Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 04, 2021 | Jun. 27, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
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 | ||
Entity Shell Company | false | ||
Entity Public Float | $ 13 | ||
Entity Common Stock, Shares Outstanding | 53,467,406 | ||
Documents Incorporated by Reference | Certain sections of the Registrant’s definitive proxy statement for its Annual Meeting of Stockholders to be held on May 14, 2021, 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 | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000877212 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 168 | $ 30 |
Accounts receivable, net of allowances for doubtful accounts of $1 million and $2 million as of December 31, 2020 and 2019 | 508 | 613 |
Inventories, net | 511 | 474 |
Income tax receivable | 16 | 32 |
Prepaid expenses and other current assets | 70 | 46 |
Total Current assets | 1,273 | 1,195 |
Property, plant and equipment, net | 274 | 259 |
Right-of-use lease asset | 135 | 107 |
Goodwill | 2,988 | 2,622 |
Other intangibles, net | 402 | 275 |
Deferred income taxes | 139 | 127 |
Other long-term assets | 164 | 126 |
Total Assets | 5,375 | 4,711 |
Current liabilities: | ||
Current portion of long-term debt | 364 | 197 |
Accounts payable | 601 | 552 |
Accrued liabilities | 559 | 379 |
Deferred revenue | 308 | 238 |
Income taxes payable | 19 | 38 |
Total Current liabilities | 1,851 | 1,404 |
Total long-term debt | 881 | 1,080 |
Long-term lease liabilities | 129 | 100 |
Long-term deferred revenue | 273 | 221 |
Other long-term liabilities | 97 | 67 |
Total Liabilities | 3,231 | 2,872 |
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 | 395 | 339 |
Treasury stock at cost, 18,689,775 and 18,148,925 shares as of December 31, 2020 and 2019, respectively | (919) | (689) |
Retained earnings | 2,736 | 2,232 |
Accumulated other comprehensive loss | (69) | (44) |
Total Stockholders’ Equity | 2,144 | 1,839 |
Total Liabilities and Stockholders’ Equity | $ 5,375 | $ 4,711 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1 | $ 2 |
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) | 18,689,775 | 18,148,925 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales | |||
Total Net sales | $ 4,448 | $ 4,485 | $ 4,218 |
Cost of sales: | |||
Total Cost of sales | 2,445 | 2,385 | 2,237 |
Gross profit | 2,003 | 2,100 | 1,981 |
Operating expenses: | |||
Selling and marketing | 483 | 503 | 483 |
Research and development | 453 | 447 | 444 |
General and administrative | 304 | 323 | 328 |
Amortization of intangible assets | 78 | 103 | 97 |
Acquisition and integration costs | 23 | 22 | 8 |
Exit and restructuring costs | 11 | 10 | 11 |
Total Operating expenses | 1,352 | 1,408 | 1,371 |
Operating income | 651 | 692 | 610 |
Other expenses: | |||
Foreign exchange loss | (18) | (6) | (5) |
Interest expense, net | (76) | (89) | (91) |
Other, net | 3 | 1 | 10 |
Total Other expenses, net | (91) | (94) | (86) |
Income before income tax | 560 | 598 | 524 |
Income tax expense | 56 | 54 | 103 |
Net income | $ 504 | $ 544 | $ 421 |
Basic earnings per share (in USD per share) | $ 9.43 | $ 10.08 | $ 7.86 |
Diluted earnings per share (in USD per share) | $ 9.35 | $ 9.97 | $ 7.76 |
Tangible Products | |||
Net sales | |||
Total Net sales | $ 3,813 | $ 3,907 | $ 3,685 |
Cost of sales: | |||
Total Cost of sales | 2,065 | 2,006 | 1,871 |
Services and Software | |||
Net sales | |||
Total Net sales | 635 | 578 | 533 |
Cost of sales: | |||
Total Cost of sales | $ 380 | $ 379 | $ 366 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 504 | $ 544 | $ 421 |
Other comprehensive income (loss), net of tax: | |||
Changes in unrealized gains and losses on anticipated sales hedging transactions | (30) | (10) | 21 |
Changes in unrealized gains and losses on forward interest rate swap hedging transactions | 0 | 0 | 9 |
Foreign currency translation adjustment | 5 | 1 | (13) |
Comprehensive income | $ 479 | $ 535 | $ 438 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Class A Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Dec. 31, 2017 | 53,236,095 | |||||||
Beginning Balance at Dec. 31, 2017 | $ 834 | $ 19 | $ 1 | $ 257 | $ (620) | $ 1,248 | $ 19 | $ (52) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures (in shares) | 704,137 | |||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures | 10 | (8) | 18 | |||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans (in shares) | (69,048) | |||||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans | (11) | (11) | ||||||
Share-based compensation | 45 | 45 | ||||||
Net income | 421 | 421 | ||||||
Changes in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes) | 21 | 21 | ||||||
Changes in unrealized gains and losses on forward interest rate swap hedging transactions (net of income taxes) | 9 | 9 | ||||||
Foreign currency translation adjustment | (13) | (13) | ||||||
Ending Balance (in shares) at Dec. 31, 2018 | 53,871,184 | |||||||
Ending Balance at Dec. 31, 2018 | 1,335 | $ 1 | 294 | (613) | 1,688 | (35) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures (in shares) | 594,399 | |||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures | 11 | (3) | 14 | |||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans (in shares) | (224,765) | |||||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans | (43) | (43) | ||||||
Share-based compensation | 48 | 48 | ||||||
Repurchase of common stock (in shares) | (237,886) | |||||||
Repurchase of common stock | (47) | (47) | ||||||
Net income | 544 | 544 | ||||||
Changes in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes) | (10) | (10) | ||||||
Foreign currency translation adjustment | 1 | 1 | ||||||
Ending Balance (in shares) at Dec. 31, 2019 | 54,002,932 | |||||||
Ending Balance at Dec. 31, 2019 | 1,839 | $ 1 | 339 | (689) | 2,232 | (44) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures (in shares) | 557,599 | |||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures | 12 | 5 | 7 | |||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans (in shares) | (149,709) | |||||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans | (37) | (37) | ||||||
Share-based compensation | 51 | 51 | ||||||
Repurchase of common stock (in shares) | (948,740) | |||||||
Repurchase of common stock | (200) | (200) | ||||||
Net income | 504 | 504 | ||||||
Changes in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes) | (30) | (30) | ||||||
Foreign currency translation adjustment | 5 | 5 | ||||||
Ending Balance (in shares) at Dec. 31, 2020 | 53,462,082 | |||||||
Ending Balance at Dec. 31, 2020 | $ 2,144 | $ 1 | $ 395 | $ (919) | $ 2,736 | $ (69) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 504 | $ 544 | $ 421 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 146 | 175 | 175 |
Amortization of debt issuance costs and discounts | 3 | 6 | 15 |
Share-based compensation | 51 | 48 | 45 |
Deferred income taxes | (40) | (42) | 2 |
Unrealized loss (gain) on forward interest rate swaps | 33 | 19 | (8) |
Other, net | 1 | (2) | (5) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 130 | (96) | (31) |
Inventories, net | (42) | 51 | (43) |
Other assets | 11 | (20) | (12) |
Accounts payable | 47 | (5) | 122 |
Accrued liabilities | 16 | (18) | 35 |
Deferred revenue | 103 | 71 | 51 |
Income taxes | (5) | (31) | 24 |
Other operating activities | 4 | (15) | (6) |
Net cash provided by operating activities | 962 | 685 | 785 |
Cash flows from investing activities: | |||
Acquisition of businesses, net of cash acquired | (548) | (262) | (72) |
Purchases of property, plant and equipment | (67) | (61) | (64) |
Proceeds from the sale of long-term investments | 6 | 10 | 2 |
Purchases of long-term investments | (32) | (22) | (3) |
Net cash used in investing activities | (641) | (335) | (137) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 302 | 637 | 909 |
Payments of long term-debt | (342) | (949) | (1,566) |
Payments of debt extinguishment costs | 0 | (1) | (1) |
Payments of debt issuance costs and discounts | (1) | (6) | (2) |
Payments for repurchases of common stock | (200) | (47) | 0 |
Net payments related to share-based compensation plans | (25) | (32) | (1) |
Change in unremitted cash collections from servicing factored receivables | 109 | 33 | 0 |
Net cash used in financing activities | (157) | (365) | (661) |
Effect of exchange rate changes on cash and cash equivalents, including restricted cash | (2) | 1 | (5) |
Net increase (decrease) in cash and cash equivalents, including restricted cash | 162 | (14) | (18) |
Cash and cash equivalents, including restricted cash, at beginning of period | 30 | 44 | 62 |
Cash and cash equivalents, including restricted cash, at end of period | 192 | 30 | 44 |
Less restricted cash, included in Prepaid expenses and other current assets | (24) | 0 | 0 |
Cash and cash equivalents at end of period | 168 | 30 | 44 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 107 | 140 | 76 |
Interest paid | $ 38 | $ 63 | $ 90 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business 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 subscriptions, that capture and move data. We also provide a full range of services, including maintenance, technical support, repair, and managed and professional services. End-users of our products, solutions and services include those in retail and e-commerce, transportation and logistics, manufacturing, healthcare, hospitality, warehouse and distribution, energy and utilities, education, and banking industries around the world. We provide our products, solutions and services globally through a direct sales force and an extensive network of channel partners. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 United States 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 2020 fiscal year, the Company’s quarter end dates were March 28, June 27, September 26 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. Examples of accounting estimates include: cash flow projections and other valuation assumptions included in business acquisition purchase price allocations as well as annual goodwill impairment testing; the measurement of variable consideration and allocation of transaction price to performance obligations in revenue transactions; inventory valuation; useful lives of our tangible and intangible assets; and the recognition and measurement of income tax assets and liabilities. 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. In addition, the Company considers highly liquid short-term investments with original maturities of less than three months to be cash equivalents. These highly liquid short-term investments 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 and Allowance for Doubtful Accounts Accounts receivable consist primarily of amounts due to us from our customers 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 a number of factors, including 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 largely consist of supplies used in repair operations. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable values. Inventory provisions are based on forecasted demand, experience with specific customers, the age and nature of the inventory, and the ability to redistribute inventory to other programs or to rework into other consumable inventory. Property, Plant and Equipment Property, plant and equipment is stated at cost. 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 30 years for buildings and range from 3 to 10 years for all other asset categories. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or 10 years. 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 measurements of new ROU assets and lease liabilities are 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, 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. The Tax Cut and Jobs Act (“the Act”, or “U.S. Tax Reform”), enacted on December 22, 2017, 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 and are effective for tax years beginning on or after January 1, 2018. 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 not amortized, rather it is tested annually for impairment, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Our annual impairment testing consists of comparing 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 with valuation techniques, including both the income and market approaches. The income approach requires management to estimate a number of factors for each reporting unit, including projected future operating results, economic projections, anticipated future cash flows and discount rates. The market approach estimates fair value using comparable marketplace fair value data from within a comparable industry group. Fair value determinations require judgment and are sensitive to changes in underlying assumptions, estimates, as well as market factors. Estimating the fair value of reporting units requires that we make a number of assumptions and estimates regarding our long-term growth and cash flow expectations as well as overall industry and economic conditions. These estimates and assumptions include, but are not limited to, projections of revenue and income growth rates, capital investments, competitive and customer trends, appropriate peer group selection, market-based discount rates and other market factors. We most recently performed our annual goodwill impairment testing in the fourth quarter of 2020 using a quantitative approach which did not result in any impairments. See Note 6, Goodwill and Other Intangibles for additional information. We believe our fair value estimates are reasonable. If actual financial results differ materially from current estimates or there are significant negative changes in market factors beyond our control, there could be an impairment of goodwill in the future. Other Intangible Assets Other intangible assets consist primarily of technology and patent rights, customer and other relationships, and trade names. These assets are recorded at cost and amortized on a straight-line basis over the asset’s useful life which typically range from 2 years to 10 years. 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% of each investee 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 to which 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, transfer of control and risks of ownership to the customer, for which the Company has contractual right to payment. Our service offerings include repair and maintenance service contracts, which typically occur over time, and professional services such as installation, integration and provisioning, which 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 from the transaction price sales and other taxes assessed by a governmental authority and collected by the Company from a customer. 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 are expensed as incurred, and 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. Advertising Advertising is expensed as incurred. Advertising costs totaled $25 million, $19 million, and $18 million for the years ended 2020, 2019 and 2018, respectively. Warranties In general, the Company provides warranty coverage of one year on mobile computers, printers and batteries. Advanced data capture products are warrantied from one Contingencies The Company establishes a liability for loss contingencies when the loss is both probable and estimable. In addition, for some matters for which a loss is probable or reasonably possible, an estimate of the amount of loss or range of loss is not possible, and we may be unable to estimate the possible loss or range of losses that could potentially result from the application of non-monetary remedies. 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 up to 4 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. This method requires that the purchase price be allocated to the identifiable assets acquired and liabilities assumed 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. While we use our best estimates and assumptions as a part of the purchase price allocation process, our estimates are inherently uncertain and subject to refinement during the measurement period, which is up to one year after the acquisition date. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from revenues and operating activities and the determination of discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but due to the inherent uncertainty during the measurement period, we may record adjustments to the fair value of assets acquired and liabilities assumed with a corresponding adjustment to goodwill. Recently Adopted Accounting Pronouncements On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. It replaced the historical incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. With respect to the Company’s financial assets, including trade receivables and contract assets, a cumulative effect transition approach was applied. In order to determine the transition impact of ASU 2016-13, the Company considered historical loss experience, the short duration of its trade receivables and durations of other financial assets, and expectations of the future economic environment. The adoption of ASU 2016-13 did not have a significant impact to the Company’s financial statements upon transition or for the year ended December 31, 2020. Recently Issued Accounting Pronouncements Not Yet Adopted In March 2020, the Financial Accounting Standards Board issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). Subject to meeting certain criteria, ASU 2020-04 provides optional expedients and exceptions to applying contract modification accounting under existing generally accepted accounting principles for contracts that are modified to address the expected phase out of the London Inter-bank Offered Rate (“LIBOR”). Some of the Company’s contracts with respect to its borrowings and interest rate swap contracts already contain comparable alternative reference rates that would automatically take effect upon the phasing out of LIBOR, while for others, the Company anticipates negotiating comparable replacement rates with its counterparties. At this stage of its contract assessment, the Company does not expect ASU 2020-04 to have a material impact on its financial results. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The Company recognizes revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration which it expects to receive for providing those goods or services. To determine total expected consideration, the Company estimates elements of variable consideration, which primarily include product rights of return, rebates, price protection and other incentives. These estimates are developed using the expected value or the most likely amount 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 contract arrangements that may include various combinations of tangible products, services, solution 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 the estimated standalone selling price using a cost-plus margin methodology. 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 consideration of the following: 1) the customer simultaneously receives and consumes the benefits provided as the Company performs its promises; 2) the Company’s performance creates or enhances an asset that is under control of the customer; 3) the Company’s performance does not create an asset with an alternative use to the Company; and 4) the Company has an enforceable right to payment for its performance completed to date. Revenues for products are generally recognized upon shipment, whereas revenues for services and solutions offerings are generally recognized by using an output method or time-based method, assuming all other criteria for revenue recognition have been met. Revenues for software are recognized either upon delivery or using a time-based method, depending upon how control is transferred to the customer. In cases where a bundle of products, services, and software and solutions offerings are delivered to the customer, judgment is required to select the method of progress which best reflects the transfer of control. The Company’s remaining performance obligations primarily relate to repair and support services, as well as solutions offerings. The aggregated transaction price allocated to remaining performance obligations for arrangements with an original term exceeding one year was $974 million and $724 million, inclusive of deferred revenue, as of December 31, 2020 and 2019, respectively. On average, remaining performance obligations as of December 31, 2020 and 2019 are expected to be recognized over a period of approximately 2 years. Disaggregation of Revenue The following table presents our Net sales disaggregated by product category for each of our segments, Asset Intelligence & Tracking (“AIT”) and Enterprise Visibility & Mobility (“EVM”), for the years ended December 31, 2020, 2019 and 2018 (in millions): Year Ended December 31, 2020 Segment Tangible Products Services and Software Total AIT $ 1,298 $ 128 $ 1,426 EVM 2,515 514 3,029 Corporate, eliminations (1) — (7) (7) Total $ 3,813 $ 635 $ 4,448 Year Ended December 31, 2019 Segment Tangible Products Services and Software Total AIT $ 1,347 $ 132 $ 1,479 EVM 2,560 446 3,006 Total $ 3,907 $ 578 $ 4,485 Year Ended December 31, 2018 Segment Tangible Products Services and Software Total AIT $ 1,298 $ 125 $ 1,423 EVM 2,387 408 2,795 Total $ 3,685 $ 533 $ 4,218 (1) Amounts included in Corporate, eliminations consist of purchase accounting adjustments. In addition, refer to Note 20, Segment Information & Geographic Data for Net sales to customers by geographic region. Contract Balances Progress on satisfying performance obligations under contracts with customers is reflected on the Consolidated Balance Sheets in Accounts receivable, net for billed revenues. 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 12-months, and Other long-term assets for revenues expected to be billed thereafter. The total contract asset balances were $10 million and $8 million as of December 31, 2020 and 2019, respectively. These contract assets result from timing differences between the billing and delivery schedules of products, services and software, 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, 2020, 2019 and 2018. Deferred revenue on the Consolidated Balance Sheets consist of payments and billings in advance of our performance. The combined short-term and long-term deferred revenue balances were $581 million and $459 million as of December 31, 2020 and 2019, respectively. The Company recognized $256 million, $219 million and $181 million in revenue that was previously included in the beginning balance of deferred revenue during the years ended December 31, 2020, 2019 and 2018, 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 Our incremental direct costs of obtaining a contract, which consist of sales commissions and incremental fringe benefits, are deferred and amortized over the weighted-average contract term. The incremental costs to obtain a contract are derived at a |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of Inventories, net are as follows (in millions): December 31, December 31, Raw materials $ 117 $ 128 Work in process 4 4 Finished goods 390 342 Total $ 511 $ 474 |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions Reflexis On September 1, 2020, the Company acquired all of the equity interests in Reflexis Systems, Inc. (“Reflexis”), a provider of task and workforce management, execution, and communication solutions for customers in the retail, food service, hospitality, and banking industries. Through its acquisition of Reflexis, the Company intends to enhance its solution offerings to customers in these industries by combining Reflexis’ platform with its existing software solutions and its EVM product offerings. The Reflexis acquisition was accounted for under the acquisition method of accounting for business combinations. The Company’s cash purchase consideration was $548 million, net of Reflexis’ cash on-hand. In connection with its acquisition of Reflexis, and in exchange for the cancellation of unvested Reflexis stock options, the Company granted replacement share-based compensation awards to certain Reflexis employees in the form of Zebra incentive stock options. A total of 38,228 replacement stock options were granted, with a weighted average acquisition-date fair value per option of $230. The total fair value of approximately $9 million is primarily attributable to service to be rendered subsequent to acquisition and will be expensed over the remaining service period. As of the acquisition date, the weighted average future service period associated with the replacement options was 1.7 years, and the weighted average remaining contractual life was 7.7 years. See Note 15, Share-Based Compensation for additional details related to these options. The Company incurred approximately $21 million of acquisition-related costs during 2020, which primarily consisted of payments to settle certain existing Reflexis share-based compensation awards whose vesting was accelerated at the discretion of Reflexis contemporaneously with the acquisition. Those payments, as well as $7 million of other acquisition-related costs primarily related to third-party transaction and advisory fees, are included within Acquisition and integration costs on the Consolidated Statements of Operations. The acquisition of Reflexis was funded, in part, by the issuance of a new term loan (the “2020 Term Loan”) in the amount of $200 million. The acquisition of Reflexis was otherwise funded using the Company’s cash on hand and borrowing under the Company’s existing Revolving Credit Facility. See additional details related to the Company’s debt arrangements in Note 12, Long-Term Debt. The Company utilized estimated fair values as of September 1, 2020 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, as well as exit cost methodologies for liabilities such as deferred revenues. While we believe these estimates provide a reasonable basis to record the net assets acquired, the purchase price allocation is considered preliminary and subject to adjustment during the measurement period, which is up to one year from the acquisition date. During the fourth quarter of 2020, the Company recorded measurement period adjustments relating to facts and circumstances existing as of the acquisition date. The primary measurement period adjustment was related to the realizability of income tax net operating losses, resulting in a $12 million decrease in deferred tax liabilities and a $12 million decrease in goodwill. The primary fair value estimates still considered preliminary as of December 31, 2020 include intangible assets and income tax-related items. The preliminary purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Identifiable intangible assets $ 204 Accounts receivable 20 Property, plant and equipment 10 Other assets acquired 17 Deferred revenue (16) Deferred tax liabilities (37) Other liabilities assumed (14) Net assets acquired $ 184 Goodwill on acquisition 364 Total purchase consideration $ 548 The $364 million of goodwill, which is non-deductible for tax purposes, has been allocated to the EVM segment and principally relates to the planned integration of Reflexis’ solution offerings with the Company’s existing solution offerings as well as expansion in current and new markets, industries and product offerings. The preliminary purchase price allocation to identifiable intangible assets acquired was: Fair Value (in millions) Useful Life (in years) Technology and patents $ 160 8 Customer and other relationships 43 2 Trade names 1 2 Total identifiable intangible assets $ 204 The Company has not included unaudited proforma results, as if Reflexis had been acquired as of January 1, 2019, as doing so would not yield materially different results. Cortexica On November 5, 2019, the Company acquired 100% of the equity interests in Cortexica Vision Systems Limited (“Cortexica”), a provider of computer vision-based artificial intelligence solutions primarily for the retail industry. The purchase consideration of $7 million was primarily allocated to technology-related intangible assets of $4 million and goodwill of $4 million based on the fair values of identifiable assets acquired and liabilities assumed. Additionally, we incurred approximately $2 million of acquisition-related costs in 2019, which are included within Acquisition and integration costs on the Consolidated Statements of Operations. The goodwill, which will be non-deductible for tax purposes, has been allocated to the EVM segment and principally relates to the Company’s expansion of the Cortexica technologies into new markets, industries, and product offerings. Profitect On May 31, 2019, the Company acquired 100% of the equity interests of Profitect, Inc. (“Profitect”), a provider of prescriptive analytics primarily for the retail industry. In acquiring Profitect, the Company seeks to enhance its existing software solutions within the retail industry, with possible future applications in other industries, markets and product offerings. The Profitect acquisition was accounted for under the acquisition method of accounting for business combinations. The total purchase consideration was $79 million, which consisted of $75 million in cash paid, net of cash on-hand, and the fair value of the Company’s existing ownership interest in Profitect of $4 million , as remeasured upon acquisition. This remeasurement resulted in a $4 million gain reflected within Other, net on the Consolidated Statements of Operations in 2019. Additionally, we incurred $13 million of acquisition-related costs in 2019, which primarily consisted of payments to settle Profitect employee stock option awards, whose vesting was accelerated at the discretion of Profitect contemporaneously with the acquisition, as well as third party transaction and advisory fees. Those acquisition-related costs are included within Acquisition and integration costs on the Consolidated Statements of Operations. The purchase consideration was allocated to the assets acquired and liabilities assumed based on their fair values as of the acquisition date. The fair value of intangible assets was derived utilizing a number of estimates and assumptions as well as customary valuation procedures and techniques, principally the excess earnings methodology. The final purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Identifiable intangible assets $ 35 Other assets acquired 4 Deferred tax liabilities (4) Other liabilities assumed (10) Net Assets Acquired $ 25 Goodwill on acquisition 54 Total purchase consideration $ 79 The $54 million of goodwill, which is non-deductible for tax purposes, has been allocated to the EVM segment and principally relates to the Company’s expansion of the Profitect software offerings and technologies into current and new markets, industries and product offerings. The final purchase price allocation to identifiable intangible assets acquired was: Fair Value (in millions) Useful Life Technology and patents $ 33 8 Customer and other relationships 2 1 Total identifiable intangible assets $ 35 Temptime On February 21, 2019, the Company acquired 100% of the equity interests of Temptime Corporation (“Temptime”), a developer and manufacturer of temperature-monitoring labels and devices. The Company intends to expand Temptime’s product offerings within the healthcare industry, with possible future applications in other industries involving temperature-sensitive products. The Temptime acquisition was accounted for under the acquisition method of accounting for business combinations. The Company paid $180 million in cash, net of cash on-hand, to acquire Temptime. Additionally, we incurred $3 million of acquisition-related costs in 2019, which primarily included third-party transaction and advisory fees that are included within Acquisition and integration costs on the Consolidated Statements of Operations. The purchase consideration was allocated to the assets acquired and liabilities assumed based on their fair values as of the acquisition date. The fair value of intangible assets was derived utilizing a number of estimates and assumptions as well as customary valuation procedures and techniques, including the relief from royalty and excess earnings methodologies. The final purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Inventory $ 14 Property, plant and equipment 10 Identifiable intangible assets 106 Other assets acquired 11 Deferred tax liabilities (23) Other liabilities assumed (12) Net Assets Acquired $ 106 Goodwill on acquisition 74 Total purchase consideration $ 180 The $74 million of goodwill, which is non-deductible for tax purposes, has been allocated to the AIT segment and principally relates to the Company’s expansion of its product offerings and technologies into current and new markets and industries. The final purchase price allocation to identifiable intangible assets acquired was: Fair Value Useful Life Customer and other relationships $ 79 8 Technology and patents 25 8 Trade Names 2 3 Total identifiable intangible assets $ 106 Xplore On August 14, 2018, the Company acquired Xplore Technologies Corporation (“Xplore”). Xplore designs, integrates, markets and sells rugged tablets that are primarily used by industrial, government, and field service organizations. The acquisition of Xplore expanded the Company’s portfolio of mobile computing devices to serve a wider range of customers. The Xplore acquisition was accounted for under the acquisition method of accounting for business combinations. The Company paid $72 million in cash, net of cash on-hand, to acquire Xplore. The final purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Accounts receivable $ 10 Inventory 22 Identifiable intangible assets 32 Other assets acquired 10 Debt (9) Accounts payable (8) Deferred revenues (7) Other liabilities assumed (7) Net Assets Acquired $ 43 Goodwill on acquisition 29 Total purchase consideration $ 72 At closing, in connection with the acquisition, the Company also made a $9 million payment of Xplore debt and $6 million in payments of other Xplore transaction-related obligations. Additionally, we incurred $8 million of acquisition-related costs in 2018, which primarily included third-party transaction and advisory fees, and we incurred $2 million of system integration costs in 2019. These costs are reflected within Acquisition and integration costs on the Consolidated Statements of Operations. The $29 million of goodwill, which is non-deductible for tax purposes, has been allocated to the EVM segment and principally relates to the Company’s expansion of the Xplore product offerings into current and new markets. The final purchase price allocation to identifiable intangible assets acquired was: Fair Value Useful Life Customer and other relationships $ 16 9 Technology and patents 15 7 Trade Names 1 3 Total identifiable intangible assets $ 32 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. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
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, 2018 $ 154 $ 2,341 $ 2,495 Xplore purchase price allocation adjustments — (6) (6) Temptime acquisition 73 — 73 Profitect acquisition — 54 54 Cortexica acquisition — 4 4 Foreign exchange impact — 2 2 Goodwill as of December 31, 2019 $ 227 $ 2,395 $ 2,622 Temptime purchase price allocation adjustments 1 — 1 Reflexis acquisition — 364 364 Foreign exchange impact — 1 1 Goodwill as of December 31, 2020 $ 228 $ 2,760 $ 2,988 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 five reporting units. The Company completed its annual goodwill impairment testing during the fourth quarter of 2020 utilizing a quantitative approach. The estimated fair value of each reporting unit exceeded its carrying value by at least 80%. There is risk of future impairment to the extent that an individual reporting unit’s performance does not meet projections. Additionally, if our current assumptions and estimates, including projected revenues and income growth rates, terminal growth rates, competitive and consumer trends, market-based discount rates, and other market factors are not met, or if other valuation factors outside of our control change unfavorably, the estimated fair value of our reporting units could be adversely affected, leading to a potential impairment in the future. No events occurred during the fiscal years ended 2020, 2019, or 2018 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, 2020 As of December 31, 2019 Gross Carrying Amount Accumulated Net Gross Carrying Amount Accumulated Net Amortized intangible assets Technology and patents $ 739 $ (527) $ 212 $ 578 $ (508) $ 70 Customer and other relationships 620 (431) 189 575 (371) 204 Trade Names 44 (43) 1 43 (42) 1 Total $ 1,403 $ (1,001) $ 402 $ 1,196 $ (921) $ 275 Amortization expense was $78 million, $103 million, and $97 million for fiscal years ended 2020, 2019 and 2018, respectively. Estimated future intangible asset amortization expense is as follows (in millions): Year Ended December 31, 2021 $ 102 2022 89 2023 43 2024 43 2025 43 Thereafter 82 Total $ 402 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Buildings $ 68 $ 63 Land 7 7 Machinery and equipment 248 232 Furniture and office equipment 25 20 Software and computer equipment 162 168 Leasehold improvements 92 84 Projects in progress 41 36 643 610 Less accumulated depreciation (369) (351) Property, plant and equipment, net $ 274 $ 259 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The carrying value of the Company’s investments was $77 million and $45 million as of December 31, 2020 and 2019, respectively, which are included in Other long-term assets on the Consolidated Balances Sheets. During the year ended December 31, 2020, the Company paid $32 million for the purchases of long-term investments, which primarily related to the acquisition of additional shares in an existing investment. In connection with this additional investment, the Company identified an observable price change that resulted in a $7 million gain on its existing investment. During the year ended December 31, 2020, the Company also received cash proceeds of $6 million related to the sale of a long-term investment. Net gains related to the Company’s investments, which are included within Other, net on the Consolidated Statements of Operations, were $5 million, $3 million, and $10 million during the years ended December 31, 2020, 2019, and 2018, respectively. |
Exit and Restructuring Costs
Exit and Restructuring Costs | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Exit and Restructuring Costs | Exit and Restructuring Costs In the fourth quarter of 2019, the Company committed to certain organizational changes designed to generate operational efficiencies (collectively referred to as the “2019 Productivity Plan”), which were incremental to the Company’s 2017 exit and restructuring program (the “2017 Productivity Plan”). The organizational design changes under the 2019 Productivity Plan, which principally occurred within the North America and Europe, Middle East, and Africa (“EMEA”) regions. The 2019 Productivity Plan was completed in the fourth quarter of 2020. Exit and restructuring charges, primarily related to employee severance and benefits, for the 2019 Productivity Plan were $11 million and $8 million during the years ended December 31, 2020 and 2019, respectively. The 2017 Productivity Plan, focused on organizational design changes, process improvements, and automation, built upon the exit and restructuring initiatives specific to the October 2014 acquisition of the Enterprise business of Motorola Solutions, Inc. (the “Acquisition Plan”). Exit and restructuring charges relating to the 2017 Productivity Plan, which were completed in 2019, were $2 million and $11 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2020, the Company’s total remaining obligations under its exit and restructuring programs were $5 million, which are expected to be mostly settled within the next year and are reflected within Accrued liabilities on the Consolidated Balance Sheets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
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. It establishes 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 to the extent possible. 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, 2020, are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Money market investments related to the deferred compensation plan $ 30 $ — $ — $ 30 Total Assets at fair value $ 30 $ — $ — $ 30 Liabilities: Foreign exchange contracts (1) $ 3 $ 34 $ — $ 37 Forward interest rate swap contracts (2) — 46 — 46 Liabilities related to the deferred compensation plan 30 — — 30 Total Liabilities at fair value $ 33 $ 80 $ — $ 113 The Company’s financial assets and liabilities carried at fair value as of December 31, 2019, are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts (1) $ — $ 3 $ — $ 3 Money market investments related to the deferred compensation plan 24 — — 24 Total Assets at fair value $ 24 $ 3 $ — $ 27 Liabilities: Forward interest rate swap contracts (2) $ — $ 13 $ — $ 13 Liabilities related to the deferred compensation plan 24 — — 24 Total Liabilities at fair value $ 24 $ 13 $ — $ 37 (1) The fair value of the foreign exchange contracts is calculated as follows: • Fair value of regular forward contracts associated with forecasted sales hedges is calculated using the year-end exchange rate adjusted for current forward points. • Fair value of hedges against net assets is calculated at the year-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). |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
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 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 2020 2019 Derivative instruments designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ — $ 3 Foreign exchange contracts Accrued liabilities (34) — Total derivative instruments designated as hedges $ (34) $ 3 Derivative instruments not designated as hedges: Foreign exchange contracts Accrued liabilities (3) — Forward interest rate swaps Accrued liabilities (17) (5) Forward interest rate swaps Other long-term liabilities (29) (8) Total derivative instruments not designated as hedges $ (49) $ (13) Total net derivative liability $ (83) $ (10) The following table presents the net (losses) gains from changes in fair values of derivatives that are not designated as hedges (in millions): (Loss) Gain Recognized in Income Year Ended December 31, Statements of Operations Classification 2020 2019 2018 Derivative instruments not designated as hedges: Foreign exchange contracts Foreign exchange loss $ (12) $ (3) $ 1 Forward interest rate swaps Interest expense, net (46) (19) 8 Total (loss) gain recognized in income $ (58) $ (22) $ 9 Activities related to derivative instruments are reflected within Net cash 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 each would have been unchanged as of December 31, 2020 and increased by $3 million as of December 31, 2019. 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 to the fullest extent possible 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 were $6 million of losses for the year ending December 31, 2020, and $42 million and $13 million of gains for the years ending December 31, 2019 and 2018, respectively. As of December 31, 2020 and 2019, the notional amounts of the Company’s foreign exchange cash flow hedges were €585 million and €564 million, respectively. The Company has reviewed its cash flow hedges for effectiveness and determined that they are highly effective. 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 value of these outstanding contracts are as follows (in millions): December 31, 2020 2019 Notional balance of outstanding contracts: British Pound/U.S. Dollar £ 10 £ 14 Euro/U.S. Dollar € 123 € 36 Canadian Dollar/U.S. Dollar $ — $ 1 Australian Dollar/U.S. Dollar A$ — A$ 42 Japanese Yen/U.S. Dollar ¥ 354 ¥ 264 Singapore Dollar/U.S. Dollar S$ 12 S$ 19 Mexican Peso/U.S. Dollar Mex$ 36 Mex$ 115 South African Rand/U.S. Dollar R — R 42 Net fair value of liabilities of outstanding contracts $ 3 $ — Interest Rate Risk Management The Company’s debt consists of borrowings under term loans (“Term Loan A” and the “2020 Term Loan”), 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 interest rate swaps to hedge this exposure and to achieve a desired proportion of fixed versus floating-rate debt, based on current and projected market conditions. In December 2017, the Company entered into a long-term forward interest rate swap agreement with a notional amount of $800 million to lock into a fixed LIBOR interest rate base for its debt facilities subject to monthly interest payments. Under the terms of the agreement, $800 million in variable-rate debt will be swapped for a fixed interest rate with net settlement terms starting in December 2018 and ending in December 2022. During the third quarter of 2019, the Company entered into additional long-term forward interest rate swap agreements with a total notional amount of $800 million, containing net settlement terms, which started in December 2022 and ending in August 2024. The additional interest rate swap agreements effectively extend the risk management initiative of the Company to coincide with the maturities of Term Loan A and the Revolving Credit Facility. These interest rate swaps are not designated as hedges and changes in fair value are recognized immediately as Interest expense, net on the Consolidated Statements of Operations. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Term Loan A $ 917 $ 917 2020 Term Loan 100 — Revolving Credit Facility — 103 Receivables Financing Facilities 235 266 Total debt $ 1,252 $ 1,286 Less: Debt issuance costs (5) (6) Less: Unamortized discounts (2) (3) Less: Current portion of debt (364) (197) Total long-term debt $ 881 $ 1,080 As of December 31, 2020, the future maturities of debt, excluding debt discounts and issuance costs, are as follows (in millions): 2021 $ 364 2022 56 2023 82 2024 750 Total future maturities of debt $ 1,252 All borrowings as of December 31, 2020 were denominated in U.S. Dollars. The estimated fair value of the Company’s debt approximated $1.3 billion as of December 31, 2020 and 2019, 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 the 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. Term Loan A The principal on Term Loan A is due in quarterly installments, with the next quarterly installment due in June 2021 and the majority due upon the August 9, 2024 maturity date. 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, 2020, the Term Loan A interest rate was 1.41%. Interest payments are made monthly and are subject to variable rates plus an applicable margin. 2020 Term Loan In September 2020, the Company entered into a new $200 million term loan (“2020 Term Loan”), with the proceeds used to partly fund the acquisition of Reflexis. The Company repaid $100 million of principal during the fourth quarter of 2020, with the remaining principal due upon the August 31, 2021 maturity date. The Company may make additional 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, 2020, the 2020 Term Loan interest rate was 2.25%. Interest payments are made monthly and are subject to a variable rate plus an applicable margin. Costs associated with issuing the 2020 Term Loan were approximately $1 million, which were capitalized and are being amortized over the term of the loan. Revolving Credit Facility The Revolving Credit Facility is available for working capital and other general business purposes, including letters of credit. As of December 31, 2020, the Company had letters of credit totaling $5 million, which reduced funds available for borrowings under the Revolving Credit Facility from $1 billion to $995 million. No borrowings were outstanding under the Revolving Credit Facility as of December 31, 2020. Upon borrowing, interest payments are made monthly and are subject to variable rates plus an applicable margin. The Revolving Credit Facility matures on August 9, 2024. 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 Receivables Financing Facilities as secured borrowings. The Company’s first Receivables Financing Facility, which was originally entered into in December 2017 and was amended in May 2019, allows for borrowings of up to $180 million and will mature on March 29, 2021. The Company’s second Receivable Financing Facility, which was entered into in May 2019 and was amended in May 2020, allows for borrowings of up to $100 million and will mature on May 17, 2021. As of December 31, 2020, the Company’s Consolidated Balance Sheets included $441 million of receivables that were pledged under the two Receivables Financing Facilities. As of December 31, 2020, $235 million had been borrowed, all of which was classified as current. Borrowings under the Receivables Financing Facilities bear interest at a variable rate plus an applicable margin. As of December 31, 2020, the Receivables Financing Facilities had an average interest rate of 1.04%. Interest is paid on these borrowings on a monthly basis. Uncommitted Short-Term Credit Facility The Company also entered into an uncommitted short-term credit facility (“Uncommitted Facility”) in August 2020. The Uncommitted Facility matures on August 26, 2021 and allows for borrowings of up to $20 million. Each borrowing must be repaid within 90 days, or earlier if the facility matures beforehand, and bears interest at a variable rate plus an applicable margin. Along with the Company’s Revolving Credit Facility, the Uncommitted Facility is available for working capital and other general business purposes. As of December 31, 2020, the Company had no outstanding borrowings under the Uncommitted Facility. In 2018, the Company entered into Amendment No. 1 to the Amended and Restated Credit Agreement (“Amendment No. 1”). Amendment No. 1 resulted in a new Term Loan A with principal of $670 million and increased the Revolving Credit Facility from $500 million to $800 million. Also, as part of Amendment No. 1, the Company had a partial early debt extinguishment of $300 million and repricing of its Term Loan B. Amendment No. 1 resulted in $6 million of non-cash accelerated amortization of debt issuance costs and $1 million of one-time charges related to third party fees, both of which were reflected in Interest Expense, net on the Consolidated Statements of Operations. Amendment No. 1 also resulted in $2 million of third party fees for arranger, legal, and other services that were capitalized. In 2019, the Company entered into its second amendment to the Amended and Restated Credit Agreement (“Amendment No. 2”). Amendment No. 2 increased the Company’s borrowing under Term Loan A from $608 million to $1 billion and increased the Company’s borrowing capacity under the Revolving Credit Facility from $800 million to $1 billion. Amendment No. 2 also extended the maturities of Term Loan A and the Revolving Credit Facility to August 9, 2024. Additionally, in conjunction with entering into Amendment No. 2, a payment of $445 million was made to fully pay off the Company’s Term Loan B. The refinancing of the Company’s long-term credit facilities during 2019 resulted in non-cash accelerated amortization of debt discount and debt issuance costs of $4 million and one-time charges of $3 million, which included certain third party fees and the accelerated amortization of losses on terminated interest rate swaps released from AOCI. These items are included in Interest Expense, net on the Consolidated Statements of Operations. Additionally, issuance costs of $6 million incurred related to this debt refinancing were capitalized and will be amortized over the remaining term of Term Loan A and the Revolving Credit Facility. Each of the Company’s borrowing arrangements 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, 2020, the Company was in compliance with all debt covenants. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain manufacturing facilities, distribution centers, sales and administrative offices, equipment, and vehicles, which are accounted for as operating leases. Remaining lease terms are up to 12 years, with certain leases containing renewal options and termination options. On January 1, 2019, the Company adopted ASC 842, Leases (“ASC 842”), which resulted in the recognition of ROU assets and lease liabilities on the Consolidated Balance Sheets for operating leases with terms greater than one year. Prior to the adoption of ASC 842, the Company accounted for its lease arrangements under ASC Topic 840, Leases (“ASC 840”), with no ROU assets or lease liabilities being reflected on the Consolidated Balance Sheets. The Company adopted ASC 842 under a modified retrospective approach. Thus, results for reporting periods beginning after January 1, 2019 are prepared under ASC 842, whereas results prior to that have not been adjusted and continue to be reported in accordance with our historic accounting under ASC 840. The following table presents activities associated with our operating leases (in millions): December 31, 2020 2019 Fixed lease expenses $ 35 $ 37 Variable lease expenses 34 29 Total lease expenses $ 69 $ 66 Cash paid for leases $ 69 $ 67 ROU assets obtained in exchange for lease obligations $ 55 $ 42 Reductions of ROU assets and lease liabilities (3) (16) Net non-cash increases to ROU assets and lease liabilities $ 52 $ 26 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 operating leases are included within Net cash provided by operating activities on the Consolidated Statements of Cash Flows. ROU assets obtained in exchange for lease obligations primarily include new lease arrangements entered into by the Company. ROU assets obtained in exchange for lease obligations also include 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 2019 primarily related to a modification to a distribution center lease agreement that resulted in a reduction to fixed future minimum lease payments. The weighted average remaining term of the Company’s operating leases was approximately 6 years as of December 31, 2020 and 2019. The weighted average discount rate used to measure the ROU assets and lease liabilities was approximately 5% and 6% as of December 31, 2020 and 2019, respectively. Future minimum lease payments under non-cancellable operating leases as of December 31, 2020 were as follows (in millions): 2021 $ 38 2022 33 2023 29 2024 23 2025 19 Thereafter 44 Total future minimum lease payments $ 186 Less: Interest (27) Present value of lease liabilities $ 159 Reported as of December 31, 2020: Current portion of lease liabilities $ 30 Long-term lease liabilities 129 Present value of lease liabilities $ 159 The current portion of lease liabilities is included within Accrued liabilities on the Consolidated Balance Sheets. Rent expense under the Company’s operating leases during the year ended December 31, 2018, prior to the Company’s adoption of ASC 842, was $33 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Warranties The following table is a summary of the Company’s accrued warranty obligations (in millions): Year Ended December 31, Warranty Reserve 2020 2019 2018 Balance at the beginning of the year $ 21 $ 22 $ 18 Acquisitions — — 1 Warranty expense 30 25 34 Warranties fulfilled (27) (26) (31) Balance at the end of the year $ 24 $ 21 $ 22 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. During 2018, the Company settled in its entirety a commercial lawsuit resulting in a $13 million pre-tax charge reflected within General and administrative expenses on the Consolidated Statements of Operations. In 2020, the Company received approval of its exclusion request of customs duties that had been paid on certain products under Section 301 of the U.S. Trade Act of 1974 from September 1, 2019 through September 1, 2020 and commenced a process to request recovery of previously assessed amounts. During the fourth quarter of 2020, the Company recorded recoveries of $12 million, of which $2 million and $10 million were initially incurred during the years ended December 31, 2020 and 2019, respectively. Recoveries are recognized when the Company has completed all regulatory filing requirements and determined that receipt of amounts is virtually certain. From a segment perspective, $4 million of the recovery related to AIT and $8 million related to EVM. Both the initially incurred costs and related recoveries were included within Cost of sales for Tangible products on the Consolidated Statements of Operations. The Company believes that additional import duties that were |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation In May 2018, the Company’s stockholders approved the Zebra Technologies 2018 Long-Term Incentive Plan (“2018 Plan”). The 2018 Plan superseded and replaced the Zebra Technologies Corporation 2015 Long-Term Incentive Plan (“2015 Plan”) on the approval date, except that the 2015 Plan, as well as the Zebra Technologies Corporation 2011 Long-Term Incentive Plan that was previously superseded by the 2015 Plan, remain in effect with respect to outstanding stock appreciate rights that were granted under those plans until such awards have been exercised, forfeited, cancelled, expired or otherwise terminated in accordance with their terms. The awards available under the 2018 Plan include stock appreciation rights, restricted stock awards, performance share awards, cash-settled stock appreciation rights, restricted stock units, performance stock units, incentive stock options, and non-qualified stock options. No awards remain available for future grants under the 2015 Plan or previous plans. The Company uses outstanding treasury shares as its source for issuing shares under the share-based compensation programs. As of December 31, 2020, the Company had 3,339,322 shares of Class A Common stock 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 2020 2019 2018 Cost of sales $ 6 $ 4 $ 4 Selling and marketing 16 17 13 Research and development 16 16 15 General and administration 21 23 21 Total compensation expense $ 59 $ 60 $ 53 Income tax benefit $ 9 $ 9 $ 10 As of December 31, 2020, total unearned compensation costs related to the Company’s share-based compensation plans was $82 million, which will be recognized over the weighted average remaining service period of 1.7 years. Stock Appreciation Rights (“SARs”) Upon exercise of SARs, the Company issues whole shares of Class A Common Stock to participants based on the difference between the fair market value of the stock at the time of exercise and the exercise price. Fractional shares are settled in cash upon exercise. The grant date fair value of SARs is expensed over the 4-year vesting period of the related awards. A summary of the Company’s SARs outstanding is as follows: 2020 2019 2018 SARs SARs Weighted- SARs Weighted- SARs Weighted- Outstanding at beginning of year 896,923 $ 89.05 1,261,185 $ 75.71 1,817,991 $ 65.73 Granted 69,742 253.62 70,141 205.12 88,042 149.75 Exercised (295,770) 67.96 (395,015) 66.82 (598,249) 55.93 Forfeited (31,193) 149.09 (39,388) 92.72 (46,161) 80.41 Expired (1,578) 166.52 — — (438) 108.20 Outstanding at end of year 638,124 $ 113.98 896,923 $ 89.05 1,261,185 $ 75.71 Exercisable at end of year 417,856 $ 81.88 489,357 $ 70.37 595,086 $ 60.85 The fair value of SARs is estimated on the date of grant using a binomial model. Volatility is based on an average of the implied volatility in the open market and the annualized volatility of the Company’s stock price over its entire stock history. The following table shows the weighted-average assumptions used for grants of SARs, as well as the fair value of the grants based on those assumptions: 2020 2019 2018 Expected dividend yield 0% 0% 0% Forfeiture rate 8.00% 8.20% 8.40% Volatility 42.51% 36.79% 35.93% Risk free interest rate 0.24% 2.28% 2.96% Expected weighted-average life 4.00 4.02 4.11 Weighted-average grant date fair value of SARs granted $79.47 $64.17 $47.63 The following table summarizes information about SARs outstanding as of December 31, 2020: Outstanding Exercisable Aggregate intrinsic value (in millions) $ 173 $ 126 Weighted-average remaining contractual life 4.4 4.2 The intrinsic value for SARs exercised during fiscal 2020, 2019 and 2018 was $60 million, $58 million and $59 million, respectively. The total fair value of SARs vested during fiscal 2020, 2019 and 2018 was $8 million, $9 million and $12 million, respectively. Restricted Stock Awards (“RSAs”) and Performance Share Awards (“PSAs”) The Company’s restricted stock grants consist of time-vested RSAs and PSAs, which hold voting rights and therefore are considered participating securities. The outstanding RSAs and PSAs are included as part of the Company’s Class A Common Stock outstanding. The RSAs and PSAs vest at each vesting date, subject to restrictions such as continuous employment, except in certain cases as set forth in each stock agreement. Upon vesting, RSAs and PSAs are released to holders and are no longer subject to restrictions. The Company’s RSAs and PSAs are expensed over the vesting period of the related award, which is typically 3 years. Some awards, including those granted annually to non-employee directors as an equity retainer fee, vest upon grant. PSA targets are set based on certain Company-wide financial metrics. Compensation cost is calculated as the market date fair value of the Company’s Class A Common Stock on grant date multiplied by the number of shares granted, net of estimated forfeitures. The fair value of each PSA granted includes assumptions around the Company’s performance goals. The Company also issues stock awards to non-employee directors. Each director receives an equity grant of shares annually in the second quarter. The number of shares granted to each 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 2020, there were 6,314 shares granted to non-employee directors compared to 7,371 and 7,980 shares granted during fiscal 2019 and 2018, respectively. The shares vest immediately on the grant date. A summary of information relative to the Company’s RSAs is as follows: 2020 2019 2018 RSAs Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of year 434,641 $ 151.52 657,724 $ 93.45 628,642 $ 77.70 Granted 178,150 265.06 170,502 204.26 206,922 150.60 Released (275,318) 133.43 (372,075) 73.71 (154,878) 107.22 Forfeited (18,908) 199.04 (21,510) 141.29 (22,962) 88.77 Outstanding at end of year 318,565 $ 228.08 434,641 $ 151.52 657,724 $ 93.45 A summary of information relative to the Company’s PSAs is as follows: 2020 2019 2018 PSAs Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of year 170,749 $ 144.47 259,727 $ 86.41 265,747 $ 77.04 Granted 98,820 239.79 150,224 206.04 59,849 146.83 Released (131,943) 160.18 (231,513) 120.86 (57,074) 107.31 Forfeited (11,604) 194.23 (7,689) 102.42 (8,795) 81.07 Outstanding at end of year 126,022 $ 199.77 170,749 $ 144.47 259,727 $ 86.41 Cash-settled awards The Company also has cash-settled compensation awards, including cash-settled stock appreciation rights, restricted stock units and performance stock units, which are expensed over the vesting period of the related award, which is up to 4 years. Compensation cost is calculated at the fair value on grant date multiplied by the number of share-equivalents granted. The fair value is remeasured at the end of each reporting period based on the Company’s stock price, with remeasurements reflected as an adjustment to compensation expense in the Consolidated Statements of Operations. Cash settlement is based on the fair value of share equivalents at the time of vesting, which was $9 million, $6 million and $2 million in 2020, 2019 and 2018, respectively. Share-equivalents issued under these programs totaled 40,166, 17,207 and 20,393 in fiscal 2020, 2019 and 2018, respectively. Reflexis Replacement Options In connection with the Company’s September 2020 acquisition of Reflexis, and in exchange for the cancellation of unvested Reflexis stock options, the Company granted awards to certain Reflexis employees in the form of Zebra incentive stock options (“Reflexis Replacement Options”). Upon exercise of Reflexis Replacement Options, the Company receives cash proceeds equal to the exercise price and issues whole shares of Class A Common Stock to participants. The grant date fair value, which was approximately $230 per award and totaled approximately $9 million, is expensed over the vesting period of the related awards, which averages 1.7 years. The fair value of the Reflexis replacement awards was estimated on the date of grant using the Black-Scholes valuation model, based upon the following weighted average assumptions: no expected dividend yield; a volatility factor of 39.75%; a risk-free interest rate of 0.14%; and an expected life of 2.78 years. See Note 5, Business Acquisitions for additional details related to the Reflexis Acquisition. A summary of the Reflexis Replacement Options outstanding is as follows: 2020 Reflexis Replacement Options Shares Weighted- Outstanding at beginning of year — $ — Granted 38,228 57.82 Exercised (3,408) 55.79 Forfeited (396) 52.14 Expired — — Outstanding at end of year 34,424 $ 58.09 Exercisable at end of year 6,716 $ 56.77 The following table summarizes information about the Reflexis Replacement Options outstanding as of December 31, 2020: Outstanding Exercisable Aggregate intrinsic value (in millions) $ 11 $ 2 Weighted-average remaining contractual life 7.4 7.3 The intrinsic value of Reflexis Replacement Options exercised during fiscal 2020 was $1 million. The total fair value of Reflexis Replacement Options vested during fiscal 2020 was $2 million. Employee Stock Purchase Plan |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 United States $ 33 $ 83 $ (25) Outside United States 527 515 549 Total $ 560 $ 598 $ 524 Income tax expense (benefit) consisted of the following (in millions): Year Ended December 31, 2020 2019 2018 Current: Federal $ 6 $ 16 $ 20 State 1 (1) 3 Foreign 89 81 77 Total current $ 96 $ 96 $ 100 Deferred: Federal (25) (32) (11) State (5) (5) 5 Foreign (10) (5) 9 Total deferred $ (40) $ (42) $ 3 Total $ 56 $ 54 $ 103 The Company’s effective tax rates were 10.0%, 9.0% and 19.7% for the years ended December 31, 2020, 2019 and 2018, 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, 2020 2019 2018 Provision computed at statutory rate 21.0 % 21.0 % 21.0 % U.S. Tax Reform - one-time transition tax — — (0.6) Remeasurement of deferred taxes (0.6) 0.2 0.7 Change in valuation allowance 0.1 (1.7) (4.5) U.S. impact of Enterprise acquisition 0.3 1.0 1.1 Change in contingent income tax reserves (0.4) (3.3) 3.2 Foreign earnings subject to U.S. taxation 1.5 1.8 2.0 Foreign rate differential (5.5) (0.7) (2.0) State income tax, net of federal tax benefit 0.4 (0.2) 0.8 Tax credits (2.9) (2.3) (1.9) Equity compensation deductions (3.2) (4.0) (2.0) Return to provision and other true ups (2.5) (2.0) 1.1 Permanent differences and other 1.8 (0.8) 0.8 Provision for income taxes 10.0 % 9.0 % 19.7 % For the year ended December 31, 2020, 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. For the year ended December 31, 2019, the Company’s effective tax rate was lower than the federal statutory rate of 21% primarily due to the favorable impacts of share-based compensation benefits, lapses of the statute of limitations on uncertain tax positions, and the generation of tax credits. These benefits were partially offset by the impacts of foreign earnings and deemed royalties taxed in the U.S. For the year ended December 31, 2018, the Company’s effective tax rate was lower than the federal statutory rate of 21% primarily due to lower tax rates in foreign jurisdictions and the generation of tax credits. These benefits were partially offset by increases related to foreign earnings subject to U.S. taxation, the U.S. impact of the Enterprise acquisition and certain discrete items. The discrete items included the favorable impacts of reductions in valuation allowances and share-based compensation benefits, which were offset by audit settlements with the U.S. Internal Revenue Service for the fiscal years 2013, 2014 and 2015 and an increase in uncertain tax positions resulting from interpretive guidance issued during the year. On March 27, 2020, the President of the United States signed into tax law the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The provisions of the CARES Act did not have a significant impact to our effective tax rate for the year ended December 31, 2020. Management continues to monitor developments and guidance on the CARES Act and other coronavirus tax relief throughout the world for potential impacts. 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 United Kingdom, Singapore, and Luxembourg. The Company has received an incentivized tax rate by the Singapore Economic Development Board, which reduces the income tax rate in that jurisdiction effective for calendar years 2019 to 2023. The Company has committed to making additional investments in Singapore over the period 2019 to 2022. However, should the Company not make these investments in accordance with the agreement, any incentive benefit would have to be repaid to the Singapore tax authorities. Tax effects of temporary differences that resulted in deferred tax assets and liabilities are as follows (in millions): December 31, 2020 2019 Deferred tax assets: Capitalized research expenditures $ 18 $ 37 Deferred revenue 38 24 Tax credits 36 29 Net operating loss carryforwards 406 410 Other accruals 31 21 Inventory items 17 18 Capitalized software costs — 2 Sales return/rebate reserve 46 48 Share-based compensation expense 9 12 Accrued bonus 1 7 Unrealized gains and losses on securities and investments 19 4 Valuation allowance (413) (421) Total deferred tax assets $ 208 $ 191 Deferred tax liabilities: Depreciation and amortization 67 62 Undistributed earnings 2 2 Total deferred tax liabilities $ 69 $ 64 Net deferred tax assets $ 139 $ 127 In 2019, the Company reorganized its Luxembourg holding company structure which resulted in a taxable gain in Luxembourg that was offset by operating loss carryforwards. There was no net impact to the provision for income taxes as these activities also resulted in the realization of deferred tax liabilities related to depreciation and amortization and a corresponding increase in valuation allowances. As of December 31, 2020, the Company had approximately $406 million (tax effected) of net operating losses (“NOLs”) and $36 million of credit carryforwards. Approximately $72 million of NOLs will expire beginning in 2021 through 2040, and $29 million of credits will expire beginning in 2021 through 2037, 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 income tax expense of $8 million, $12 million and $10 million for the years ended December 31, 2020, 2019 and 2018, respectively. These impacts are included in the calculation of the Company’s effective tax rate. Effective 2019, the Company was no longer permanently reinvested with respect to its U.S. directly-owned foreign subsidiary earnings. For periods after 2017, the Company is subject to U.S. income tax on substantially all foreign earnings under the GILTI provisions, while any remaining foreign earnings are eligible for the new dividends received deduction. As a result, future repatriation of earnings will no longer be subject to U.S. 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. Thus, as a result of these changes, the assertion of permanent reinvestment is no longer applicable under current U.S. tax laws. 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, 2020 2019 Balance at beginning of year $ 10 $ 50 Additions for tax positions related to the current year — 1 Reductions for tax positions related to prior years — (5) Settlements for tax positions (1) (16) Lapse of statutes (1) (20) Balance at end of year $ 8 $ 10 As of December 31, 2020 and December 31, 2019, there were $8 million and $9 million, respectively, of unrecognized tax benefits that, if recognized, would affect the annual effective tax rate. The Company is currently undergoing U.S. federal income tax audits for the tax years 2017 and 2018. Fiscal 2004 through 2018 remain open to examination by multiple foreign and U.S. state taxing jurisdictions. In the fourth quarter of 2019, the Company settled and made payment for a tax dispute for $19 million. Additionally, the statute of limitations on the U.S. federal income tax audit years 2013, 2014 and 2015 lapsed, resulting in a total benefit of $20 million during 2019. As of December 31, 2020, no other 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 settlement or other 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, 2020 | |
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 shares assuming dilution. Dilutive 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 stock options were exercised for common shares during the period. Earnings per share (in millions, except share data): Year Ended December 31, 2020 2019 2018 Basic: Net income $ 504 $ 544 $ 421 Weighted-average shares outstanding 53,441,375 53,991,249 53,591,655 Basic earnings per share $ 9.43 $ 10.08 $ 7.86 Diluted: Net income $ 504 $ 544 $ 421 Weighted-average shares outstanding 53,441,375 53,991,249 53,591,655 Dilutive shares 471,870 603,168 708,157 Diluted weighted-average shares outstanding 53,913,245 54,594,417 54,299,812 Diluted earnings per share $ 9.35 $ 9.97 $ 7.76 Anti-dilutive options to purchase common shares are excluded from diluted earnings per share calculations. There were 46,128, 47,240, and 72,856 shares that were anti-dilutive for the years ended December 31, 2020, 2019, and 2018, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) 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. • Unrealized gain (loss) on forward interest rate swaps hedging transactions relates to certain interest rate swaps that the Company previously entered into as part of its strategy to mitigate interest rate risk exposure associated with its variable rate debt. These particular interest rate swaps, which were designated as cash flow hedges, were terminated prior to 2019, with remaining losses being reclassified out of AOCI through the third quarter of 2019. Pre-tax losses were reclassified into Interest expense, net on the Consolidated Statements of Operations. 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 is required to translate 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, 2020, 2019 and 2018 were as follows (in millions): Unrealized (loss) gain on sales hedging Unrealized gain (loss) on forward interest rate swaps Foreign currency translation adjustments Total Balance at December 31, 2017 $ (9) $ (9) $ (34) $ (52) Other comprehensive income (loss) before reclassifications 38 8 (13) 33 Amounts reclassified from AOCI (1) (13) 4 — (9) Tax effect (4) (3) — (7) Other comprehensive income (loss), net of tax 21 9 (13) 17 Balance at December 31, 2018 12 — (47) (35) Other comprehensive income before reclassifications 30 — 1 31 Amounts reclassified from AOCI (1) (42) 2 — (40) Tax effect 2 (2) — — Other comprehensive income (loss), net of tax (10) — 1 (9) Balance at December 31, 2019 2 — (46) (44) Other comprehensive (loss) income before reclassifications (43) — 5 (38) Amounts reclassified from AOCI (1) 6 — — 6 Tax effect 7 — — 7 Other comprehensive income (loss), net of tax (30) — 5 (25) Balance at December 31, 2020 $ (28) $ — $ (41) $ (69) (1) See Note 11, Derivative Instruments regarding timing of reclassifications to operating results. |
Accounts Receivable Factoring
Accounts Receivable Factoring | 12 Months Ended |
Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Accounts Receivable Factoring | Accounts Receivable Factoring The Company has multiple 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 Net cash provided by operating activities on the Consolidated Statements of Cash Flows, while sale proceeds in excess of the fair value of factored receivables are reflected in Net cash provided by financing activities on the Consolidated Statements of Cash Flows. In 2020, the Company entered into a new Receivables Factoring arrangement with a bank, which allows for the factoring of up to €150 million of uncollected receivables originated from the EMEA and Asia-Pacific regions. The Company is 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 $24 million as of December 31, 2020 and is classified within Prepaid expenses and other current assets on the Consolidated Balance Sheets. The Company’s other active Receivable Factoring arrangements, which were entered into in 2018 and 2019, also allow for the factoring of up to $125 million of uncollected receivables originated from the EMEA region. During the years ended December 31, 2020, 2019 and 2018, the Company received cash proceeds of $1,291 million, $409 million and $33 million, respectively, from the sales of accounts receivables under its factoring arrangements. As of December 31, 2020 and 2019, there were a total of $70 million and $60 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 $142 million and $33 million of obligations that were not yet remitted to banks as of December 31, 2020 and 2019, respectively. These obligations are included within Accrued liabilities on the Consolidated Balance Sheets, with changes in such obligations reflected within Net cash used in financing activities on the Consolidated Statements of Cash Flows. Fees incurred in connection with these arrangements were not significant. |
Segment Information & Geographi
Segment Information & Geographic Data | 12 Months Ended |
Dec. 31, 2020 | |
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 purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, impairment of goodwill and other intangibles, exit and restructuring costs, and product sourcing diversification costs. Segment assets are not reviewed by the Company’s CODM and therefore are not disclosed below. Financial information by segment is presented as follows (in millions): Year Ended December 31, 2020 2019 2018 Net sales: AIT $ 1,426 $ 1,479 $ 1,423 EVM 3,029 3,006 2,795 Total segment net sales 4,455 4,485 4,218 Corporate, eliminations (1) (7) — — Total Net sales $ 4,448 $ 4,485 $ 4,218 Operating income: AIT (2) $ 322 $ 355 $ 325 EVM (2) 466 483 404 Total segment operating income 788 838 729 Corporate, eliminations (1) (137) (146) (119) Total Operating income $ 651 $ 692 $ 610 (1) To the extent applicable, amounts included in Corporate, eliminations consist of purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, impairment of goodwill and other intangibles, exit and restructuring costs, and product sourcing diversification costs. (2) AIT and EVM segment operating income includes depreciation and share-based compensation expense. The amounts of depreciation and share-based compensation expense attributable to AIT and EVM are proportionate to each segment’s Net sales. Sales to significant customers Our Net sales to significant customers as a percentage of the total Company’s Net sales by segment were as follows: Year Ended December 31, 2020 2019 2018 AIT EVM Total AIT EVM Total AIT EVM Total Customer A 4.8 % 12.9 % 17.7 % 5.3 % 13.0 % 18.3 % 6.2 % 14.1 % 20.3 % Customer B 4.9 % 9.0 % 13.9 % 4.7 % 9.0 % 13.7 % 5.6 % 10.1 % 15.7 % Customer C 6.5 % 14.2 % 20.7 % 6.1 % 10.5 % 16.6 % 6.2 % 7.9 % 14.1 % These customers accounted for 13.6%, 6.7%, and 20.4%, respectively, of accounts receivable as of December 31, 2020, and 16.8%, 7.8% and 20.6%, respectively, of accounts receivable as of December 31, 2019. No other customer accounted for more than 10% of total Net sales during the years ended December 31, 2020, 2019 or 2018, or more than 10% of outstanding accounts receivables as of December 31, 2020 or 2019. All three of the above customers are distributors of the Company’s products and solutions and not end users. 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, 2020 2019 2018 North America $ 2,319 $ 2,261 $ 2,041 EMEA 1,495 1,462 1,409 Asia-Pacific 439 518 520 Latin America 195 244 248 Total Net sales $ 4,448 $ 4,485 $ 4,218 The United States and Germany were the only countries that accounted for more than 10% of the Company’s net sales in 2020, 2019, and 2018. Net sales during these years were as follows (in millions): Year Ended December 31, 2020 2019 2018 United States $ 2,291 $ 2,243 $ 2,020 Germany 595 523 523 Other 1,562 1,719 1,675 Total Net sales $ 4,448 $ 4,485 $ 4,218 For the years ended December 31, 2020 and 2019, the Company presented revenues by major country on the same basis as revenues by region, which is based on customer location. Prior to 2019, the Company presented revenues by major country based on the country where products, solutions, and services were invoiced from. Revenues by major country for the year ended December 31, 2018 are presented above based on the location of customer, in order to conform to the same basis of presentation as the subsequent years. Geographic data for long-lived assets is as follows (in millions): Year Ended December 31, 2020 2019 2018 North America $ 289 $ 280 $ 225 EMEA 68 39 14 Asia-Pacific 45 40 7 Latin America 7 7 3 Total long-lived assets $ 409 $ 366 $ 249 Long-lived assets are defined by the Company as property, plant and equipment as well as ROU assets. ROU assets were recognized upon adoption of ASC 842 in 2019, prior to which, there were no long-lived assets related to leasing activities. Primarily all of the Company’s long-lived assets in the North America region are located in the United States. |
Supplementary Financial Informa
Supplementary Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Financial Information | Supplementary Financial Information The components of Accrued liabilities are as follows (in millions): December 31, 2020 2019 Accrued payroll and benefits $ 87 $ 63 Accrued incentive compensation 65 96 Accrued warranty 24 21 Customer reserves 56 44 Current portion of lease liabilities 30 29 Unremitted cash collections due to banks on factored accounts receivable 142 33 Forward contracts liability 37 — Short-term interest rate swaps 17 5 Accrued freight and duty 21 23 Accrued other expenses 80 65 Accrued liabilities $ 559 $ 379 Summary of Quarterly Results of Operations (unaudited, in millions): 2020 First Second Third Fourth Total Year Total Net sales $ 1,052 $ 956 $ 1,132 $ 1,308 $ 4,448 Gross profit 473 419 493 618 2,003 Net income 89 100 116 199 504 Net earnings per common share: Basic earnings per share: $ 1.66 $ 1.87 $ 2.18 $ 3.73 $ 9.43 Diluted earnings per share: 1.65 1.85 2.16 3.70 9.35 2019 First Second Third Fourth Total Year Net sales $ 1,066 $ 1,097 $ 1,130 $ 1,192 $ 4,485 Gross profit 501 520 535 544 2,100 Net income 115 124 136 169 544 Net earnings per common share: Basic earnings per share: $ 2.14 $ 2.28 $ 2.52 $ 3.13 $ 10.08 Diluted earnings per share: 2.12 2.26 2.50 3.10 9.97 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts (In millions) Additions Description Balance at Charged to Charged to Other Accounts (1) Deductions Balance at Valuation account for accounts receivable: Year ended December 31, 2020 $ 2 $ (1) $ — $ — $ 1 Year ended December 31, 2019 3 — — 1 2 Year ended December 31, 2018 3 1 — 1 3 Valuation account for deferred tax assets: Year ended December 31, 2020 $ 421 $ 1 $ 3 $ 12 $ 413 Year ended December 31, 2019 56 6 375 16 421 Year ended December 31, 2018 134 — — 78 56 (1) The amount in 2020 primarily included increases to our valuation allowance related to business combination purchase price allocation adjustments. The amount in 2019 related to Luxembourg reorganization activities, which resulted in the realization of deferred tax liabilities related to depreciation and amortization and a corresponding increase in valuation allowances, with no net impact to our provision for income taxes. See Note 16, Income Taxes in the Notes to Consolidated Financial Statements for further information. See accompanying report of independent registered public accounting firm. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 United States 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 CalendarThe 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 2020 fiscal year, the Company’s quarter end dates were March 28, June 27, September 26 and December 31. |
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. Examples of accounting estimates include: cash flow projections and other valuation assumptions included in business acquisition purchase price allocations as well as annual goodwill impairment testing; the measurement of variable consideration and allocation of transaction price to performance obligations in revenue transactions; inventory valuation; useful lives of our tangible and intangible assets; and the recognition and measurement of income tax assets and liabilities. 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. In addition, the Company considers highly liquid short-term investments with original maturities of less than three months to be cash equivalents. These highly liquid short-term investments 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 and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful AccountsAccounts receivable consist primarily of amounts due to us from our customers 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 a number of factors, including 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 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 largely consist of supplies used in repair operations. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable values. Inventory provisions are based on forecasted demand, experience with specific customers, the age and nature of the inventory, and the ability to redistribute inventory to other programs or to rework into other consumable inventory. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is stated at cost. 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 30 years for buildings and range from 3 to 10 years for all other asset categories. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or 10 years. |
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 measurements of new ROU assets and lease liabilities are 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, 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 not amortized, rather it is tested annually for impairment, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Our annual impairment testing consists of comparing 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 with valuation techniques, including both the income and market approaches. The income approach requires management to estimate a number of factors for each reporting unit, including projected future operating results, economic projections, anticipated future cash flows and discount rates. The market approach estimates fair value using comparable marketplace fair value data from within a comparable industry group. Fair value determinations require judgment and are sensitive to changes in underlying assumptions, estimates, as well as market factors. Estimating the fair value of reporting units requires that we make a number of assumptions and estimates regarding our long-term growth and cash flow expectations as well as overall industry and economic conditions. These estimates and assumptions include, but are not limited to, projections of revenue and income growth rates, capital investments, competitive and customer trends, appropriate peer group selection, market-based discount rates and other market factors. We most recently performed our annual goodwill impairment testing in the fourth quarter of 2020 using a quantitative approach which did not result in any impairments. See Note 6, Goodwill and Other Intangibles |
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 are recorded at cost and amortized on a straight-line basis over the asset’s useful life which typically range from 2 years to 10 years. |
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 SecuritiesThe 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% of each investee and the Company does not have the ability to exercise significant influence. |
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 to which 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, transfer of control and risks of ownership to the customer, for which the Company has contractual right to payment. Our service offerings include repair and maintenance service contracts, which typically occur over time, and professional services such as installation, integration and provisioning, which 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. We enter into contract arrangements that may include various combinations of tangible products, services, solution 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 the estimated standalone selling price using a cost-plus margin methodology. 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 consideration of the following: 1) the customer simultaneously receives and consumes the benefits provided as the Company performs its promises; 2) the Company’s performance creates or enhances an asset that is under control of the customer; 3) the Company’s performance does not create an asset with an alternative use to the Company; and 4) the Company has an enforceable right to payment for its performance completed to date. Revenues for products are generally recognized upon shipment, whereas revenues for services and solutions offerings are generally recognized by using an output method or time-based method, assuming all other criteria for revenue recognition have been met. Revenues for software are recognized either upon delivery or using a time-based method, depending upon how control is transferred to the customer. In cases where a bundle of products, services, and software and solutions offerings are delivered to the customer, judgment is required to select the method of progress which best reflects the transfer of control. 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 Our incremental direct costs of obtaining a contract, which consist of sales commissions and incremental fringe benefits, are deferred and amortized over the weighted-average contract term. The incremental costs to obtain a contract are derived at a |
Research and Development Costs | Research and Development Costs Research and development (“R&D”) costs are expensed as incurred, and 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. |
Advertising | AdvertisingAdvertising is expensed as incurred. |
Warranties | WarrantiesIn general, the Company provides warranty coverage of one year on mobile computers, printers and batteries. Advanced data capture products are warrantied from one |
Contingencies | ContingenciesThe Company establishes a liability for loss contingencies when the loss is both probable and estimable. In addition, for some matters for which a loss is probable or reasonably possible, an estimate of the amount of loss or range of loss is not possible, and we may be unable to estimate the possible loss or range of losses that could potentially result from the application of non-monetary remedies. |
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 CompensationThe 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 up to 4 years, net of estimated forfeitures. Compensation costs associated with awards with graded vesting terms are recognized on a straight-line basis. |
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 We account for acquired businesses using the acquisition method of accounting. This method requires that the purchase price be allocated to the identifiable assets acquired and liabilities assumed 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. While we use our best estimates and assumptions as a part of the purchase price allocation process, our estimates are inherently uncertain and subject to refinement during the measurement period, which is up to one year after the acquisition date. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from revenues and operating activities and the determination of discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but due to the inherent uncertainty during the measurement period, we may record adjustments to the fair value of assets acquired and liabilities assumed with a corresponding adjustment to goodwill. |
Recently Adopted Accounting Pronouncements/Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. It replaced the historical incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. With respect to the Company’s financial assets, including trade receivables and contract assets, a cumulative effect transition approach was applied. In order to determine the transition impact of ASU 2016-13, the Company considered historical loss experience, the short duration of its trade receivables and durations of other financial assets, and expectations of the future economic environment. The adoption of ASU 2016-13 did not have a significant impact to the Company’s financial statements upon transition or for the year ended December 31, 2020. Recently Issued Accounting Pronouncements Not Yet Adopted In March 2020, the Financial Accounting Standards Board issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). Subject to meeting certain criteria, ASU 2020-04 provides optional expedients and exceptions to applying contract modification accounting under existing generally accepted accounting principles for contracts that are modified to address the expected phase out of the London Inter-bank Offered Rate (“LIBOR”). Some of the Company’s contracts with respect to its borrowings and interest rate swap contracts already contain comparable alternative reference rates that would automatically take effect upon the phasing out of LIBOR, while for others, the Company anticipates negotiating comparable replacement rates with its counterparties. At this stage of its contract assessment, the Company does not expect ASU 2020-04 to have a material impact on its financial results. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, Asset Intelligence & Tracking (“AIT”) and Enterprise Visibility & Mobility (“EVM”), for the years ended December 31, 2020, 2019 and 2018 (in millions): Year Ended December 31, 2020 Segment Tangible Products Services and Software Total AIT $ 1,298 $ 128 $ 1,426 EVM 2,515 514 3,029 Corporate, eliminations (1) — (7) (7) Total $ 3,813 $ 635 $ 4,448 Year Ended December 31, 2019 Segment Tangible Products Services and Software Total AIT $ 1,347 $ 132 $ 1,479 EVM 2,560 446 3,006 Total $ 3,907 $ 578 $ 4,485 Year Ended December 31, 2018 Segment Tangible Products Services and Software Total AIT $ 1,298 $ 125 $ 1,423 EVM 2,387 408 2,795 Total $ 3,685 $ 533 $ 4,218 (1) Amounts included in Corporate, eliminations consist of purchase accounting adjustments. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | The components of Inventories, net are as follows (in millions): December 31, December 31, Raw materials $ 117 $ 128 Work in process 4 4 Finished goods 390 342 Total $ 511 $ 474 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Preliminary and Final Purchase Price Allocation to Assets Acquired and Liabilities Assumed | The preliminary purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Identifiable intangible assets $ 204 Accounts receivable 20 Property, plant and equipment 10 Other assets acquired 17 Deferred revenue (16) Deferred tax liabilities (37) Other liabilities assumed (14) Net assets acquired $ 184 Goodwill on acquisition 364 Total purchase consideration $ 548 The final purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Identifiable intangible assets $ 35 Other assets acquired 4 Deferred tax liabilities (4) Other liabilities assumed (10) Net Assets Acquired $ 25 Goodwill on acquisition 54 Total purchase consideration $ 79 The final purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Inventory $ 14 Property, plant and equipment 10 Identifiable intangible assets 106 Other assets acquired 11 Deferred tax liabilities (23) Other liabilities assumed (12) Net Assets Acquired $ 106 Goodwill on acquisition 74 Total purchase consideration $ 180 The final purchase price allocation to assets acquired and liabilities assumed was as follows (in millions): Accounts receivable $ 10 Inventory 22 Identifiable intangible assets 32 Other assets acquired 10 Debt (9) Accounts payable (8) Deferred revenues (7) Other liabilities assumed (7) Net Assets Acquired $ 43 Goodwill on acquisition 29 Total purchase consideration $ 72 |
Schedule of Preliminary Purchase Price Allocation to Identifiable Intangible Assets Acquired | The preliminary purchase price allocation to identifiable intangible assets acquired was: Fair Value (in millions) Useful Life (in years) Technology and patents $ 160 8 Customer and other relationships 43 2 Trade names 1 2 Total identifiable intangible assets $ 204 The final purchase price allocation to identifiable intangible assets acquired was: Fair Value (in millions) Useful Life Technology and patents $ 33 8 Customer and other relationships 2 1 Total identifiable intangible assets $ 35 The final purchase price allocation to identifiable intangible assets acquired was: Fair Value Useful Life Customer and other relationships $ 79 8 Technology and patents 25 8 Trade Names 2 3 Total identifiable intangible assets $ 106 The final purchase price allocation to identifiable intangible assets acquired was: Fair Value Useful Life Customer and other relationships $ 16 9 Technology and patents 15 7 Trade Names 1 3 Total identifiable intangible assets $ 32 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2018 $ 154 $ 2,341 $ 2,495 Xplore purchase price allocation adjustments — (6) (6) Temptime acquisition 73 — 73 Profitect acquisition — 54 54 Cortexica acquisition — 4 4 Foreign exchange impact — 2 2 Goodwill as of December 31, 2019 $ 227 $ 2,395 $ 2,622 Temptime purchase price allocation adjustments 1 — 1 Reflexis acquisition — 364 364 Foreign exchange impact — 1 1 Goodwill as of December 31, 2020 $ 228 $ 2,760 $ 2,988 |
Schedule of Amortized Intangible Assets | The balances in Other Intangibles, net consisted of the following (in millions): As of December 31, 2020 As of December 31, 2019 Gross Carrying Amount Accumulated Net Gross Carrying Amount Accumulated Net Amortized intangible assets Technology and patents $ 739 $ (527) $ 212 $ 578 $ (508) $ 70 Customer and other relationships 620 (431) 189 575 (371) 204 Trade Names 44 (43) 1 43 (42) 1 Total $ 1,403 $ (1,001) $ 402 $ 1,196 $ (921) $ 275 |
Schedule of Future Amortization Expense | Estimated future intangible asset amortization expense is as follows (in millions): Year Ended December 31, 2021 $ 102 2022 89 2023 43 2024 43 2025 43 Thereafter 82 Total $ 402 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property, Plant and Equipment | Property, plant and equipment, net is comprised of the following (in millions): December 31, 2020 2019 Buildings $ 68 $ 63 Land 7 7 Machinery and equipment 248 232 Furniture and office equipment 25 20 Software and computer equipment 162 168 Leasehold improvements 92 84 Projects in progress 41 36 643 610 Less accumulated depreciation (369) (351) Property, plant and equipment, net $ 274 $ 259 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Money market investments related to the deferred compensation plan $ 30 $ — $ — $ 30 Total Assets at fair value $ 30 $ — $ — $ 30 Liabilities: Foreign exchange contracts (1) $ 3 $ 34 $ — $ 37 Forward interest rate swap contracts (2) — 46 — 46 Liabilities related to the deferred compensation plan 30 — — 30 Total Liabilities at fair value $ 33 $ 80 $ — $ 113 The Company’s financial assets and liabilities carried at fair value as of December 31, 2019, are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts (1) $ — $ 3 $ — $ 3 Money market investments related to the deferred compensation plan 24 — — 24 Total Assets at fair value $ 24 $ 3 $ — $ 27 Liabilities: Forward interest rate swap contracts (2) $ — $ 13 $ — $ 13 Liabilities related to the deferred compensation plan 24 — — 24 Total Liabilities at fair value $ 24 $ 13 $ — $ 37 (1) The fair value of the foreign exchange contracts is calculated as follows: • Fair value of regular forward contracts associated with forecasted sales hedges is calculated using the year-end exchange rate adjusted for current forward points. • Fair value of hedges against net assets is calculated at the year-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). |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Assets and Liabilities | The following table presents the fair value of its derivative instruments (in millions): Asset (Liability) Fair Values as of December 31, Balance Sheets Classification 2020 2019 Derivative instruments designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ — $ 3 Foreign exchange contracts Accrued liabilities (34) — Total derivative instruments designated as hedges $ (34) $ 3 Derivative instruments not designated as hedges: Foreign exchange contracts Accrued liabilities (3) — Forward interest rate swaps Accrued liabilities (17) (5) Forward interest rate swaps Other long-term liabilities (29) (8) Total derivative instruments not designated as hedges $ (49) $ (13) Total net derivative liability $ (83) $ (10) |
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): (Loss) Gain Recognized in Income Year Ended December 31, Statements of Operations Classification 2020 2019 2018 Derivative instruments not designated as hedges: Foreign exchange contracts Foreign exchange loss $ (12) $ (3) $ 1 Forward interest rate swaps Interest expense, net (46) (19) 8 Total (loss) gain recognized in income $ (58) $ (22) $ 9 |
Schedule of Notional Value and Net Fair Value of Outstanding Contracts | The notional values and the net fair value of these outstanding contracts are as follows (in millions): December 31, 2020 2019 Notional balance of outstanding contracts: British Pound/U.S. Dollar £ 10 £ 14 Euro/U.S. Dollar € 123 € 36 Canadian Dollar/U.S. Dollar $ — $ 1 Australian Dollar/U.S. Dollar A$ — A$ 42 Japanese Yen/U.S. Dollar ¥ 354 ¥ 264 Singapore Dollar/U.S. Dollar S$ 12 S$ 19 Mexican Peso/U.S. Dollar Mex$ 36 Mex$ 115 South African Rand/U.S. Dollar R — R 42 Net fair value of liabilities of outstanding contracts $ 3 $ — |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Term Loan A $ 917 $ 917 2020 Term Loan 100 — Revolving Credit Facility — 103 Receivables Financing Facilities 235 266 Total debt $ 1,252 $ 1,286 Less: Debt issuance costs (5) (6) Less: Unamortized discounts (2) (3) Less: Current portion of debt (364) (197) Total long-term debt $ 881 $ 1,080 |
Schedule of Maturities of Long-term Debt | As of December 31, 2020, the future maturities of debt, excluding debt discounts and issuance costs, are as follows (in millions): 2021 $ 364 2022 56 2023 82 2024 750 Total future maturities of debt $ 1,252 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Activities Associated With Operating Leases | The following table presents activities associated with our operating leases (in millions): December 31, 2020 2019 Fixed lease expenses $ 35 $ 37 Variable lease expenses 34 29 Total lease expenses $ 69 $ 66 Cash paid for leases $ 69 $ 67 ROU assets obtained in exchange for lease obligations $ 55 $ 42 Reductions of ROU assets and lease liabilities (3) (16) Net non-cash increases to ROU assets and lease liabilities $ 52 $ 26 |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under non-cancellable operating leases as of December 31, 2020 were as follows (in millions): 2021 $ 38 2022 33 2023 29 2024 23 2025 19 Thereafter 44 Total future minimum lease payments $ 186 Less: Interest (27) Present value of lease liabilities $ 159 Reported as of December 31, 2020: Current portion of lease liabilities $ 30 Long-term lease liabilities 129 Present value of lease liabilities $ 159 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 2020 2019 2018 Balance at the beginning of the year $ 21 $ 22 $ 18 Acquisitions — — 1 Warranty expense 30 25 34 Warranties fulfilled (27) (26) (31) Balance at the end of the year $ 24 $ 21 $ 22 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 2018 Cost of sales $ 6 $ 4 $ 4 Selling and marketing 16 17 13 Research and development 16 16 15 General and administration 21 23 21 Total compensation expense $ 59 $ 60 $ 53 Income tax benefit $ 9 $ 9 $ 10 |
Summary of SARs Activity | A summary of the Company’s SARs outstanding is as follows: 2020 2019 2018 SARs SARs Weighted- SARs Weighted- SARs Weighted- Outstanding at beginning of year 896,923 $ 89.05 1,261,185 $ 75.71 1,817,991 $ 65.73 Granted 69,742 253.62 70,141 205.12 88,042 149.75 Exercised (295,770) 67.96 (395,015) 66.82 (598,249) 55.93 Forfeited (31,193) 149.09 (39,388) 92.72 (46,161) 80.41 Expired (1,578) 166.52 — — (438) 108.20 Outstanding at end of year 638,124 $ 113.98 896,923 $ 89.05 1,261,185 $ 75.71 Exercisable at end of year 417,856 $ 81.88 489,357 $ 70.37 595,086 $ 60.85 |
Schedule of Weighted-Average Assumptions Used for Grants of SARs | The following table shows the weighted-average assumptions used for grants of SARs, as well as the fair value of the grants based on those assumptions: 2020 2019 2018 Expected dividend yield 0% 0% 0% Forfeiture rate 8.00% 8.20% 8.40% Volatility 42.51% 36.79% 35.93% Risk free interest rate 0.24% 2.28% 2.96% Expected weighted-average life 4.00 4.02 4.11 Weighted-average grant date fair value of SARs granted $79.47 $64.17 $47.63 |
Summary of Outstanding and Exercisable Options | A summary of the Reflexis Replacement Options outstanding is as follows: 2020 Reflexis Replacement Options Shares Weighted- Outstanding at beginning of year — $ — Granted 38,228 57.82 Exercised (3,408) 55.79 Forfeited (396) 52.14 Expired — — Outstanding at end of year 34,424 $ 58.09 Exercisable at end of year 6,716 $ 56.77 The following table summarizes information about the Reflexis Replacement Options outstanding as of December 31, 2020: Outstanding Exercisable Aggregate intrinsic value (in millions) $ 11 $ 2 Weighted-average remaining contractual life 7.4 7.3 |
Summary of Restricted Stock Award Activity | A summary of information relative to the Company’s RSAs is as follows: 2020 2019 2018 RSAs Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of year 434,641 $ 151.52 657,724 $ 93.45 628,642 $ 77.70 Granted 178,150 265.06 170,502 204.26 206,922 150.60 Released (275,318) 133.43 (372,075) 73.71 (154,878) 107.22 Forfeited (18,908) 199.04 (21,510) 141.29 (22,962) 88.77 Outstanding at end of year 318,565 $ 228.08 434,641 $ 151.52 657,724 $ 93.45 |
Summary of Performance Share Award Activity | A summary of information relative to the Company’s PSAs is as follows: 2020 2019 2018 PSAs Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of year 170,749 $ 144.47 259,727 $ 86.41 265,747 $ 77.04 Granted 98,820 239.79 150,224 206.04 59,849 146.83 Released (131,943) 160.18 (231,513) 120.86 (57,074) 107.31 Forfeited (11,604) 194.23 (7,689) 102.42 (8,795) 81.07 Outstanding at end of year 126,022 $ 199.77 170,749 $ 144.47 259,727 $ 86.41 |
Summary of Information for SARs Outstanding | The following table summarizes information about SARs outstanding as of December 31, 2020: Outstanding Exercisable Aggregate intrinsic value (in millions) $ 173 $ 126 Weighted-average remaining contractual life 4.4 4.2 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Geographical Sources of Income (Loss) Before Income Taxes | The geographical sources of income (loss) before income taxes were as follows (in millions): Year Ended December 31, 2020 2019 2018 United States $ 33 $ 83 $ (25) Outside United States 527 515 549 Total $ 560 $ 598 $ 524 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) consisted of the following (in millions): Year Ended December 31, 2020 2019 2018 Current: Federal $ 6 $ 16 $ 20 State 1 (1) 3 Foreign 89 81 77 Total current $ 96 $ 96 $ 100 Deferred: Federal (25) (32) (11) State (5) (5) 5 Foreign (10) (5) 9 Total deferred $ (40) $ (42) $ 3 Total $ 56 $ 54 $ 103 |
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, 2020 2019 2018 Provision computed at statutory rate 21.0 % 21.0 % 21.0 % U.S. Tax Reform - one-time transition tax — — (0.6) Remeasurement of deferred taxes (0.6) 0.2 0.7 Change in valuation allowance 0.1 (1.7) (4.5) U.S. impact of Enterprise acquisition 0.3 1.0 1.1 Change in contingent income tax reserves (0.4) (3.3) 3.2 Foreign earnings subject to U.S. taxation 1.5 1.8 2.0 Foreign rate differential (5.5) (0.7) (2.0) State income tax, net of federal tax benefit 0.4 (0.2) 0.8 Tax credits (2.9) (2.3) (1.9) Equity compensation deductions (3.2) (4.0) (2.0) Return to provision and other true ups (2.5) (2.0) 1.1 Permanent differences and other 1.8 (0.8) 0.8 Provision for income taxes 10.0 % 9.0 % 19.7 % |
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, 2020 2019 Deferred tax assets: Capitalized research expenditures $ 18 $ 37 Deferred revenue 38 24 Tax credits 36 29 Net operating loss carryforwards 406 410 Other accruals 31 21 Inventory items 17 18 Capitalized software costs — 2 Sales return/rebate reserve 46 48 Share-based compensation expense 9 12 Accrued bonus 1 7 Unrealized gains and losses on securities and investments 19 4 Valuation allowance (413) (421) Total deferred tax assets $ 208 $ 191 Deferred tax liabilities: Depreciation and amortization 67 62 Undistributed earnings 2 2 Total deferred tax liabilities $ 69 $ 64 Net deferred tax assets $ 139 $ 127 |
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, 2020 2019 Balance at beginning of year $ 10 $ 50 Additions for tax positions related to the current year — 1 Reductions for tax positions related to prior years — (5) Settlements for tax positions (1) (16) Lapse of statutes (1) (20) Balance at end of year $ 8 $ 10 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Earnings Per Share | Earnings per share (in millions, except share data): Year Ended December 31, 2020 2019 2018 Basic: Net income $ 504 $ 544 $ 421 Weighted-average shares outstanding 53,441,375 53,991,249 53,591,655 Basic earnings per share $ 9.43 $ 10.08 $ 7.86 Diluted: Net income $ 504 $ 544 $ 421 Weighted-average shares outstanding 53,441,375 53,991,249 53,591,655 Dilutive shares 471,870 603,168 708,157 Diluted weighted-average shares outstanding 53,913,245 54,594,417 54,299,812 Diluted earnings per share $ 9.35 $ 9.97 $ 7.76 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018 were as follows (in millions): Unrealized (loss) gain on sales hedging Unrealized gain (loss) on forward interest rate swaps Foreign currency translation adjustments Total Balance at December 31, 2017 $ (9) $ (9) $ (34) $ (52) Other comprehensive income (loss) before reclassifications 38 8 (13) 33 Amounts reclassified from AOCI (1) (13) 4 — (9) Tax effect (4) (3) — (7) Other comprehensive income (loss), net of tax 21 9 (13) 17 Balance at December 31, 2018 12 — (47) (35) Other comprehensive income before reclassifications 30 — 1 31 Amounts reclassified from AOCI (1) (42) 2 — (40) Tax effect 2 (2) — — Other comprehensive income (loss), net of tax (10) — 1 (9) Balance at December 31, 2019 2 — (46) (44) Other comprehensive (loss) income before reclassifications (43) — 5 (38) Amounts reclassified from AOCI (1) 6 — — 6 Tax effect 7 — — 7 Other comprehensive income (loss), net of tax (30) — 5 (25) Balance at December 31, 2020 $ (28) $ — $ (41) $ (69) (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, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Segment | Financial information by segment is presented as follows (in millions): Year Ended December 31, 2020 2019 2018 Net sales: AIT $ 1,426 $ 1,479 $ 1,423 EVM 3,029 3,006 2,795 Total segment net sales 4,455 4,485 4,218 Corporate, eliminations (1) (7) — — Total Net sales $ 4,448 $ 4,485 $ 4,218 Operating income: AIT (2) $ 322 $ 355 $ 325 EVM (2) 466 483 404 Total segment operating income 788 838 729 Corporate, eliminations (1) (137) (146) (119) Total Operating income $ 651 $ 692 $ 610 (1) To the extent applicable, amounts included in Corporate, eliminations consist of purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, impairment of goodwill and other intangibles, exit and restructuring costs, and product sourcing diversification costs. (2) AIT and EVM segment operating income includes depreciation and share-based compensation expense. The amounts of depreciation and share-based compensation expense attributable to AIT and EVM are proportionate to each segment’s Net sales. |
Schedule of Significant Customers as Percentage of Total Net Sales | Our Net sales to significant customers as a percentage of the total Company’s Net sales by segment were as follows: Year Ended December 31, 2020 2019 2018 AIT EVM Total AIT EVM Total AIT EVM Total Customer A 4.8 % 12.9 % 17.7 % 5.3 % 13.0 % 18.3 % 6.2 % 14.1 % 20.3 % Customer B 4.9 % 9.0 % 13.9 % 4.7 % 9.0 % 13.7 % 5.6 % 10.1 % 15.7 % Customer C 6.5 % 14.2 % 20.7 % 6.1 % 10.5 % 16.6 % 6.2 % 7.9 % 14.1 % |
Schedule of Information Regarding Operations by Geographic Area | Net sales by region were as follows (in millions): Year Ended December 31, 2020 2019 2018 North America $ 2,319 $ 2,261 $ 2,041 EMEA 1,495 1,462 1,409 Asia-Pacific 439 518 520 Latin America 195 244 248 Total Net sales $ 4,448 $ 4,485 $ 4,218 |
Schedule of Net Sales by Country | Net sales during these years were as follows (in millions): Year Ended December 31, 2020 2019 2018 United States $ 2,291 $ 2,243 $ 2,020 Germany 595 523 523 Other 1,562 1,719 1,675 Total Net sales $ 4,448 $ 4,485 $ 4,218 |
Geographic Data for Long-lived Assets | Geographic data for long-lived assets is as follows (in millions): Year Ended December 31, 2020 2019 2018 North America $ 289 $ 280 $ 225 EMEA 68 39 14 Asia-Pacific 45 40 7 Latin America 7 7 3 Total long-lived assets $ 409 $ 366 $ 249 |
Supplementary Financial Infor_2
Supplementary Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Components of Accrued Liabilities | The components of Accrued liabilities are as follows (in millions): December 31, 2020 2019 Accrued payroll and benefits $ 87 $ 63 Accrued incentive compensation 65 96 Accrued warranty 24 21 Customer reserves 56 44 Current portion of lease liabilities 30 29 Unremitted cash collections due to banks on factored accounts receivable 142 33 Forward contracts liability 37 — Short-term interest rate swaps 17 5 Accrued freight and duty 21 23 Accrued other expenses 80 65 Accrued liabilities $ 559 $ 379 |
Summary of Quarterly Results of Operations | Summary of Quarterly Results of Operations (unaudited, in millions): 2020 First Second Third Fourth Total Year Total Net sales $ 1,052 $ 956 $ 1,132 $ 1,308 $ 4,448 Gross profit 473 419 493 618 2,003 Net income 89 100 116 199 504 Net earnings per common share: Basic earnings per share: $ 1.66 $ 1.87 $ 2.18 $ 3.73 $ 9.43 Diluted earnings per share: 1.65 1.85 2.16 3.70 9.35 2019 First Second Third Fourth Total Year Net sales $ 1,066 $ 1,097 $ 1,130 $ 1,192 $ 4,485 Gross profit 501 520 535 544 2,100 Net income 115 124 136 169 544 Net earnings per common share: Basic earnings per share: $ 2.14 $ 2.28 $ 2.52 $ 3.13 $ 10.08 Diluted earnings per share: 2.12 2.26 2.50 3.10 9.97 |
Significant Accounting Polici_3
Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
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 (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Capitalized intangible assets, useful life | 2 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Capitalized intangible assets, useful life | 10 years |
Significant Accounting Polici_5
Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
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, transfer of control and risks of ownership to the customer, for which the Company has contractual right to payment. Our service offerings include repair and maintenance service contracts, which typically occur over time, and professional services such as installation, integration and provisioning, which 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. |
Significant Accounting Polici_6
Significant Accounting Policies - Advertising (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Advertising expenses | $ 25 | $ 19 | $ 18 |
Significant Accounting Polici_7
Significant Accounting Policies - Warranty Coverage (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Mobile Computers, Printers and Batteries | |
Product Warranty Liability [Line Items] | |
Product warranty term | 1 year |
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_8
Significant Accounting Policies - Share Based Compensation (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Award vesting period (up to) | 4 years |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capitalized Contract Cost [Line Items] | |||
Capitalized contract, impairment loss | $ 0 | $ 0 | $ 0 |
Deferred revenue | 581,000,000 | 459,000,000 | |
Revenue recognized which was previously included in deferred revenue | 256,000,000 | 219,000,000 | 181,000,000 |
Sales Commissions | |||
Capitalized Contract Cost [Line Items] | |||
Deferred commissions | 23,000,000 | 21,000,000 | |
Amortization expense related to commissions | 14,000,000 | 11,000,000 | $ 10,000,000 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation | $ 724,000,000 | ||
Remaining performance obligation period of recognition | 2 years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation | $ 974,000,000 | ||
Remaining performance obligation period of recognition | 2 years | ||
Prepaid expenses and other current assets | |||
Capitalized Contract Cost [Line Items] | |||
Contract assets | $ 10,000,000 | $ 8,000,000 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net sales | $ 1,308 | $ 1,132 | $ 956 | $ 1,052 | $ 1,192 | $ 1,130 | $ 1,097 | $ 1,066 | $ 4,448 | $ 4,485 | $ 4,218 |
Tangible Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net sales | 3,813 | 3,907 | 3,685 | ||||||||
Services and Software | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net sales | 635 | 578 | 533 | ||||||||
AIT | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net sales | 1,426 | 1,479 | 1,423 | ||||||||
AIT | Tangible Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net sales | 1,298 | 1,347 | 1,298 | ||||||||
AIT | Services and Software | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net sales | 128 | 132 | 125 | ||||||||
EVM | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net sales | 3,029 | 3,006 | 2,795 | ||||||||
EVM | Tangible Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net sales | 2,515 | 2,560 | 2,387 | ||||||||
EVM | Services and Software | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net sales | 514 | $ 446 | $ 408 | ||||||||
Corporate, eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net sales | (7) | ||||||||||
Corporate, eliminations | Tangible Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net sales | 0 | ||||||||||
Corporate, eliminations | Services and Software | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net sales | $ (7) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 117 | $ 128 |
Work in process | 4 | 4 |
Finished goods | 390 | 342 |
Total | $ 511 | $ 474 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - USD ($) | Sep. 01, 2020 | Nov. 05, 2019 | May 31, 2019 | Feb. 21, 2019 | Aug. 14, 2018 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||||||
Acquisition of business, net of cash acquired | $ 548,000,000 | $ 262,000,000 | $ 72,000,000 | ||||||
Acquisition and integration costs | 23,000,000 | 22,000,000 | 8,000,000 | ||||||
Goodwill | $ 2,988,000,000 | 2,988,000,000 | 2,622,000,000 | 2,495,000,000 | |||||
Reflexis | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition of business, net of cash acquired | $ 548,000,000 | ||||||||
Granted (in shares) | 38,228 | ||||||||
Weighted-average grant date fair value of SARs granted (per underlying share) (in USD per share) | $ 230 | ||||||||
Share based payment award options grants In period fair value | $ 9,000,000 | ||||||||
Share-based payment award, award requisite service period | 1 year 8 months 12 days | ||||||||
Weighted-average remaining contractual term, outstanding | 7 years 8 months 12 days | ||||||||
Acquisition and integration costs | 21,000,000 | ||||||||
Business combination other acquisition costs | 7,000,000 | ||||||||
Decrease in deferred tax liabilities | 12,000,000 | ||||||||
Decrease in goodwill | 12,000,000 | ||||||||
Goodwill on acquisition | $ 364,000,000 | 364,000,000 | |||||||
Consideration transferred for net assets acquired | 548,000,000 | ||||||||
Intangible assets acquired | $ 204,000,000 | ||||||||
Reflexis | Loans Payable | 2020 Term Loan | |||||||||
Business Acquisition [Line Items] | |||||||||
Debt instrument, face amount | $ 200,000,000 | $ 200,000,000 | |||||||
Cortexica | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition and integration costs | 2,000,000 | ||||||||
Goodwill on acquisition | 4,000,000 | ||||||||
Percentage of equity interests acquired | 100.00% | ||||||||
Consideration transferred for net assets acquired | $ 7,000,000 | ||||||||
Intangible assets acquired | 4,000,000 | ||||||||
Goodwill | $ 4,000,000 | ||||||||
Profitect | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition of business, net of cash acquired | $ 75,000,000 | ||||||||
Acquisition and integration costs | 13,000,000 | ||||||||
Goodwill on acquisition | 54,000,000 | ||||||||
Percentage of equity interests acquired | 100.00% | ||||||||
Consideration transferred for net assets acquired | $ 79,000,000 | ||||||||
Intangible assets acquired | 35,000,000 | ||||||||
Goodwill | 54,000,000 | ||||||||
Existing ownership in acquiree remeasured upon acquisition | 4,000,000 | ||||||||
Ownership interest remeasurement gain | $ 4,000,000 | ||||||||
Temptime | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition of business, net of cash acquired | $ 180,000,000 | ||||||||
Acquisition and integration costs | 3,000,000 | ||||||||
Goodwill on acquisition | 73,000,000 | ||||||||
Percentage of equity interests acquired | 100.00% | ||||||||
Consideration transferred for net assets acquired | $ 180,000,000 | ||||||||
Intangible assets acquired | 106,000,000 | ||||||||
Goodwill | $ 74,000,000 | ||||||||
Xplore | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition and integration costs | $ 8,000,000 | ||||||||
Consideration transferred for net assets acquired | $ 72,000,000 | ||||||||
Intangible assets acquired | 32,000,000 | ||||||||
Goodwill | 29,000,000 | ||||||||
Payment for debt | 9,000,000 | ||||||||
Transaction related obligations | $ 6,000,000 | ||||||||
System integration costs | $ 2,000,000 |
Business Acquisitions - Schedul
Business Acquisitions - Schedule of Preliminary Purchase Price Allocation to Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 01, 2020 | May 31, 2019 | Feb. 21, 2019 | Aug. 14, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||||
Goodwill on acquisition | $ 2,988 | $ 2,622 | $ 2,495 | ||||
Reflexis | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 204 | ||||||
Accounts receivable | 20 | ||||||
Property, plant and equipment | 10 | ||||||
Other assets acquired | 17 | ||||||
Deferred revenue | (16) | ||||||
Deferred tax liabilities | (37) | ||||||
Other liabilities assumed | (14) | ||||||
Net Assets Acquired | 184 | ||||||
Goodwill on acquisition | 364 | $ 364 | |||||
Total purchase consideration | $ 548 | ||||||
Profitect | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 35 | ||||||
Other assets acquired | 4 | ||||||
Deferred tax liabilities | (4) | ||||||
Other liabilities assumed | (10) | ||||||
Net Assets Acquired | 25 | ||||||
Goodwill on acquisition | 54 | ||||||
Goodwill on acquisition | 54 | ||||||
Total purchase consideration | $ 79 | ||||||
Temptime | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 106 | ||||||
Inventory | 14 | ||||||
Property, plant and equipment | 10 | ||||||
Other assets acquired | 11 | ||||||
Deferred tax liabilities | (23) | ||||||
Other liabilities assumed | (12) | ||||||
Net Assets Acquired | 106 | ||||||
Goodwill on acquisition | $ 73 | ||||||
Goodwill on acquisition | 74 | ||||||
Total purchase consideration | $ 180 | ||||||
Xplore | |||||||
Business Acquisition [Line Items] | |||||||
Identifiable intangible assets | $ 32 | ||||||
Accounts receivable | 10 | ||||||
Inventory | 22 | ||||||
Other assets acquired | 10 | ||||||
Debt | (9) | ||||||
Accounts payable | (8) | ||||||
Deferred revenue | (7) | ||||||
Other liabilities assumed | (7) | ||||||
Net Assets Acquired | 43 | ||||||
Goodwill on acquisition | 29 | ||||||
Total purchase consideration | $ 72 |
Business Acquisitions - Sched_2
Business Acquisitions - Schedule of Preliminary Purchase Price Allocation to Intangible Assets Acquired (Details) - USD ($) $ in Millions | Sep. 01, 2020 | May 31, 2019 | Feb. 21, 2019 | Aug. 14, 2018 |
Reflexis | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 204 | |||
Reflexis | Technology and patents | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 160 | |||
Useful life | 8 years | |||
Reflexis | Customer and other relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 43 | |||
Useful life | 2 years | |||
Reflexis | Trade Names | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 1 | |||
Useful life | 2 years | |||
Profitect | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 35 | |||
Profitect | Technology and patents | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 33 | |||
Useful life | 8 years | |||
Profitect | Customer and other relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 2 | |||
Useful life | 1 year | |||
Temptime | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 106 | |||
Temptime | Technology and patents | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 25 | |||
Useful life | 8 years | |||
Temptime | Customer and other relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 79 | |||
Useful life | 8 years | |||
Temptime | Trade Names | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 2 | |||
Useful life | 3 years | |||
Xplore | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 32 | |||
Xplore | Technology and patents | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 15 | |||
Useful life | 7 years | |||
Xplore | Customer and other relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 16 | |||
Useful life | 9 years | |||
Xplore | Trade Names | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 1 | |||
Useful life | 3 years |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Changes in Net Carrying Value of Goodwill (Detail) - USD ($) $ in Millions | Sep. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill [Roll Forward] | |||
Beginning balance | $ 2,622 | $ 2,495 | |
Foreign exchange impact | 1 | 2 | |
Ending balance | 2,988 | 2,622 | |
Xplore purchase price allocation adjustments | |||
Goodwill [Roll Forward] | |||
Xplore purchase price allocation adjustments | (6) | ||
Temptime acquisition | |||
Goodwill [Roll Forward] | |||
Xplore purchase price allocation adjustments | 1 | ||
Goodwill on acquisition | 73 | ||
Profitect acquisition | |||
Goodwill [Roll Forward] | |||
Goodwill on acquisition | 54 | ||
Cortexica acquisition | |||
Goodwill [Roll Forward] | |||
Goodwill on acquisition | 4 | ||
Reflexis acquisition | |||
Goodwill [Roll Forward] | |||
Goodwill on acquisition | $ 364 | 364 | |
AIT | |||
Goodwill [Roll Forward] | |||
Beginning balance | 227 | 154 | |
Foreign exchange impact | 0 | 0 | |
Ending balance | 228 | 227 | |
AIT | Xplore purchase price allocation adjustments | |||
Goodwill [Roll Forward] | |||
Xplore purchase price allocation adjustments | 0 | ||
AIT | Temptime acquisition | |||
Goodwill [Roll Forward] | |||
Xplore purchase price allocation adjustments | 1 | ||
Goodwill on acquisition | 73 | ||
AIT | Profitect acquisition | |||
Goodwill [Roll Forward] | |||
Goodwill on acquisition | 0 | ||
AIT | Cortexica acquisition | |||
Goodwill [Roll Forward] | |||
Goodwill on acquisition | 0 | ||
AIT | Reflexis acquisition | |||
Goodwill [Roll Forward] | |||
Goodwill on acquisition | 0 | ||
EVM | |||
Goodwill [Roll Forward] | |||
Beginning balance | 2,395 | 2,341 | |
Foreign exchange impact | 1 | 2 | |
Ending balance | 2,760 | 2,395 | |
EVM | Xplore purchase price allocation adjustments | |||
Goodwill [Roll Forward] | |||
Xplore purchase price allocation adjustments | (6) | ||
EVM | Temptime acquisition | |||
Goodwill [Roll Forward] | |||
Xplore purchase price allocation adjustments | $ 0 | ||
Goodwill on acquisition | 0 | ||
EVM | Profitect acquisition | |||
Goodwill [Roll Forward] | |||
Goodwill on acquisition | 54 | ||
EVM | Cortexica acquisition | |||
Goodwill [Roll Forward] | |||
Goodwill on acquisition | $ 4 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)reporting_unit | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Number of reporting units | reporting_unit | 5 | ||
Fair value exceeding carrying value (at least), percent | 80.00% | ||
Amortization expense | $ | $ 78 | $ 103 | $ 97 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Amortized Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,403 | $ 1,196 |
Accumulated Amortization | (1,001) | (921) |
Net | 402 | 275 |
Technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 739 | 578 |
Accumulated Amortization | (527) | (508) |
Net | 212 | 70 |
Customer and other relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 620 | 575 |
Accumulated Amortization | (431) | (371) |
Net | 189 | 204 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 44 | 43 |
Accumulated Amortization | (43) | (42) |
Net | $ 1 | $ 1 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles - Estimated Amortization Expense for Future Periods (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Year Ended December 31, | |
2021 | $ 102 |
2022 | 89 |
2023 | 43 |
2024 | 43 |
2025 | 43 |
Thereafter | 82 |
Total | $ 402 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 643 | $ 610 | |
Less accumulated depreciation | (369) | (351) | |
Property, plant and equipment, net | 274 | 259 | |
Depreciation expense | 68 | 72 | $ 78 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 68 | 63 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 7 | 7 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 248 | 232 | |
Furniture and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 25 | 20 | |
Software and computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 162 | 168 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 92 | 84 | |
Projects in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 41 | $ 36 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Equity securities held | $ 77 | $ 45 | |
Purchase of long-term investments | 32 | 22 | $ 3 |
Debt and equity securities, unrealized gain (loss) | 7 | ||
Proceeds from the sale of long-term investments | 6 | 10 | 2 |
Realized gain on equity securities | $ 5 | $ 3 | $ 10 |
Exit and Restructuring Costs (D
Exit and Restructuring Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Exit and restructuring costs | $ 11 | $ 10 | $ 11 |
Estimated remaining costs | 5 | ||
2019 Productivity Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit and restructuring costs | $ 11 | 8 | |
2017 Productivity Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit and restructuring costs | $ 2 | $ 11 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Carried at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Total Assets at fair value | $ 30 | $ 27 |
Liabilities: | ||
Total Liabilities at fair value | 113 | 37 |
Level 1 | ||
Assets: | ||
Total Assets at fair value | 30 | 24 |
Liabilities: | ||
Total Liabilities at fair value | 33 | 24 |
Level 2 | ||
Assets: | ||
Total Assets at fair value | 0 | 3 |
Liabilities: | ||
Total Liabilities at fair value | 80 | 13 |
Level 3 | ||
Assets: | ||
Total Assets at fair value | 0 | 0 |
Liabilities: | ||
Total Liabilities at fair value | 0 | 0 |
Money market investments related to the deferred compensation plan | ||
Assets: | ||
Money market investments related to the deferred compensation plan | 30 | 24 |
Money market investments related to the deferred compensation plan | Level 1 | ||
Assets: | ||
Money market investments related to the deferred compensation plan | 30 | 24 |
Money market investments related to the deferred compensation plan | Level 2 | ||
Assets: | ||
Money market investments related to the deferred compensation plan | 0 | 0 |
Money market investments related to the deferred compensation plan | Level 3 | ||
Assets: | ||
Money market investments related to the deferred compensation plan | 0 | 0 |
Foreign exchange contracts | ||
Assets: | ||
Derivative asset | 3 | |
Liabilities: | ||
Derivative liability | 37 | |
Foreign exchange contracts | Level 1 | ||
Assets: | ||
Derivative asset | 0 | |
Liabilities: | ||
Derivative liability | 3 | |
Foreign exchange contracts | Level 2 | ||
Assets: | ||
Derivative asset | 3 | |
Liabilities: | ||
Derivative liability | 34 | |
Foreign exchange contracts | Level 3 | ||
Assets: | ||
Derivative asset | 0 | |
Liabilities: | ||
Derivative liability | 0 | |
Forward interest rate swaps | ||
Liabilities: | ||
Derivative liability | 46 | 13 |
Forward interest rate swaps | Level 1 | ||
Liabilities: | ||
Derivative liability | 0 | 0 |
Forward interest rate swaps | Level 2 | ||
Liabilities: | ||
Derivative liability | 46 | 13 |
Forward interest rate swaps | Level 3 | ||
Liabilities: | ||
Derivative liability | 0 | 0 |
Liabilities related to the deferred compensation plan | ||
Liabilities: | ||
Liabilities related to the deferred compensation plan | 30 | 24 |
Liabilities related to the deferred compensation plan | Level 1 | ||
Liabilities: | ||
Liabilities related to the deferred compensation plan | 30 | 24 |
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 Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Total derivative instruments not designated as hedges | $ (83) | $ (10) |
Derivative instruments designated as hedges | ||
Derivative [Line Items] | ||
Total derivative instruments not designated as hedges | (34) | 3 |
Derivative instruments not designated as hedges | ||
Derivative [Line Items] | ||
Total derivative instruments not designated as hedges | (49) | (13) |
Prepaid expenses and other current assets | Foreign exchange contracts | Derivative instruments designated as hedges | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 0 | 3 |
Accrued liabilities | Foreign exchange contracts | Derivative instruments designated as hedges | ||
Derivative [Line Items] | ||
Derivative asset, fair value | (34) | 0 |
Accrued liabilities | Foreign exchange contracts | Derivative instruments not designated as hedges | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (3) | 0 |
Accrued liabilities | Forward interest rate swaps | Derivative instruments not designated as hedges | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (17) | (5) |
Other long-term liabilities | Forward interest rate swaps | Derivative instruments not designated as hedges | ||
Derivative [Line Items] | ||
Derivative liability, fair value | $ (29) | $ (8) |
Derivative Instruments - Net Ga
Derivative Instruments - Net Gains (Losses) from Changes in Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total (loss) gain recognized in income | $ (6) | $ 42 | $ 13 |
Derivative instruments not designated as hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total (loss) gain recognized in income | (58) | (22) | 9 |
Derivative instruments not designated as hedges: | Foreign exchange contracts | Foreign exchange loss | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total (loss) gain recognized in income | (12) | (3) | 1 |
Derivative instruments not designated as hedges: | Forward interest rate swaps | Interest expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total (loss) gain recognized in income | $ (46) | $ (19) | $ 8 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) € in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | Sep. 28, 2019USD ($) | Dec. 31, 2017USD ($) | |
Change in unrealized gain (loss) on anticipated sales hedging: | ||||||||
Gain (loss) on contract | $ (6,000,000) | $ 42,000,000 | $ 13,000,000 | |||||
Foreign currency cash flow hedge derivative | € | € 585 | € 564 | ||||||
One-time payment classified within net cash provided by operating activities | $ 7,000,000 | |||||||
Derivative instruments designated as hedges | ||||||||
Change in unrealized gain (loss) on anticipated sales hedging: | ||||||||
Derivative, term of contract | 12 months | |||||||
Foreign exchange contracts | ||||||||
Change in unrealized gain (loss) on anticipated sales hedging: | ||||||||
Derivative, increase In gross asset and gross liability, Net | $ 3,000,000 | |||||||
Forward interest rate swaps | ||||||||
Change in unrealized gain (loss) on anticipated sales hedging: | ||||||||
Pretax losses remaining in AOCI time of termination (less than) | $ 1,000,000 | |||||||
Forward interest rate swaps | Derivative instruments designated as hedges | ||||||||
Change in unrealized gain (loss) on anticipated sales hedging: | ||||||||
Derivative forward long-term interest rate swap | $ 800,000,000 | $ 800,000,000 |
Derivative Instruments - Notion
Derivative Instruments - Notional Values and Net Fair Value of Outstanding Contracts (Details) - Foreign Exchange Forward € in Millions, ¥ in Millions, £ in Millions, R in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | Dec. 31, 2020GBP (£) | Dec. 31, 2020EUR (€) | Dec. 31, 2020CAD ($) | Dec. 31, 2020AUD ($) | Dec. 31, 2020JPY (¥) | Dec. 31, 2020SGD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2020ZAR (R) | Dec. 31, 2020USD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2019EUR (€) | Dec. 31, 2019CAD ($) | Dec. 31, 2019AUD ($) | Dec. 31, 2019JPY (¥) | Dec. 31, 2019SGD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2019ZAR (R) | Dec. 31, 2019USD ($) |
Derivative [Line Items] | ||||||||||||||||||
Net fair value of liabilities of outstanding contracts | $ 3 | $ 0 | ||||||||||||||||
US Dollar | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Notional balance of outstanding contracts | £ 10 | € 123 | $ 0 | $ 0 | ¥ 354 | $ 12 | $ 36 | R 0 | £ 14 | € 36 | $ 1 | $ 42 | ¥ 264 | $ 19 | $ 115 | R 42 |
Long-Term Debt - Summary of Car
Long-Term Debt - Summary of Carrying Value of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,252 | $ 1,286 |
Less: Debt issuance costs | (5) | (6) |
Less: Unamortized discounts | (2) | (3) |
Less: Current portion of debt | (364) | (197) |
Total long-term debt | 881 | 1,080 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 103 |
Term Loan A | Loans Payable | ||
Debt Instrument [Line Items] | ||
Total debt | 917 | 917 |
2020 Term Loan | ||
Debt Instrument [Line Items] | ||
Less: Debt issuance costs | (1) | |
2020 Term Loan | Loans Payable | ||
Debt Instrument [Line Items] | ||
Total debt | 100 | 0 |
Receivables Financing Facilities | Secured Debt | ||
Debt Instrument [Line Items] | ||
Total debt | $ 235 | $ 266 |
Long-Term Debt - Future Maturit
Long-Term Debt - Future Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 364 | |
2022 | 56 | |
2023 | 82 | |
2024 | 750 | |
Total future maturities of debt | $ 1,252 | $ 1,286 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Billions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Fair value of long-term debt | $ 1.3 | $ 1.3 |
Long-Term Debt - Term Loans (De
Long-Term Debt - Term Loans (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ 5,000,000 | $ 6,000,000 |
Term Loan A | Loans Payable | ||
Debt Instrument [Line Items] | ||
Percentage bearing variable interest, percentage rate | 1.41% | |
2020 Term Loan | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, effective percentage | 2.25% | |
Debt issuance costs, net | $ 1,000,000 | |
2020 Term Loan | Loans Payable | Reflexis | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 200,000,000 | |
Repayments of debts | $ 100,000,000 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility (Details) - Revolving Credit Agreement - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||||
Letters of credit | $ 5,000,000 | |||
Revolving credit facility maximum borrowing capacity | $ 500,000,000 | |||
Funds available for other borrowings | 995,000,000 | |||
Outstanding borrowings | 0 | |||
A&R Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Revolving credit facility maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | $ 800,000,000 |
Long-Term Debt - Receivables Fi
Long-Term Debt - Receivables Financing Facility (Details) - Secured Debt | Dec. 31, 2020USD ($)facility | May 31, 2020USD ($) | May 31, 2019USD ($) |
Receivables Financing Facility | |||
Debt Instrument [Line Items] | |||
Number of receivable financing facilities | facility | 2 | ||
Total borrowing limits | $ 280,000,000 | ||
Accounts receivable pledged | 441,000,000 | ||
Line of credit, current | $ 235,000,000 | ||
Average interest rate | 1.04% | ||
Receivables Financing Facility, due 2021 | |||
Debt Instrument [Line Items] | |||
Total borrowing limits | $ 100,000,000 | $ 180,000,000 |
Long-Term Debt - Uncommitted Sh
Long-Term Debt - Uncommitted Short-Term Credit Facility (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | |||||
Non-cash accelerated amortization | $ 6,000,000 | ||||
Term Loan A | Loans Payable | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | 670,000,000 | ||||
Debt issuance costs, one time pretax charges | 2,000,000 | ||||
Term Loan A, Amendment No. 2 | Loans Payable | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 1,000,000,000 | 608,000,000 | |||
Term Loan B | Loans Payable | |||||
Line of Credit Facility [Line Items] | |||||
Extinguishment of debt | 445,000,000 | 300,000,000 | |||
Debt issuance costs, one time pretax charges | 1,000,000 | ||||
Uncommitted Facility | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 20,000,000 | ||||
Repayment period for each borrowing | 90 days | ||||
Outstanding borrowings | $ 0 | ||||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 500,000,000 | ||||
Outstanding borrowings | 0 | ||||
Revolving Credit Facility | A&R Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | 1,000,000,000 | $ 800,000,000 | $ 1,000,000,000 | ||
Non-cash accelerated amortization | 4,000,000 | ||||
Loss on contract termination | 3,000,000 | ||||
Payments of debt restructuring costs | $ 6,000,000 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Term of lease | 12 years | ||
Weighted average remaining term | 6 years | 6 years | |
Weighted average discount rate used to measure ROU assets and lease liabilities (approximately) | 5.00% | 6.00% | |
Rent expense | $ 33 |
Leases - Activities Associated
Leases - Activities Associated With Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Fixed lease expenses | $ 35 | $ 37 |
Variable lease expenses | 34 | 29 |
Total lease expenses | 69 | 66 |
Cash paid for leases | 69 | 67 |
ROU assets obtained in exchange for lease obligations | 55 | 42 |
Reductions of ROU assets and lease liabilities | (3) | (16) |
Net non-cash increases to ROU assets and lease liabilities | $ 52 | $ 26 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 38 | |
2022 | 33 | |
2023 | 29 | |
2024 | 23 | |
2025 | 19 | |
Thereafter | 44 | |
Total future minimum lease payments | 186 | |
Less: Interest | (27) | |
Present value of lease liabilities | 159 | |
Current portion of lease liabilities | 30 | $ 29 |
Long-term lease liabilities | $ 129 | $ 100 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Accrued Warranty Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Balance at the beginning of the year | $ 21 | $ 22 | $ 18 |
Acquisitions | 0 | 0 | 1 |
Warranty expense | 30 | 25 | 34 |
Warranties fulfilled | (27) | (26) | (31) |
Balance at the end of the year | $ 24 | $ 21 | $ 22 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||||
Pre-tax charge for litigation settlement | $ 13 | |||
Recovered, import duties paid previously | $ 12 | $ 2 | $ 10 | |
AIT | ||||
Loss Contingencies [Line Items] | ||||
Recovered, import duties paid previously | 4 | |||
EVM | ||||
Loss Contingencies [Line Items] | ||||
Recovered, import duties paid previously | $ 8 |
Share-Based Compensation - Narr
Share-Based Compensation - Narratives (Detail) | Dec. 31, 2019shares |
2018 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |
Shares available for grant | 3,339,322 |
Share-Based Compensation - Comp
Share-Based Compensation - Compensation Expense and Related Income Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total compensation expense | $ 59 | $ 60 | $ 53 |
Income tax benefit | 9 | 9 | 10 |
Unearned compensation costs related to awards granted | $ 82 | ||
Unearned compensation cost, expected to be recognized over period | 1 year 8 months 12 days | ||
Cost of sales | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total compensation expense | $ 6 | 4 | 4 |
Selling and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total compensation expense | 16 | 17 | 13 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total compensation expense | 16 | 16 | 15 |
General and administration | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total compensation expense | $ 21 | $ 23 | $ 21 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of SAR's Outstanding (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
SARs | |||
SARs, Shares Outstanding | |||
Outstanding at beginning of year (in shares) | 896,923 | 1,261,185 | 1,817,991 |
Granted (in shares) | 69,742 | 70,141 | 88,042 |
Exercised (in shares) | (295,770) | (395,015) | (598,249) |
Forfeited (in shares) | (31,193) | (39,388) | (46,161) |
Expired (in shares) | (1,578) | 0 | (438) |
Outstanding at end of year (in shares) | 638,124 | 896,923 | 1,261,185 |
Exercisable at end of year (in shares) | 417,856 | 489,357 | 595,086 |
Weighted- Average Exercise Price | |||
Outstanding at beginning of year (in USD per share) | $ 89.05 | $ 75.71 | $ 65.73 |
Granted (in USD per share) | 253.62 | 205.12 | 149.75 |
Exercised (in USD per share) | 67.96 | 66.82 | 55.93 |
Forfeited (in USD per share) | 149.09 | 92.72 | 80.41 |
Expired (in USD per share) | 166.52 | 0 | 108.20 |
Outstanding at end of year (in USD per share) | 113.98 | 89.05 | 75.71 |
Exercisable at end of year (in USD per share) | $ 81.88 | $ 70.37 | $ 60.85 |
SARs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted-Average Assumptions Used for Grants of Stock Options and SARs (Detail) - SARs - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Forfeiture rate | 8.00% | 8.20% | 8.40% |
Volatility | 42.51% | 36.79% | 35.93% |
Risk free interest rate | 0.24% | 2.28% | 2.96% |
Expected weighted-average life | 4 years | 4 years 7 days | 4 years 1 month 9 days |
Weighted-average grant date fair value of SARs granted (per underlying share) (in USD per share) | $ 79.47 | $ 64.17 | $ 47.63 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Outstanding and Exercisable Options and SARs (Detail) - SARs - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of SARs outstanding | |||
Aggregate intrinsic value, outstanding | $ 173 | ||
Aggregate intrinsic value, exercisable | $ 126 | ||
Weighted-average remaining contractual term, outstanding | 4 years 4 months 24 days | ||
Weighted-average remaining contractual term, exercisable | 4 years 2 months 12 days | ||
Intrinsic value for options exercised | $ 60 | $ 58 | $ 59 |
Fair value vested | $ 8 | $ 9 | $ 12 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Awards and Performance Share Awards Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted Stock Awards and Performance Share Awards | |||
Outstanding at beginning of year (in shares) | 434,641 | 657,724 | 628,642 |
Granted (in shares) | 178,150 | 170,502 | 206,922 |
Released (in shares) | (275,318) | (372,075) | (154,878) |
Forfeited (in shares) | (18,908) | (21,510) | (22,962) |
Outstanding at end of year (in shares) | 318,565 | 434,641 | 657,724 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at beginning of year (in USD per share) | $ 151.52 | $ 93.45 | $ 77.70 |
Granted (in USD per share) | 265.06 | 204.26 | 150.60 |
Released (in USD per share | 133.43 | 73.71 | 107.22 |
Forfeited (in USD per share) | 199.04 | 141.29 | 88.77 |
Outstanding at end of year (in USD per share) | $ 228.08 | $ 151.52 | $ 93.45 |
Restricted Stock | Nonemployee | |||
Restricted Stock Awards and Performance Share Awards | |||
Granted (in shares) | 6,314 | 7,371 | 7,980 |
Performance Share Awards | |||
Restricted Stock Awards and Performance Share Awards | |||
Outstanding at beginning of year (in shares) | 170,749 | 259,727 | 265,747 |
Granted (in shares) | 98,820 | 150,224 | 59,849 |
Released (in shares) | (131,943) | (231,513) | (57,074) |
Forfeited (in shares) | (11,604) | (7,689) | (8,795) |
Outstanding at end of year (in shares) | 126,022 | 170,749 | 259,727 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at beginning of year (in USD per share) | $ 144.47 | $ 86.41 | $ 77.04 |
Granted (in USD per share) | 239.79 | 206.04 | 146.83 |
Released (in USD per share | 160.18 | 120.86 | 107.31 |
Forfeited (in USD per share) | 194.23 | 102.42 | 81.07 |
Outstanding at end of year (in USD per share) | $ 199.77 | $ 144.47 | $ 86.41 |
Share-Based Compensation - Othe
Share-Based Compensation - Other Award Types (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (up to) | 4 years | ||
Cash-Settled Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based liabilities paid | $ 9 | $ 6 | $ 2 |
Number of share-equivalents issued (in shares) | 40,166 | 17,207 | 20,393 |
Cash-Settled Award | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (up to) | 4 years |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Reflexis Replacement Options (Details) - Reflexis Replacement Options $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average acquisition-date fair value per option (in USD per share) | $ 230 |
Share based payment award options grants In period fair value | $ | $ 9 |
Share-based payment award, award requisite service period | 1 year 8 months 12 days |
Expected dividend yield | 0.00% |
Volatility factor | 39.75% |
Risk free interest rate | 0.14% |
Expected weighted-average life | 2 years 9 months 10 days |
Reflexis Replacement Options | |
Outstanding at beginning of year (in shares) | shares | 0 |
Granted (in shares) | shares | 38,228 |
Exercised (in shares) | shares | (3,408) |
Forfeited (in shares) | shares | (396) |
Expired (in shares) | shares | 0 |
Outstanding at end of year (in shares) | shares | 34,424 |
Exercisable at end of period (in shares) | shares | 6,716 |
Weighted- Average Exercise Price | |
Outstanding at beginning of year (in USD per share) | $ 0 |
Granted (in USD per share) | 57.82 |
Exercised (in USD per share) | 55.79 |
Forfeited (in USD per share) | 52.14 |
Expired (in USD per share) | 0 |
Outstanding at end of year (in USD per share) | 58.09 |
Exercisable at end of year (in USD per share) | $ 56.77 |
Aggregate intrinsic value, outstanding | $ | $ 11 |
Weighted-average remaining contractual term, outstanding | 7 years 4 months 24 days |
Aggregate intrinsic value, exercisable | $ | $ 2 |
Weighted-average remaining contractual term, exercisable | 7 years 3 months 18 days |
Intrinsic value for options exercised | $ | $ 1 |
Fair value vested | $ | $ 2 |
Share-Based Compensation - Empl
Share-Based Compensation - Employee Stock Purchase Plan (Details) - 2011 Employee Stock Purchase Plan - Employee Stock Option - Common Stock | 12 Months Ended |
Dec. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant | 1,480,004 |
Date Of Purchase | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Purchase price equal to lesser of fair market value percentage | 95.00% |
Date Of Grant | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares that became available under the Plan | 1,500,000 |
Income Taxes - Geographical Sou
Income Taxes - Geographical Sources of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 33 | $ 83 | $ (25) |
Outside United States | 527 | 515 | 549 |
Total | $ 560 | $ 598 | $ 524 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 6 | $ 16 | $ 20 |
State | 1 | (1) | 3 |
Foreign | 89 | 81 | 77 |
Total current | 96 | 96 | 100 |
Deferred: | |||
Federal | (25) | (32) | (11) |
State | (5) | (5) | 5 |
Foreign | (10) | (5) | 9 |
Total deferred | (40) | (42) | 3 |
Total | $ 56 | $ 54 | $ 103 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | ||||
Effective income tax rate | 10.00% | 9.00% | 19.70% | |
Operating loss carryforwards | $ 406,000,000 | |||
Tax credits | 36,000,000 | |||
GILTI, provisional income tax expense | 8,000,000 | $ 12,000,000 | $ 10,000,000 | |
Unrecognized tax benefits that would affect annual effective tax rate | $ 9,000,000 | 8,000,000 | 9,000,000 | |
Tax dispute | 19,000,000 | |||
Lapse of statute of limitations | 1,000,000 | 20,000,000 | ||
Unrecognized tax benefits that may reverse | 0 | |||
Interest and or penalties related to Income tax matters | (2,000,000) | 6,000,000 | $ 8,000,000 | |
Penalties and interest accrued | $ 8,000,000 | 6,000,000 | $ 8,000,000 | |
Expire Year 2021 thru 2040 | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards | 72,000,000 | |||
Expire Year 2021 thru 2037 | ||||
Income Tax Contingency [Line Items] | ||||
Tax credits | $ 29,000,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U. S. Federal Statutory Income Tax Rate to Actual Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Provision computed at statutory rate | 21.00% | 21.00% | 21.00% |
U.S. Tax Reform - one-time transition tax | 0 | 0 | (0.006) |
Remeasurement of deferred taxes | (0.60%) | 0.20% | 0.70% |
Change in valuation allowance | 0.10% | (1.70%) | (4.50%) |
U.S. impact of Enterprise acquisition | 0.30% | 1.00% | 1.10% |
Change in contingent income tax reserves | (0.40%) | (3.30%) | 3.20% |
Foreign earnings subject to U.S. taxation | 1.50% | 1.80% | 2.00% |
Foreign rate differential | (5.50%) | (0.70%) | (2.00%) |
State income tax, net of federal tax benefit | 0.40% | (0.20%) | 0.80% |
Tax credits | (2.90%) | (2.30%) | (1.90%) |
Equity compensation deductions | (3.20%) | (4.00%) | (2.00%) |
Return to provision and other true ups | (2.50%) | (2.00%) | 1.10% |
Permanent differences and other | 1.80% | (0.80%) | 0.80% |
Provision for income taxes | 10.00% | 9.00% | 19.70% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Capitalized research expenditures | $ 18 | $ 37 |
Deferred revenue | 38 | 24 |
Tax credits | 36 | 29 |
Net operating loss carryforwards | 406 | 410 |
Other accruals | 31 | 21 |
Inventory items | 17 | 18 |
Capitalized software costs | 0 | 2 |
Sales return/rebate reserve | 46 | 48 |
Share-based compensation expense | 9 | 12 |
Accrued bonus | 1 | 7 |
Unrealized gains and losses on securities and investments | 19 | 4 |
Valuation allowance | (413) | (421) |
Total deferred tax assets | 208 | 191 |
Deferred tax liabilities: | ||
Depreciation and amortization | 67 | 62 |
Undistributed earnings | 2 | 2 |
Total deferred tax liabilities | 69 | 64 |
Net deferred tax assets | $ 139 | $ 127 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits | ||
Balance at beginning of year | $ 10 | $ 50 |
Additions for tax positions related to the current year | 0 | 1 |
Reductions for tax positions related to prior years | 0 | (5) |
Settlements for tax positions | (1) | (16) |
Lapse of statutes | (1) | (20) |
Balance at end of year | $ 8 | $ 10 |
Earnings Per Share - Computatio
Earnings Per Share - Computation (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic: | |||||||||||
Net income | $ 199 | $ 116 | $ 100 | $ 89 | $ 169 | $ 136 | $ 124 | $ 115 | $ 504 | $ 544 | $ 421 |
Weighted-average shares outstanding (in shares) | 53,441,375 | 53,991,249 | 53,591,655 | ||||||||
Basic earnings per share (in USD per share) | $ 3.73 | $ 2.18 | $ 1.87 | $ 1.66 | $ 3.13 | $ 2.52 | $ 2.28 | $ 2.14 | $ 9.43 | $ 10.08 | $ 7.86 |
Diluted: | |||||||||||
Net income | $ 199 | $ 116 | $ 100 | $ 89 | $ 169 | $ 136 | $ 124 | $ 115 | $ 504 | $ 544 | $ 421 |
Weighted-average shares outstanding (in shares) | 53,441,375 | 53,991,249 | 53,591,655 | ||||||||
Diluted Shares (in shares) | 471,870 | 603,168 | 708,157 | ||||||||
Diluted weighted-average shares outstanding (in shares) | 53,913,245 | 54,594,417 | 54,299,812 | ||||||||
Diluted earnings per share (in USD per share) | $ 3.70 | $ 2.16 | $ 1.85 | $ 1.65 | $ 3.10 | $ 2.50 | $ 2.26 | $ 2.12 | $ 9.35 | $ 9.97 | $ 7.76 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive shares (in shares) | 46,128 | 47,240 | 72,856 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | $ 1,839 | $ 1,335 | $ 834 |
Other comprehensive income (loss) before reclassifications | (38) | 31 | 33 |
Amounts reclassified from AOCI | 6 | (40) | (9) |
Tax effect | 7 | 0 | (7) |
Other comprehensive income (loss), net of tax | (25) | (9) | 17 |
Ending Balance | 2,144 | 1,839 | 1,335 |
Unrealized (loss) gain on sales hedging | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | 2 | 12 | (9) |
Other comprehensive income (loss) before reclassifications | (43) | 30 | 38 |
Amounts reclassified from AOCI | 6 | (42) | (13) |
Tax effect | 7 | 2 | (4) |
Other comprehensive income (loss), net of tax | (30) | (10) | 21 |
Ending Balance | (28) | 2 | 12 |
Unrealized gain (loss) on forward interest rate swaps | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | 0 | 0 | (9) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 8 |
Amounts reclassified from AOCI | 0 | 2 | 4 |
Tax effect | 0 | (2) | (3) |
Other comprehensive income (loss), net of tax | 0 | 0 | 9 |
Ending Balance | 0 | 0 | 0 |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | (46) | (47) | (34) |
Other comprehensive income (loss) before reclassifications | 5 | 1 | (13) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Tax effect | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 5 | 1 | (13) |
Ending Balance | (41) | (46) | (47) |
Total | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | (44) | (35) | (52) |
Ending Balance | $ (69) | $ (44) | $ (35) |
Accounts Receivable Factoring (
Accounts Receivable Factoring (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | |
Transfers and Servicing [Abstract] | |||||
Eligible uncollected receivables available (up to) | $ 125 | $ 125 | € 150 | ||
Deposits | $ 24 | ||||
Proceeds from sale of accounts receivables | $ 1,291 | 409 | $ 33 | ||
Uncollected receivables sold and removed from the balance sheet | 60 | 70 | |||
Unremitted cash collections due to banks on factored accounts receivable | $ 33 | $ 142 |
Segment Information & Geograp_3
Segment Information & Geographic Data - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Reportable segments | 2 |
Segment Information & Geograp_4
Segment Information & Geographic Data - Financial Information by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales | |||||||||||
Total Net sales | $ 1,308 | $ 1,132 | $ 956 | $ 1,052 | $ 1,192 | $ 1,130 | $ 1,097 | $ 1,066 | $ 4,448 | $ 4,485 | $ 4,218 |
Operating income: | |||||||||||
Total Operating income | 651 | 692 | 610 | ||||||||
Operating segments | |||||||||||
Net sales | |||||||||||
Total Net sales | 4,455 | 4,485 | 4,218 | ||||||||
Operating income: | |||||||||||
Total Operating income | 788 | 838 | 729 | ||||||||
Corporate, eliminations | |||||||||||
Net sales | |||||||||||
Total Net sales | (7) | 0 | 0 | ||||||||
Operating income: | |||||||||||
Total Operating income | (137) | (146) | (119) | ||||||||
AIT | |||||||||||
Net sales | |||||||||||
Total Net sales | 1,426 | 1,479 | 1,423 | ||||||||
AIT | Operating segments | |||||||||||
Net sales | |||||||||||
Total Net sales | 1,426 | 1,479 | 1,423 | ||||||||
Operating income: | |||||||||||
Total Operating income | 322 | 355 | 325 | ||||||||
EVM | |||||||||||
Net sales | |||||||||||
Total Net sales | 3,029 | 3,006 | 2,795 | ||||||||
EVM | Operating segments | |||||||||||
Net sales | |||||||||||
Total Net sales | 3,029 | 3,006 | 2,795 | ||||||||
Operating income: | |||||||||||
Total Operating income | $ 466 | $ 483 | $ 404 |
Segment Information & Geograp_5
Segment Information & Geographic Data - Net Sales to Significant Customers as a Percent of Total Net Sales (Detail) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Customer A | Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 17.70% | 18.30% | 20.30% |
Customer A | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 13.60% | 16.80% | |
Customer B | Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 13.90% | 13.70% | 15.70% |
Customer B | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 6.70% | 7.80% | |
Customer C | Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 20.70% | 16.60% | 14.10% |
Customer C | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 20.40% | 20.60% | |
AIT | Customer A | Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 4.80% | 5.30% | 6.20% |
AIT | Customer B | Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 4.90% | 4.70% | 5.60% |
AIT | Customer C | Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 6.50% | 6.10% | 6.20% |
EVM | Customer A | Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 12.90% | 13.00% | 14.10% |
EVM | Customer B | Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 9.00% | 9.00% | 10.10% |
EVM | Customer C | Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 14.20% | 10.50% | 7.90% |
Segment Information & Geograp_6
Segment Information & Geographic Data - Net Sales by Country (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | $ 1,308 | $ 1,132 | $ 956 | $ 1,052 | $ 1,192 | $ 1,130 | $ 1,097 | $ 1,066 | $ 4,448 | $ 4,485 | $ 4,218 |
Sales Revenue, Net | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 4,448 | 4,485 | 4,218 | ||||||||
North America | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 2,319 | 2,261 | 2,041 | ||||||||
EMEA | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 1,495 | 1,462 | 1,409 | ||||||||
Asia-Pacific | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 439 | 518 | 520 | ||||||||
Latin America | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 195 | 244 | 248 | ||||||||
United States | Sales Revenue, Net | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 2,291 | 2,243 | 2,020 | ||||||||
Germany | Sales Revenue, Net | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 595 | 523 | 523 | ||||||||
Other | Sales Revenue, Net | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | $ 1,562 | $ 1,719 | $ 1,675 |
Segment Information & Geograp_7
Segment Information & Geographic Data - Information Regarding Operations by Geographic Area (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | $ 409 | $ 366 | $ 249 |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | 289 | 280 | 225 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | 68 | 39 | 14 |
Asia-Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | 45 | 40 | 7 |
Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | $ 7 | $ 7 | $ 3 |
Supplementary Financial Infor_3
Supplementary Financial Information - Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Interim Period, Costs Not Allocable [Line Items] | ||||
Accrued payroll and benefits | $ 87 | $ 63 | ||
Accrued incentive compensation | 65 | 96 | ||
Accrued warranty | 24 | 21 | $ 22 | $ 18 |
Customer reserves | 56 | 44 | ||
Current portion of lease liabilities | 30 | 29 | ||
Unremitted cash collections due to banks on factored accounts receivable | 142 | 33 | ||
Accrued freight and duty | 21 | 23 | ||
Accrued other expenses | 80 | 65 | ||
Accrued liabilities | $ 559 | $ 379 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent | ||
Forward contracts | ||||
Interim Period, Costs Not Allocable [Line Items] | ||||
Derivative liability, current | $ 37 | $ 0 | ||
Forward interest rate swaps | ||||
Interim Period, Costs Not Allocable [Line Items] | ||||
Derivative liability, current | $ 17 | $ 5 |
Supplementary Financial Infor_4
Supplementary Financial Information - Summary of Quarterly Results of Operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total Net sales | $ 1,308 | $ 1,132 | $ 956 | $ 1,052 | $ 1,192 | $ 1,130 | $ 1,097 | $ 1,066 | $ 4,448 | $ 4,485 | $ 4,218 |
Gross profit | 618 | 493 | 419 | 473 | 544 | 535 | 520 | 501 | 2,003 | 2,100 | 1,981 |
Net income | $ 199 | $ 116 | $ 100 | $ 89 | $ 169 | $ 136 | $ 124 | $ 115 | $ 504 | $ 544 | $ 421 |
Net earnings per common share: | |||||||||||
Basic earnings per share (in USD per share) | $ 3.73 | $ 2.18 | $ 1.87 | $ 1.66 | $ 3.13 | $ 2.52 | $ 2.28 | $ 2.14 | $ 9.43 | $ 10.08 | $ 7.86 |
Diluted earnings per share (in USD per share) | $ 3.70 | $ 2.16 | $ 1.85 | $ 1.65 | $ 3.10 | $ 2.50 | $ 2.26 | $ 2.12 | $ 9.35 | $ 9.97 | $ 7.76 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation account for accounts receivable: | |||
Valuation Account | |||
Balance at Beginning of Period | $ 2 | $ 3 | $ 3 |
Charged to Costs and Expenses | (1) | 0 | 1 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 1 | 1 |
Balance at End of Period | 1 | 2 | 3 |
Valuation account for deferred tax assets: | |||
Valuation Account | |||
Balance at Beginning of Period | 421 | 56 | 134 |
Charged to Costs and Expenses | 1 | 6 | 0 |
Charged to Other Accounts | 3 | 375 | 0 |
Deductions | 12 | 16 | 78 |
Balance at End of Period | $ 413 | $ 421 | $ 56 |