Zebra Technologies (ZBRA) 10-Q 3 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Apr. 02, 2022	Apr. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 2, 2022
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		52,513,827
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000877212
Current Fiscal Year End Date	--12-31

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Apr. 02, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 141	$ 332
Accounts receivable, net of allowances for doubtful accounts of $1 million each as of April 2, 2022 and December 31, 2021	808	752
Inventories, net	469	491
Income tax receivable	14	8
Prepaid expenses and other current assets	137	106
Total Current assets	1,569	1,689
Property, plant and equipment, net	271	272
Right-of-use lease assets	133	131
Goodwill	3,266	3,265
Other intangibles, net	437	469
Deferred income taxes	226	192
Other long-term assets	227	197
Total Assets	6,129	6,215
Current liabilities:
Current portion of long-term debt	183	69
Accounts payable	691	700
Accrued liabilities	459	639
Deferred revenue	397	380
Income taxes payable	69	12
Total Current liabilities	1,799	1,800
Long-term debt	913	922
Long-term lease liabilities	122	121
Deferred income taxes	4	6
Long-term deferred revenue	318	315
Other long-term liabilities	67	67
Total Liabilities	3,223	3,231
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	487	462
Treasury stock at cost, 19,367,014 and 18,736,582 shares as of April 2, 2022 and December 31, 2021, respectively	(1,331)	(1,023)
Retained earnings	3,778	3,573
Accumulated other comprehensive loss	(29)	(29)
Total Stockholders’ Equity	2,906	2,984
Total Liabilities and Stockholders’ Equity	$ 6,129	$ 6,215

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions	Apr. 02, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 1	$ 1
Preferred stock, par value (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 (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)	19,367,014	18,736,582

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Net sales:
Total Net sales	$ 1,432	$ 1,347
Cost of sales:
Total Cost of sales	795	692
Gross profit	637	655
Operating expenses:
Selling and marketing	152	134
Research and development	137	140
General and administrative	99	82
Amortization of intangible assets	33	26
Acquisition and integration costs	4	1
Total Operating expenses	425	383
Operating income	212	272
Other income, net:
Foreign exchange gain	8	2
Interest income, net	30	2
Total Other income, net	38	4
Income before income tax	250	276
Income tax expense	45	48
Net income	$ 205	$ 228
Basic earnings per share (in USD per share)	$ 3.86	$ 4.26
Diluted earnings per share (in USD per share)	$ 3.83	$ 4.22
Tangible Products
Net sales:
Total Net sales	$ 1,207	$ 1,153
Cost of sales:
Total Cost of sales	681	591
Services and software
Net sales:
Total Net sales	225	194
Cost of sales:
Total Cost of sales	$ 114	$ 101

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 205	$ 228
Other comprehensive income (loss), net of tax:
Changes in unrealized gains on anticipated sales hedging transactions	5	32
Foreign currency translation adjustment	(5)	(3)
Comprehensive income	$ 205	$ 257

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions	Total	Class A Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2020		53,462,082
Beginning balance at Dec. 31, 2020	$ 2,144	$ 1	$ 395	$ (919)	$ 2,736	$ (69)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuances of treasury shares related to share based-compensation plans, net of forfeitures (in shares)		48,584
Issuances of treasury shares related to share-based compensation plans, net of forfeitures	(6)		(6)
Shares withheld to fund withholding tax obligations related to share-based compensation plans (in shares)		(400)
Shares withheld to fund withholding tax obligations related to share-based compensation plans	0			0
Share-based compensation	16		16
Repurchase of common stock (in shares)		(100)
Repurchases of common stock	0			0
Net income	228				228
Changes in unrealized gains and losses on forward interest rate swap hedging transactions	32					32
Foreign currency translation adjustment	(3)					(3)
Ending balance (in shares) at Apr. 03, 2021		53,510,166
Ending balance at Apr. 03, 2021	2,411	$ 1	405	(919)	2,964	(40)
Beginning balance (in shares) at Dec. 31, 2021		53,415,275
Beginning balance at Dec. 31, 2021	2,984	$ 1	462	(1,023)	3,573	(29)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuances of treasury shares related to share based-compensation plans, net of forfeitures (in shares)		20,082
Issuances of treasury shares related to share-based compensation plans, net of forfeitures	6		8	(2)
Shares withheld to fund withholding tax obligations related to share-based compensation plans (in shares)		(1,639)
Shares withheld to fund withholding tax obligations related to share-based compensation plans	(1)			(1)
Share-based compensation	17		17
Repurchase of common stock (in shares)		(648,875)
Repurchases of common stock	(305)			(305)
Net income	205				205
Changes in unrealized gains and losses on forward interest rate swap hedging transactions	5					5
Foreign currency translation adjustment	(5)					(5)
Ending balance (in shares) at Apr. 02, 2022		52,784,843
Ending balance at Apr. 02, 2022	$ 2,906	$ 1	$ 487	$ (1,331)	$ 3,778	$ (29)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Cash flows from operating activities:
Net income	$ 205	$ 228
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	52	44
Share-based compensation	17	16
Deferred income taxes	(37)	(2)
Unrealized gain on forward interest rate swaps	(38)	(12)
Other, net	(1)	(1)
Changes in operating assets and liabilities:
Accounts receivable, net	(56)	(15)
Inventories, net	22	(17)
Other assets	(19)	(18)
Accounts payable	(14)	(30)
Accrued liabilities	(143)	(47)
Deferred revenue	18	50
Income taxes	51	28
Other operating activities	(3)	0
Net cash provided by operating activities	54	224
Cash flows from investing activities:
Purchases of property, plant and equipment	(14)	(10)
Purchases of long-term investments	(5)	(13)
Net cash used in investing activities	(19)	(23)
Cash flows from financing activities:
Payments of long-term debt	(25)	(156)
Proceeds from issuance of long-term debt	130	0
Payments for repurchases of common stock	(305)	0
Net proceeds (payments) related to share-based compensation plans	5	(6)
Change in unremitted cash collections from servicing factored receivables	(25)	(19)
Net cash used in financing activities	(220)	(181)
Effect of exchange rate changes on cash and cash equivalents, including restricted cash	(2)	(2)
Net (decrease) increase in cash and cash equivalents, including restricted cash	(187)	18
Cash and cash equivalents, including restricted cash, at beginning of period	344	192
Cash and cash equivalents, including restricted cash, at end of period	157	210
Less restricted cash, included in Prepaid expenses and other current assets	(16)	(33)
Cash and cash equivalents at end of period	141	177
Supplemental disclosures of cash flow information:
Income taxes paid	29	22
Interest paid	$ 8	$ 9

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Apr. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Zebra Technologies Corporation and its subsidiaries (“Zebra” or the “Company”) is a global leader providing innovative Enterprise Asset Intelligence (“EAI”) solutions in the automatic identification and data capture solutions industry. We design, manufacture, and sell a broad range of products and solutions, including cloud-based software subscriptions, that capture and move data. We also provide a full range of services, including maintenance, technical support, repair, managed and professional services. End-users of our products, solutions and services include those in retail and e-commerce, manufacturing, transportation and logistics, healthcare, public sector, and other industries. We provide our products, solutions and services globally through a direct sales force and an extensive network of channel partners. Management prepared these unaudited interim consolidated financial statements according to the rules and regulations of the Securities and Exchange Commission for interim financial information and notes. As permitted under Article 10 of Regulation S-X and the instructions of Form 10-Q, these consolidated financial statements do not include all the information and notes required by United States Generally Accepted Accounting Principles (“GAAP”) for complete financial statements, although management believes that the disclosures made are adequate to make the information not misleading. These interim financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021. In the opinion of the Company, these interim financial statements include all adjustments (of a normal, recurring nature) necessary to fairly present its Consolidated Balance Sheet as of April 2, 2022, the Consolidated Statements of Operations, Comprehensive Income, Stockholders’ Equity, and Cash Flows for the three months ended April 2, 2022 and April 3, 2021. These results, however, are not necessarily indicative of the results expected for the full fiscal year ending December 31, 2022. Effective January 1, 2022, the location solutions offering, which provides a range of real-time location systems (“RTLS”) and services that generate on-demand information about the physical location and status of assets, equipment, and people, moved from our Asset Intelligence & Tracking (“AIT”) segment into our Enterprise Visibility & Mobility (“EVM”) segment contemporaneous with a change in our organizational structure and management of the business. We have reported our results reflecting this change, including historical periods, on a comparable basis. This change does not have an impact to the Consolidated Financial Statements. See Note 15, Segment Information & Geographic Data for additional information related to each segment’s results.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Apr. 02, 2022
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies For a discussion of our significant accounting policies, see Note 2, Significant Accounting Policies within Part II, Item 8. “Financial Statements and Supplementary Data” in the Annual Report on Form 10-K for the year ended December 31, 2021. There have been no changes to our significant accounting policies since our Annual Report on Form 10-K for the year ended December 31, 2021.

Revenues

Revenues	3 Months Ended
	Apr. 02, 2022
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. Revenues for products are generally recognized upon shipment, whereas revenues for services and solution offerings are generally recognized over time by using an output or time-based method, assuming all other criteria for revenue recognition have been met. Revenues for software are recognized either upon delivery or over time using a time-based method, depending upon how control is transferred to the customer. In cases where a bundle of products, services, solutions and/or software are delivered to the customer, judgment is required to select the method of progress which best reflects the transfer of control. Disaggregation of Revenue The following table presents our Net sales disaggregated by product category for each of our segments, AIT and EVM, for the three months ended April 2, 2022 and April 3, 2021 (in millions): Three Months Ended April 2, 2022 April 3, 2021 Segment Tangible Products Services and Software Total Tangible Products Services and Software Total AIT $ 370 $ 24 $ 394 $ 407 $ 22 $ 429 EVM 837 201 1,038 746 175 921 Corporate, eliminations (1) — — — — (3) (3) Total $ 1,207 $ 225 $ 1,432 $ 1,153 $ 194 $ 1,347 (1) Amounts included in Corporate, eliminations consist of purchase accounting adjustments. In addition, refer to Note 15, Segment Information & Geographic Data for Net sales to customers by geographic region. Performance Obligations The Company’s remaining performance obligations primarily relate to repair and support services, as well as solution offerings. The aggregated transaction price allocated to remaining performance obligations for arrangements with an original term exceeding one year was $1,078 million and $1,033 million, inclusive of deferred revenue, as of April 2, 2022 and December 31, 2021, respectively. On average, remaining performance obligations as of April 2, 2022 and December 31, 2021 are expected to be recognized over a period of approximately two years. Contract Balances Progress on satisfying performance obligations under contracts with customers related to billed revenues is reflected on the Consolidated Balance Sheets in Accounts receivable, net. Progress on satisfying performance obligations under contracts with customers related to unbilled revenues (“contract assets”) is reflected on the Consolidated Balance Sheets as Prepaid expenses and other current assets for revenues expected to be billed within the next twelve months, and Other long-term assets for revenues expected to be billed thereafter. The total contract asset balances were $10 million each as of April 2, 2022 and December 31, 2021. These contract assets result from timing differences between billing and satisfying performance obligations, as well as the impact from the allocation of the transaction price among performance obligations for contracts that include multiple performance obligations. Contract assets are evaluated for impairment and no impairment losses have been recognized during the three months ended April 2, 2022 and April 3, 2021, respectively. Deferred revenue on the Consolidated Balance Sheets consists of payments and billings in advance of our performance. The combined short-term and long-term deferred revenue balances were $715 million and $695 million as of April 2, 2022 and December 31, 2021, respectively. During the three months ended April 2, 2022, the Company recognized $129 million in revenue, which was previously included in the beginning balance of deferred revenue as of December 31, 2021. During the three months ended April 3, 2021, the Company recognized $110 million in revenue, which was previously included in the beginning balance of deferred revenue as of December 31, 2020.

Inventories

Inventories	3 Months Ended
	Apr. 02, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories The components of Inventories, net are as follows (in millions): April 2, December 31, Raw materials $ 200 $ 196 Work in process 2 3 Finished goods 267 292 Total Inventories, net $ 469 $ 491

Business Acquisitions

Business Acquisitions	3 Months Ended
	Apr. 02, 2022
Business Combination and Asset Acquisition [Abstract]
Business Acquisitions	Business Acquisitions On March 14, 2022, the Company entered into a definitive agreement to acquire Matrox Electronic Systems Ltd., a developer of advanced machine vision components and systems. The purchase price of approximately $875 million is expected to be funded with a combination of cash on hand and financing from our credit facility. The transaction is subject to customary closing conditions and is expected to close mid 2022. The acquired business will become part of the EVM segment.

Investments

Investments	3 Months Ended
	Apr. 02, 2022
Investments, Debt and Equity Securities [Abstract]
Investments	Investments The carrying value of the Company’s venture investments was $106 million and $101 million as of April 2, 2022 and December 31, 2021, respectively, which are included in Other long-term assets on the Consolidated Balance Sheets. The Company paid $5 million and $13 million for the purchases of long-term investments during the three months ended April 2, 2022 and April 3, 2021, respectively.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 02, 2022
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 Accounting Standards Codification (“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 April 2, 2022, are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts (1) $ 1 $ 29 $ — $ 30 Forward interest rate swap contracts (2) — 27 — 27 Money market investments related to deferred compensation plan 38 — — 38 Total Assets at fair value $ 39 $ 56 $ — $ 95 Liabilities: Forward interest rate swap contracts (2) $ — $ 5 $ — $ 5 Liabilities related to the deferred compensation plan 38 — — 38 Total Liabilities at fair value $ 38 $ 5 $ — $ 43 The Company’s financial assets and liabilities carried at fair value as of December 31, 2021, are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts (1) $ — $ 23 $ — $ 23 Money market investments related to deferred compensation plan $ 37 $ — $ — $ 37 Total Assets at fair value $ 37 $ 23 $ — $ 60 Liabilities: Forward interest rate swap contracts (2) $ — $ 16 $ — $ 16 Liabilities related to the deferred compensation plan 37 — — 37 Total Liabilities at fair value $ 37 $ 16 $ — $ 53 (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 period-end exchange rate adjusted for current forward points. • Fair value of hedges against net assets is calculated at the period-end exchange rate adjusted for current forward points unless the hedge has been traded but not settled at year end (Level 2). If this is the case, the fair value is calculated at the rate at which the hedge is being settled (Level 1).

Derivative Instruments

Derivative Instruments	3 Months Ended
	Apr. 02, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments In the normal course of business, the Company is exposed to global market risks, including the effects of changes in foreign currency exchange rates and interest rates. The Company uses derivative instruments to manage its exposure to such risks and may elect to designate certain derivatives as hedging instruments under ASC Topic 815, Derivatives and Hedging (“ASC 815”). The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions. The Company does not hold or issue derivatives for trading or speculative purposes. In accordance with ASC 815, the Company recognizes derivative instruments as either assets or liabilities on the Consolidated Balance Sheets and measures them at fair value. The following table presents the fair value of its derivative instruments (in millions): Asset (Liability) Fair Values as of Balance Sheet Classification April 2, December 31, Derivative instruments designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ 29 $ 23 Total derivative instruments designated as hedges $ 29 $ 23 Derivative instruments not designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ 1 $ — Forward interest rate swaps Prepaid expenses and other current assets 2 — Forward interest rate swaps Other long-term assets 25 — Forward interest rate swaps Accrued liabilities (5) (15) Forward interest rate swaps Other long-term liabilities — (1) Total derivative instruments not designated as hedges $ 23 $ (16) Total net derivative asset $ 52 $ 7 The following table presents the net gains (losses) from changes in fair values of derivatives that are not designated as hedges (in millions): Gains (Losses) Recognized in Income Three Months Ended Statements of Operations Classification April 2, April 3, Derivative instruments not designated as hedges: Foreign exchange contracts Foreign exchange gain $ (1) $ 6 Forward interest rate swaps Interest income, net 34 8 Total gains recognized in income $ 33 $ 14 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 would have been unchanged as of April 2, 2022 and increased by $1 million as of December 31, 2021. 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 $16 million of gains and $12 million of losses for the three months ended April 2, 2022 and April 3, 2021, respectively. As of April 2, 2022 and December 31, 2021, the notional amounts of the Company’s foreign exchange cash flow hedges were €602 million and €675 million, respectively. The Company has reviewed its cash flow hedges for effectiveness and determined that they are highly effective. The Company uses forward contracts, which are not designated as hedging instruments, to manage its exposures related to net assets denominated in foreign currencies. These forward contracts typically mature within one month after execution. Monetary gains and losses on these forward contracts are recorded in income and are generally offset by the transaction gains and losses related to their net asset positions. The notional values and the net fair values of these outstanding contracts were as follows (in millions): April 2, December 31, Notional balance of outstanding contracts: British Pound/U.S. Dollar £ 17 £ 13 Euro/U.S. Dollar € 94 € 142 Euro/Czech Koruna € 16 € 16 Singapore Dollar/U.S. Dollar S$ 20 S$ 16 Mexican Peso/U.S. Dollar Mex$ 98 Mex$ 64 Polish Zloty/U.S. Dollar zł 7 zł 103 Net fair value of assets of outstanding contracts $ 1 $ — Interest Rate Risk Management The Company’s debt consists of borrowings under a term loan (“Term Loan A”), Revolving Credit Facility, and Receivables Financing Facilities, which bear interest at variable rates plus applicable margins. As a result, the Company is exposed to market risk associated with the variable interest rate payments on these borrowings. See Note 9, Long-Term Debt for further details about these borrowings. The Company manages its exposure to changes in interest rates by utilizing long-term forward interest rate swaps to hedge this exposure and to achieve a desired proportion of fixed versus floating-rate debt, based on current and projected market conditions. The Company has one active long-term forward interest rate swap agreement with a notional amount of $800 million to lock into a fixed LIBOR interest rate base, which is subject to monthly net cash settlements effective through December 2022. The Company also previously held fixed LIBOR interest rate swaps with an $800 million total notional amount that were subject to net cash settlements effective between December 2022 and August 2024. In the first quarter of 2022, the Company terminated those interest rate swaps and entered into new interest rate swap agreements that contain a total notional amount of $800 million to lock into a fixed SOFR interest rate base and will be subject to monthly net cash settlements effective in December 2022 and ending in October 2027. There was no cash settlement, or significant impact on the Consolidated Statement of Operations, as a result of these transactions in the first quarter of 2022. The Company’s 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	3 Months Ended
	Apr. 02, 2022
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt The following table shows the carrying value of the Company’s debt (in millions): April 2, December 31, Term Loan A $ 875 $ 888 Revolving Credit Facility 10 — Receivables Financing Facilities 216 108 Total debt $ 1,101 $ 996 Less: Debt issuance costs (3) (3) Less: Unamortized discounts (2) (2) Less: Current portion of debt (183) (69) Total long-term debt $ 913 $ 922 As of April 2, 2022, the future maturities of debt are as follows (in millions): 2022 $ 164 2023 81 2024 856 Total future debt maturities $ 1,101 All borrowings as of April 2, 2022 were denominated in U.S. Dollars. The estimated fair value of the Company’s debt approximated $1.1 billion and $1.0 billion as of April 2, 2022 and December 31, 2021, respectively. These fair value amounts, developed based on inputs classified as Level 2 within the fair value hierarchy, represent the estimated value at which the Company’s lenders could trade its debt within the financial markets and do not represent the settlement value of these liabilities to the Company. The fair value of debt will continue to vary each period based on a number of factors, including fluctuations in market interest rates as well as changes to the Company’s credit ratings. Term Loan A The principal on Term Loan A is due in quarterly installments, with the next quarterly installment due in June 2022 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 April 2, 2022, the Term Loan A interest rate was 1.49%. Interest payments are made monthly and are subject to variable rates plus an applicable margin. Revolving Credit Facility The Company has a Revolving Credit Facility that is available for working capital and other general business purposes, including letters of credit. As of April 2, 2022, the Company had letters of credit totaling $7 million, which reduced funds available for borrowings under the Revolving Credit Facility from $1 billion to $993 million. As of April 2, 2022, the Revolving Credit Facility had an average interest rate of 1.69%. 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 allows for borrowings of up to $180 million and matures on March 19, 2024. The Company’s second Receivable Financing Facility allows for borrowings of up to $100 million and matures on May 16, 2022. As of April 2, 2022, the Company’s Consolidated Balance Sheets included $692 million of receivables that were pledged under the two Receivables Financing Facilities. As of April 2, 2022, $216 million had been borrowed, of which $121 million was classified as current. Borrowings under the Receivables Financing Facilities bear interest at a variable rate plus an applicable margin. As of April 2, 2022, the Receivables Financing Facilities had an average interest rate of 1.36%. Interest is paid on these borrowings on a monthly basis. 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 8 , Derivative Instruments for further information. As of April 2, 2022, the Company was in compliance with all debt covenants.

Accrued Liabilities, Commitment

Accrued Liabilities, Commitments and Contingencies	3 Months Ended
	Apr. 02, 2022
Commitments and Contingencies Disclosure [Abstract]
Accrued Liabilities, Commitments and Contingencies	Accrued Liabilities, Commitments and Contingencies Accrued Liabilities The components of Accrued liabilities are as follows (in millions): April 2, December 31, Accrued payroll and benefits $ 80 $ 96 Accrued incentive compensation 51 155 Accrued warranty 26 26 Customer reserves 44 51 Current portion of lease liabilities 33 33 Unremitted cash collections due to banks on factored accounts receivable 116 141 Short-term interest rate swaps 5 15 Accrued freight and duty 31 45 Other accrued expenses 73 77 Accrued liabilities $ 459 $ 639 Warranties The following table is a summary of the Company’s accrued warranty obligations (in millions): Three Months Ended April 2, April 3, Balance at the beginning of the period $ 26 $ 24 Warranty expense 8 8 Warranties fulfilled (8) (8) Balance at the end of the period $ 26 $ 24 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.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 02, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rate for the three months ended April 2, 2022 and April 3, 2021 was 18.0% and 17.4%, respectively. In the current period, the variance from the 21% federal statutory rate was primarily attributable to lower tax rates on foreign earnings and U.S. tax credits. In the prior period, the variance from the 21% federal statutory rate was primarily attributable to share-based compensation deductions, lower tax rates on foreign earnings and U.S. tax credits. The Company evaluated the provisions of the American Rescue Plan Act, signed into law on March 11, 2021; the Consolidated Appropriations Act of 2021, signed into law on December 27, 2020; and the Coronavirus Aid, Relief and Economic Security Act, signed into law on March 27, 2020. The provisions of these laws did not have a significant impact to our effective tax rate in either the current or prior year. Management continues to monitor guidance regarding these laws and developments related to 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 U.K. and Singapore. The Company has received an incentivized tax rate from 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. The Company is not permanently reinvested with respect to its U.S. directly-owned foreign subsidiaries. The Company is subject to U.S. income tax on substantially all foreign earnings under Global Intangible Low-Taxed Income, while any remaining foreign earnings are eligible for a dividends received deduction. As a result, future repatriation of earnings will not be subject to additional U.S. federal income tax but may be subject to currency translation gains or losses. Where required, the Company has recorded a deferred tax liability for foreign withholding taxes on current earnings. Additionally, gains and losses on any future taxable dispositions of U.S.-owned foreign affiliates continue to be subject to U.S. income tax. Management evaluates all jurisdictions based on historical pre-tax earnings and taxable income to determine the need for valuation allowances on a quarterly basis. Based on this analysis, a valuation allowance has been recorded for any jurisdictions where, in the Company’s judgment, tax benefits are not expected to be realized. There were no changes to our valuation allowance during the three months ended April 2, 2022. Uncertain Tax Positions The Company is currently undergoing U.S. federal income tax audits for tax years 2017 and 2018.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Apr. 02, 2022
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 share-based compensation awards were converted into common shares during the period. Earnings per share (in millions, except share data): Three Months Ended April 2, April 3, Basic: Net income $ 205 $ 228 Weighted-average shares outstanding 53,021,423 53,484,265 Basic earnings per share $ 3.86 $ 4.26 Diluted: Net income $ 205 $ 228 Weighted-average shares outstanding 53,021,423 53,484,265 Dilutive shares 425,317 480,065 Diluted weighted-average shares outstanding 53,446,740 53,964,330 Diluted earnings per share $ 3.83 $ 4.22 Anti-dilutive share-based compensation awards are excluded from diluted earnings per share calculations. There were 40,771 and 570 shares that were anti-dilutive for the three months ended April 2, 2022 and April 3, 2021, respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Apr. 02, 2022
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Stockholders’ equity includes certain items classified as AOCI, including: • Unrealized gain (loss) 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 8, 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 components of AOCI for the three months ended April 2, 2022 and April 3, 2021 are as follows (in millions): Unrealized gain (loss) on sales hedging Foreign currency translation adjustments Total Balance at December 31, 2020 $ (28) $ (41) $ (69) Other comprehensive income (loss) before reclassifications 27 (3) 24 Amounts reclassified from AOCI (1) 12 — 12 Tax effect (7) — (7) Other comprehensive income (loss), net of tax 32 (3) 29 Balance at April 3, 2021 $ 4 $ (44) $ (40) Balance at December 31, 2021 $ 18 $ (47) $ (29) Other comprehensive income (loss) before reclassifications 22 (5) 17 Amounts reclassified from AOCI (1) (16) — (16) Tax effect (1) — (1) Other comprehensive income (loss), net of tax 5 (5) — Balance at April 2, 2022 $ 23 $ (52) $ (29) (1) See Note 8, Derivative Instruments

Accounts Receivable Factoring

Accounts Receivable Factoring	3 Months Ended
	Apr. 02, 2022
Transfers and Servicing [Abstract]
Accounts Receivable Factoring	Accounts Receivable Factoring The Company has Receivables Factoring arrangements, pursuant to which certain receivables are sold to banks without recourse in exchange for cash. Transactions under the Receivables Factoring arrangements are accounted for as sales under ASC 860, Transfers and Servicing of Financial Assets , with the sold receivables removed from the Company’s balance sheet. Under these Receivables Factoring arrangements, the Company does not maintain any beneficial interest in the receivables sold. The banks’ purchase of eligible receivables is subject to a maximum amount of uncollected receivables. The Company services the receivables on behalf of the banks, but otherwise maintains no significant continuing involvement with respect to the receivables. Sale proceeds that are representative of the fair value of factored receivables, less a factoring fee, are reflected in 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 used in financing activities on the Consolidated Statements of Cash Flows. The Company currently has two active Receivables Factoring arrangements. One arrangement allows for the factoring of up to $25 million of uncollected receivables originated from the Europe, Middle East, and Africa (“EMEA”) region. The second arrangement allows for the factoring of up to €150 million of uncollected receivables originated from the EMEA and Asia-Pacific regions. With respect to the second arrangement, 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 $16 million and $12 million as of April 2, 2022 and December 31, 2021, respectively, and is classified within Prepaid expenses and other current assets on the Consolidated Balance Sheets. During the three months ended April 2, 2022 and April 3, 2021, the Company received cash proceeds of $408 million and $413 million, respectively, from the sales of accounts receivables under its factoring arrangements. As of April 2, 2022 and December 31, 2021, there were a total of $68 million and $24 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 $116 million and $141 million of obligations that were not yet remitted to banks as of April 2, 2022 and December 31, 2021, 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	3 Months Ended
	Apr. 02, 2022
Segment Reporting [Abstract]
Segment Information & Geographic Data	Segment Information & Geographic Data The Company’s operations consist of two reportable segments: Asset Intelligence & Tracking (“AIT”) and Enterprise Visibility & Mobility (“EVM”). The reportable segments have been identified based on the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker or “CODM”) to assess segment performance and allocate resources among the Company’s segments. The CODM reviews adjusted operating income to assess segment profitability. To the extent applicable, segment operating income excludes business acquisition purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, impairment of goodwill and other intangibles, and exit and restructuring costs. Segment assets are not reviewed by the Company’s CODM and therefore are not disclosed below. Effective January 1, 2022, the location solutions offering, which provides a range of RTLS and services that generate on-demand information about the physical location and status of assets, equipment, and people, moved from our AIT segment into our EVM segment contemporaneous with a change in our organizational structure and management of the business. We have reported our results reflecting this change, including historical periods, on a comparable basis. This change did not have an impact to the Consolidated Financial Statements. Financial information by segment is presented as follows (in millions): Three Months Ended April 2, April 3, Net sales: AIT $ 394 $ 429 EVM 1,038 921 Total segment Net sales 1,432 1,350 Corporate, eliminations (1) — (3) Total Net sales $ 1,432 $ 1,347 Operating income: AIT (2) $ 60 $ 111 EVM (2) 189 191 Total segment operating income 249 302 Corporate, eliminations (1) (37) (30) Total Operating income $ 212 $ 272 (1) To the extent applicable, amounts included in Corporate, eliminations consist of business acquisition purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, impairment of goodwill and other intangibles, and exit and restructuring 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. 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. We manage our business based on regions rather than by individual countries. Geographic data for Net sales is as follows (in millions): Three Months Ended April 2, April 3, North America $ 699 $ 673 EMEA 500 490 Asia-Pacific 149 120 Latin America 84 64 Total Net sales $ 1,432 $ 1,347

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 02, 2022
Accounting Policies [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. Revenues for products are generally recognized upon shipment, whereas revenues for services and solution offerings are generally recognized over time by using an output or time-based method, assuming all other criteria for revenue recognition have been met. Revenues for software are recognized either upon delivery or over time using a time-based method, depending upon how control is transferred to the customer. In cases where a bundle of products, services, solutions and/or software are delivered to the customer, judgment is required to select the method of progress which best reflects the transfer of control.
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 Accounting Standards Codification (“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.
Derivative Instruments	Derivative Instruments In the normal course of business, the Company is exposed to global market risks, including the effects of changes in foreign currency exchange rates and interest rates. The Company uses derivative instruments to manage its exposure to such risks and may elect to designate certain derivatives as hedging instruments under ASC Topic 815, Derivatives and Hedging (“ASC 815”). The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions. The Company does not hold or issue derivatives for trading or speculative purposes.

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Apr. 02, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue By Product Category And Segment	The following table presents our Net sales disaggregated by product category for each of our segments, AIT and EVM, for the three months ended April 2, 2022 and April 3, 2021 (in millions): Three Months Ended April 2, 2022 April 3, 2021 Segment Tangible Products Services and Software Total Tangible Products Services and Software Total AIT $ 370 $ 24 $ 394 $ 407 $ 22 $ 429 EVM 837 201 1,038 746 175 921 Corporate, eliminations (1) — — — — (3) (3) Total $ 1,207 $ 225 $ 1,432 $ 1,153 $ 194 $ 1,347 (1) Amounts included in Corporate, eliminations consist of purchase accounting adjustments.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Apr. 02, 2022
Inventory Disclosure [Abstract]
Schedule of Components of Inventories, Net	The components of Inventories, net are as follows (in millions): April 2, December 31, Raw materials $ 200 $ 196 Work in process 2 3 Finished goods 267 292 Total Inventories, net $ 469 $ 491

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 02, 2022
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 April 2, 2022, are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts (1) $ 1 $ 29 $ — $ 30 Forward interest rate swap contracts (2) — 27 — 27 Money market investments related to deferred compensation plan 38 — — 38 Total Assets at fair value $ 39 $ 56 $ — $ 95 Liabilities: Forward interest rate swap contracts (2) $ — $ 5 $ — $ 5 Liabilities related to the deferred compensation plan 38 — — 38 Total Liabilities at fair value $ 38 $ 5 $ — $ 43 The Company’s financial assets and liabilities carried at fair value as of December 31, 2021, are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts (1) $ — $ 23 $ — $ 23 Money market investments related to deferred compensation plan $ 37 $ — $ — $ 37 Total Assets at fair value $ 37 $ 23 $ — $ 60 Liabilities: Forward interest rate swap contracts (2) $ — $ 16 $ — $ 16 Liabilities related to the deferred compensation plan 37 — — 37 Total Liabilities at fair value $ 37 $ 16 $ — $ 53 (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 period-end exchange rate adjusted for current forward points. • Fair value of hedges against net assets is calculated at the period-end exchange rate adjusted for current forward points unless the hedge has been traded but not settled at year end (Level 2). If this is the case, the fair value is calculated at the rate at which the hedge is being settled (Level 1).

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Apr. 02, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Assets and Liabilities	The following table presents the fair value of its derivative instruments (in millions): Asset (Liability) Fair Values as of Balance Sheet Classification April 2, December 31, Derivative instruments designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ 29 $ 23 Total derivative instruments designated as hedges $ 29 $ 23 Derivative instruments not designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ 1 $ — Forward interest rate swaps Prepaid expenses and other current assets 2 — Forward interest rate swaps Other long-term assets 25 — Forward interest rate swaps Accrued liabilities (5) (15) Forward interest rate swaps Other long-term liabilities — (1) Total derivative instruments not designated as hedges $ 23 $ (16) Total net derivative asset $ 52 $ 7
Schedule of Net Gains (Losses) from Changes in Fair Values of Derivatives Not Designated as Hedges	The following table presents the net gains (losses) from changes in fair values of derivatives that are not designated as hedges (in millions): Gains (Losses) Recognized in Income Three Months Ended Statements of Operations Classification April 2, April 3, Derivative instruments not designated as hedges: Foreign exchange contracts Foreign exchange gain $ (1) $ 6 Forward interest rate swaps Interest income, net 34 8 Total gains recognized in income $ 33 $ 14
Schedule of Notional Value and Net Fair Value of Outstanding Contracts	The notional values and the net fair values of these outstanding contracts were as follows (in millions): April 2, December 31, Notional balance of outstanding contracts: British Pound/U.S. Dollar £ 17 £ 13 Euro/U.S. Dollar € 94 € 142 Euro/Czech Koruna € 16 € 16 Singapore Dollar/U.S. Dollar S$ 20 S$ 16 Mexican Peso/U.S. Dollar Mex$ 98 Mex$ 64 Polish Zloty/U.S. Dollar zł 7 zł 103 Net fair value of assets of outstanding contracts $ 1 $ —

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Apr. 02, 2022
Debt Disclosure [Abstract]
Summary of Carrying Value of Long-term Debt	The following table shows the carrying value of the Company’s debt (in millions): April 2, December 31, Term Loan A $ 875 $ 888 Revolving Credit Facility 10 — Receivables Financing Facilities 216 108 Total debt $ 1,101 $ 996 Less: Debt issuance costs (3) (3) Less: Unamortized discounts (2) (2) Less: Current portion of debt (183) (69) Total long-term debt $ 913 $ 922
Schedule of Future Maturities of Long-term Debt	As of April 2, 2022, the future maturities of debt are as follows (in millions): 2022 $ 164 2023 81 2024 856 Total future debt maturities $ 1,101

Accrued Liabilities, Commitme_2

Accrued Liabilities, Commitments and Contingencies (Tables)	3 Months Ended
	Apr. 02, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Components of Accrued Liabilities	The components of Accrued liabilities are as follows (in millions): April 2, December 31, Accrued payroll and benefits $ 80 $ 96 Accrued incentive compensation 51 155 Accrued warranty 26 26 Customer reserves 44 51 Current portion of lease liabilities 33 33 Unremitted cash collections due to banks on factored accounts receivable 116 141 Short-term interest rate swaps 5 15 Accrued freight and duty 31 45 Other accrued expenses 73 77 Accrued liabilities $ 459 $ 639
Schedule of Accrued Warranty Obligations	The following table is a summary of the Company’s accrued warranty obligations (in millions): Three Months Ended April 2, April 3, Balance at the beginning of the period $ 26 $ 24 Warranty expense 8 8 Warranties fulfilled (8) (8) Balance at the end of the period $ 26 $ 24

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Apr. 02, 2022
Earnings Per Share [Abstract]
Schedule of Computation of Earnings per Share	Earnings per share (in millions, except share data): Three Months Ended April 2, April 3, Basic: Net income $ 205 $ 228 Weighted-average shares outstanding 53,021,423 53,484,265 Basic earnings per share $ 3.86 $ 4.26 Diluted: Net income $ 205 $ 228 Weighted-average shares outstanding 53,021,423 53,484,265 Dilutive shares 425,317 480,065 Diluted weighted-average shares outstanding 53,446,740 53,964,330 Diluted earnings per share $ 3.83 $ 4.22

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Apr. 02, 2022
Equity [Abstract]
Schedule of Components of Accumulated Other Comprehensive Income (Loss)	The components of AOCI for the three months ended April 2, 2022 and April 3, 2021 are as follows (in millions): Unrealized gain (loss) on sales hedging Foreign currency translation adjustments Total Balance at December 31, 2020 $ (28) $ (41) $ (69) Other comprehensive income (loss) before reclassifications 27 (3) 24 Amounts reclassified from AOCI (1) 12 — 12 Tax effect (7) — (7) Other comprehensive income (loss), net of tax 32 (3) 29 Balance at April 3, 2021 $ 4 $ (44) $ (40) Balance at December 31, 2021 $ 18 $ (47) $ (29) Other comprehensive income (loss) before reclassifications 22 (5) 17 Amounts reclassified from AOCI (1) (16) — (16) Tax effect (1) — (1) Other comprehensive income (loss), net of tax 5 (5) — Balance at April 2, 2022 $ 23 $ (52) $ (29) (1) See Note 8, Derivative Instruments

Segment Information & Geograp_2

Segment Information & Geographic Data (Tables)	3 Months Ended
	Apr. 02, 2022
Segment Reporting [Abstract]
Schedule of Financial Information by Segments	Financial information by segment is presented as follows (in millions): Three Months Ended April 2, April 3, Net sales: AIT $ 394 $ 429 EVM 1,038 921 Total segment Net sales 1,432 1,350 Corporate, eliminations (1) — (3) Total Net sales $ 1,432 $ 1,347 Operating income: AIT (2) $ 60 $ 111 EVM (2) 189 191 Total segment operating income 249 302 Corporate, eliminations (1) (37) (30) Total Operating income $ 212 $ 272 (1) To the extent applicable, amounts included in Corporate, eliminations consist of business acquisition purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, impairment of goodwill and other intangibles, and exit and restructuring 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 Net Sales to Customers by Geographic Region	Geographic data for Net sales is as follows (in millions): Three Months Ended April 2, April 3, North America $ 699 $ 673 EMEA 500 490 Asia-Pacific 149 120 Latin America 84 64 Total Net sales $ 1,432 $ 1,347

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue By Product Category And Segment (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Disaggregation of Revenue [Line Items]
Total Net sales	$ 1,432	$ 1,347
Tangible Products
Disaggregation of Revenue [Line Items]
Total Net sales	1,207	1,153
Services and software
Disaggregation of Revenue [Line Items]
Total Net sales	225	194
AIT
Disaggregation of Revenue [Line Items]
Total Net sales	394	429
AIT | Tangible Products
Disaggregation of Revenue [Line Items]
Total Net sales	370	407
AIT | Services and software
Disaggregation of Revenue [Line Items]
Total Net sales	24	22
EVM
Disaggregation of Revenue [Line Items]
Total Net sales	1,038	921
EVM | Tangible Products
Disaggregation of Revenue [Line Items]
Total Net sales	837	746
EVM | Services and software
Disaggregation of Revenue [Line Items]
Total Net sales	201	175
Corporate, eliminations
Disaggregation of Revenue [Line Items]
Total Net sales	0	(3)
Corporate, eliminations | Tangible Products
Disaggregation of Revenue [Line Items]
Total Net sales	0	0
Corporate, eliminations | Services and software
Disaggregation of Revenue [Line Items]
Total Net sales	$ 0	$ (3)

Revenues - Additional Informati

Revenues - Additional Information (Details) - USD ($)	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021	Dec. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Capitalized contract, impairment loss	$ 0	$ 0
Deferred revenue	715,000,000		$ 695,000,000
Revenue recognized which was previously included in deferred revenue	129,000,000	$ 110,000,000
Prepaid expenses and other current assets
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract assets	10,000,000		10,000,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation			$ 1,033,000,000
Remaining performance obligation, expected recognition period			2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-03
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1,078,000,000
Remaining performance obligation, expected recognition period	2 years

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Apr. 02, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 200	$ 196
Work in process	2	3
Finished goods	267	292
Total Inventories, net	$ 469	$ 491

Business Acquisitions - Narrati

Business Acquisitions - Narrative (Details) $ in Millions	Mar. 14, 2022USD ($)
Matrox Imaging | Expected to close mid 2022
Business Acquisition [Line Items]
Purchase price	$ 875

Investments (Details)

Investments (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Equity securities held	$ 106		$ 101
Purchases of long-term investments	(5)	$ (13)
Gain on investments	$ 0	$ 1

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities Carried at Fair Value (Details) - USD ($) $ in Millions	Apr. 02, 2022	Apr. 03, 2021
Assets:
Total Assets at fair value	$ 95	$ 60
Liabilities:
Total Liabilities at fair value	43	53
Level 1
Assets:
Total Assets at fair value	39	37
Liabilities:
Total Liabilities at fair value	38	37
Level 2
Assets:
Total Assets at fair value	56	23
Liabilities:
Total Liabilities at fair value	5	16
Level 3
Assets:
Total Assets at fair value	0	0
Liabilities:
Total Liabilities at fair value	0	0
Foreign exchange contracts
Assets:
Derivative assets	30	23
Foreign exchange contracts | Level 1
Assets:
Derivative assets	1	0
Foreign exchange contracts | Level 2
Assets:
Derivative assets	29	23
Foreign exchange contracts | Level 3
Assets:
Derivative assets	0	0
Forward interest rate swaps
Assets:
Derivative assets	27
Liabilities:
Derivative liabilities	5	16
Forward interest rate swaps | Level 1
Assets:
Derivative assets	0
Liabilities:
Derivative liabilities	0	0
Forward interest rate swaps | Level 2
Assets:
Derivative assets	27
Liabilities:
Derivative liabilities	5	16
Forward interest rate swaps | Level 3
Assets:
Derivative assets	0
Liabilities:
Derivative liabilities	0	0
Money market investments related to deferred compensation plan
Assets:
Money market investments related to deferred compensation plan	38	37
Money market investments related to deferred compensation plan | Level 1
Assets:
Money market investments related to deferred compensation plan	38	37
Money market investments related to deferred compensation plan | Level 2
Assets:
Money market investments related to deferred compensation plan	0	0
Money market investments related to deferred compensation plan | Level 3
Assets:
Money market investments related to deferred compensation plan	0	0
Liabilities related to the deferred compensation plan
Liabilities:
Liabilities related to the deferred compensation plan	38	37
Liabilities related to the deferred compensation plan | Level 1
Liabilities:
Liabilities related to the deferred compensation plan	38	37
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	Apr. 02, 2022	Dec. 31, 2021
Derivative [Line Items]
Total net derivative asset	$ 52	$ 7
Derivative instruments designated as hedges
Derivative [Line Items]
Total net derivative asset	29	23
Derivative instruments designated as hedges | Prepaid expenses and other current assets | Foreign exchange contracts
Derivative [Line Items]
Total Assets at fair value	29	23
Derivative instruments not designated as hedges
Derivative [Line Items]
Total net derivative asset	23	(16)
Derivative instruments not designated as hedges | Prepaid expenses and other current assets | Foreign exchange contracts
Derivative [Line Items]
Total Assets at fair value	1	0
Derivative instruments not designated as hedges | Prepaid expenses and other current assets | Forward interest rate swaps
Derivative [Line Items]
Total Assets at fair value	2	0
Derivative instruments not designated as hedges | Other long-term liabilities | Forward interest rate swaps
Derivative [Line Items]
Total Assets at fair value	25	0
Total Liabilities at fair value	0	(1)
Derivative instruments not designated as hedges | Accrued liabilities | Forward interest rate swaps
Derivative [Line Items]
Total Liabilities at fair value	$ (5)	$ (15)

Derivative Instruments - Net Ga

Derivative Instruments - Net Gains (Losses) from Changes in Fair Value (Details) - Derivative instruments not designated as hedges - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Total gains recognized in income	$ 33	$ 14
Foreign exchange contracts | Foreign exchange gain
Derivative Instruments, Gain (Loss) [Line Items]
Total gains recognized in income	(1)	6
Forward interest rate swaps | Interest income, net
Derivative Instruments, Gain (Loss) [Line Items]
Total gains recognized in income	$ 34	$ 8

Derivative Instruments - Additi

Derivative Instruments - Additional Information (Details) € in Millions	3 Months Ended
	Apr. 02, 2022USD ($)derivative	Apr. 03, 2021USD ($)	Apr. 02, 2022EUR (€)derivative	Dec. 31, 2021USD ($)	Dec. 31, 2021EUR (€)	Dec. 31, 2017USD ($)
Change in unrealized gain (loss) on anticipated sales hedging:
Increase for gross asset and liability presentation				$ 1,000,000
Derivative instruments not designated as hedges
Change in unrealized gain (loss) on anticipated sales hedging:
Gain (loss) on contract	$ 33,000,000	$ 14,000,000
Foreign currency exchange forward | Derivative instruments designated as hedges | Cash flow hedges
Change in unrealized gain (loss) on anticipated sales hedging:
Maturity period	12 months
Derivative forward long-term interest rate swap | €			€ 602		€ 675
Foreign currency exchange forward | Derivative instruments designated as hedges | Cash flow hedges | Net sales
Change in unrealized gain (loss) on anticipated sales hedging:
Gain (loss) on contract	$ 16,000,000	$ 12,000,000
Foreign currency exchange forward | Derivative instruments not designated as hedges
Change in unrealized gain (loss) on anticipated sales hedging:
Maturity period	1 month
Forward interest rate swaps | Derivative instruments designated as hedges
Change in unrealized gain (loss) on anticipated sales hedging:
Derivative Asset, Number of Instruments Held | derivative	1		1
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 currency exchange forward € in Millions, £ in Millions, zł in Millions, $ in Millions, $ in Millions, $ in Millions

Apr. 02, 2022GBP (£)

Apr. 02, 2022EUR (€)

Apr. 02, 2022SGD ($)

Apr. 02, 2022MXN ($)

Apr. 02, 2022PLN (zł)

Apr. 02, 2022USD ($)

Dec. 31, 2021GBP (£)

Dec. 31, 2021EUR (€)

Dec. 31, 2021SGD ($)

Dec. 31, 2021MXN ($)

Dec. 31, 2021PLN (zł)

Dec. 31, 2021USD ($)

U.S. dollar

Derivative [Line Items]

Notional balance of outstanding contracts

£ 17

€ 94

$ 20

$ 98

zł 7

£ 13

€ 142

$ 16

$ 64

zł 103

Net fair value of assets of outstanding contracts | $

$ 1

$ 0

Czech Republic, Koruny

Derivative [Line Items]

Notional balance of outstanding contracts | €

€ 16

€ 16

Long-Term Debt - Carrying Value

Long-Term Debt - Carrying Value of Debt (Details) - USD ($)	Apr. 02, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total debt	$ 1,101,000,000	$ 996,000,000
Less: Debt issuance costs	(3,000,000)	(3,000,000)
Less: Unamortized discounts	(2,000,000)	(2,000,000)
Less: Current portion of debt	(183,000,000)	(69,000,000)
Total long-term debt	913,000,000	922,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Total debt	10,000,000	0
Term Loan A | Loans Payable
Debt Instrument [Line Items]
Total debt	875,000,000	888,000,000
Receivables Financing Facilities | Secured Debt
Debt Instrument [Line Items]
Total debt	$ 216,000,000	$ 108,000,000

Long-Term Debt - Future Maturit

Long-Term Debt - Future Maturities of Long-Term Debt (Details) $ in Millions	Apr. 02, 2022USD ($)
Debt Disclosure [Abstract]
2022	$ 164
2023	81
2024	856
Total future debt maturities	$ 1,101

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($) $ in Billions	Apr. 02, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Estimated fair value debt	$ 1.1	$ 1

Long-Term Debt - Revolving Cred

Long-Term Debt - Revolving Credit Facility (Details) - Revolving Credit Facility	Apr. 02, 2022USD ($)
Line of Credit Facility [Line Items]
Letters of credit	$ 7,000,000
Maximum borrowing capacity	1,000,000,000
Funds available for other borrowing	$ 993,000,000
Average interest rate	1.69%

Long-Term Debt - Term Loan A (D

Long-Term Debt - Term Loan A (Details)	Apr. 02, 2022
Loans Payable | Term Loan A
Debt Instrument [Line Items]
Percentage bearing variable interest, percentage rate	1.49%

Long-Term Debt - Receivable Fin

Long-Term Debt - Receivable Financing Facility (Details) - Secured Debt	Apr. 02, 2022USD ($)facility
Receivables Financing Facilities
Line of Credit Facility [Line Items]
Number of receivable financing facilities | facility	2
Total borrowing limits (up to)	$ 280,000,000
Accounts receivable pledged	692,000,000
Outstanding borrowings	216,000,000
Line of credit, current	$ 121,000,000
Revolving credit facility interest rate	1.36%
First Receivables Financing Facility
Line of Credit Facility [Line Items]
Total borrowing limits (up to)	$ 180,000,000
Second Receivables Financing Facility
Line of Credit Facility [Line Items]
Total borrowing limits (up to)	$ 100,000,000

Accrued Liabilities, Commitme_3

Accrued Liabilities, Commitments and Contingencies - Schedule of Components of Accrued Liabilities (Details) - USD ($) $ in Millions	Apr. 02, 2022	Dec. 31, 2021	Apr. 03, 2021	Dec. 31, 2020
Loss Contingencies [Line Items]
Accrued payroll and benefits	$ 80	$ 96
Accrued incentive compensation	51	155
Accrued warranty	26	26	$ 24	$ 24
Customer reserves	44	51
Current portion of lease liabilities	33	33
Unremitted cash collections due to banks on factored accounts receivable	116	141
Accrued freight and duty	31	45
Other accrued expenses	73	77
Accrued liabilities	$ 459	$ 639
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued liabilities	Accrued liabilities
Forward interest rate swaps
Loss Contingencies [Line Items]
Derivative Liability	$ 5	$ 15

Accrued Liabilities, Commitme_4

Accrued Liabilities, Commitments and Contingencies - Schedule of Accrued Warranty Obligations (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at the beginning of the period	$ 26	$ 24
Warranty expense	8	8
Warranties fulfilled	(8)	(8)
Balance at the end of the period	$ 26	$ 24

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Income Tax Disclosure [Abstract]
Effective tax rates	18.00%	17.40%

Earnings Per Share - Computatio

Earnings Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Basic:
Net income	$ 205	$ 228
Weighted-average shares outstanding (in shares)	53,021,423	53,484,265
Basic earnings per share (USD per share)	$ 3.86	$ 4.26
Diluted:
Net income	$ 205	$ 228
Weighted-average shares outstanding (in shares)	53,021,423	53,484,265
Dilutive shares (in shares)	425,317	480,065
Diluted weighted-average shares outstanding (in shares)	53,446,740	53,964,330
Diluted earnings per share (in USD per share)	$ 3.83	$ 4.22

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Details) - shares	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Earnings Per Share [Abstract]
Anti-dilutive shares (in shares)	40,771	570

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
AOCI Attributable to Parent, Net of Tax
Beginning balance	$ 2,984	$ 2,144
Other comprehensive income (loss) before reclassifications	17	24
Amounts reclassified from AOCI	(16)	12
Tax effect	(1)	(7)
Other comprehensive income (loss), net of tax	0	29
Ending balance	2,906	2,411
Unrealized gain (loss) on sales hedging
AOCI Attributable to Parent, Net of Tax
Beginning balance	18	(28)
Other comprehensive income (loss) before reclassifications	22	27
Amounts reclassified from AOCI	(16)	12
Tax effect	(1)	(7)
Other comprehensive income (loss), net of tax	5	32
Ending balance	23	4
Foreign currency translation adjustments
AOCI Attributable to Parent, Net of Tax
Beginning balance	(47)	(41)
Other comprehensive income (loss) before reclassifications	(5)	(3)
Amounts reclassified from AOCI	0	0
Tax effect	0	0
Other comprehensive income (loss), net of tax	(5)	(3)
Ending balance	(52)	(44)
Total
AOCI Attributable to Parent, Net of Tax
Beginning balance	(29)	(69)
Ending balance	$ (29)	$ (40)

Accounts Receivable Factoring (

Accounts Receivable Factoring (Details) € in Millions, $ in Millions	3 Months Ended
	Apr. 02, 2022USD ($)agreement	Apr. 03, 2021USD ($)	Apr. 02, 2022EUR (€)agreement	Dec. 31, 2021USD ($)
Transfer of Financial Assets Accounted for as Sales [Line Items]
Remaining active agreements | agreement	2		2
Proceeds from sale of accounts receivables	$ 408	$ 413
Uncollected receivables sold and removed from the balance sheet	68			$ 24
Unremitted cash collections due to banks on factored accounts receivable	116			141
Prepaid expenses and other current assets
Transfer of Financial Assets Accounted for as Sales [Line Items]
Deposits	$ 16			$ 12
EMEA
Transfer of Financial Assets Accounted for as Sales [Line Items]
Eligible uncollected receivables available (up to) | €			€ 25
EMEA And Asia Pacific
Transfer of Financial Assets Accounted for as Sales [Line Items]
Eligible uncollected receivables available (up to) | €			€ 150

Segment Information & Geograp_3

Segment Information & Geographic Data - Additional Information (Details)	3 Months Ended
	Apr. 02, 2022segment
Segment Reporting [Abstract]
Reportable segments	2

Segment Information & Geograp_4

Segment Information & Geographic Data - Financial Information by Segments (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Net sales:
Total Net sales	$ 1,432	$ 1,347
Operating income:
Operating income	212	272
AIT
Net sales:
Total Net sales	394	429
EVM
Net sales:
Total Net sales	1,038	921
Operating segments
Net sales:
Total Net sales	1,432	1,350
Operating income:
Operating income	249	302
Operating segments | AIT
Net sales:
Total Net sales	394	429
Operating income:
Operating income	60	111
Operating segments | EVM
Net sales:
Total Net sales	1,038	921
Operating income:
Operating income	189	191
Corporate, eliminations
Net sales:
Total Net sales	0	(3)
Operating income:
Operating income	$ (37)	$ (30)

Segment Information & Geograp_5

Segment Information & Geographic Data - Net Sales to Customers by Geographic Region (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Segment Reporting Information [Line Items]
Total Net sales	$ 1,432	$ 1,347
North America
Segment Reporting Information [Line Items]
Total Net sales	699	673
EMEA
Segment Reporting Information [Line Items]
Total Net sales	500	490
Asia-Pacific
Segment Reporting Information [Line Items]
Total Net sales	149	120
Latin America
Segment Reporting Information [Line Items]
Total Net sales	$ 84	$ 64