A Dark Vector Cognition product

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Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 2, 2022

OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission File Number: 000-19406

Zebra Technologies Corporation

(Exact name of registrant as specified in its charter)

Delaware36-2675536
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

3 Overlook Point, Lincolnshire, IL 60069

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (847) 634-6700

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of exchange on which registered
Class A Common Stock, par value $.01 per shareZBRAThe NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 29, 2022, there were 51,789,941 shares of Class A Common Stock, $.01 par value, outstanding.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

QUARTER ENDED JULY 2, 2022

TABLE OF CONTENTS

PAGE
PART I - FINANCIAL INFORMATION3
Item 1.Consolidated Financial Statements3
Consolidated Balance Sheets as of July 2, 2022 (unaudited) and December 31, 20213
Consolidated Statements of Operations (unaudited) for the three and six months ended July 2, 2022 and July 3, 20214
Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended July 2, 2022 and July 3, 20215
Consolidated Statements of Stockholders’ Equity (unaudited) for the three and six months ended July 2, 2022 and July 3, 20216
Consolidated Statements of Cash Flows (unaudited) for the six months ended July 2, 2022 and July 3, 20218
Notes to Consolidated Financial Statements (unaudited)8
Note 1: Description of Business and Basis of Presentation9
Note 2: Significant Accounting Policies9
Note 3: Revenues10
Note 4: Inventories11
Note 5: Business Acquisitions11
Note 6: Goodwill & Other Intangibles12
Note 7: Investments13
Note 8: Fair Value Measurements13
Note 9: Derivative Instruments15
Note 10: Long-Term Debt17
Note 11: Leases19
Note 12: Accrued Liabilities, Commitments and Contingencies19
Note 13: Share-Based Compensation20
Note 14: Income Taxes23
Note 15: Earnings Per Share24
Note 16: Accumulated Other Comprehensive Income (Loss)24
Note 17: Accounts Receivable Factoring25
Note 18: Segment Information & Geographic Data26
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations27
Overview27
Results of Operations29
Results of Operations by Segment31
Liquidity and Capital Resources34
Significant Customers36
Safe Harbor37
New Accounting Pronouncements37
Non-GAAP Measures37
Item 3.Quantitative and Qualitative Disclosures About Market Risk38
Item 4.Controls and Procedures38
PART II - OTHER INFORMATION39
Item 1.Legal Proceedings39
Item 1A.Risk Factors39
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds40
Item 6.Exhibits41
Signatures42

PART I - FINANCIAL INFORMATION

Next: Item 1. Consolidated Financial Statements