QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
PAGE | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
Item 1. | Consolidated Financial Statements |
September 30, 2023 | December 31, 2022 | ||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowances for doubtful accounts of $ | |||||||||||
Inventories, net | |||||||||||
Income tax receivable | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total Current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Right-of-use lease assets | |||||||||||
Goodwill | |||||||||||
Other intangibles, net | |||||||||||
Deferred income taxes | |||||||||||
Other long-term assets | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued liabilities | |||||||||||
Deferred revenue | |||||||||||
Income taxes payable | |||||||||||
Total Current liabilities | |||||||||||
Long-term debt | |||||||||||
Long-term lease liabilities | |||||||||||
Deferred income taxes | |||||||||||
Long-term deferred revenue | |||||||||||
Other long-term liabilities | |||||||||||
Total Liabilities | |||||||||||
Stockholders’ Equity: | |||||||||||
Preferred stock, $ | |||||||||||
Class A common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Treasury stock at cost, | ( | ( | |||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Stockholders’ Equity | |||||||||||
Total Liabilities and Stockholders’ Equity | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | ||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Tangible products | $ | $ | $ | $ | |||||||||||||||||||
Services and software | |||||||||||||||||||||||
Total Net sales | |||||||||||||||||||||||
Cost of sales: | |||||||||||||||||||||||
Tangible products | |||||||||||||||||||||||
Services and software | |||||||||||||||||||||||
Total Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling and marketing | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Settlement and related costs | |||||||||||||||||||||||
Amortization of intangible assets | |||||||||||||||||||||||
Acquisition and integration costs | |||||||||||||||||||||||
Exit and restructuring costs | |||||||||||||||||||||||
Total Operating expenses | |||||||||||||||||||||||
Operating (loss) income | ( | ||||||||||||||||||||||
Other income (loss), net: | |||||||||||||||||||||||
Foreign exchange gain | |||||||||||||||||||||||
Interest (expense) income, net | ( | ( | |||||||||||||||||||||
Other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Total Other (expense) income, net | ( | ( | |||||||||||||||||||||
(Loss) income before income tax | ( | ||||||||||||||||||||||
Income tax (benefit) expense | ( | ||||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | $ | ||||||||||||||||||
Basic (loss) earnings per share | $ | ( | $ | $ | $ | ||||||||||||||||||
Diluted (loss) earnings per share | $ | ( | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | ||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | $ | ||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Changes in unrealized gains on anticipated sales hedging transactions | ( | ||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Class A Common Stock Shares | Class A Common Stock Value | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans | ( | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes) | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans | ( | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans | ( | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Changes in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | ( | $ | $ | ( | $ |
Class A Common Stock Shares | Class A Common Stock Value | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans | ( | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balance at April 2, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans | ( | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Changes in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balance at July 2, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Issuances of treasury shares related to share-based compensation plans, net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Shares withheld to fund withholding tax obligations related to share-based compensation plans | ( | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Changes in unrealized gains and losses on anticipated sales hedging transactions (net of income taxes) | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balance at October 1, 2022 | $ | $ | $ | ( | $ | $ | ( | $ |
Nine Months Ended | |||||||||||
September 30, 2023 | October 1, 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Share-based compensation | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Unrealized gain on forward interest rate swaps | ( | ( | |||||||||
Other, net | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | ( | ||||||||||
Inventories, net | ( | ||||||||||
Other assets | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Accrued liabilities | ( | ( | |||||||||
Deferred revenue | ( | ||||||||||
Income taxes | ( | ||||||||||
Settlement liability | ( | ||||||||||
Other operating activities | |||||||||||
Net cash (used in) provided by operating activities | ( | ||||||||||
Cash flows from investing activities: | |||||||||||
Acquisition of businesses, net of cash acquired | ( | ||||||||||
Purchases of property, plant and equipment | ( | ( | |||||||||
Purchases of long-term investments | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Payment of debt issuance costs, extinguishment costs and discounts | ( | ||||||||||
Payments of long-term debt | ( | ( | |||||||||
Proceeds from issuance of long-term debt | |||||||||||
Payments for repurchases of common stock | ( | ( | |||||||||
Net proceeds related to share-based compensation plans | ( | ( | |||||||||
Change in unremitted cash collections from servicing factored receivables | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash and cash equivalents, including restricted cash | ( | ( | |||||||||
Net decrease in cash and cash equivalents, including restricted cash | ( | ( | |||||||||
Cash and cash equivalents, including restricted cash, at beginning of period | |||||||||||
Cash and cash equivalents, including restricted cash, at end of period | $ | $ | |||||||||
Less restricted cash, included in Prepaid expenses and other current assets | ( | ||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Income taxes paid | $ | $ | |||||||||
Interest paid | $ | $ |
Three Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | ||||||||||||||||||||||||||||||||||
Segment | Tangible Products | Services and Software | Total | Tangible Products | Services and Software | Total | |||||||||||||||||||||||||||||
AIT | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
EVM | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | ||||||||||||||||||||||||||||||||||
Segment | Tangible Products | Services and Software | Total | Tangible Products | Services and Software | Total | |||||||||||||||||||||||||||||
AIT | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
EVM | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Raw materials (1) | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Total Inventories, net (2) | $ | $ |
Balance as of December 31, 2022 | $ | ||||
Exit and restructuring charges | |||||
Non-cash utilization | ( | ||||
Cash payments | ( | ||||
Balance as of September 30, 2023 | $ |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Foreign exchange contracts (1) | $ | $ | $ | $ | |||||||||||||||||||
Forward interest rate swap contracts (2) | |||||||||||||||||||||||
Investments related to the deferred compensation plan | |||||||||||||||||||||||
Total Assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Forward interest rate swap contracts (2) | $ | $ | $ | $ | |||||||||||||||||||
Liabilities related to the deferred compensation plan | |||||||||||||||||||||||
Total Liabilities at fair value | $ | $ | $ | $ |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Forward interest rate swap contracts (2) | $ | $ | $ | $ | |||||||||||||||||||
Investments related to the deferred compensation plan | |||||||||||||||||||||||
Total Assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Foreign exchange contracts (1) | $ | $ | $ | $ | |||||||||||||||||||
Liabilities related to the deferred compensation plan | |||||||||||||||||||||||
Total Liabilities at fair value | $ | $ | $ | $ |
Asset (Liability) | |||||||||||||||||
Fair Values as of | |||||||||||||||||
Balance Sheets Classification | September 30, 2023 | December 31, 2022 | |||||||||||||||
Derivative instruments designated as hedges: | |||||||||||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | $ | $ | ||||||||||||||
Foreign exchange contracts | Accrued liabilities | ( | |||||||||||||||
Total derivative instruments designated as hedges | $ | $ | ( | ||||||||||||||
Derivative instruments not designated as hedges: | |||||||||||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | $ | $ | ||||||||||||||
Forward interest rate swaps | Prepaid expenses and other current assets | ||||||||||||||||
Forward interest rate swaps | Other long-term assets | ||||||||||||||||
Foreign exchange contracts | Accrued liabilities | ( | |||||||||||||||
Forward interest rate swaps | Accrued liabilities | ( | |||||||||||||||
Forward interest rate swaps | Other long-term liabilities | ( | |||||||||||||||
Total derivative instruments not designated as hedges | $ | $ | |||||||||||||||
Total net derivative asset | $ | $ |
Gains (Losses) Recognized in Income | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
Statements of Operations Classification | September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||||||||
Derivative instruments not designated as hedges: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Foreign exchange gain (loss) | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Forward interest rate swaps | Interest income, net | ||||||||||||||||||||||||||||
Total net gain recognized in income | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Notional balance of outstanding contracts: | |||||||||||
British Pound/U.S. Dollar | £ | £ | |||||||||
Euro/U.S. Dollar | € | € | |||||||||
Euro/Czech Koruna | € | € | |||||||||
Japanese Yen/U.S. Dollar | ¥ | ¥ | |||||||||
Singapore Dollar/U.S. Dollar | S$ | S$ | |||||||||
Mexican Peso/U.S. Dollar | Mex$ | Mex$ | |||||||||
Polish Zloty/U.S. Dollar | zł | zł | |||||||||
Net fair value of assets (liabilities) of outstanding contracts | $ | $ | ( |
September 30, 2023 | December 31, 2022 | ||||||||||
Term Loan A | $ | $ | |||||||||
Revolving Credit Facility | |||||||||||
Receivables Financing Facilities | |||||||||||
Total debt | $ | $ | |||||||||
Less: Debt issuance costs | ( | ( | |||||||||
Less: Unamortized discounts | ( | ( | |||||||||
Less: Current portion of debt | ( | ( | |||||||||
Total long-term debt | $ | $ |
2023 (3 months remaining) | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Total future maturities of debt | $ |
2023 (3 months remaining) | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total future minimum lease payments | $ | |||||||
Less: Interest | ( | |||||||
Present value of lease liabilities | $ | |||||||
Reported as of September 30, 2023: | ||||||||
Current portion of lease liabilities | $ | |||||||
Long-term lease liabilities | ||||||||
Present value of lease liabilities | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Settlement | $ | $ | |||||||||
Payroll and benefits | |||||||||||
Unremitted cash collections due to banks on factored accounts receivable | |||||||||||
Exit and restructuring | |||||||||||
Customer rebates | |||||||||||
Incentive compensation | |||||||||||
Warranty | |||||||||||
Freight and duty | |||||||||||
Foreign exchange contracts | |||||||||||
Other | |||||||||||
Accrued liabilities | $ | $ |
Nine Months Ended | |||||||||||
September 30, 2023 | October 1, 2022 | ||||||||||
Balance at the beginning of the period | $ | $ | |||||||||
Warranty expense | |||||||||||
Warranties fulfilled | ( | ( | |||||||||
Balance at the end of the period | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | ||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | $ | ||||||||||||||||||
Weighted-average shares outstanding (1) | |||||||||||||||||||||||
Basic (loss) earnings per share | $ | ( | $ | $ | $ | ||||||||||||||||||
Diluted: | |||||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | $ | ||||||||||||||||||
Weighted-average shares outstanding (1) | |||||||||||||||||||||||
Dilutive shares (2) | |||||||||||||||||||||||
Diluted weighted-average shares outstanding | |||||||||||||||||||||||
Diluted (loss) earnings per share | $ | ( | $ | $ | $ |
Unrealized gain (loss) on sales hedging | Foreign currency translation adjustments | Total | ||||||||||||||||||
Balance at December 31, 2021 | $ | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | |||||||||||||||||||
Amounts reclassified from AOCI(1) | ( | ( | ||||||||||||||||||
Tax effect | ( | ( | ||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ||||||||||||||||||
Balance at October 1, 2022 | $ | $ | ( | $ | ( | |||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | ( | $ | ( | ||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | |||||||||||||||||||
Amounts reclassified from AOCI(1) | ||||||||||||||||||||
Tax effect | ( | ( | ||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | |||||||||||||||||||
Balance at September 30, 2023 | $ | $ | ( | $ | ( |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | ||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
AIT | $ | $ | $ | $ | |||||||||||||||||||
EVM | |||||||||||||||||||||||
Total Net sales | $ | $ | $ | $ | |||||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||
AIT(2) | $ | $ | $ | $ | |||||||||||||||||||
EVM(2) | |||||||||||||||||||||||
Total segment operating income | |||||||||||||||||||||||
Corporate (1) | ( | ( | ( | ( | |||||||||||||||||||
Total Operating (loss) income | $ | ( | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | ||||||||||||||||||||
North America | $ | $ | $ | $ | |||||||||||||||||||
EMEA | |||||||||||||||||||||||
Asia-Pacific | |||||||||||||||||||||||
Latin America | |||||||||||||||||||||||
Total Net sales | $ | $ | $ | $ |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | $ Change | % Change | September 30, 2023 | October 1, 2022 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||||||||||||||||
Tangible products | $ | 729 | $ | 1,164 | $ | (435) | (37.4) | % | $ | 2,885 | $ | 3,630 | $ | (745) | (20.5) | % | |||||||||||||||||||||||||||||||
Services and software | 227 | 214 | 13 | 6.1 | % | 690 | 648 | 42 | 6.5 | % | |||||||||||||||||||||||||||||||||||||
Total Net sales | 956 | 1,378 | (422) | (30.6) | % | 3,575 | 4,278 | (703) | (16.4) | % | |||||||||||||||||||||||||||||||||||||
Gross profit | 427 | 628 | (201) | (32.0) | % | 1,675 | 1,939 | (264) | (13.6) | % | |||||||||||||||||||||||||||||||||||||
Gross margin | 44.7 | % | 45.6 | % | (90) bps | 46.9 | % | 45.3 | % | 160 bps | |||||||||||||||||||||||||||||||||||||
Operating expenses | 439 | 426 | 13 | 3.1 | % | 1,268 | 1,670 | (402) | (24.1) | % | |||||||||||||||||||||||||||||||||||||
Operating (loss) income | $ | (12) | $ | 202 | $ | (214) | (105.9) | % | $ | 407 | $ | 269 | $ | 138 | 51.3 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | $ Change | % Change | September 30, 2023 | October 1, 2022 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||
North America | $ | 517 | $ | 690 | $ | (173) | (25.1) | % | $ | 1,884 | $ | 2,103 | $ | (219) | (10.4) | % | |||||||||||||||||||||||||||||||
EMEA | 269 | 456 | (187) | (41.0) | % | 1,086 | 1,477 | (391) | (26.5) | % | |||||||||||||||||||||||||||||||||||||
Asia-Pacific | 106 | 158 | (52) | (32.9) | % | 382 | 459 | (77) | (16.8) | % | |||||||||||||||||||||||||||||||||||||
Latin America | 64 | 74 | (10) | (13.5) | % | 223 | 239 | (16) | (6.7) | % | |||||||||||||||||||||||||||||||||||||
Total Net sales | $ | 956 | $ | 1,378 | $ | (422) | (30.6) | % | $ | 3,575 | $ | 4,278 | $ | (703) | (16.4) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | As a % of Net sales | September 30, 2023 | October 1, 2022 | As a % of Net sales | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Selling and marketing | $ | 138 | $ | 149 | 14.4 | % | 10.8 | % | $ | 445 | $ | 452 | 12.4 | % | 10.6 | % | |||||||||||||||||||||||||||||||
Research and development | 127 | 143 | 13.3 | % | 10.4 | % | 403 | 428 | 11.3 | % | 10.0 | % | |||||||||||||||||||||||||||||||||||
General and administrative | 88 | 92 | 9.2 | % | 6.7 | % | 256 | 288 | 7.2 | % | 6.7 | % | |||||||||||||||||||||||||||||||||||
Settlement and related costs | — | — | NM | NM | — | 372 | NM | NM | |||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets | 26 | 39 | NM | NM | 78 | 107 | NM | NM | |||||||||||||||||||||||||||||||||||||||
Acquisition and integration costs | 2 | 1 | NM | NM | 4 | 19 | NM | NM | |||||||||||||||||||||||||||||||||||||||
Exit and restructuring costs | 58 | 2 | NM | NM | 82 | 4 | NM | NM | |||||||||||||||||||||||||||||||||||||||
Total Operating expenses | $ | 439 | $ | 426 | 45.9 | % | 30.9 | % | $ | 1,268 | $ | 1,670 | 35.5 | % | 39.0 | % |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, 2023 | September 30, 2023 | ||||||||||
Reported GAAP Consolidated Net sales decline | (30.6) | % | (16.4) | % | |||||||
Adjustments: | |||||||||||
Impact of foreign currency translations (1) | 1.0 | % | 2.0 | % | |||||||
Impact of acquisitions (2) | — | % | (0.7) | % | |||||||
Consolidated Organic Net sales decline (3) | (29.6) | % | (15.1) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | $ Change | % Change | September 30, 2023 | October 1, 2022 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||||||||||||||||
Tangible products | $ | 295 | $ | 414 | $ | (119) | (28.7) | % | $ | 1,222 | $ | 1,238 | $ | (16) | (1.3) | % | |||||||||||||||||||||||||||||||
Services and software | 29 | 28 | 1 | 3.6 | % | 83 | 82 | 1 | 1.2 | % | |||||||||||||||||||||||||||||||||||||
Total Net sales | 324 | 442 | (118) | (26.7) | % | 1,305 | 1,320 | (15) | (1.1) | % | |||||||||||||||||||||||||||||||||||||
Gross profit | 145 | 193 | (48) | (24.9) | % | 628 | 557 | 71 | 12.7 | % | |||||||||||||||||||||||||||||||||||||
Gross margin | 44.8 | % | 43.7 | % | 110 bps | 48.1 | % | 42.2 | % | 590 bps | |||||||||||||||||||||||||||||||||||||
Operating expenses | 101 | 108 | (7) | (6.5) | % | 341 | 322 | 19 | 5.9 | % | |||||||||||||||||||||||||||||||||||||
Operating income | $ | 44 | $ | 85 | $ | (41) | (48.2) | % | $ | 287 | $ | 235 | $ | 52 | 22.1 | % |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, 2023 | September 30, 2023 | ||||||||||
AIT Reported GAAP Net sales decline | (26.7) | % | (1.1) | % | |||||||
Adjustments: | |||||||||||
Impact of foreign currency translations (1) | 0.9 | % | 2.1 | % | |||||||
AIT Organic Net sales (decline) growth (2) | (25.8) | % | 1.0 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | $ Change | % Change | September 30, 2023 | October 1, 2022 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||||||||||||||||
Tangible products | $ | 434 | $ | 750 | $ | (316) | (42.1) | % | $ | 1,663 | $ | 2,392 | $ | (729) | (30.5) | % | |||||||||||||||||||||||||||||||
Services and software | 198 | 186 | 12 | 6.5 | % | 607 | 566 | 41 | 7.2 | % | |||||||||||||||||||||||||||||||||||||
Total Net sales | 632 | 936 | (304) | (32.5) | % | 2,270 | 2,958 | (688) | (23.3) | % | |||||||||||||||||||||||||||||||||||||
Gross profit | 282 | 435 | (153) | (35.2) | % | 1,047 | 1,382 | (335) | (24.2) | % | |||||||||||||||||||||||||||||||||||||
Gross margin | 44.6 | % | 46.5 | % | (190) bps | 46.1 | % | 46.7 | % | (60) bps | |||||||||||||||||||||||||||||||||||||
Operating expenses | 252 | 276 | (24) | (8.7) | % | 762 | 846 | (84) | (9.9) | % | |||||||||||||||||||||||||||||||||||||
Operating income | $ | 30 | $ | 159 | $ | (129) | (81.1) | % | $ | 285 | $ | 536 | $ | (251) | (46.8) | % |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, 2023 | September 30, 2023 | ||||||||||
EVM Reported GAAP Net sales decline | (32.5) | % | (23.3) | % | |||||||
Adjustments: | |||||||||||
Impact of foreign currency translations (1) | 1.1 | % | 2.0 | % | |||||||
Impact of acquisitions (2) | — | % | (1.0) | % | |||||||
EVM Organic Net sales decline (3) | (31.4) | % | (22.3) | % |
Nine Months Ended | |||||||||||||||||
Cash flow (used in) provided by: | September 30, 2023 | October 1, 2022 | $ Change | ||||||||||||||
Operating activities | $ | (145) | $ | 221 | $ | (366) | |||||||||||
Investing activities | (49) | (941) | 892 | ||||||||||||||
Financing activities | 140 | 470 | (330) | ||||||||||||||
Effect of exchange rates on cash balances | (2) | (2) | — | ||||||||||||||
Net decrease in cash and cash equivalents, including restricted cash | $ | (56) | $ | (252) | $ | 196 |
September 30, 2023 | December 31, 2022 | ||||||||||
Term Loan A | $ | 1,684 | $ | 1,728 | |||||||
Revolving Credit Facility | 477 | 50 | |||||||||
Receivables Financing Facilities | 119 | 254 | |||||||||
Total debt | $ | 2,280 | $ | 2,032 | |||||||
Less: Debt issuance costs | (3) | (4) | |||||||||
Less: Unamortized discounts | (4) | (5) | |||||||||
Less: Current portion of debt | (152) | (214) | |||||||||
Total long-term debt | $ | 2,121 | $ | 1,809 |
Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | ||||||||||||||||||||||||||||||||||
AIT | EVM | Total | AIT | EVM | Total | ||||||||||||||||||||||||||||||
Significant customers as a % of Net sales | 18 | % | 27 | % | 45 | % | 16 | % | 30 | % | 46 | % |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) (1) | ||||||||||||||||||||||
July 2, 2023 - July 29, 2023 | — | $ | — | — | $ | 893 | ||||||||||||||||||||
July 30, 2023 - August 26, 2023 | — | — | — | 893 | ||||||||||||||||||||||
August 27, 2023 - September 30, 2023 | — | — | — | 893 | ||||||||||||||||||||||
Total | — | $ | — | — | $ | 893 |
Item 5. | Other Information |
Item 6. | Exhibits |
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | The following financial information from Zebra Technologies Corporation Quarterly Report on Form 10-Q, for the quarter ended September 30, 2023, formatted in Inline XBRL: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statements of Comprehensive Income; (iv) the Consolidated Statements of Stockholders’ Equity; (v) the Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements. The instance document does not appear in the interactive data file because Inline XBRL tags are embedded in the iXBRL document. | ||||
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 formatted in Inline XBRL (included in Exhibit 101). |
ZEBRA TECHNOLOGIES CORPORATION | |||||||||||
Date: October 31, 2023 | By: | /s/ William J. Burns | |||||||||
William J. Burns | |||||||||||
Chief Executive Officer | |||||||||||
Date: October 31, 2023 | By: | /s/ Nathan Winters | |||||||||
Nathan Winters | |||||||||||
Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1 | $ 1 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 72,151,857 | 72,151,857 |
Treasury stock, shares (in shares) | 20,792,573 | 20,700,357 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
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Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (15) | $ 170 | $ 279 | $ 277 |
Other comprehensive income (loss), net of tax: | ||||
Changes in unrealized gains on anticipated sales hedging transactions | 23 | (1) | 24 | 11 |
Foreign currency translation adjustment | (7) | (5) | (2) | (16) |
Comprehensive income | $ 1 | $ 164 | $ 301 | $ 272 |
Description of Business and Basis of Presentation |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Zebra Technologies Corporation and its subsidiaries (“Zebra” or the “Company”) is a global leader providing innovative Enterprise Asset Intelligence (“EAI”) solutions in the Automatic Identification and Data Capture (“AIDC”) industry. We design, manufacture, and sell a broad range of products and solutions, as well as various workflow optimization solutions, including cloud-based software subscriptions and robotic automation solutions. 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, 2022. 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 September 30, 2023, the Consolidated Statements of Operations, Comprehensive Income (Loss) and Stockholders’ Equity for the three and nine months ended September 30, 2023 and October 1, 2022, and the Consolidated Statement of Cash Flows for the nine months ended September 30, 2023 and October 1, 2022. These results, however, are not necessarily indicative of the results expected for the full fiscal year ending December 31, 2023. In the second quarter, our advanced location technology solutions business, which is primarily comprised of radio frequency identification devices (“RFID”) and real-time location solution offerings (“RTLS”), moved from our Enterprise Visibility & Mobility (“EVM”) segment into our Asset Intelligence & Tracking (“AIT”) segment contemporaneous with a change in our organizational structure and management of the business. We have reported our segment results reflecting this change, including historical periods, on a comparable basis. This change does not have an impact on the Consolidated Financial Statements.
|
Significant Accounting Policies |
9 Months Ended |
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Sep. 30, 2023 | |
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, 2022. There have been no changes to our significant accounting policies since our Annual Report on Form 10-K for the year ended December 31, 2022. |
Revenues |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues The Company recognizes revenue to depict the transfer of goods, solutions or services to a customer at an amount that reflects the consideration which it expects to receive for providing those goods, solutions or services. 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 (in millions):
In addition, refer to Note 16, Segment Information & Geographic Data for Net sales to customers by geographic region. Performance Obligations The Company’s remaining performance obligations relate to repair and support services, as well as software solutions. The aggregated transaction price allocated to remaining performance obligations for arrangements with an original term exceeding one year was $1,094 million and $1,105 million, inclusive of deferred revenue, as of September 30, 2023 and December 31, 2022, respectively. On average, remaining performance obligations as of September 30, 2023 and December 31, 2022 are expected to be recognized over a period of approximately two years. Contract Balances Progress on satisfying performance obligations under contracts with customers related to billed revenues is reflected on the Consolidated Balance Sheets in Accounts receivable, net. Progress on satisfying performance obligations under contracts with customers related to unbilled revenues (“contract assets”) is reflected on the Consolidated Balance Sheets as Prepaid expenses and other current assets for revenues expected to be billed within the next twelve months, and Other long-term assets for revenues expected to be billed thereafter. The total contract asset balances were $14 million and $16 million as of September 30, 2023 and December 31, 2022, respectively. These contract assets result from timing differences between billing and satisfying performance obligations, as well as the impact of 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 and nine months ended September 30, 2023 and October 1, 2022, 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 $746 million and $758 million as of September 30, 2023 and December 31, 2022, respectively. During the three and nine months ended September 30, 2023, the Company recognized $100 million and $349 million in revenue, which was previously included in the beginning balance of deferred revenue as of December 31, 2022. During the three and nine months ended October 1, 2022, the Company recognized $92 million and $329 million in revenue, which was previously included in the beginning balance of deferred revenue as of December 31, 2021.
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Inventories |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The categories of Inventories, net are as follows (in millions):
(1) Raw material inventories primarily consist of product components as well as supplies used in repair operations. (2) Categories of inventories for the period ended December 31, 2022 include reclassifications to conform the presentation of the prior period to the current period.
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Investments |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The carrying value of the Company’s long-term investments, which are included in Other long-term assets on the Consolidated Balance Sheets, was $113 million as of both September 30, 2023 and December 31, 2022. The Company paid $1 million and $12 million for the purchase of long-term investments during the nine months ended September 30, 2023 and October 1, 2022, respectively. Net gains and losses related to the Company’s long-term investments are included within Other expense, net on the Consolidated Statements of Operations. There were no net gains or losses during the three months ended September 30, 2023. The Company recognized net losses of $1 million during the nine months ended September 30, 2023. The Company did not recognize any net gains or losses during the three and nine months ended October 1, 2022.
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Exit and Restructuring Costs |
9 Months Ended | ||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||
Exit and Restructuring Costs | Exit and Restructuring Costs In the second quarter, the Company expanded the scope of the 2022 Productivity Plan and also initiated a voluntary retirement plan (“VRP”) applicable to retirement-eligible U.S. employees. Employees who participate in the VRP have agreed to retire in 2023 in exchange for cash severance and other benefits. The total cost of these programs, which primarily relate to employee severance and other benefits, is expected to be at least $105 million. Total charges associated with these programs, classified within Exit and restructuring on the Consolidated Statements of Operations, were $94 million to date, including $58 million and $82 million recorded for the three and nine months ended September 30, 2023, respectively. The actions under both programs are expected to be substantially completed by the end of 2023. The Company’s remaining payment obligations of $54 million, primarily related to the VRP are reflected within Accrued liabilities on the Consolidated Balance Sheets. These obligations are expected to be settled by the first quarter of 2024. The Company’s liability associated with Exit and restructuring was:
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Fair Value Measurements |
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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. ASC Topic 820 established a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into the following three broad levels: •Level 1: Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs (e.g. U.S. Treasuries and money market funds). •Level 2: Observable prices that are based on inputs not quoted in active markets but corroborated by market data. •Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs 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 September 30, 2023, are classified below (in millions):
The Company’s financial assets and liabilities carried at fair value as of December 31, 2022, are classified below (in millions):
(1)The fair value of the foreign exchange contracts is calculated as follows: •Fair value of forward contracts associated with forecasted sales hedges is calculated using the period-end exchange rate adjusted for current forward points. •Fair value of hedges against net assets denominated in foreign currencies is calculated at the period-end exchange rate adjusted for current forward points unless the hedge has been traded but not settled at year end (Level 2). If this is the case, the fair value is calculated at the rate at which the hedge is being settled (Level 1). (2)The fair value of forward interest rate swaps is based upon a valuation model that uses relevant observable market inputs at the quoted intervals, such as forward yield curves, and is adjusted for the Company’s credit risk and the interest rate swap terms.
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Derivative Instruments |
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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):
The following table presents the net gains (losses) from changes in fair values of derivatives that are not designated as hedges (in millions):
Activities related to derivative instruments are reflected within Net cash (used in) provided by operating activities on the Consolidated Statements of Cash Flows. Credit and Market Risk Management Financial instruments, including derivatives, expose the Company to counterparty credit risk of nonperformance and to market risk related to currency exchange rate and interest rate fluctuations. The Company manages its exposure to counterparty credit risk by establishing minimum credit standards, diversifying its counterparties, and monitoring its concentrations of credit. The Company’s counterparties are commercial banks with expertise in derivative financial instruments. The Company evaluates the impact of market risk on the fair value and cash flows of its derivative and other financial instruments by considering reasonably possible changes in interest rates and currency exchange rates. The Company continually monitors the creditworthiness of the customers to which it grants credit terms in the normal course of business. The terms and conditions of the Company’s credit policies are designed to mitigate concentrations of credit risk. The Company’s master netting and other similar arrangements with the respective counterparties allow for net settlement under certain conditions, which are designed to reduce credit risk by permitting net settlement with the same counterparty. We present the assets and liabilities of our derivative financial instruments, for which we have net settlement agreements in place, on a net basis on the Consolidated Balance Sheets. If the derivative financial instruments had been presented gross on the Consolidated Balance Sheets, the asset and liability positions would have been increased by $1 million and $4 million as of September 30, 2023 and December 31, 2022, respectively. Foreign Currency Exchange Risk Management The Company conducts business on a multinational basis in a variety of foreign currencies. Exposure to market risk for changes in foreign currency exchange rates arises primarily from Euro-denominated external revenues, cross-border financing activities between subsidiaries, and foreign currency denominated monetary assets and liabilities. The Company manages its objective of preserving the economic value of non-functional currency denominated cash flows by initially hedging transaction exposures with natural offsets and, once these opportunities have been exhausted, through foreign exchange forward and option contracts, as deemed appropriate. The Company manages the exchange rate risk of anticipated Euro-denominated sales using forward contracts, which typically mature within twelve months of execution. The Company designates these derivative contracts as cash flow hedges. Unrealized gains and losses on these contracts are deferred in Accumulated other comprehensive income (loss) (“AOCI”) on the Consolidated Balance Sheets until the contract is settled and the hedged sale is realized. The realized gain or loss is then recorded as an adjustment to Net sales on the Consolidated Statements of Operations. Realized amounts reclassified to were $6 million of losses and $29 million of gains for the three months ended September 30, 2023 and October 1, 2022, respectively. Realized amounts reclassified to Net sales were $16 million of losses and $72 million of gains for the nine months ended September 30, 2023 and October 1, 2022, respectively. As of September 30, 2023 and December 31, 2022, the notional amounts of the Company’s foreign exchange cash flow hedges were €597 million and €549 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):
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 related to these borrowings. The Company manages its exposure to changes in interest rates by utilizing long-term forward interest rate swaps to hedge this exposure and to achieve a desired proportion of fixed versus variable-rate debt, based on current and projected market conditions. The Company has interest rate swap agreements with a total notional amount of $800 million to lock into a fixed SOFR interest rate base, which are subject to monthly net cash settlements effective through October 2027. In the second quarter, the Company entered into new interest rate swap agreements that contain a total notional amount of $400 million to lock into a variable interest rate base designed to offset a portion of the Company’s existing swap agreements. These agreements are subject to monthly cash settlements effective through October 2027. At the same time, the Company entered into additional new interest rate swap agreements that contain a total notional amount of $400 million to lock into a fixed SOFR interest rate base, which are subject to monthly cash settlements effective through June 2030. As a result of these transactions, the Company maintained fixed interest rates on a total notional amount of $800 million through October 2027 and a total notional amount of $400 million through June 2030. There was no cash settlement, or significant impact on the Consolidated Statement of Operations, as a result of these transactions.
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Long-Term Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt The following table shows the carrying value of the Company’s debt (in millions):
As of September 30, 2023, the future maturities of debt are as follows (in millions):
All borrowings as of September 30, 2023 were denominated in U.S. Dollars. The estimated fair value of the Company’s debt approximated $2.2 billion and $2.0 billion as of September 30, 2023 and December 31, 2022, respectively. These fair value amounts, developed based on inputs classified as Level 2 within the fair value hierarchy, represent the estimated value at which the Company’s lenders could trade its debt within the financial markets and do not represent the settlement value of these liabilities to the Company. The fair value of debt will continue to vary each period based on a number of factors, including fluctuations in market interest rates as well as changes to the Company’s credit ratings. Term Loan A The principal on Term Loan A is due in quarterly installments, with the next quarterly installment due in March 2024 and the majority due upon maturity in 2027. The Company may make prepayments, as it did in the first quarter of 2023, 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 September 30, 2023, the Term Loan A interest rate was 6.67%. 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 September 30, 2023, the Company had letters of credit totaling $11 million, which reduced funds available for borrowings under the Revolving Credit Facility from $1,500 million to $1,489 million. As of September 30, 2023, the Revolving Credit Facility had an average interest rate of 6.65%. Upon borrowing, interest payments are made monthly and are subject to variable rates plus an applicable margin. The Revolving Credit Facility matures on May 25, 2027. Receivables Financing Facilities The Company has two Receivables Financing Facilities with financial institutions that have a combined total borrowing limit of up to $280 million. As collateral, the Company pledges perfected first-priority security interests in its U.S. domestically originated accounts receivable. The Company has accounted for transactions under its facilities as secured borrowings. The Company’s first facility allows for borrowings of up to $180 million and matures on March 19, 2024. The Company’s second facility allows for borrowings of up to $100 million and matures on May 13, 2024. As of September 30, 2023, the Company’s Consolidated Balance Sheets included $530 million of gross receivables that were pledged under the facilities. As of September 30, 2023, $119 million had been borrowed and was classified as current. Borrowings under the facilities bear interest at a variable rate plus an applicable margin. As of September 30, 2023, the facilities had an average interest rate of 6.80%. Interest is paid monthly on these borrowings. Each of the Company’s borrowings described above include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. The Company uses interest rate swaps to manage the interest rate risk associated with its debt. See Note 8, Derivative Instruments for further information. As of September 30, 2023, the Company was in compliance with all debt covenants.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases During the nine months ended September 30, 2023, the Company recorded an additional $41 million of right-of-use (“ROU”) assets obtained in exchange for lease obligations primarily related to the commencement of a new office facility lease as well as contract modifications that extend existing lease terms. Future minimum lease payments under non-cancellable leases as of September 30, 2023 were as follows (in millions):
The current portion of lease liabilities is included within Accrued liabilities on the Consolidated Balance Sheets.
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Accrued Liabilities, Commitments and Contingencies |
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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):
Warranties The following table is a summary of the Company’s accrued warranty obligations (in millions):
Contingencies The Company is subject to a variety of investigations, claims, suits, and other legal proceedings that arise from time to time in the ordinary course of business, including but not limited to, intellectual property, employment, tort, and breach of contract matters. The Company currently believes that the outcomes of such proceedings, individually and in the aggregate, will not have a material adverse impact on its business, cash flows, financial position, or results of operations. Any legal proceedings are subject to inherent uncertainties, and the Company’s view of these matters and their potential effects may change in the future. The Company records a liability for contingencies when a loss is deemed to be probable and can be reasonably estimated. During the second quarter of 2022, the Company entered into a License and Settlement Agreement (“Settlement”) to resolve certain patent-related litigation. The payment terms under the Settlement consist of 8 quarterly payments of $45 million that began in the second quarter of 2022. The remaining 2 quarterly amounts will be paid by the first quarter of 2024 and are included within Accrued liabilities on the Consolidated Balance Sheets.
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Income Taxes |
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Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company’s effective tax rate for the three and nine months ended September 30, 2023 was 37.5% benefit and 16.0% expense, respectively, compared to 23.4% and 13.2% for the three and nine months ended October 1, 2022, respectively. For the three and nine months ended September 30, 2023, the variance from the 21% federal statutory rate was primarily due to a discrete tax benefit from the VRP, U.S. tax credits, and the favorable impacts of foreign earnings subject to U.S. taxation. For the three months ended October 1, 2022, the variance from the 21% federal statutory rate was primarily attributable to unfavorable impacts from return to provision adjustments. For the nine months ended October 1, 2022, the variance from the 21% federal statutory rate was primarily attributable to a discrete tax benefit resulting from the Settlement and related costs recorded in the second quarter, lower tax rates on foreign earnings, and U.S. tax credits. |
(Loss) Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) Earnings Per Share | (Loss) Earnings Per Share Basic net (loss) earnings per share is calculated by dividing net (loss) income by the weighted average number of common shares outstanding for the period. Diluted (loss) earnings per share is computed by dividing net (loss) income by the weighted average number of diluted common shares outstanding. Diluted common shares outstanding is computed using the Treasury Stock method and, in periods of income, reflects the additional shares that would be outstanding if dilutive share-based compensation awards were converted into common shares during the period. (Loss) earnings per share (in millions, except share data):
(1) In periods of a net loss, restricted stock and performance share awards, which are participating securities, are excluded from weighted-average shares outstanding. (2) In periods of net loss, all unvested share-based awards were anti-dilutive and therefore excluded from diluted shares. Anti-dilutive share-based compensation awards are excluded from diluted earnings per share calculations. There were 446,331 and 250,025 shares that were anti-dilutive for the three and nine months ended September 30, 2023, respectively. There were 195,922 and 169,810 shares that were anti-dilutive for the three and nine months ended October 1, 2022, respectively.
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Accumulated Other Comprehensive Income (Loss) |
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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 translates the subsidiary functional currency financial statements to U.S. Dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of AOCI. The changes in each component of AOCI during the nine months ended September 30, 2023 and October 1, 2022 were as follows (in millions):
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Accounts Receivable Factoring |
9 Months Ended |
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Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Accounts Receivable Factoring | Accounts Receivable Factoring The Company transfers certain receivables to banks without recourse as part of its credit and cash management activities. Such transfers are accounted for as sales and the related receivables are removed from the Company’s balance sheet. The Company services the receivables on behalf of the banks, but otherwise maintains no significant continuing involvement with respect to the receivables. Sale proceeds that are representative of the fair value of factored receivables, less a factoring fee, are reflected in Cash flows from operating activities on the Consolidated Statements of Cash Flows, while sale proceeds in excess of the fair value of factored receivables are reflected in Cash flows from financing activities on the Consolidated Statements of Cash Flows. The Company has two Receivables Factoring arrangements. One arrangement allows for the factoring of up to €150 million of uncollected receivables originated from the EMEA and Asia-Pacific regions. In the current quarter, the Company amended its second arrangement to allow the factoring of uncollected receivables originated from the Europe, Middle East, and Africa (“EMEA”) region from up to $25 million to $50 million. Otherwise, the amendment did not substantially change the terms of the arrangement. The Company may be required to maintain a portion of sales proceeds as deposits in a restricted cash account that is released to the Company as it satisfies its obligations as servicer of sold receivables, which totaled $0 million and $12 million as of September 30, 2023 and December 31, 2022, respectively, and is classified within Prepaid expenses and other current assets on the Consolidated Balance Sheets. During the nine months ended September 30, 2023 and October 1, 2022, the Company received cash proceeds of $1,077 million and $1,135 million, respectively, from the sales of accounts receivables under its factoring arrangements. As of September 30, 2023 and December 31, 2022, there were a total of $72 million and $61 million, respectively, of uncollected receivables that had been sold and removed from the Company’s Consolidated Balance Sheets. As servicer of sold receivables, the Company had $82 million and $130 million of obligations that were not yet remitted to banks as of September 30, 2023 and December 31, 2022, respectively. These obligations are included within Accrued liabilities on the Consolidated Balance Sheets, with changes in such obligations reflected within Cash flows from financing activities on the Consolidated Statements of Cash Flows.
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Segment Information & Geographic Data |
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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, exit and restructuring costs, as well as certain other non-recurring costs (such as the Settlement costs in the prior year). Segment assets are not reviewed by the Company’s CODM and therefore are not disclosed below. In the second quarter, our advanced location technology solutions business, which is primarily comprised of RFID devices and RTLS offerings, moved from our EVM segment into our AIT segment contemporaneous with a change in our organizational structure and management of the business. We have reported our segment results reflecting this change, including historical periods, on a comparable basis. This change does not have an impact on the Consolidated Financial Statements. Financial information by segment is presented as follows (in millions):
(1)To the extent applicable, amounts included in Corporate consist of business acquisition purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, impairment of goodwill and other intangibles, exit and restructuring costs, as well as certain other non-recurring costs (such as the Settlement costs in the prior year). (2)AIT and EVM segment operating income includes depreciation and share-based compensation expense. The amounts of depreciation and share-based compensation expense are proportionate to each segment’s Net sales. 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):
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
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Sep. 30, 2023 |
Jul. 01, 2023 |
Apr. 01, 2023 |
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Sep. 30, 2023 |
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Pay vs Performance Disclosure | ||||||||
Net (loss) income | $ (15) | $ 144 | $ 150 | $ 170 | $ (98) | $ 205 | $ 279 | $ 277 |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Policies (Policies) |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Revenues | Revenues The Company recognizes revenue to depict the transfer of goods, solutions or services to a customer at an amount that reflects the consideration which it expects to receive for providing those goods, solutions or services. 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. Performance ObligationsThe Company’s remaining performance obligations relate to repair and support services, as well as software solutions.Contract BalancesProgress 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.
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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. ASC Topic 820 established a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into the following three broad levels: •Level 1: Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs (e.g. U.S. Treasuries and money market funds). •Level 2: Observable prices that are based on inputs not quoted in active markets but corroborated by market data. •Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs to the extent possible. In addition, the Company considers counterparty credit risk in the assessment of fair value.
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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. |
Revenues (Tables) |
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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 (in millions):
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Categories of Inventories, Net | The categories of Inventories, net are as follows (in millions):
(1) Raw material inventories primarily consist of product components as well as supplies used in repair operations. (2) Categories of inventories for the period ended December 31, 2022 include reclassifications to conform the presentation of the prior period to the current period.
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Exit and Restructuring Costs (Tables) |
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Schedule of Liability Associated With Employee Severance and Other Benefits | The Company’s liability associated with Exit and restructuring was:
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Fair Value Measurements (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets and Liabilities Carried at Fair Value | The Company’s financial assets and liabilities carried at fair value as of September 30, 2023, are classified below (in millions):
The Company’s financial assets and liabilities carried at fair value as of December 31, 2022, are classified below (in millions):
(1)The fair value of the foreign exchange contracts is calculated as follows: •Fair value of forward contracts associated with forecasted sales hedges is calculated using the period-end exchange rate adjusted for current forward points. •Fair value of hedges against net assets denominated in foreign currencies is calculated at the period-end exchange rate adjusted for current forward points unless the hedge has been traded but not settled at year end (Level 2). If this is the case, the fair value is calculated at the rate at which the hedge is being settled (Level 1). (2)The fair value of forward interest rate swaps is based upon a valuation model that uses relevant observable market inputs at the quoted intervals, such as forward yield curves, and is adjusted for the Company’s credit risk and the interest rate swap terms.
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Derivative Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
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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):
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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):
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Long-Term Debt (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Value of Long-term Debt | The following table shows the carrying value of the Company’s debt (in millions):
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Schedule of Future Maturities of Long-term Debt | As of September 30, 2023, the future maturities of debt are as follows (in millions):
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Leases (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Lease Payments Under Non-cancellable Operating Leases | Future minimum lease payments under non-cancellable leases as of September 30, 2023 were as follows (in millions):
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Accrued Liabilities, Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Accrued Liabilities | The components of Accrued liabilities are as follows (in millions):
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Schedule of Accrued Warranty Obligations | The following table is a summary of the Company’s accrued warranty obligations (in millions):
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(Loss) Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | (Loss) earnings per share (in millions, except share data):
(1) In periods of a net loss, restricted stock and performance share awards, which are participating securities, are excluded from weighted-average shares outstanding. (2) In periods of net loss, all unvested share-based awards were anti-dilutive and therefore excluded from diluted shares.
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Accumulated Other Comprehensive Income (Loss) (Tables) |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The changes in each component of AOCI during the nine months ended September 30, 2023 and October 1, 2022 were as follows (in millions):
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Segment Information & Geographic Data (Tables) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Information by Segments | Financial information by segment is presented as follows (in millions):
(1)To the extent applicable, amounts included in Corporate consist of business acquisition purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, impairment of goodwill and other intangibles, exit and restructuring costs, as well as certain other non-recurring costs (such as the Settlement costs in the prior year). (2)AIT and EVM segment operating income includes depreciation and share-based compensation expense. The amounts of depreciation and share-based compensation expense are proportionate to each segment’s Net sales.
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Schedule of Net Sales to Customers by Geographic Region | Net sales by region were as follows (in millions):
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Revenues - Performance Obligation (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 1,105 | |
Expected recognition period | 2 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 1,094 | |
Expected recognition period | 2 years |
Revenues - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
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Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
Dec. 31, 2022 |
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Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Capitalized contract, impairment loss | $ 0 | $ 0 | $ 0 | $ 0 | |
Deferred revenue | 746,000,000 | 746,000,000 | $ 758,000,000 | ||
Revenue recognized which was previously included in deferred revenue | 100,000,000 | $ 92,000,000 | 349,000,000 | $ 329,000,000 | |
Prepaid expenses and other current assets | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Contract assets | $ 14,000,000 | $ 14,000,000 | $ 16,000,000 |
Inventories (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
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Inventory Disclosure [Abstract] | ||
Raw materials | $ 412 | $ 369 |
Work in process | 5 | 4 |
Finished goods | 431 | 487 |
Total Inventories, net | $ 848 | $ 860 |
Investments (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
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Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
Dec. 31, 2022 |
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Investments, Debt and Equity Securities [Abstract] | |||||
Equity securities held | $ 113,000,000 | $ 113,000,000 | $ 113,000,000 | ||
Purchases of long-term investments | 1,000,000 | $ 12,000,000 | |||
Realized gain (loss) on equity securities | $ 0 | $ 0 | $ (1,000,000) | $ 0 |
Exit and Restructuring Costs - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
Dec. 31, 2022 |
Jul. 02, 2022 |
|
Restructuring Cost and Reserve [Line Items] | ||||||
Estimated remaining costs | $ 105 | |||||
Exit and restructuring costs | $ 58 | $ 2 | $ 82 | $ 4 | ||
Restructuring obligations amount | 54 | 54 | $ 9 | |||
2022 Productivity Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Exit and restructuring charges - cumulative | 94 | 94 | ||||
Exit and restructuring costs | $ 58 | $ 82 |
Exit and Restructuring Costs - Liability Associated With Employee Severance and Other Benefits (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 9 |
Exit and restructuring costs | 82 |
Non-cash utilization | (6) |
Cash payments | (31) |
Ending balance | $ 54 |
Derivative Instruments - Net Gains (Losses) from Changes in Fair Value (Details) - Derivative instruments not designated as hedges: - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gain recognized in income | $ 24 | $ 48 | $ 31 | $ 101 |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gain recognized in income | 1 | 9 | (3) | 17 |
Forward interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total net gain recognized in income | $ 23 | $ 39 | $ 34 | $ 84 |
Derivative Instruments - Notional Values and Net Fair Value of Outstanding Contracts (Details) - Foreign currency exchange forward € in Millions, ¥ in Millions, £ in Millions, zł in Millions, $ in Millions, $ in Millions, $ in Millions |
Sep. 30, 2023
GBP (£)
|
Sep. 30, 2023
EUR (€)
|
Sep. 30, 2023
JPY (¥)
|
Sep. 30, 2023
SGD ($)
|
Sep. 30, 2023
MXN ($)
|
Sep. 30, 2023
PLN (zł)
|
Sep. 30, 2023
USD ($)
|
Dec. 31, 2022
GBP (£)
|
Dec. 31, 2022
EUR (€)
|
Dec. 31, 2022
JPY (¥)
|
Dec. 31, 2022
SGD ($)
|
Dec. 31, 2022
MXN ($)
|
Dec. 31, 2022
PLN (zł)
|
Dec. 31, 2022
USD ($)
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
U.S. dollar | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional balance of outstanding contracts | £ 7 | € 96 | ¥ 265 | $ 6 | $ 149 | zł 94 | £ 11 | € 191 | ¥ 0 | $ 5 | $ 372 | zł 47 | ||
Net fair value of assets (liabilities) of outstanding contracts | $ | $ 1 | $ (5) | ||||||||||||
Czech Republic, Koruny | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Notional balance of outstanding contracts | € | € 17 | € 15 |
Long-Term Debt - Carrying Value of Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt | $ 2,280 | $ 2,032 |
Less: Debt issuance costs | (3) | (4) |
Less: Unamortized discounts | (4) | (5) |
Less: Current portion of debt | (152) | (214) |
Total long-term debt | 2,121 | 1,809 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 477 | 50 |
Term Loan A | Loans Payable | ||
Debt Instrument [Line Items] | ||
Total debt | 1,684 | 1,728 |
Receivables Financing Facilities | Secured Debt | ||
Debt Instrument [Line Items] | ||
Total debt | $ 119 | $ 254 |
Long-Term Debt - Future Maturities of Long-Term Debt (Details) $ in Millions |
Sep. 30, 2023
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2023 (3 months remaining) | $ 0 |
2024 | 162 |
2025 | 66 |
2026 | 88 |
2027 | 1,964 |
Total future maturities of debt | $ 2,280 |
Long-Term Debt - Additional Information (Details) - USD ($) $ in Billions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Disclosure [Abstract] | ||
Estimated fair value debt | $ 2.2 | $ 2.0 |
Long-Term Debt - Term Loan A (Details) |
Sep. 30, 2023 |
---|---|
Loans Payable | Term Loan A | |
Debt Instrument [Line Items] | |
Percentage bearing variable interest, percentage rate | 6.67% |
Long-Term Debt - Revolving Credit Facility (Details) - Revolving Credit Facility |
Sep. 30, 2023
USD ($)
|
---|---|
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 1,500,000,000 |
Average interest rate | 6.65% |
Amended and Restated Credit Agreement | |
Line of Credit Facility [Line Items] | |
Letters of credit | $ 11,000,000 |
Funds available for other borrowing | $ 1,489,000,000 |
Long-Term Debt - Receivable Financing Facility (Details) - Secured Debt |
Sep. 30, 2023
USD ($)
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 |
Gross accounts receivable pledged | 530,000,000 |
Current line of credit | $ 119,000,000 |
Revolving credit facility interest rate | 6.80% |
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 |
Leases - Additional Information (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Leases [Abstract] | |
ROU assets obtained in exchange for lease obligations | $ 41 |
Leases - Future Minimum lease Payments Under Non-cancellable Leases (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
2023 (3 months remaining) | $ 12 | |
2024 | 48 | |
2025 | 38 | |
2026 | 32 | |
2027 | 26 | |
Thereafter | 77 | |
Total future minimum lease payments | 233 | |
Less: Interest | (45) | |
Present value of lease liabilities | 188 | |
Current portion of lease liabilities | 38 | $ 37 |
Long-term lease liabilities | $ 150 | $ 139 |
Accrued Liabilities, Commitments and Contingencies - Components of Accrued Liabilities (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
Oct. 01, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||||
Settlement | $ 90 | $ 180 | ||
Payroll and benefits | 84 | 90 | ||
Unremitted cash collections due to banks on factored accounts receivable | 82 | 130 | ||
Exit and restructuring | 54 | 9 | ||
Customer rebates | 38 | 55 | ||
Current portion of lease liabilities | 38 | 37 | ||
Incentive compensation | 31 | 100 | ||
Warranty | 25 | 26 | $ 27 | $ 26 |
Freight and duty | 10 | 19 | ||
Foreign exchange contracts | 0 | 19 | ||
Other | 76 | 79 | ||
Accrued liabilities | $ 528 | $ 744 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Accrued Liabilities, Commitments and Contingencies - Accrued Warranty Obligations (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at the beginning of the period | $ 26 | $ 26 |
Warranty expense | 21 | 23 |
Warranties fulfilled | (22) | (22) |
Balance at the end of the period | $ 25 | $ 27 |
Accrued Liabilities, Commitments and Contingencies - Additional Information (Details) - Settlement $ in Millions |
3 Months Ended |
---|---|
Jul. 02, 2022
USD ($)
payment
| |
Loss Contingencies [Line Items] | |
Number of quarterly payments | payment | 8 |
Quarterly payment | $ | $ 45 |
Income Taxes (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rates | (37.50%) | 23.40% | 16.00% | 13.20% |
(Loss) Earnings Per Share - Schedule of (Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Jul. 01, 2023 |
Apr. 01, 2023 |
Oct. 01, 2022 |
Jul. 02, 2022 |
Apr. 02, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Basic: | ||||||||
Net (loss) income | $ (15) | $ 144 | $ 150 | $ 170 | $ (98) | $ 205 | $ 279 | $ 277 |
Weighted-average shares outstanding (in shares) | 51,336,645 | 51,834,236 | 51,380,876 | 52,387,838 | ||||
Basic (loss) earnings per share (in USD per share) | $ (0.28) | $ 3.28 | $ 5.44 | $ 5.29 | ||||
Diluted: | ||||||||
Net (loss) income | $ (15) | $ 144 | $ 150 | $ 170 | $ (98) | $ 205 | $ 279 | $ 277 |
Weighted-average shares outstanding (in shares) | 51,336,645 | 51,834,236 | 51,380,876 | 52,387,838 | ||||
Dilutive shares (in shares) | 0 | 323,616 | 336,855 | 368,793 | ||||
Diluted weighted-average shares outstanding (in shares) | 51,336,645 | 52,157,852 | 51,717,731 | 52,756,631 | ||||
Diluted (loss) earnings per share (in USD per share) | $ (0.28) | $ 3.26 | $ 5.40 | $ 5.25 |
(Loss) Earnings Per Share - Additional Information (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Earnings Per Share [Abstract] | ||||
Anti-dilutive shares (in shares) | 446,331 | 195,922 | 250,025 | 169,810 |
Accounts Receivable Factoring (Details) € in Millions, $ in Millions |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2023
USD ($)
agreement
|
Oct. 01, 2022
USD ($)
|
Sep. 30, 2023
EUR (€)
agreement
|
Jul. 01, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||||
Receivables Factoring arrangements | agreement | 2 | 2 | |||
Eligible uncollected receivables available (up to) | $ 50 | $ 25 | |||
Proceeds from sale of accounts receivables | 1,077 | $ 1,135 | |||
Uncollected receivables sold and removed from the balance sheet | 72 | $ 61 | |||
Unremitted cash collections due to banks on factored accounts receivable | 82 | 130 | |||
EMEA And Asia Pacific | |||||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||||
Eligible uncollected receivables available (up to) | € | € 150 | ||||
Prepaid expenses and other current assets | |||||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||||
Deposits | $ 0 | $ 12 |
Segment Information & Geographic Data - Additional Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
segment
| |
Segment Reporting [Abstract] | |
Reportable segments | 2 |
Segment Information & Geographic Data - Financial Information by Segments (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Net sales: | ||||
Total Net sales | $ 956 | $ 1,378 | $ 3,575 | $ 4,278 |
Operating income (loss): | ||||
Operating (loss) income | (12) | 202 | 407 | 269 |
AIT | ||||
Net sales: | ||||
Total Net sales | 324 | 442 | 1,305 | 1,320 |
EVM | ||||
Net sales: | ||||
Total Net sales | 632 | 936 | 2,270 | 2,958 |
Operating segments | ||||
Operating income (loss): | ||||
Operating (loss) income | 74 | 244 | 572 | 771 |
Operating segments | AIT | ||||
Net sales: | ||||
Total Net sales | 324 | 442 | 1,305 | 1,320 |
Operating income (loss): | ||||
Operating (loss) income | 44 | 85 | 287 | 235 |
Operating segments | EVM | ||||
Net sales: | ||||
Total Net sales | 632 | 936 | 2,270 | 2,958 |
Operating income (loss): | ||||
Operating (loss) income | 30 | 159 | 285 | 536 |
Corporate eliminations | ||||
Operating income (loss): | ||||
Operating (loss) income | $ (86) | $ (42) | $ (165) | $ (502) |
Segment Information & Geographic Data - Net Sales to Customers by Geographic Region (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Oct. 01, 2022 |
Sep. 30, 2023 |
Oct. 01, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Total Net sales | $ 956 | $ 1,378 | $ 3,575 | $ 4,278 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Total Net sales | 517 | 690 | 1,884 | 2,103 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total Net sales | 269 | 456 | 1,086 | 1,477 |
Asia-Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Total Net sales | 106 | 158 | 382 | 459 |
Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Total Net sales | $ 64 | $ 74 | $ 223 | $ 239 |
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