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 September 30, 2023

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 October 24, 2023, there were 51,359,604 shares of Class A Common Stock, $.01 par value, outstanding.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

QUARTER ENDED SEPTEMBER 30, 2023

TABLE OF CONTENTS

PAGE
PART I - FINANCIAL INFORMATION3
Item 1.Consolidated Financial Statements3
Consolidated Balance Sheets as of September 30, 2023 (unaudited) and December 31, 20223
Consolidated Statements of Operations (unaudited) for the three and nine months ended September 30, 2023 and October 1, 20224
Consolidated Statements of Comprehensive Income (unaudited) for the three and nine months ended September 30, 2023 and October 1, 20225
Consolidated Statements of Stockholders’ Equity (unaudited) for the three and nine months ended September 30, 2023 and October 1, 20226
Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2023 and October 1, 20228
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: Investments11
Note 6: Exit and Restructuring Costs11
Note 7: Fair Value Measurements11
Note 8: Derivative Instruments13
Note 9: Long-Term Debt15
Note 10: Leases17
Note 11: Accrued Liabilities, Commitments and Contingencies17
Note 12: Income Taxes18
Note 13: (Loss) Earnings Per Share19
Note 14: Accumulated Other Comprehensive Income (Loss)19
Note 15: Accounts Receivable Factoring20
Note 16: Segment Information & Geographic Data21
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations21
Overview21
Results of Operations23
Results of Operations by Segment26
Liquidity and Capital Resources28
Significant Customers30
Safe Harbor31
New Accounting Pronouncements31
Non-GAAP Measures31
Item 3.Quantitative and Qualitative Disclosures About Market Risk32
Item 4.Controls and Procedures32
Item 5.Other Information35
PART II - OTHER INFORMATION33
Item 1.Legal Proceedings33
Item 1A.Risk Factors33
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds34
Item 6.Exhibits36
Signatures37

PART I - FINANCIAL INFORMATION

Next: Item 1. Consolidated Financial Statements