021, respectively. Share-equivalents issued under these programs totaled 45,460, 66,923 and 11,644 in fiscal 2023, 2022 and 2021, respectively. Employee Stock Purchase Plan Eligible Zebra employees may purchase common stock at 95% of the fair market value at the date of purchase pursuant to the Zebra Technologies Corporation 2020 Employee Stock Purchase Plan (“2020 ESPP”). Employees may make purchases by cash or payroll deductions up to certain limits. The aggregate number of shares that may be purchased under the 2020 ESPP is 1,500,000 shares. As of December 31, 2023, 1,342,239 shares remained available for future purchase. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The geographical sources of income (loss) before income taxes were as follows (in millions): Year Ended December 31, 2023 2022 2021 U.S. $ 167 $ (69) $ 328 Outside U.S. 167 613 640 Total $ 334 $ 544 $ 968 Income tax expense (benefit) consisted of the following (in millions): Year Ended December 31, 2023 2022 2021 Current: Federal $ 2 $ 141 $ 63 State 8 22 12 Foreign 63 126 124 Total current $ 73 $ 289 $ 199 Deferred: Federal (5) (168) (48) State (7) (22) (12) Foreign (23) (18) (8) Total deferred $ (35) $ (208) $ (68) Total $ 38 $ 81 $ 131 The Company’s effective tax rates were 11.4%, 14.9% and 13.5% for the years ended December 31, 2023, 2022 and 2021, respectively. A reconciliation of the U.S. federal statutory income tax rate to our actual income tax rate is provided below: Year Ended December 31, 2023 2022 2021 Provision computed at statutory rate 21.0 % 21.0 % 21.0 % Remeasurement of deferred taxes (2.4) (0.4) (1.0) Change in valuation allowance 2.3 0.1 (0.1) U.S. impact of Enterprise acquisition 0.3 0.4 0.3 Change in contingent income tax reserves 0.4 (0.3) (0.2) Foreign earnings subject to U.S. taxation (5.3) (3.5) (2.0) Foreign rate differential (0.1) (3.4) (1.7) State income tax, net of federal tax benefit 0.5 (0.5) 0.3 Tax credits (5.5) (3.1) (2.0) Equity compensation deductions 0.4 (0.1) (2.4) Return to provision and other true ups (1.8) 1.5 (0.9) Settlements with tax authorities 0.3 2.0 0.0 Permanent differences and other 1.3 1.2 2.2 Provision for income taxes 11.4 % 14.9 % 13.5 % For the year ended December 31, 2023, the Company’s effective tax rate was lower than the federal statutory rate of 21% primarily due to the tax benefit related to foreign earnings subject to U.S. taxation, remeasurements of deferred taxes, and the generation of tax credits. For the year ended December 31, 2022, the Company’s effective tax rate was lower than the federal statutory rate of 21% due to lower tax rates in foreign jurisdictions, the generation of tax credits and the favorable impacts of foreign earnings subject to U.S. taxation. For the year ended December 31, 2021, the Company’s effective tax rate was lower than the federal statutory rate of 21% primarily due to lower tax rates in foreign jurisdictions, the generation of tax credits and the favorable impacts of share-based compensation benefits. In December of 2021, the Organization for Economic Co-operation and Development (“OECD”) released Pillar Two Model Rules defining the global minimum tax rules, which contemplate a global minimum tax rate of 15%. Several member countries have enacted Pillar Two provisions that are effective in 2024. The Company believes it will qualify for safe harbor exemptions in many of these jurisdictions and any remaining impact to future effective tax rates and corporate tax liability will be minimal. The Company earns a significant amount of its operating income outside of the U.S. that is taxed at rates different than the U.S. federal statutory rate. The Company’s principal foreign jurisdictions that provide sources of operating income are the U.K. and Singapore. The Company had an incentivized tax rate from the Singapore Economic Development Board, which reduced the income tax rate in that jurisdiction effective for calendar years 2019 to 2023. The Company has not renewed the incentivized tax rate for future years, which did not have a significant impact on our current year effective tax rate nor is it expected to have a significant impact on future year effective tax rates. Tax effects of temporary differences that resulted in deferred tax assets and liabilities are as follows (in millions): December 31, 2023 2022 Deferred tax assets: Capitalized research expenditures $ 225 $ 138 Deferred revenue 76 93 Tax credits 43 32 Net operating loss carryforwards 435 432 Other accruals 38 31 Inventory items 23 21 Sales return/rebate reserve 42 81 Share-based compensation expense 15 14 Legal accrual 13 55 Lease liabilities 23 23 Valuation allowance (422) (420) Total deferred tax assets $ 511 $ 500 Deferred tax liabilities: Depreciation and amortization 103 127 Unrealized gains and losses on securities and investments 11 12 Undistributed earnings 2 2 Right of use lease assets 19 20 Other 5 7 Total deferred tax liabilities $ 140 $ 168 Net deferred tax assets $ 371 $ 332 For tax years beginning in 2022, the Tax Cuts and Jobs Act of 2017 imposed a requirement that all R&D expenses be capitalized and amortized for U.S. tax purposes. The effect of this new provision is an increase of approximately $100 million and $130 million to deferred tax assets for the years ended December 31, 2023 and 2022, respectively, with corresponding increases to the current tax liabilities. The Company’s valuation allowance primarily relates to Luxembourg reorganization activities in 2019, which had resulted in the realization of deferred tax liabilities and a corresponding increase in valuation allowances related to depreciation and amortization. The Company’s valuation allowance also consists of certain net operating loss (“NOL”) and credit carryforwards for which the Company believes it is more likely than not that a tax benefit will not be realized. With respect to all other deferred tax assets, the Company believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize a tax benefit. There were no significant adjustments to the Company’s valuation allowance during the year ended December 31, 2023. As of December 31, 2023, the Company had approximately $435 million (tax effected) of “NOLs” and $43 million of credit carryforwards. Approximately $171 million of NOLs will expire beginning in 2024 through 2039, and $34 million of credits will expire beginning in 2024 through 2041, with the remaining amounts of NOLs and credit carryforwards having no expiration dates. The Company is subject to the GILTI, BEAT and FDII provisions, for which we recorded an income tax benefit of $16 million, $19 million and $20 million for the years ended December 31, 2023, 2022 and 2021, respectively. These impacts are included in the calculation of the Company’s effective tax rate. The Company is not permanently reinvested with respect to its U.S. directly-owned foreign subsidiaries. The Company is subject to U.S. income tax on substantially all foreign earnings under GILTI, while any remaining foreign earnings are eligible for a dividends received deduction. As a result, future repatriation of earnings will not be subject to additional U.S. federal income tax but may be subject to currency translation gains or losses. Where required, the Company has recorded a deferred tax liability for foreign withholding taxes on current earnings. Additionally, gains and losses on any future taxable dispositions of U.S.-owned foreign affiliates continue to be subject to U.S. income tax. The Company has not recognized deferred tax liabilities in the U.S. with respect to its outside basis differences in its directly-owned foreign affiliates. It is not practicable to determine the amount of unrecognized deferred tax liabilities on these indefinitely reinvested earnings. Unrecognized tax benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Year ended December 31, 2023 2022 Balance at beginning of year $ 7 $ 7 Additions for tax positions related to the current year 11 — Additions for tax positions related to prior years — 3 Settlements for tax positions — (2) Lapse of statutes (1) (1) Balance at end of year $ 17 $ 7 As of December 31, 2023 and December 31, 2022, there were $9 million and $7 million of unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. Additionally, fiscal years 2009 through 2023 remain open to examination by multiple foreign and U.S. state taxing jurisdictions. As of December 31, 2023, no significant uncertain tax positions are expected to be settled within the next twelve months. Due to uncertainties in any tax audit or litigation outcome, the Company’s estimates of the ultimate settlements of uncertain tax positions may change and the actual tax benefits may differ significantly from estimates. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic net earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of diluted common shares outstanding. Diluted common shares outstanding is computed using the Treasury Stock method and, in periods of income, reflects the additional shares that would be outstanding if dilutive share-based compensation awards were converted into common shares during the period. Earnings per share (in millions, except share data): Year Ended December 31, 2023 2022 2021 Basic: Net income $ 296 $ 463 $ 837 Weighted-average shares outstanding 51,378,051 52,207,903 53,446,399 Basic earnings per share $ 5.75 $ 8.86 $ 15.66 Diluted: Net income $ 296 $ 463 $ 837 Weighted-average shares outstanding 51,378,051 52,207,903 53,446,399 Dilutive shares 332,911 350,809 456,031 Diluted weighted-average shares outstanding 51,710,962 52,558,712 53,902,430 Diluted earnings per share $ 5.72 $ 8.80 $ 15.52 Anti-dilutive share-based compensation awards are excluded from diluted earnings per share calculations. There were 129,856, 173,519 and 8,000 shares that were anti-dilutive for the years ended December 31, 2023, 2022 and 2021, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income Stockholders’ equity includes certain items classified as AOCI, including: • Unrealized (loss) gain on anticipated sales hedging transactions relates to derivative instruments used to hedge the exposure related to currency exchange rates for forecasted Euro sales. These hedges are designated as cash flow hedges, and the Company defers income statement recognition of gains and losses until the hedged transaction occurs. See Note 11, Derivative Instruments for more details. • Foreign currency translation adjustments relate to the Company’s non-U.S. subsidiary companies that have designated a functional currency other than the U.S. Dollar. The Company translates the subsidiary functional currency financial statements to U.S. Dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of AOCI. The changes in each component of AOCI during the three years ended December 31, 2023, 2022 and 2021 were as follows (in millions): Unrealized (loss) gain on sales hedging Foreign currency translation adjustments Total Balance at December 31, 2020 $ (28) $ (41) $ (69) Other comprehensive income (loss) before reclassifications 55 (6) 49 Amounts reclassified from AOCI (1) 2 — 2 Tax effect (11) — (11) Other comprehensive income (loss), net of tax 46 (6) 40 Balance at December 31, 2021 18 (47) (29) Other comprehensive income (loss) before reclassifications 50 (8) 42 Amounts reclassified from AOCI (1) (87) — (87) Tax effect 8 — 8 Other comprehensive (loss), net of tax (29) (8) (37) Balance at December 31, 2022 (11) (55) (66) Other comprehensive (loss) income before reclassifications (7) 6 (1) Amounts reclassified from AOCI (1) 15 — 15 Tax effect (2) — (2) Other comprehensive income, net of tax 6 6 12 Balance at December 31, 2023 $ (5) $ (49) $ (54) (1) See Note 11, Derivative Instruments regarding timing of reclassifications to operating results. |
Accounts Receivable Factoring
Accounts Receivable Factoring | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Accounts Receivable Factoring | Accounts Receivable Factoring The Company has Receivables Factoring arrangements, pursuant to which certain receivables are sold to banks without recourse in exchange for cash. Transactions under the Receivables Factoring arrangements are accounted for as sales under ASC 860, Transfers and Servicing of Financial Assets , with the sold receivables removed from the Company’s balance sheet. Under these Receivables Factoring arrangements, the Company does not maintain any beneficial interest in the receivables sold. The banks’ purchase of eligible receivables is subject to a maximum amount of uncollected receivables. The Company services the receivables on behalf of the banks, but otherwise maintains no significant continuing involvement with respect to the receivables. Sale proceeds that are representative of the fair value of factored receivables, less a factoring fee, are reflected in Cash flows from operating activities on the Consolidated Statements of Cash Flows, while sale proceeds in excess of the fair value of factored receivables are reflected in Cash flows from financing activities on the Consolidated Statements of Cash Flows. The Company has two Receivables Factoring arrangements. One arrangement allows for the factoring of up to €150 million of uncollected receivables originated from the EMEA and Asia-Pacific regions. In the third quarter, the Company amended its second arrangement to allow the factoring of uncollected receivables originated from the EMEA region from up to $25 million to $50 million. Otherwise, the amendment did not substantially change the terms of the arrangement. The Company may be required to maintain a portion of sales proceeds as deposits in a restricted cash account that is released to the Company as it satisfies its obligations as servicer of sold receivables, which totaled $1 million and $12 million as of December 31, 2023 and December 31, 2022, respectively, and is classified within Prepaid expenses and other current assets on the Consolidated Balance Sheets. During the years ended December 31, 2023, 2022 and 2021, the Company received cash proceeds of $1,404 million, $1,496 million and $1,504 million, respectively, from the sales of accounts receivables under its factoring arrangements. As of December 31, 2023 and 2022, there were a total of $56 million and $61 million, respectively, of uncollected receivables that had been sold and removed from the Company’s Consolidated Balance Sheets. As servicer of sold receivables, the Company had $112 million and $130 million of obligations that were not yet remitted to banks as of December 31, 2023 and 2022, respectively. These obligations are included within Accrued liabilities on the Consolidated Balance Sheets, with changes in such obligations reflected within Net cash provided by (used in) financing activities on the Consolidated Statements of Cash Flows. Fees incurred in connection with these arrangements are included within Other expense, net on the Consolidated Statements of Operations and were $11 million, $5 million and $3 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Segment Information & Geographi
Segment Information & Geographic Data | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information & Geographic Data | Segment Information & Geographic Data Segment results The Company’s operations consist of two reportable segments: Asset Intelligence & Tracking (“AIT”) and Enterprise Visibility & Mobility (“EVM”). The reportable segments have been identified based on the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker or “CODM”) to assess segment performance and allocate resources among the Company’s segments. The CODM reviews adjusted operating income to assess segment profitability. To the extent applicable, segment operating income excludes business acquisition purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, impairment of goodwill and other intangibles, exit and restructuring costs, as well as certain other non-recurring costs (such as the Settlement costs in the prior year). Segment assets are not reviewed by the Company’s CODM and therefore are not disclosed below. In the second quarter of 2023, our advanced location technology solutions business, which is primarily comprised of RFID devices and RTLS offerings, moved from our EVM segment into our AIT segment contemporaneous with a change in our organizational structure and management of the business. We have reported our segment results reflecting this change, including historical periods, on a comparable basis. This change does not have an impact on the Consolidated Financial Statements. Financial information by segment is presented as follows (in millions): Year Ended December 31, 2023 2022 2021 Net sales: AIT $ 1,651 $ 1,837 $ 1,734 EVM 2,933 3,944 3,899 Total segment Net sales 4,584 5,781 5,633 Corporate (1) — — (6) Total Net sales $ 4,584 $ 5,781 $ 5,627 Operating income: AIT (2) $ 346 $ 361 $ 386 EVM (2) 343 711 746 Total segment operating income 689 1,072 1,132 Corporate (1) (208) (543) (153) Total Operating income $ 481 $ 529 $ 979 (1) To the extent applicable, amounts included in Corporate consist of business acquisition purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, impairment of goodwill and other intangibles, exit and restructuring costs, as well as certain other non-recurring costs (such as the Settlement costs in the prior year). (2) AIT and EVM segment operating income includes depreciation and share-based compensation expense. The amounts of depreciation and share-based compensation expense are proportionate to each segment’s Net sales. Sales to significant customers The Company has three customers, who are distributors of the Company’s products and solutions, that individually accounted for more than 10% of total Company Net sales during the years ended December 31, 2023, 2022 and 2021. The approximate percentage of our segment and Company total Net sales to these customers were as follows: Year Ended December 31, 2023 2022 2021 AIT EVM Total AIT EVM Total AIT EVM Total Customer A 5 % 13 % 18 % 7 % 14 % 21 % 7 % 15 % 22 % Customer B 8 % 6 % 14 % 6 % 9 % 15 % 5 % 9 % 14 % Customer C 4 % 8 % 12 % 4 % 9 % 13 % 3 % 10 % 13 % These customers accounted for 22%, 10% and 17%, respectively, of accounts receivable as of December 31, 2023, and 22%, 20% and 18%, respectively, of accounts receivable as of December 31, 2022. No other customer accounted for more than 10% of total Net sales during the years ended December 31, 2023, 2022 or 2021, or more than 10% of outstanding accounts receivable as of December 31, 2023 or 2022. Geographic data Information regarding the Company’s operations by geographic area is contained in the following tables. Net sales amounts are attributed to geographic area based on customer location. Net sales by region were as follows (in millions): Year Ended December 31, 2023 2022 2021 North America $ 2,405 $ 2,919 $ 2,819 EMEA 1,414 1,920 1,976 Asia-Pacific 481 609 543 Latin America 284 333 289 Total Net sales $ 4,584 $ 5,781 $ 5,627 The U.S. and Germany were the only countries that accounted for more than 10% of the Company’s net sales in 2023, 2022 and 2021. Net sales during these years were as follows (in millions): Year Ended December 31, 2023 2022 2021 U.S. $ 2,330 $ 2,840 $ 2,784 Germany 682 949 901 Other 1,572 1,992 1,942 Total Net sales $ 4,584 $ 5,781 $ 5,627 Geographic data for long-lived assets is as follows (in millions): Year Ended December 31, 2023 2022 2021 North America $ 338 $ 336 $ 290 EMEA 61 58 68 Asia-Pacific 73 35 39 Latin America 6 5 6 Total long-lived assets $ 478 $ 434 $ 403 Long-lived assets are defined by the Company as property, plant and equipment and ROU assets. Primarily all of the Company’s long-lived assets in the North America region are located in the U.S. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 296 | $ 463 | $ 837 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation These accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the U.S. and include the accounts of Zebra and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Calendar | Fiscal Calendar |
Use of Estimates | Use of Estimates These consolidated financial statements were prepared using estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period as further discussed in the following footnotes to the Consolidated Financial Statements. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash consists primarily of deposits with banks. Cash equivalents include highly liquid short-term deposits with banks and other investments with original maturities of less than or equal to three months. Cash equivalents are readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of a change in value because of changes in interest rates. |
Accounts Receivable | Accounts Receivable |
Inventories | Inventories Inventories are stated at the lower of a moving-average cost (which approximates cost on a first-in, first-out basis) and net realizable value. Manufactured inventory cost includes materials, labor, and manufacturing overhead. Purchased inventory cost also includes internal purchasing overhead costs. Raw material inventories primarily consist of product components as well as supplies used in repair operations. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable values as well as to record liabilities on non-cancellable purchase commitments. These provisions are based on forecasted demand, experience with specific customers or suppliers, the age and nature of the inventory or committed purchase, and the ability to redistribute inventory to other programs or rework it into other consumable inventory as well as renegotiate contractual terms with a supplier. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the various classes of property, plant and equipment, which are thirty years for buildings and range from three |
Leases | Leases The Company recognizes right-of-use (“ROU”) assets and lease liabilities for its lease commitments with terms greater than one year. Contractual options to extend or terminate lease agreements are reflected in the lease term when they are reasonably certain to be exercised. The initial measurement of ROU assets and lease liabilities is based on the present value of future lease payments over the lease term as of the commencement date. In determining future lease payments, the Company has elected not to separate lease and non-lease components. As the Company’s lease arrangements do not provide an implicit interest rate, we apply the Company’s incremental borrowing rate based on the information available at the commencement date in determining the present value of future lease payments. Relevant information used in determining the Company’s incremental borrowing rate includes the duration of the lease, the transaction currency of the lease, and the Company’s credit risk relative to risk-free market rates. The Company’s ROU assets also include any initial direct costs incurred and exclude lease incentives. The Company’s lease agreements do not contain any significant residual value guarantees or restrictive covenants. All leases of the Company are classified as operating leases, with lease expense being recognized on a straight-line basis. |
Income Taxes | Income Taxes The Company accounts for income taxes under the liability method in accordance with Accounting Standards Codification (“ASC”) 740 Topic, Income Taxes . Accordingly, deferred income taxes are provided for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities are measured using tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the benefit of tax positions when it is more likely than not to be sustained on its technical merits. The Company recognizes interest and penalties related to income tax matters as part of income tax expense. The Company has elected consolidated tax filings in certain of its jurisdictions which may allow the group to offset one member’s income with losses of other members in the current period and on a carryover basis. The income tax effects of non-inventory intra-entity asset transfers are recognized in the period in which the transfer occurs. The Company classifies its balance sheet accounts by applying jurisdictional netting principles for locations where consolidated tax filing elections are in place. |
Goodwill | Goodwill Goodwill is tested annually for impairment, or more frequently if indicators of impairment exist. When evaluating goodwill for impairment as part of our annual assessment, we include consideration of current events and circumstances. Our annual impairment testing also includes a comparison of the estimated fair value of each reporting unit to its carrying value. If the carrying value of a reporting unit exceeds its estimated fair value, goodwill would be considered to be impaired and reduced to its implied fair value. We estimate the fair value of reporting units by using a weighted combination of the income and market approaches. The income approach requires management to estimate projected future operating and cash flow results, economic projections, and discount rates. The market approach estimates fair value using comparable marketplace fair value data from within a comparable industry group. |
Other Intangible Assets | Other Intangible Assets Other intangible assets consist primarily of technology and patent rights, customer and other relationships, and trade names. These assets, which are generally acquired through business combinations, are recorded at fair value upon acquisition and amortized on a straight-line basis over the asset’s useful life which typically ranges from two |
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of | Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of The Company accounts for long-lived assets in accordance with the provisions of ASC Topic 360, Property, Plant and Equipment, which |
Investments in Securities | Investments in Securities |
Revenue Recognition | Revenue Recognition Revenues are primarily comprised of sales of hardware, supplies, services, solutions and software offerings. We recognize revenues when we transfer control of promised goods or services to our customers in an amount that reflects the consideration that we expect to receive, which includes estimates of variable consideration, in exchange for those goods or services. We are typically the principal in all elements of our transactions and record Net sales and Cost of sales on a gross basis. Substantially all revenues for tangible products, supplies and perpetual or term software licenses are recognized at a point in time, which is generally upon shipment, when control and the risks and rewards of ownership have transferred to the customer, and the Company has a contractual right to payment. Revenues for our service offerings are recognized over time. Our service offerings include repair and maintenance service contracts, as well as professional services such as installation, integration and provisioning that typically occur in the early stages of a project. The average life of repair and maintenance service contracts is approximately three years. Professional service arrangements range in duration from a day to several weeks or months. Revenues for solutions, including Company-hosted software license and maintenance agreements, are typically recognized over time. The Company recognizes revenue to depict the transfer of goods, solutions or services to a customer at an amount that reflects the consideration which it expects to receive for providing those goods, solutions or services. To determine total expected consideration, the Company estimates elements of variable consideration, which primarily include product rights of return, rebates, and other incentives. These estimates are developed using the expected value method and are reviewed and updated, as necessary, at each reporting period. Revenues, inclusive of variable consideration, are recognized to the extent it is probable that a significant reversal in cumulative revenues recognized will not occur in future periods. We enter into contracts that may include combinations of tangible products, services, solutions and software offerings, which are generally capable of being distinct and accounted for as separate performance obligations. We evaluate whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract has more than one performance obligation. This evaluation requires judgment, and the decision to combine a group of contracts or separate the combined or single contract into multiple distinct performance obligations may impact the amount of revenue recorded in a reporting period. We deem performance obligations to be distinct if the customer can benefit from the product or service on its own or together with readily available resources (“capable of being distinct”) and if the transfer of products, solutions or services is separately identifiable from other promises in the contract (“distinct within the context of the contract”). For contract arrangements that include multiple performance obligations, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices for each performance obligation. In general, standalone selling prices are observable for tangible products and software licenses, while standalone selling prices for professional services, repair and maintenance services, and solutions are developed primarily with an expected cost-plus margin approach. Regional pricing, marketing strategies, and business practices are evaluated to derive estimated standalone selling prices. The Company recognizes revenue for each performance obligation upon transfer of control of the promised goods or services. Control is deemed to have been transferred when the customer has the ability to direct the use of and has obtained substantially all of the remaining benefits from the goods and services. The determination of whether control transfers at a point in time or over time requires judgment and includes our consideration of the following: 1) whether the customer simultaneously receives and consumes the benefits provided as the Company performs its promises; 2) whether the Company’s performance creates or enhances an asset that is under control of the customer; and 3) whether the Company’s performance does not create an asset with an alternative use to the Company, while the Company has an enforceable right to payment for its performance completed to date. Revenues for tangible products are generally recognized upon shipment, whereas revenues for services and solution offerings are generally recognized over time by using an output or time-based method, assuming all other criteria for revenue recognition have been met. Revenues for software are recognized either upon delivery or over time using a time-based method, depending upon how control is transferred to the customer. In cases where a bundle of products, services, solutions and/or software are delivered to the customer, judgment is required to select the method of progress which best reflects the transfer of control. Contract Balances Our payment terms vary by the type and location of our customer and the products, solutions or services offered. The time between invoicing and when payment is due is not significant. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts do not include a significant financing component. Costs to Obtain a Contract |
Research and Development Costs | Research and Development Costs Research and development (“R&D”) costs include: • Salaries, benefits, and other R&D personnel related costs; • Consulting and other outside services used in the R&D process; • Engineering supplies; • Engineering related information systems costs; and • Allocation of building and related costs. R&D costs are expensed as incurred, including those associated with developing and maintaining software within our customer offerings. The Company typically applies a dynamic and iterative approach to developing customer product and software offerings as well as ongoing software maintenance, and feature and functionality enhancement releases, and accordingly, such costs do not meet capitalization criteria. |
Advertising | Advertising |
Warranties | Warranties one one |
Contingencies | Contingencies |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Our financial assets and liabilities that are accounted for at fair value generally include our employee deferred compensation plan investments, foreign currency forwards, and interest rate swaps. In accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”) , we recognize derivative instruments and hedging activities as either assets or liabilities on the Consolidated Balance Sheets and measure them at fair value. Accounting for the gains and losses on our derivatives resulting from changes in fair value is dependent on the use of the derivative and whether it is designated and qualifies for hedge accounting. The Company utilizes foreign currency forwards to hedge certain foreign currency exposures. We use broker quotations or market transactions, in either the listed or over-the-counter markets, to value our foreign currency exchange contracts. The Company also has interest rate swaps to hedge a portion of the variability in future cash flows on debt. We use relevant observable market inputs at quoted intervals, such as forward yield curves and the Company’s own credit risk, to value our interest rate swaps. See Note 11, Derivative Instruments for additional information on the Company’s derivatives and hedging activities. The Company’s securities held for its deferred compensation plans are measured at fair value using quoted prices in active markets for identical assets. If active markets for identical assets are not available to determine fair value, then we use quoted prices for similar assets or inputs that are observable either directly or indirectly. |
Share-Based Compensation | Share-Based Compensation |
Foreign Currency Translation | Foreign Currency Translation The balance sheet accounts of the Company’s subsidiaries that have not designated the U.S. Dollar as its functional currency are translated into U.S. Dollars using the period-end exchange rate, and statement of earnings items are translated using the average exchange rate for the period. The resulting translation gains or losses are recorded in Stockholders’ equity as a cumulative translation adjustment, which is a component of AOCI within the Consolidated Balance Sheets. |
Acquisitions | Acquisitions |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements The Company did not adopt any material new accounting standards during the year ended December 31, 2023. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires retrospective disclosure of significant segment expenses and other segment items on an annual and interim basis. Additionally, it requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”). This ASU will be effective for the Company’s fiscal December 31, 2024 year-end and interim periods beginning in fiscal 2025, with early adoption permitted. We are assessing the impact of this guidance on our disclosures; it will not have an impact on our results of operations, cash flows, or financial condition. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires an annual tabular effective tax rate reconciliation disclosure including information for specified categories and jurisdiction levels, as well as, disclosure of income taxes paid, net of refunds received, disaggregated by federal, state/local, and significant foreign jurisdiction. This ASU will be effective for the Company’s fiscal December 31, 2025 year-end, with early adoption permitted. We are assessing the impact of this guidance on our disclosures; it will not have an impact on our results of operations, cash flows, or financial condition. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents our Net sales disaggregated by product category for each of our segments, AIT and EVM, for the years ended December 31, 2023, 2022 and 2021 (in millions): Year Ended December 31, 2023 Segment Tangible Products Services and Software Total AIT $ 1,537 $ 114 $ 1,651 EVM 2,128 805 2,933 Total $ 3,665 $ 919 $ 4,584 Year Ended December 31, 2022 Segment Tangible Products Services and Software Total AIT $ 1,728 $ 109 $ 1,837 EVM 3,187 757 3,944 Total $ 4,915 $ 866 $ 5,781 Year Ended December 31, 2021 Segment Tangible Products Services and Software Total AIT $ 1,625 $ 109 $ 1,734 EVM 3,220 679 3,899 Corporate (1) — (6) (6) Total $ 4,845 $ 782 $ 5,627 (1) Amounts included in Corporate consist of purchase accounting adjustments. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Categories of Inventories | The categories of Inventories, net are as follows (in millions): December 31, December 31, Raw materials (1) $ 403 $ 369 Work in process 4 4 Finished goods 397 487 Total Inventories, net (2) $ 804 $ 860 (1) Raw material inventories primarily consist of product components as well as supplies used in repair operations. (2) Categories of inventories for the period ended December 31, 2022 include a change to correct an immaterial misclassification without impact to Inventories, net as presented on the Consolidated Balance Sheets. |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Preliminary and Final Purchase Price Allocation to Assets Acquired and Liabilities Assumed | The purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Identifiable intangible assets $ 297 Inventory 31 Other assets acquired 24 Deferred tax liabilities (78) Other liabilities assumed (32) Net assets acquired $ 242 Goodwill on acquisition 639 Total purchase price $ 881 The purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Identifiable intangible assets $ 47 Accounts receivable 9 Other assets acquired 4 Deferred tax liabilities (5) Other liabilities assumed (11) Net assets acquired $ 44 Goodwill on acquisition 101 Total purchase price $ 145 The purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Identifiable intangible assets $ 114 Right-of-use lease asset 11 Inventories 5 Deferred tax assets 6 Other assets acquired 4 Lease liability (11) Other liabilities assumed (4) Net assets acquired $ 125 Goodwill on acquisition 176 Total purchase price $ 301 |
Schedule of Preliminary Purchase Price Allocation to Identifiable Intangible Assets Acquired | The purchase price allocation to identifiable intangible assets acquired was as follows: Fair Value (in millions) Useful Life (in years) Customer and other relationships $ 232 11 Technology and patents 63 7 Trade names 2 2 Total identifiable intangible assets $ 297 The purchase price allocation to identifiable intangible assets acquired was as follows: Fair Value (in millions) Useful Life (in years) Technology and patents $ 39 8 Customer and other relationships 7 2 Trade names 1 2 Total identifiable intangible assets $ 47 The purchase price allocation to identifiable intangible assets acquired was as follows: Fair Value (in millions) Useful Life (in years) Technology and patents $ 100 7 Customer and other relationships 5 2 Trade names 9 5 Total identifiable intangible assets $ 114 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Net Carrying Value of Goodwill | Changes in the net carrying value of goodwill by segment were as follows (in millions): AIT EVM Total Goodwill as of December 31, 2021 $ 169 $ 3,096 $ 3,265 Matrox acquisition — 640 640 Fetch purchase price allocation adjustments — 2 2 Antuit purchase price allocation adjustments — (4) (4) Foreign exchange impact — (4) (4) Goodwill as of December 31, 2022 $ 169 $ 3,730 $ 3,899 Advanced location technology business move to AIT, effective April 2, 2023 60 (60) — Matrox purchase price allocation adjustments — (1) (1) Foreign exchange impact — (3) (3) Goodwill as of December 31, 2023 $ 229 $ 3,666 $ 3,895 |
Schedule of Amortized Intangible Assets | The balances in Other Intangibles, net consisted of the following (in millions): As of December 31, 2023 As of December 31, 2022 Gross Carrying Amount Accumulated Net Gross Carrying Amount Accumulated Net Amortized intangible assets Technology and patents $ 951 $ (680) $ 271 $ 951 $ (621) $ 330 Customer and other relationships 861 (615) 246 860 (576) 284 Trade names 66 (56) 10 66 (50) 16 Total $ 1,878 $ (1,351) $ 527 $ 1,877 $ (1,247) $ 630 |
Schedule of Estimated Future Intangible Asset Amortization Expense | Estimated future intangible asset amortization expense is as follows (in millions): Year Ended December 31, 2024 $ 101 2025 95 2026 92 2027 77 2028 60 Thereafter 102 Total $ 527 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property, Plant and Equipment, net | Property, plant and equipment, net is comprised of the following (in millions): December 31, 2023 2022 Buildings $ 86 $ 75 Land 8 7 Machinery and equipment 343 318 Furniture and office equipment 34 24 Software and computer equipment 104 125 Leasehold improvements 112 88 Projects in progress 44 48 Property, plant and equipment, gross $ 731 $ 685 Less accumulated depreciation (422) (407) Property, plant and equipment, net $ 309 $ 278 |
Exit and Restructuring Costs (T
Exit and Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Liability Associated With Employee Severance and Other Benefits | The Company’s liability associated with Exit and restructuring was: Balance as of December 31, 2022 $ 9 Exit and restructuring charges 98 Non-cash utilization (13) Cash payments (72) Balance as of December 31, 2023 $ 22 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Carried at Fair Value | The Company’s financial assets and liabilities carried at fair value as of December 31, 2023 are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Forward interest rate swap contracts (2) $ — $ 83 $ — $ 83 Investments related to the deferred compensation plan 41 — — 41 Total Assets at fair value $ 41 $ 83 $ — $ 124 Liabilities: Foreign exchange contracts (1) $ 1 $ 6 $ — $ 7 Forward interest rate swap contracts (2) — 28 — 28 Liabilities related to the deferred compensation plan 41 — — 41 Total Liabilities at fair value $ 42 $ 34 $ — $ 76 The Company’s financial assets and liabilities carried at fair value as of December 31, 2022 are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Forward interest rate swap contracts (2) $ — $ 72 $ — $ 72 Investments related to the deferred compensation plan 35 — — 35 Total Assets at fair value $ 35 $ 72 $ — $ 107 Liabilities: Foreign exchange contracts (1) $ 5 $ 14 $ — $ 19 Liabilities related to the deferred compensation plan 35 — — 35 Total Liabilities at fair value $ 40 $ 14 $ — $ 54 (1) The fair value of the foreign exchange contracts is calculated as follows: • Fair value of forward contracts associated with forecasted sales hedges is calculated using the period-end exchange rate adjusted for current forward points. • Fair value of hedges against net assets denominated in foreign currencies is calculated at the period-end exchange rate adjusted for current forward points unless the hedge has been traded but not settled at year end (Level 2). If this is the case, the fair value is calculated at the rate at which the hedge is being settled (Level 1). (2) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | The following table presents the fair value of its derivative instruments (in millions): Asset (Liability) Fair Values as of December 31, Balance Sheets Classification 2023 2022 Derivative instruments designated as hedges: Foreign exchange contracts Accrued liabilities $ (6) $ (14) Total derivative instruments designated as hedges $ (6) $ (14) Derivative instruments not designated as hedges: Forward interest rate swaps Prepaid expenses and other current assets $ 34 $ 25 Forward interest rate swaps Other long-term assets 49 47 Foreign exchange contracts Accrued liabilities (1) (5) Forward interest rate swaps Accrued liabilities (12) — Forward interest rate swaps Other long-term liabilities (16) — Total derivative instruments not designated as hedges $ 54 $ 67 Total net derivative asset $ 48 $ 53 |
Schedule of Net Gains (Losses) from Changes in Fair Values of Derivatives Not Designated as Hedges | The following table presents the net (losses) gains from changes in fair values of derivatives that are not designated as hedges (in millions): (Losses) Gains Recognized in Income Statements of Operations Classification Year Ended December 31, 2023 2022 2021 Derivative instruments not designated as hedges: Foreign exchange contracts Foreign exchange loss $ (4) $ 2 $ 7 Forward interest rate swaps Interest (expense) income, net 9 83 13 Total net gain recognized in income $ 5 $ 85 $ 20 |
Schedule of Notional Value and Net Fair Value of Outstanding Contracts | The notional values and the net fair values of these outstanding contracts were as follows (in millions): December 31, 2023 2022 Notional balance of outstanding contracts: British Pound/U.S. Dollar £ 11 £ 11 Euro/U.S. Dollar € 80 € 191 Euro/Czech Koruna € 17 € 15 Japanese Yen/U.S. Dollar ¥ 685 ¥ — Singapore Dollar/U.S. Dollar S$ 14 S$ 5 Mexican Peso/U.S. Dollar Mex$ 144 Mex$ 372 Polish Zloty/U.S. Dollar zł 116 zł 47 Net fair value of liabilities of outstanding contracts $ 1 $ 5 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Value of Debt | The following table shows the carrying value of the Company’s debt (in millions): December 31, 2023 2022 Term Loan A $ 1,684 $ 1,728 Revolving Credit Facility 413 50 Receivables Financing Facilities 129 254 Total debt $ 2,226 $ 2,032 Less: Debt issuance costs (2) (4) Less: Unamortized discounts (4) (5) Less: Current portion of debt (173) (214) Total long-term debt $ 2,047 $ 1,809 |
Schedule of Future Maturities of Debt | As of December 31, 2023, the future maturities of debt are as follows (in millions): 2024 $ 173 2025 66 2026 87 2027 1,900 Total future maturities of debt $ 2,226 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Activities Associated With Operating Leases | The following table presents activities associated with our leases (in millions): December 31, 2023 2022 2021 Fixed lease expenses $ 52 $ 48 $ 39 Variable lease expenses 35 40 37 Total lease expenses $ 87 $ 88 $ 76 Cash paid for leases $ 82 $ 93 $ 76 ROU assets obtained in exchange for lease obligations $ 55 $ 72 $ 32 Reductions of ROU assets and lease liabilities (1) (4) — Net non-cash increases to ROU assets and lease liabilities $ 54 $ 68 $ 32 |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under non-cancellable leases as of December 31, 2023 were as follows (in millions): 2024 $ 53 2025 43 2026 35 2027 27 2028 21 Thereafter 58 Total future minimum lease payments $ 237 Less: Interest (43) Present value of lease liabilities $ 194 Reported as of December 31, 2023: Current portion of lease liabilities $ 42 Long-term lease liabilities 152 Present value of lease liabilities $ 194 |
Accrued Liabilities, Commitme_2
Accrued Liabilities, Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Components of Accrued Liabilities | The components of Accrued liabilities are as follows (in millions): December 31, 2023 2022 Unremitted cash collections due to banks on factored accounts receivable $ 112 $ 130 Payroll and benefits 83 90 Settlement 45 180 Current portion of lease liabilities 42 37 Customer rebates 40 55 Incentive compensation 47 107 Warranty 27 26 Exit and restructuring 22 9 Freight and duty 10 19 Foreign exchange contracts 7 19 Other 69 72 Accrued liabilities $ 504 $ 744 |
Schedule of Accrued Warranty Obligations | The following table is a summary of the Company’s accrued warranty obligations (in millions): Year Ended December 31, Warranty Reserve 2023 2022 2021 Balance at the beginning of the year $ 26 $ 26 $ 24 Warranty expense 29 29 33 Warranties fulfilled (28) (29) (31) Balance at the end of the year $ 27 $ 26 $ 26 |
Schedule Commitment Maturity | 2024 $ 31 2025 46 2026 47 Thereafter — Total $ 124 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Expense and Related Income Tax Benefit | The compensation expense from the Company’s share-based compensation plans and associated income tax benefit, excluding the effects of excess tax benefits or shortfalls, were included in the Consolidated Statements of Operations as follows (in millions): Year Ended December 31, Compensation costs and related income tax benefit 2023 2022 2021 Cost of sales $ 6 $ 6 $ 8 Selling and marketing 16 22 26 Research and development 25 34 28 General and administration 19 34 31 Total compensation expense $ 66 $ 96 $ 93 Income tax benefit $ 13 $ 17 $ 14 |
Schedule of Equity Awards Activity | A summary of the Company’s restricted and performance stock-settled awards for the years ended December 31, 2023, 2022 and 2021 is as follows: Year Ended December 31, 2023 RSUs PSUs RSAs PSAs Units Weighted-Average Grant Date Fair Value Units Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 242,732 $ 404.19 105,928 $ 406.89 46,971 $ 271.92 35,246 $ 245.79 Granted 336,168 260.31 104,620 258.57 6,640 271.77 — — Released (95,837) 412.47 (64) 482.42 (51,695) 267.66 (35,171) 245.82 Forfeited (1) (45,684) 332.66 (14,552) 313.74 (1,483) 335.98 (75) 244.97 Outstanding at end of year 437,379 $ 299.19 195,932 $ 334.59 433 $ 477.74 — $ — (1) The increase in forfeitures for RSUs and PSUs as compared to previous years was primarily due to the Company’s 2022 Productivity Plan and VRP. Year Ended December 31, 2022 RSUs PSUs RSAs PSAs Units Weighted-Average Grant Date Fair Value Units Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year 130,009 $ 518.80 37,691 $ 482.42 154,322 $ 253.54 74,032 $ 225.34 Granted 181,351 359.02 70,777 367.16 6,122 321.03 — — Released (48,095) 518.64 (226) 482.42 (104,891) 248.36 (38,671) 206.62 Forfeited (20,533) 463.11 (2,314) 410.80 (8,582) 259.93 (115) 244.62 Outstanding at end of year 242,732 $ 404.19 105,928 $ 406.89 46,971 $ 271.92 35,246 $ 245.79 Year Ended December 31, 2021 RSUs PSUs RSAs PSAs Units Weighted-Average Grant Date Fair Value Units Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Outstanding at beginning of year — $ — — $ — 318,565 $ 228.08 126,022 $ 199.77 Granted 134,419 518.39 38,393 482.42 6,005 486.02 — — Released (674) 489.16 — — (159,702) 212.33 (49,236) 160.11 Forfeited (3,736) 509.58 (702) 482.42 (10,546) 239.78 (2,754) 236.18 Outstanding at end of year 130,009 $ 518.80 37,691 $ 482.42 154,322 $ 253.54 74,032 $ 225.34 |
Schedule of SARs Activity | A summary of the Company’s SARs is as follows: 2023 2022 2021 SARs Weighted-Average Grant Date Exercise Price SARs Weighted-Average Grant Date Exercise Price SARs Weighted-Average Grant Date Exercise Price Outstanding at beginning of year 443,476 $ 122.67 474,151 $ 121.05 638,124 $ 113.98 Granted — — — — — — Exercised (42,957) 99.39 (28,659) 88.35 (159,035) 89.87 Forfeited (976) 244.15 (1,987) 229.46 (4,938) 213.80 Expired (705) 78.54 (29) 205.12 — — Outstanding at end of year 398,838 $ 124.96 443,476 $ 122.67 474,151 $ 121.05 Exercisable at end of year 385,305 $ 120.35 400,351 $ 110.14 383,273 $ 97.29 |
Schedule of Information for SARs Outstanding | The following table summarizes information about SARs outstanding as of December 31, 2023: Outstanding Exercisable Aggregate intrinsic value (in millions) $ 60 $ 59 Weighted-average remaining contractual life (in years) 1.7 1.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Geographical Sources of Income Before Income Taxes | The geographical sources of income (loss) before income taxes were as follows (in millions): Year Ended December 31, 2023 2022 2021 U.S. $ 167 $ (69) $ 328 Outside U.S. 167 613 640 Total $ 334 $ 544 $ 968 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) consisted of the following (in millions): Year Ended December 31, 2023 2022 2021 Current: Federal $ 2 $ 141 $ 63 State 8 22 12 Foreign 63 126 124 Total current $ 73 $ 289 $ 199 Deferred: Federal (5) (168) (48) State (7) (22) (12) Foreign (23) (18) (8) Total deferred $ (35) $ (208) $ (68) Total $ 38 $ 81 $ 131 |
Schedule of Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate | A reconciliation of the U.S. federal statutory income tax rate to our actual income tax rate is provided below: Year Ended December 31, 2023 2022 2021 Provision computed at statutory rate 21.0 % 21.0 % 21.0 % Remeasurement of deferred taxes (2.4) (0.4) (1.0) Change in valuation allowance 2.3 0.1 (0.1) U.S. impact of Enterprise acquisition 0.3 0.4 0.3 Change in contingent income tax reserves 0.4 (0.3) (0.2) Foreign earnings subject to U.S. taxation (5.3) (3.5) (2.0) Foreign rate differential (0.1) (3.4) (1.7) State income tax, net of federal tax benefit 0.5 (0.5) 0.3 Tax credits (5.5) (3.1) (2.0) Equity compensation deductions 0.4 (0.1) (2.4) Return to provision and other true ups (1.8) 1.5 (0.9) Settlements with tax authorities 0.3 2.0 0.0 Permanent differences and other 1.3 1.2 2.2 Provision for income taxes 11.4 % 14.9 % 13.5 % |
Schedule of Components of Deferred Tax Assets and Liabilities | Tax effects of temporary differences that resulted in deferred tax assets and liabilities are as follows (in millions): December 31, 2023 2022 Deferred tax assets: Capitalized research expenditures $ 225 $ 138 Deferred revenue 76 93 Tax credits 43 32 Net operating loss carryforwards 435 432 Other accruals 38 31 Inventory items 23 21 Sales return/rebate reserve 42 81 Share-based compensation expense 15 14 Legal accrual 13 55 Lease liabilities 23 23 Valuation allowance (422) (420) Total deferred tax assets $ 511 $ 500 Deferred tax liabilities: Depreciation and amortization 103 127 Unrealized gains and losses on securities and investments 11 12 Undistributed earnings 2 2 Right of use lease assets 19 20 Other 5 7 Total deferred tax liabilities $ 140 $ 168 Net deferred tax assets $ 371 $ 332 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Year ended December 31, 2023 2022 Balance at beginning of year $ 7 $ 7 Additions for tax positions related to the current year 11 — Additions for tax positions related to prior years — 3 Settlements for tax positions — (2) Lapse of statutes (1) (1) Balance at end of year $ 17 $ 7 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Earnings Per Share | Earnings per share (in millions, except share data): Year Ended December 31, 2023 2022 2021 Basic: Net income $ 296 $ 463 $ 837 Weighted-average shares outstanding 51,378,051 52,207,903 53,446,399 Basic earnings per share $ 5.75 $ 8.86 $ 15.66 Diluted: Net income $ 296 $ 463 $ 837 Weighted-average shares outstanding 51,378,051 52,207,903 53,446,399 Dilutive shares 332,911 350,809 456,031 Diluted weighted-average shares outstanding 51,710,962 52,558,712 53,902,430 Diluted earnings per share $ 5.72 $ 8.80 $ 15.52 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The changes in each component of AOCI during the three years ended December 31, 2023, 2022 and 2021 were as follows (in millions): Unrealized (loss) gain on sales hedging Foreign currency translation adjustments Total Balance at December 31, 2020 $ (28) $ (41) $ (69) Other comprehensive income (loss) before reclassifications 55 (6) 49 Amounts reclassified from AOCI (1) 2 — 2 Tax effect (11) — (11) Other comprehensive income (loss), net of tax 46 (6) 40 Balance at December 31, 2021 18 (47) (29) Other comprehensive income (loss) before reclassifications 50 (8) 42 Amounts reclassified from AOCI (1) (87) — (87) Tax effect 8 — 8 Other comprehensive (loss), net of tax (29) (8) (37) Balance at December 31, 2022 (11) (55) (66) Other comprehensive (loss) income before reclassifications (7) 6 (1) Amounts reclassified from AOCI (1) 15 — 15 Tax effect (2) — (2) Other comprehensive income, net of tax 6 6 12 Balance at December 31, 2023 $ (5) $ (49) $ (54) (1) See Note 11, Derivative Instruments regarding timing of reclassifications to operating results. |
Segment Information & Geograp_2
Segment Information & Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Segment | Financial information by segment is presented as follows (in millions): Year Ended December 31, 2023 2022 2021 Net sales: AIT $ 1,651 $ 1,837 $ 1,734 EVM 2,933 3,944 3,899 Total segment Net sales 4,584 5,781 5,633 Corporate (1) — — (6) Total Net sales $ 4,584 $ 5,781 $ 5,627 Operating income: AIT (2) $ 346 $ 361 $ 386 EVM (2) 343 711 746 Total segment operating income 689 1,072 1,132 Corporate (1) (208) (543) (153) Total Operating income $ 481 $ 529 $ 979 (1) To the extent applicable, amounts included in Corporate consist of business acquisition purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, impairment of goodwill and other intangibles, exit and restructuring costs, as well as certain other non-recurring costs (such as the Settlement costs in the prior year). (2) AIT and EVM segment operating income includes depreciation and share-based compensation expense. The amounts of depreciation and share-based compensation expense are proportionate to each segment’s Net sales. |
Schedule of Significant Customers as Percentage of Total Net Sales | The approximate percentage of our segment and Company total Net sales to these customers were as follows: Year Ended December 31, 2023 2022 2021 AIT EVM Total AIT EVM Total AIT EVM Total Customer A 5 % 13 % 18 % 7 % 14 % 21 % 7 % 15 % 22 % Customer B 8 % 6 % 14 % 6 % 9 % 15 % 5 % 9 % 14 % Customer C 4 % 8 % 12 % 4 % 9 % 13 % 3 % 10 % 13 % |
Schedule of Information Regarding Operations by Geographic Area | Net sales by region were as follows (in millions): Year Ended December 31, 2023 2022 2021 North America $ 2,405 $ 2,919 $ 2,819 EMEA 1,414 1,920 1,976 Asia-Pacific 481 609 543 Latin America 284 333 289 Total Net sales $ 4,584 $ 5,781 $ 5,627 |
Schedule of Net Sales by Country | Net sales during these years were as follows (in millions): Year Ended December 31, 2023 2022 2021 U.S. $ 2,330 $ 2,840 $ 2,784 Germany 682 949 901 Other 1,572 1,992 1,942 Total Net sales $ 4,584 $ 5,781 $ 5,627 |
Schedule of Geographic Data for Long-lived Assets | Geographic data for long-lived assets is as follows (in millions): Year Ended December 31, 2023 2022 2021 North America $ 338 $ 336 $ 290 EMEA 61 58 68 Asia-Pacific 73 35 39 Latin America 6 5 6 Total long-lived assets $ 478 $ 434 $ 403 |
Significant Accounting Polici_3
Significant Accounting Policies - Property, Plant and Equipment (Details) | Dec. 31, 2023 |
Building | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 30 years |
All Other Assets | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
All Other Assets | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 10 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 10 years |
Significant Accounting Polici_4
Significant Accounting Policies - Other Intangible Assets, Revenue Recognition and Software Development Costs (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |
Timing of performance and recognition | Substantially all revenues for tangible products, supplies and perpetual or term software licenses are recognized at a point in time, which is generally upon shipment, when control and the risks and rewards of ownership have transferred to the customer, and the Company has a contractual right to payment. Revenues for our service offerings are recognized over time. Our service offerings include repair and maintenance service contracts, as well as professional services such as installation, integration and provisioning that typically occur in the early stages of a project. The average life of repair and maintenance service contracts is approximately three years. Professional service arrangements range in duration from a day to several weeks or months. Revenues for solutions, including Company-hosted software license and maintenance agreements, are typically recognized over time. |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Capitalized intangible assets, useful life (in years) | 2 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Capitalized intangible assets, useful life (in years) | 11 years |
Significant Accounting Polici_5
Significant Accounting Policies - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Advertising expenses | $ 31 | $ 33 | $ 35 |
Significant Accounting Polici_6
Significant Accounting Policies - Warranty Coverage (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Mobile Computers, Printers and Batteries | |
Product Warranty Liability [Line Items] | |
Product warranty term | 1 year |
Printers | Minimum | |
Product Warranty Liability [Line Items] | |
Product warranty term | 1 year |
Printers | Maximum | |
Product Warranty Liability [Line Items] | |
Product warranty term | 2 years |
Advanced Data Capture Products | Minimum | |
Product Warranty Liability [Line Items] | |
Product warranty term | 1 year |
Advanced Data Capture Products | Maximum | |
Product Warranty Liability [Line Items] | |
Product warranty term | 5 years |
Printheads | |
Product Warranty Liability [Line Items] | |
Product warranty term | 6 months |
Battery-based Products | |
Product Warranty Liability [Line Items] | |
Product warranty term | 90 days |
Significant Accounting Polici_7
Significant Accounting Policies - Share-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Award vesting period | 3 years |
Revenues - Schedule of Disaggre
Revenues - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total Net sales | $ 4,584 | $ 5,781 | $ 5,627 |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total Net sales | 4,584 | 5,781 | 5,633 |
Corporate | |||
Disaggregation of Revenue [Line Items] | |||
Total Net sales | (6) | ||
Tangible Products | |||
Disaggregation of Revenue [Line Items] | |||
Total Net sales | 3,665 | 4,915 | 4,845 |
Tangible Products | Corporate | |||
Disaggregation of Revenue [Line Items] | |||
Total Net sales | 0 | ||
Services and Software | |||
Disaggregation of Revenue [Line Items] | |||
Total Net sales | 919 | 866 | 782 |
Services and Software | Corporate | |||
Disaggregation of Revenue [Line Items] | |||
Total Net sales | (6) | ||
AIT | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total Net sales | 1,651 | 1,837 | 1,734 |
AIT | Tangible Products | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total Net sales | 1,537 | 1,728 | 1,625 |
AIT | Services and Software | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total Net sales | 114 | 109 | 109 |
EVM | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total Net sales | 2,933 | 3,944 | 3,899 |
EVM | Tangible Products | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total Net sales | 2,128 | 3,187 | 3,220 |
EVM | Services and Software | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Total Net sales | $ 805 | $ 757 | $ 679 |
Revenues - Performance Obligati
Revenues - Performance Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 1,105 | |
Remaining performance obligation period of recognition | 2 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 1,127 | |
Remaining performance obligation period of recognition | 2 years |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capitalized Contract Cost [Line Items] | |||
Capitalized contract, impairment loss | $ 0 | $ 0 | $ 0 |
Deferred revenue | 770,000,000 | 758,000,000 | |
Revenue recognized which was previously included in deferred revenue | 432,000,000 | 399,000,000 | 319,000,000 |
Deferred commission costs | |||
Capitalized Contract Cost [Line Items] | |||
Deferred commissions | 42,000,000 | 35,000,000 | |
Amortization expense related to commissions | 26,000,000 | 21,000,000 | $ 18,000,000 |
Prepaid expenses and other current assets | |||
Capitalized Contract Cost [Line Items] | |||
Contract assets | $ 16,000,000 | $ 16,000,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 403 | $ 369 |
Work in process | 4 | 4 |
Finished goods | 397 | 487 |
Total Inventories, net | $ 804 | $ 860 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Jun. 03, 2022 | Oct. 07, 2021 | Aug. 09, 2021 | May 17, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 3,895 | $ 3,899 | $ 3,265 | ||||
Cash purchase consideration | 0 | 881 | 452 | ||||
Acquisition and integration costs | $ 6 | $ 21 | $ 25 | ||||
Matrox Electronic Systems Ltd. | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred for net assets acquired | $ 881 | ||||||
Goodwill | 639 | ||||||
Intangible assets acquired | $ 297 | ||||||
Antuit | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 101 | ||||||
Cash purchase consideration | 145 | ||||||
Intangible assets acquired | $ 47 | ||||||
Fetch | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred for net assets acquired | $ 301 | ||||||
Goodwill | 176 | ||||||
Cash purchase consideration | 290 | ||||||
Existing ownership in acquiree remeasured upon acquisition | 11 | ||||||
Ownership interest remeasurement gain | 1 | ||||||
Fair value grants | $ 23 | ||||||
Service period | 3 years | ||||||
Intangible assets acquired | $ 114 | ||||||
Adaptive Vision | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 7 | ||||||
Cash purchase consideration | 18 | ||||||
Intangible assets acquired | $ 13 |
Business Acquisitions - Schedul
Business Acquisitions - Schedule of Preliminary Purchase Price Allocation to Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 03, 2022 | Dec. 31, 2021 | Oct. 07, 2021 | Aug. 09, 2021 |
Business Acquisition [Line Items] | ||||||
Goodwill on acquisition | $ 3,895 | $ 3,899 | $ 3,265 | |||
Matrox Electronic Systems Ltd. | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 297 | |||||
Inventory | 31 | |||||
Other assets acquired | 24 | |||||
Deferred tax liabilities | (78) | |||||
Other liabilities assumed | (32) | |||||
Net assets acquired | 242 | |||||
Goodwill on acquisition | 639 | |||||
Total purchase price | $ 881 | |||||
Antuit | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 47 | |||||
Other assets acquired | 4 | |||||
Accounts receivable | 9 | |||||
Deferred tax liabilities | (5) | |||||
Other liabilities assumed | (11) | |||||
Net assets acquired | 44 | |||||
Goodwill on acquisition | 101 | |||||
Total purchase price | $ 145 | |||||
Fetch | ||||||
Business Acquisition [Line Items] | ||||||
Identifiable intangible assets | $ 114 | |||||
Right-of-use lease asset | 11 | |||||
Inventory | 5 | |||||
Deferred tax assets | 6 | |||||
Other assets acquired | 4 | |||||
Lease liability | (11) | |||||
Other liabilities assumed | (4) | |||||
Net assets acquired | 125 | |||||
Goodwill on acquisition | 176 | |||||
Total purchase price | $ 301 |
Business Acquisitions - Sched_2
Business Acquisitions - Schedule of Preliminary Purchase Price Allocation to Intangible Assets Acquired (Details) - USD ($) $ in Millions | Jun. 03, 2022 | Oct. 07, 2021 | Aug. 09, 2021 |
Matrox Electronic Systems Ltd. | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 297 | ||
Matrox Electronic Systems Ltd. | Customer and other relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 232 | ||
Useful life | 11 years | ||
Matrox Electronic Systems Ltd. | Technology and patents | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 63 | ||
Useful life | 7 years | ||
Matrox Electronic Systems Ltd. | Trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 2 | ||
Useful life | 2 years | ||
Antuit | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 47 | ||
Antuit | Customer and other relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 7 | ||
Useful life | 2 years | ||
Antuit | Technology and patents | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 39 | ||
Useful life | 8 years | ||
Antuit | Trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 1 | ||
Useful life | 2 years | ||
Fetch | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 114 | ||
Fetch | Customer and other relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 5 | ||
Useful life | 2 years | ||
Fetch | Technology and patents | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 100 | ||
Useful life | 7 years | ||
Fetch | Trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 9 | ||
Useful life | 5 years |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Schedule of Changes in Net Carrying Value of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 3,899 | $ 3,265 |
Advanced location technology business move to AIT, effective April 2, 2023 | 0 | |
Foreign exchange impact | (3) | (4) |
Ending balance | 3,895 | 3,899 |
Matrox acquisition | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 640 | |
Purchase price allocation adjustments | (1) | |
Fetch Acquisition | ||
Goodwill [Roll Forward] | ||
Purchase price allocation adjustments | 2 | |
Antuit Acquisition | ||
Goodwill [Roll Forward] | ||
Purchase price allocation adjustments | (4) | |
AIT | ||
Goodwill [Roll Forward] | ||
Beginning balance | 169 | 169 |
Advanced location technology business move to AIT, effective April 2, 2023 | 60 | |
Foreign exchange impact | 0 | 0 |
Ending balance | 229 | 169 |
AIT | Matrox acquisition | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 0 | |
Purchase price allocation adjustments | 0 | |
AIT | Fetch Acquisition | ||
Goodwill [Roll Forward] | ||
Purchase price allocation adjustments | 0 | |
AIT | Antuit Acquisition | ||
Goodwill [Roll Forward] | ||
Purchase price allocation adjustments | 0 | |
EVM | ||
Goodwill [Roll Forward] | ||
Beginning balance | 3,730 | 3,096 |
Advanced location technology business move to AIT, effective April 2, 2023 | (60) | |
Foreign exchange impact | (3) | (4) |
Ending balance | 3,666 | 3,730 |
EVM | Matrox acquisition | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 640 | |
Purchase price allocation adjustments | $ (1) | |
EVM | Fetch Acquisition | ||
Goodwill [Roll Forward] | ||
Purchase price allocation adjustments | 2 | |
EVM | Antuit Acquisition | ||
Goodwill [Roll Forward] | ||
Purchase price allocation adjustments | $ (4) |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) reporting_unit | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Number of reporting units | reporting_unit | 4 | ||
Fair value exceeding carrying value (at least), percent | 40% | ||
Amortization expense | $ | $ 104 | $ 136 | $ 115 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Schedule of Amortized Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,878 | $ 1,877 |
Accumulated Amortization | (1,351) | (1,247) |
Total | 527 | 630 |
Technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 951 | 951 |
Accumulated Amortization | (680) | (621) |
Total | 271 | 330 |
Customer and other relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 861 | 860 |
Accumulated Amortization | (615) | (576) |
Total | 246 | 284 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 66 | 66 |
Accumulated Amortization | (56) | (50) |
Total | $ 10 | $ 16 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles -Schedule of Estimated Amortization Expense for Future Periods (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Fiscal Year Maturity | ||
2024 | $ 101 | |
2025 | 95 | |
2026 | 92 | |
2027 | 77 | |
2028 | 60 | |
Thereafter | 102 | |
Total | $ 527 | $ 630 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 731 | $ 685 | |
Less accumulated depreciation | (422) | (407) | |
Property, plant and equipment, net | 309 | 278 | |
Depreciation expense | 72 | 68 | $ 72 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 86 | 75 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 8 | 7 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 343 | 318 | |
Furniture and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 34 | 24 | |
Software and computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 104 | 125 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 112 | 88 | |
Projects in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 44 | $ 48 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Equity securities held | $ 113 | $ 113 | |
Purchase of long-term investments | $ 1 | $ 12 | $ 34 |
Exit and Restructuring Costs -
Exit and Restructuring Costs - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 30, 2024 | |
Restructuring Cost and Reserve [Line Items] | ||||
Exit and restructuring costs | $ 98 | $ 14 | $ 7 | |
2022 Productivity Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Exit and restructuring charges incurred | 110 | |||
Exit and restructuring costs | $ 98 | 12 | ||
2022 Productivity Plan | Subsequent Event | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost | $ 130 | |||
Previously announced programs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Exit and restructuring costs | $ 2 | $ 7 |
Exit and Restructuring Costs _2
Exit and Restructuring Costs - Liability Associated With Employee Severance and Other Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 9 | ||
Exit and restructuring charges | 98 | $ 14 | $ 7 |
Non-cash utilization | (13) | ||
Cash payments | (72) | ||
Ending balance | $ 22 | $ 9 |
Fair Value Measurements -Schedu
Fair Value Measurements -Schedule of Financial Assets and Liabilities Carried at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Total Assets at fair value | $ 124 | $ 107 |
Liabilities: | ||
Total Liabilities at fair value | 76 | 54 |
Level 1 | ||
Assets: | ||
Total Assets at fair value | 41 | 35 |
Liabilities: | ||
Total Liabilities at fair value | 42 | 40 |
Level 2 | ||
Assets: | ||
Total Assets at fair value | 83 | 72 |
Liabilities: | ||
Total Liabilities at fair value | 34 | 14 |
Level 3 | ||
Assets: | ||
Total Assets at fair value | 0 | 0 |
Liabilities: | ||
Total Liabilities at fair value | 0 | 0 |
Foreign exchange contracts | ||
Liabilities: | ||
Derivative liability | 7 | 19 |
Foreign exchange contracts | Level 1 | ||
Liabilities: | ||
Derivative liability | 1 | 5 |
Foreign exchange contracts | Level 2 | ||
Liabilities: | ||
Derivative liability | 6 | 14 |
Foreign exchange contracts | Level 3 | ||
Liabilities: | ||
Derivative liability | 0 | 0 |
Forward interest rate swaps | ||
Assets: | ||
Derivative asset | 83 | 72 |
Liabilities: | ||
Derivative liability | 28 | |
Forward interest rate swaps | Level 1 | ||
Assets: | ||
Derivative asset | 0 | 0 |
Liabilities: | ||
Derivative liability | 0 | |
Forward interest rate swaps | Level 2 | ||
Assets: | ||
Derivative asset | 83 | 72 |
Liabilities: | ||
Derivative liability | 28 | |
Forward interest rate swaps | Level 3 | ||
Assets: | ||
Derivative asset | 0 | 0 |
Liabilities: | ||
Derivative liability | 0 | |
Investments related to the deferred compensation plan | ||
Assets: | ||
Investments related to the deferred compensation plan | 41 | 35 |
Investments related to the deferred compensation plan | Level 1 | ||
Assets: | ||
Investments related to the deferred compensation plan | 41 | 35 |
Investments related to the deferred compensation plan | Level 2 | ||
Assets: | ||
Investments related to the deferred compensation plan | 0 | 0 |
Investments related to the deferred compensation plan | Level 3 | ||
Assets: | ||
Investments related to the deferred compensation plan | 0 | 0 |
Liabilities related to the deferred compensation plan | ||
Liabilities: | ||
Liabilities related to the deferred compensation plan | 41 | 35 |
Liabilities related to the deferred compensation plan | Level 1 | ||
Liabilities: | ||
Liabilities related to the deferred compensation plan | 41 | 35 |
Liabilities related to the deferred compensation plan | Level 2 | ||
Liabilities: | ||
Liabilities related to the deferred compensation plan | 0 | 0 |
Liabilities related to the deferred compensation plan | Level 3 | ||
Liabilities: | ||
Liabilities related to the deferred compensation plan | $ 0 | $ 0 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Total net derivative asset | $ 48 | $ 53 |
Derivative instruments designated as hedges: | ||
Derivative [Line Items] | ||
Total net derivative asset | (6) | (14) |
Derivative instruments designated as hedges: | Accrued liabilities | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (6) | (14) |
Derivative instruments not designated as hedges: | ||
Derivative [Line Items] | ||
Total net derivative asset | 54 | 67 |
Derivative instruments not designated as hedges: | Prepaid expenses and other current assets | Forward interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 34 | 25 |
Derivative instruments not designated as hedges: | Other long-term assets | Forward interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 49 | 47 |
Derivative instruments not designated as hedges: | Accrued liabilities | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (1) | (5) |
Derivative instruments not designated as hedges: | Accrued liabilities | Forward interest rate swaps | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (12) | 0 |
Derivative instruments not designated as hedges: | Other long-term liabilities | Forward interest rate swaps | ||
Derivative [Line Items] | ||
Derivative liability, fair value | $ (16) | $ 0 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Net (Losses) Gains from Changes in Fair Value (Details) - Derivative instruments not designated as hedges: - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gain recognized in income | $ 5 | $ 85 | $ 20 |
Foreign exchange loss | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gain recognized in income | (4) | 2 | 7 |
Interest (expense) income, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net gain recognized in income | $ 9 | $ 83 | $ 13 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) € in Millions | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 EUR (€) | Jul. 01, 2023 USD ($) | Dec. 31, 2022 EUR (€) | |
Change in unrealized gain (loss) on anticipated sales hedging: | ||||||
Increase for gross asset and liability presentation | $ 1,000,000 | $ 4,000,000 | ||||
Forward interest rate swaps | ||||||
Change in unrealized gain (loss) on anticipated sales hedging: | ||||||
Derivative forward long-term interest rate swap | $ 400,000,000 | |||||
Derivative instruments designated as hedges: | Foreign currency exchange forward | Cash flow hedge | ||||||
Change in unrealized gain (loss) on anticipated sales hedging: | ||||||
Maturity | 12 months | |||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total Net sales | Total Net sales | Total Net sales | |||
Gain (loss) on contract | $ (15,000,000) | $ 87,000,000 | $ (2,000,000) | |||
Derivative forward long-term interest rate swap | € | € 485 | € 549 | ||||
Derivative instruments designated as hedges: | Interest Rate Swap Due Through October 2027 | ||||||
Change in unrealized gain (loss) on anticipated sales hedging: | ||||||
Derivative forward long-term interest rate swap | 800,000,000 | |||||
Derivative instruments designated as hedges: | Interest Rate Swap Due Through June 2030 | ||||||
Change in unrealized gain (loss) on anticipated sales hedging: | ||||||
Derivative forward long-term interest rate swap | 400,000,000 | |||||
Derivative instruments not designated as hedges: | ||||||
Change in unrealized gain (loss) on anticipated sales hedging: | ||||||
Gain (loss) on contract | $ 5,000,000 | 85,000,000 | 20,000,000 | |||
Derivative instruments not designated as hedges: | Foreign currency exchange forward | ||||||
Change in unrealized gain (loss) on anticipated sales hedging: | ||||||
Maturity | 1 month | |||||
Derivative instruments not designated as hedges: | Forward interest rate swaps | ||||||
Change in unrealized gain (loss) on anticipated sales hedging: | ||||||
Gain (loss) on contract | $ 9,000,000 | $ 83,000,000 | $ 13,000,000 |
Derivative Instruments - Sche_3
Derivative Instruments - Schedule of Notional Values and Net Fair Value of Outstanding Contracts (Details) - Foreign currency exchange forward € in Millions, ¥ in Millions, £ in Millions, zł in Millions, $ in Millions, $ in Millions, $ in Millions | Dec. 31, 2023 GBP (£) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 JPY (¥) | Dec. 31, 2023 SGD ($) | Dec. 31, 2023 MXN ($) | Dec. 31, 2023 PLN (zł) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 JPY (¥) | Dec. 31, 2022 SGD ($) | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 PLN (zł) | Dec. 31, 2022 USD ($) |
Derivative [Line Items] | ||||||||||||||
Net fair value of liabilities of outstanding contracts | $ | $ 1 | $ 5 | ||||||||||||
US Dollar | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional balance of outstanding contracts | £ 11 | € 80 | ¥ 685 | $ 14 | $ 144 | zł 116 | £ 11 | € 191 | ¥ 0 | $ 5 | $ 372 | zł 47 | ||
Czech Republic, Koruny | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional balance of outstanding contracts | € | € 17 | € 15 |
Long-Term Debt - Schedule of Ca
Long-Term Debt - Schedule of Carrying Value of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 2,226 | $ 2,032 |
Less: Debt issuance costs | (2) | (4) |
Less: Unamortized discounts | (4) | (5) |
Less: Current portion of debt | (173) | (214) |
Total long-term debt | 2,047 | 1,809 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 413 | 50 |
Term Loan A | Loans Payable | ||
Debt Instrument [Line Items] | ||
Total debt | 1,684 | 1,728 |
Receivables Financing Facilities | Secured Debt | ||
Debt Instrument [Line Items] | ||
Total debt | $ 129 | $ 254 |
Long-Term Debt -Schedule of Fut
Long-Term Debt -Schedule of Future Maturities of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 173 | |
2025 | 66 | |
2026 | 87 | |
2027 | 1,900 | |
Total debt | $ 2,226 | $ 2,032 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | May 31, 2022 | Apr. 30, 2022 |
Debt Instrument [Line Items] | ||||
Estimated fair value debt | $ 2,200,000,000 | $ 2,000,000,000 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 1,500,000,000 | $ 1,000,000,000 | ||
Term Loan A | Loans Payable | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 1,750,000,000 | $ 875,000,000 |
Long-Term Debt - Term Loans (De
Long-Term Debt - Term Loans (Details) | Dec. 31, 2023 |
Loans Payable | Term Loan A | |
Debt Instrument [Line Items] | |
Percentage bearing variable interest, percentage rate | 6.71% |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) | Dec. 31, 2023 | May 31, 2022 | Apr. 30, 2022 |
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 1,500,000,000 | $ 1,000,000,000 | |
A&R Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Letters of credit | $ 11,000,000 | ||
Maximum borrowing capacity | 1,500,000,000 | ||
Funds available for other borrowings | $ 1,489,000,000 | ||
Revolving credit facility interest rate | 6.66% |
Long-Term Debt - Receivables Fi
Long-Term Debt - Receivables Financing Facility (Details) - Secured Debt | Dec. 31, 2023 USD ($) facility |
Receivables Financing Facilities | |
Debt Instrument [Line Items] | |
Number of receivable financing facilities | facility | 2 |
Total borrowing limits (up to) | $ 280,000,000 |
Accounts receivable pledged | 483,000,000 |
Outstanding borrowings | $ 129,000,000 |
Revolving credit facility interest rate | 6.81% |
First Receivables Financing Facility | |
Debt Instrument [Line Items] | |
Total borrowing limits (up to) | $ 180,000,000 |
Second Receivables Financing Facility | |
Debt Instrument [Line Items] | |
Total borrowing limits (up to) | $ 100,000,000 |
Leases - Additional Information
Leases - Additional Information (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | |||
Term of lease (up to) | 10 years | ||
Weighted average remaining term | 6 years | 6 years | 6 years |
Weighted average discount rate used to measure ROU assets and lease liabilities (approximately) | 6% | 5% | 5% |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities | Accrued liabilities |
Leases - Schedule of Activities
Leases - Schedule of Activities Associated With Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Fixed lease expenses | $ 52 | $ 48 | $ 39 |
Variable lease expenses | 35 | 40 | 37 |
Total lease expenses | 87 | 88 | 76 |
Cash paid for leases | 82 | 93 | 76 |
ROU assets obtained in exchange for lease obligations | 55 | 72 | 32 |
Reductions of ROU assets and lease liabilities | (1) | (4) | 0 |
Net non-cash increases to ROU assets and lease liabilities | $ 54 | $ 68 | $ 32 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 53 | |
2025 | 43 | |
2026 | 35 | |
2027 | 27 | |
2028 | 21 | |
Thereafter | 58 | |
Total future minimum lease payments | 237 | |
Less: Interest | (43) | |
Present value of lease liabilities | 194 | |
Current portion of lease liabilities | 42 | $ 37 |
Long-term lease liabilities | $ 152 | $ 139 |
Accrued Liabilities, Commitme_3
Accrued Liabilities, Commitments and Contingencies - Schedule of Components of Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Unremitted cash collections due to banks on factored accounts receivable | $ 112 | $ 130 | ||
Payroll and benefits | 83 | 90 | ||
Settlement | 45 | 180 | ||
Current portion of lease liabilities | 42 | 37 | ||
Customer rebates | 40 | 55 | ||
Incentive compensation | 47 | 107 | ||
Warranty | 27 | 26 | $ 26 | $ 24 |
Exit and restructuring | 22 | 9 | ||
Freight and duty | 10 | 19 | ||
Foreign exchange contracts | 7 | 19 | ||
Other | 69 | 72 | ||
Accrued liabilities | $ 504 | $ 744 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities | Accrued liabilities |
Accrued Liabilities, Commitme_4
Accrued Liabilities, Commitments and Contingencies - Schedule of Accrued Warranty Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Balance at the beginning of the year | $ 26 | $ 26 | $ 24 |
Warranty expense | 29 | 29 | 33 |
Warranties fulfilled | (28) | (29) | (31) |
Balance at the end of the year | $ 27 | $ 26 | $ 26 |
Accrued Liabilities, Commitme_5
Accrued Liabilities, Commitments and Contingencies - Schedule of Commitment Maturity (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 31 |
2025 | 46 |
2026 | 47 |
Thereafter | 0 |
Total | $ 124 |
Accrued Liabilities, Commitme_6
Accrued Liabilities, Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended | |
Jul. 02, 2022 USD ($) payment | Dec. 31, 2023 USD ($) | |
Loss Contingencies [Line Items] | ||
Purchase commitment | $ 11 | |
Liability recorded due to partial cancellation of purchase commitment | $ 10 | |
License and Settlement Agreement | ||
Loss Contingencies [Line Items] | ||
Number of quarterly payments | payment | 8 | |
Litigation settlement, quarterly payment, amount | $ 45 |
Share-Based Compensation - Narr
Share-Based Compensation - Narratives (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
May 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unearned compensation costs related to awards granted | $ 92 | ||||
Unearned compensation cost, expected to be recognized over period | 1 year 4 months 24 days | ||||
Vesting period | 3 years | ||||
2015 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant (in shares) | 0 | ||||
2018 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant (in shares) | 2,274,779 | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Number of share-equivalents issued (in shares) | 336,168 | 181,351 | 134,419 | ||
RSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Number of share-equivalents issued (in shares) | 6,640 | 6,122 | 6,005 | ||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Number of share-equivalents issued (in shares) | 104,620 | 70,777 | 38,393 | ||
PSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Number of share-equivalents issued (in shares) | 0 | 0 | 0 | ||
Class A Common Stock | Non-employee directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of share-equivalents issued (in shares) | 6,640 | 5,686 | 2,877 | ||
SARs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value grants of SARs | $ 6 | ||||
Intrinsic value of SARs exercised | $ 8 | $ 8 | $ 69 | ||
Fair value vested | $ 2 | 3 | 5 | ||
Cash-settled Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Share-based liabilities paid | $ 9 | $ 5 | $ 11 | ||
Number of shares that became available under the plan (in shares) | 45,460 | 66,923 | 11,644 | ||
Employee Stock | 2020 ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant (in shares) | 1,342,239 | ||||
Number of shares that became available under the plan (in shares) | 1,500,000 | ||||
Purchase price equal to lesser of fair market value percentage | 95% |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Compensation Expense and Related Income Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total compensation expense | $ 66 | $ 96 | $ 93 |
Income tax benefit | 13 | 17 | 14 |
Cost of sales | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total compensation expense | 6 | 6 | 8 |
Selling and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total compensation expense | 16 | 22 | 26 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total compensation expense | 25 | 34 | 28 |
General and administration | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total compensation expense | $ 19 | $ 34 | $ 31 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Restricted and Performance Stock-settled Awards (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RSUs | |||
Units | |||
Outstanding at beginning of year (in shares) | 242,732 | 130,009 | 0 |
Granted (in shares) | 336,168 | 181,351 | 134,419 |
Released (in shares) | (95,837) | (48,095) | (674) |
Forfeited (in shares) | (45,684) | (20,533) | (3,736) |
Outstanding at end of year (in shares) | 437,379 | 242,732 | 130,009 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at beginning of year (in USD per share) | $ 404.19 | $ 518.80 | $ 0 |
Granted (in USD per share) | 260.31 | 359.02 | 518.39 |
Released (in USD per share | 412.47 | 518.64 | 489.16 |
Forfeited (in USD per share) | 332.66 | 463.11 | 509.58 |
Outstanding at end of year (in USD per share) | $ 299.19 | $ 404.19 | $ 518.80 |
PSUs | |||
Units | |||
Outstanding at beginning of year (in shares) | 105,928 | 37,691 | 0 |
Granted (in shares) | 104,620 | 70,777 | 38,393 |
Released (in shares) | (64) | (226) | 0 |
Forfeited (in shares) | (14,552) | (2,314) | (702) |
Outstanding at end of year (in shares) | 195,932 | 105,928 | 37,691 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at beginning of year (in USD per share) | $ 406.89 | $ 482.42 | $ 0 |
Granted (in USD per share) | 258.57 | 367.16 | 482.42 |
Released (in USD per share | 482.42 | 482.42 | 0 |
Forfeited (in USD per share) | 313.74 | 410.80 | 482.42 |
Outstanding at end of year (in USD per share) | $ 334.59 | $ 406.89 | $ 482.42 |
RSAs | |||
Units | |||
Outstanding at beginning of year (in shares) | 46,971 | 154,322 | 318,565 |
Granted (in shares) | 6,640 | 6,122 | 6,005 |
Released (in shares) | (51,695) | (104,891) | (159,702) |
Forfeited (in shares) | (1,483) | (8,582) | (10,546) |
Outstanding at end of year (in shares) | 433 | 46,971 | 154,322 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at beginning of year (in USD per share) | $ 271.92 | $ 253.54 | $ 228.08 |
Granted (in USD per share) | 271.77 | 321.03 | 486.02 |
Released (in USD per share | 267.66 | 248.36 | 212.33 |
Forfeited (in USD per share) | 335.98 | 259.93 | 239.78 |
Outstanding at end of year (in USD per share) | $ 477.74 | $ 271.92 | $ 253.54 |
PSAs | |||
Units | |||
Outstanding at beginning of year (in shares) | 35,246 | 74,032 | 126,022 |
Granted (in shares) | 0 | 0 | 0 |
Released (in shares) | (35,171) | (38,671) | (49,236) |
Forfeited (in shares) | (75) | (115) | (2,754) |
Outstanding at end of year (in shares) | 0 | 35,246 | 74,032 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at beginning of year (in USD per share) | $ 245.79 | $ 225.34 | $ 199.77 |
Granted (in USD per share) | 0 | 0 | 0 |
Released (in USD per share | 245.82 | 206.62 | 160.11 |
Forfeited (in USD per share) | 244.97 | 244.62 | 236.18 |
Outstanding at end of year (in USD per share) | $ 0 | $ 245.79 | $ 225.34 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of SAR's Outstanding (Details) - SARs - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SARs, Shares Outstanding | |||
Outstanding at beginning of year (in shares) | 443,476 | 474,151 | 638,124 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (42,957) | (28,659) | (159,035) |
Forfeited (in shares) | (976) | (1,987) | (4,938) |
Expired (in shares) | (705) | (29) | 0 |
Outstanding at end of year (in shares) | 398,838 | 443,476 | 474,151 |
Exercisable at end of year (in shares) | 385,305 | 400,351 | 383,273 |
Weighted-Average Grant Date Exercise Price | |||
Outstanding at beginning of year (in USD per share) | $ 122.67 | $ 121.05 | $ 113.98 |
Granted (in USD per share) | 0 | 0 | 0 |
Exercised (in USD per share) | 99.39 | 88.35 | 89.87 |
Forfeited (in USD per share) | 244.15 | 229.46 | 213.80 |
Expired (in USD per share) | 78.54 | 205.12 | 0 |
Outstanding at end of year (in USD per share) | 124.96 | 122.67 | 121.05 |
Exercisable at end of year (in USD per share) | $ 120.35 | $ 110.14 | $ 97.29 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Outstanding and SARs (Details) - SARs $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Summary of SARs outstanding | |
Outstanding, Aggregate intrinsic value | $ 60 |
Outstanding, Weighted-average remaining contractual life | 1 year 8 months 12 days |
Exercisable, Aggregate intrinsic value | $ 59 |
Exercisable, Weighted-average remaining contractual life | 1 year 8 months 12 days |
Income Taxes - Schedule of Geog
Income Taxes - Schedule of Geographical Sources of Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 167 | $ (69) | $ 328 |
Outside U.S. | 167 | 613 | 640 |
Income before income tax | $ 334 | $ 544 | $ 968 |
Income Taxes -Schedule of Compo
Income Taxes -Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 2 | $ 141 | $ 63 |
State | 8 | 22 | 12 |
Foreign | 63 | 126 | 124 |
Total current | 73 | 289 | 199 |
Deferred: | |||
Federal | (5) | (168) | (48) |
State | (7) | (22) | (12) |
Foreign | (23) | (18) | (8) |
Total deferred | (35) | (208) | (68) |
Total | $ 38 | $ 81 | $ 131 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Effective income tax rate | 11.40% | 14.90% | 13.50% |
Increase in deferred tax assets | $ 100,000,000 | $ 130,000,000 | |
Increase in current tax liability | 100,000,000 | 130,000,000 | |
Net operating loss carryforwards | 435,000,000 | 432,000,000 | |
Tax credits | 43,000,000 | 32,000,000 | |
GILTI, BEAT and FDII provisional income tax (benefit) expense | (16,000,000) | (19,000,000) | $ (20,000,000) |
Unrecognized tax benefits that would affect annual effective tax rate | 9,000,000 | 7,000,000 | |
Net tax benefit, interest and penalties | (1,000,000) | (1,000,000) | $ 0 |
Penalties and interest accrued | 4,000,000 | $ 5,000,000 | |
Expire Year 2024 Through 2039 | |||
Income Tax Contingency [Line Items] | |||
NOLs expiring | 171,000,000 | ||
Expire Year 2024 through 2041 | |||
Income Tax Contingency [Line Items] | |||
NOLs expiring | $ 34,000,000 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of U. S. Federal Statutory Income Tax Rate to Actual Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Provision computed at statutory rate | 21% | 21% | 21% |
Remeasurement of deferred taxes | (2.40%) | (0.40%) | (1.00%) |
Change in valuation allowance | 2.30% | 0.10% | (0.10%) |
U.S. impact of Enterprise acquisition | 0.30% | 0.40% | 0.30% |
Change in contingent income tax reserves | 0.40% | (0.30%) | (0.20%) |
Foreign earnings subject to U.S. taxation | (5.30%) | (3.50%) | (2.00%) |
Foreign rate differential | (0.10%) | (3.40%) | (1.70%) |
State income tax, net of federal tax benefit | 0.50% | (0.50%) | 0.30% |
Tax credits | (5.50%) | (3.10%) | (2.00%) |
Equity compensation deductions | 0.40% | (0.10%) | (2.40%) |
Return to provision and other true ups | (1.80%) | 1.50% | (0.90%) |
Settlements with tax authorities | 0.30% | 2% | 0% |
Permanent differences and other | 1.30% | 1.20% | 2.20% |
Provision for income taxes | 11.40% | 14.90% | 13.50% |
Income Taxes -Schedule of Com_2
Income Taxes -Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Capitalized research expenditures | $ 225 | $ 138 |
Deferred revenue | 76 | 93 |
Tax credits | 43 | 32 |
Net operating loss carryforwards | 435 | 432 |
Other accruals | 38 | 31 |
Inventory items | 23 | 21 |
Sales return/rebate reserve | 42 | 81 |
Share-based compensation expense | 15 | 14 |
Legal accrual | 13 | 55 |
Lease liabilities | 23 | 23 |
Valuation allowance | (422) | (420) |
Total deferred tax assets | 511 | 500 |
Deferred tax liabilities: | ||
Depreciation and amortization | 103 | 127 |
Unrealized gains and losses on securities and investments | 11 | 12 |
Undistributed earnings | 2 | 2 |
Right of use lease assets | 19 | 20 |
Other | 5 | 7 |
Total deferred tax liabilities | 140 | 168 |
Net deferred tax assets | $ 371 | $ 332 |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits | ||
Balance at beginning of year | $ 7 | $ 7 |
Additions for tax positions related to the current year | 11 | 0 |
Additions for tax positions related to prior years | 0 | 3 |
Settlements for tax positions | 0 | (2) |
Lapse of statutes | (1) | (1) |
Balance at end of year | $ 17 | $ 7 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic: | |||
Net income | $ 296 | $ 463 | $ 837 |
Weighted-average shares outstanding (in shares) | 51,378,051 | 52,207,903 | 53,446,399 |
Basic earnings per share (in USD per share) | $ 5.75 | $ 8.86 | $ 15.66 |
Diluted: | |||
Net income | $ 296 | $ 463 | $ 837 |
Weighted-average shares outstanding (in shares) | 51,378,051 | 52,207,903 | 53,446,399 |
Diluted Shares (in shares) | 332,911 | 350,809 | 456,031 |
Diluted weighted-average shares outstanding (in shares) | 51,710,962 | 52,558,712 | 53,902,430 |
Diluted earnings per share (in USD per share) | $ 5.72 | $ 8.80 | $ 15.52 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive shares (in shares) | 129,856 | 173,519 | 8,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | $ 2,733 | $ 2,984 | $ 2,144 |
Other comprehensive income (loss) before reclassifications | (1) | 42 | 49 |
Amounts reclassified from AOCI | 15 | (87) | 2 |
Tax effect | (2) | 8 | (11) |
Other comprehensive income (loss), net of tax | 12 | (37) | 40 |
Ending balance | 3,036 | 2,733 | 2,984 |
Total | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (66) | (29) | (69) |
Ending balance | (54) | (66) | (29) |
Unrealized (loss) gain on sales hedging | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (11) | 18 | (28) |
Other comprehensive income (loss) before reclassifications | (7) | 50 | 55 |
Amounts reclassified from AOCI | 15 | (87) | 2 |
Tax effect | (2) | 8 | (11) |
Other comprehensive income (loss), net of tax | 6 | (29) | 46 |
Ending balance | (5) | (11) | 18 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (55) | (47) | (41) |
Other comprehensive income (loss) before reclassifications | 6 | (8) | (6) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Tax effect | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 6 | (8) | (6) |
Ending balance | $ (49) | $ (55) | $ (47) |
Accounts Receivable Factoring (
Accounts Receivable Factoring (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2023 USD ($) agreement | Sep. 30, 2023 EUR (€) agreement | Jul. 01, 2023 USD ($) | |
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||||||
Remaining active agreements | agreement | 2 | 2 | ||||
Accounts receivables sold (up to) | $ 50 | $ 25 | ||||
Deposits | $ 1 | $ 12 | ||||
Proceeds from sale of accounts receivables | 1,404 | 1,496 | $ 1,504 | |||
Uncollected receivables sold and removed from the balance sheet | 56 | 61 | ||||
Unremitted cash collections due to banks on factored accounts receivable | 112 | 130 | ||||
Fees incurred | $ 11 | $ 5 | $ 3 | |||
EMEA And Asia Pacific | ||||||
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||||||
Accounts receivables sold (up to) | € | € 150 |
Segment Information & Geograp_3
Segment Information & Geographic Data - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Reportable segments | 2 |
Segment Information & Geograp_4
Segment Information & Geographic Data - Financial Information by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net sales: | |||
Total Net sales | $ 4,584 | $ 5,781 | $ 5,627 |
Operating income: | |||
Total Operating income | 481 | 529 | 979 |
Operating Segments | |||
Net sales: | |||
Total Net sales | 4,584 | 5,781 | 5,633 |
Operating income: | |||
Total Operating income | 689 | 1,072 | 1,132 |
Operating Segments | AIT | |||
Net sales: | |||
Total Net sales | 1,651 | 1,837 | 1,734 |
Operating income: | |||
Total Operating income | 346 | 361 | 386 |
Operating Segments | EVM | |||
Net sales: | |||
Total Net sales | 2,933 | 3,944 | 3,899 |
Operating income: | |||
Total Operating income | 343 | 711 | 746 |
Corporate, eliminations | |||
Net sales: | |||
Total Net sales | 0 | 0 | (6) |
Operating income: | |||
Total Operating income | $ (208) | $ (543) | $ (153) |
Segment Information & Geograp_5
Segment Information & Geographic Data -Schedule of Net Sales to Significant Customers as a Percent of Total Net Sales (Details) - Significant customers | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Customer A | Net sales | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 18% | 21% | 22% |
Customer A | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 22% | 22% | |
Customer A | AIT | Net sales | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 5% | 7% | 7% |
Customer A | EVM | Net sales | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 13% | 14% | 15% |
Customer B | Net sales | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 14% | 15% | 14% |
Customer B | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 10% | 20% | |
Customer B | AIT | Net sales | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 8% | 6% | 5% |
Customer B | EVM | Net sales | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 6% | 9% | 9% |
Customer C | Net sales | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 12% | 13% | 13% |
Customer C | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 17% | 18% | |
Customer C | AIT | Net sales | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 4% | 4% | 3% |
Customer C | EVM | Net sales | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 8% | 9% | 10% |
Segment Information & Geograp_6
Segment Information & Geographic Data -Schedule of Net Sales by Country (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Major Customer [Line Items] | |||
Total Net sales | $ 4,584 | $ 5,781 | $ 5,627 |
North America | |||
Revenue, Major Customer [Line Items] | |||
Total Net sales | 2,405 | 2,919 | 2,819 |
EMEA | |||
Revenue, Major Customer [Line Items] | |||
Total Net sales | 1,414 | 1,920 | 1,976 |
Asia-Pacific | |||
Revenue, Major Customer [Line Items] | |||
Total Net sales | 481 | 609 | 543 |
Latin America | |||
Revenue, Major Customer [Line Items] | |||
Total Net sales | 284 | 333 | 289 |
U.S. | |||
Revenue, Major Customer [Line Items] | |||
Total Net sales | 2,330 | 2,840 | 2,784 |
Germany | |||
Revenue, Major Customer [Line Items] | |||
Total Net sales | 682 | 949 | 901 |
Other | |||
Revenue, Major Customer [Line Items] | |||
Total Net sales | $ 1,572 | $ 1,992 | $ 1,942 |
Segment Information & Geograp_7
Segment Information & Geographic Data -Schedule of Geographic Data for Long-lived Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | $ 478 | $ 434 | $ 403 |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | 338 | 336 | 290 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | 61 | 58 | 68 |
Asia-Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | 73 | 35 | 39 |
Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | $ 6 | $ 5 | $ 6 |