What changed in this filing

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Item 1A. Risk Factors

2021-02-11 compared with 2020-02-13 · 88 added, 85 removed, 262 unchanged (40% of the section changed)

12 unchanged sentences

• Manufacturing an increased number of products;

• Developing and managing custom solutions offerings;

• Managing parties to whom we have outsourced portions of our business operations;

11 unchanged sentences

Acquisitions could also dilute stockholder value and adversely affect operating results.

We may acquire or make investments in other businesses, technologies, services, or products.

We may acquire or make investments in other businesses, technologies, services, products, or solutions.

An acquisition may present business issues which are new to us.

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The Company may not be able to continue to develop products or solutions to address user needs effectively in an industry characterized by ongoing change.

To be successful, we must adapt to rapidly changing technological and application needs by continually improving our products, as well as introducing new products and services, to address user demands.

To be successful, we must adapt to rapidly changing technological and application needs by continually improving our products and solutions, as well as introducing new products, solutions, and services, to address user demands.

The Company’s industry is characterized by:

• Evolving industry standards;

Frequent new product and service introductions;

• Frequent new product, solution, and service introductions;

• Evolving distribution channels;

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We cannot assure we will be able to compete successfully against current or future competitors or technologies.

Increased competition in mobile computing products, data capture products, radio frequency identification devices (“RFID”), printers, or supplies may result in price reductions, lower gross profit margins, and loss of market share, and could require increased spending on research and development, sales and marketing, and customer support.

Some competitors may make strategic acquisitions or establish cooperative relationships with suppliers or companies that produce complementary products, which may create additional pressures on our competitive position in the marketplace.

Increased competition in mobile computing products, data capture products, radio frequency identification devices (“RFID”), printers, supplies, or software-based solutions may result in price reductions, lower gross profit margins, and loss of market share, and could require increased spending on research and development, sales and marketing, and customer support.

Some competitors may make strategic acquisitions or establish cooperative relationships with suppliers or companies that produce complementary products and solutions, which may create additional pressures on our competitive position in the marketplace.

Operational Risks

The Company has substantial operations and sells a significant portion of our products outside of the U.S.

The Company has substantial operations and sells a significant portion of our products, solutions and services outside of the U.S.

and purchases important components, including final products, from suppliers located outside the U.S.

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• Integration and enforcement of laws varies significantly among jurisdictions and may change over time

Infringement by the Company or our suppliers on the proprietary rights of others could put us at a competitive disadvantage, and any related litigation could be time consuming and costly.

Third parties may claim that we or our suppliers violated their intellectual property rights.

To the extent of a violation of a third-party’s patent or other intellectual property right, we may be prevented from operating our business as planned, and may be required to pay damages, to obtain a license, if available, or to use a non-infringing method, if possible, to accomplish our objectives.

Third parties may allege that the Company or our suppliers infringe upon their intellectual property rights.

Periodically, third parties claim that we or our suppliers infringe upon their intellectual property rights.

As we continue to expand our business and incorporate new technologies into our products and solutions, these types of claims may increase.

Any of these claims, with or without merit, could result in costly litigation and divert the attention of key personnel.

If such claims are successful, they could result in costly judgments or settlements.

Also, as new technologies emerge, the intellectual property rights of parties in such technologies can be uncertain.

As a result, our products involving such technologies may have higher risk of claims of infringement of the intellectual proprietary rights of third parties.

To the extent a violation of a third party’s patent or other intellectual property right is established, we may be prevented from operating our business as planned and we may be required to pay costly judgments or settlements, enter into costly licensing arrangements or use a non-infringing method to accomplish our business objectives, any of which could have a negative impact on our operating margins.

The inability to protect intellectual property could harm our reputation, and our competitive position may be materially damaged.

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Some aspects of our business and services also rely on technologies, software, and content developed by or licensed from third parties, and we may not be able to maintain our relationships with such third parties or enter into similar relationships in the future on reasonable terms or at all.

We currently use third-party and/or open source operating systems and associated application ecosystems in certain of our products.

We currently use third-party and/or open source operating systems and associated application ecosystems in certain of our products and solutions.

Such parties ceasing continued development of the operating systems or restricting our access to such operating systems could adversely impact our business and financial results.

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While we continue to perform security due diligence, there is always the possibility of a significant breach.

Our products that are deployed in customer environments also have the possibility of being breached, which could result in damage to a customer’s confidentiality, integrity, and availability of the customer’s data and systems.

It is possible that such a breach could result in delays in, or loss of market acceptance of, our products and services;

Our products and solutions that are deployed in customer environments also have the possibility of being breached, which could result in damage to a customer’s confidentiality, integrity, and availability of the customer’s data and systems.

It is possible that such a breach could result in delays in, or loss of market acceptance of, our products, solutions or services;

diversion of our resources;

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and payment of damages.

To date, we have had no material incidents related to the security on our products.

To date, we have had no material incidents related to the security on our products or solutions.

Although we maintain insurance related to cybersecurity risks, there can be no assurance that our insurance coverage will cover the particular cyber incident at issue or that such coverage will be sufficient.

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Although we have not suffered significant harm from any errors, defects, or bugs to date, we may discover significant errors, defects, or bugs in the future that we may not be able to correct or correct in a timely manner.

Any future errors, defects, or bugs found in our software products and related services may result in delays in, or loss of market acceptance of, our products and services;

Any future errors, defects, or bugs found in our software products and related services may result in delays in, or loss of market acceptance of, our products, solutions or services;

diversion of resources;

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Any disruption in the services of senior management or our ability to attract and retain key personnel may have a material adverse effect on our business and results of operations.

A natural disaster, widespread public health issue or man-made disaster may cause supply disruptions that could adversely affect our business and results of operations.

Natural disasters or widespread public health issues may occur in the future and the Company is not able to predict to what extent or duration any such disruptions will have on our ability to maintain ordinary business operations.

A natural disaster, widespread public health issue, civil unrest, or man-made disaster may cause supply disruptions that could adversely affect our business and results of operations.

Natural disasters or widespread public health issues, including pandemics, may occur in the future and the Company is not able to predict to what extent or duration any such disruptions will have on our ability to maintain ordinary business operations.

The Company’s operations and facilities are subject to catastrophic loss due to fire, flood, terrorism, or other natural or man-made disasters.

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If such a disruption were to occur, we could breach agreements, our reputation could be harmed, and our business and operating results could be adversely affected.

The consequences of a natural disaster may have a material adverse effect on our business and results of operations.

The consequences of a natural disaster or widespread public health issue may have a material adverse effect on our business and results of operations.

The effects of the COVID-19 pandemic have and may continue to adversely affect our business, financial results, and results of operations.

The coronavirus (“COVID-19”) has spread rapidly worldwide, resulting in a broad number of governmental and commercial efforts to contain the spread of COVID-19 globally, such as travel bans and restrictions, quarantines, shelter in place orders, and shutdowns.

The COVID-19 pandemic has been, and continues to be, complex and rapidly evolving, and has adversely impacted our business, primarily related to lower customer demand and higher fulfillment costs.

The duration and extent of the impact of the COVID-19 pandemic on our business, operations and financial results depends on factors that cannot be accurately predicted at this time, such as the severity and transmission rate of COVID-19, the extent and effectiveness of containment actions, the extent to which vaccines and/or other medical treatments are developed and made available to the

public, and the impact of these and other factors on our employees, customers, industry partners, suppliers and third party dealers, distributors, and resellers.

The federal, state, and local governments as well as foreign governments, to varying degrees, have imposed, and continue to impose, several protocols and regulations restricting the physical movement or other activities of individuals in an effort to limit the spread of COVID-19.

We have implemented a number of measures in an effort to protect the health and well-being of our employees, customers and suppliers, including having the majority of office workers work remotely, limiting employee travel, and withdrawing from industry events.

The transition to working remotely for most of our office employees may impact our business operations, customer relationships, pose additional data security risks as well as impact our ability to attract and retain talent.

The extent and duration of ongoing workplace restrictions and limitations, particularly in sites with significant headcount, could adversely impact our operations and our ability to execute on strategic imperatives for our business.

As governments ease their restrictions and we allow our employees to come back to work in our offices in a controlled approach, we have modified our business practices, including implementing social distancing protocols, office capacity restrictions, health screening, provision of personal protective equipment, tracking and tracing protocols, and extensively and frequently disinfecting our workspaces.

However, there is no guarantee that such protocols will be successful in preventing the spread of COVID-19 amongst our employees.

In late 2020, certain vaccines were authorized by major regulatory bodies to help fight the infection of COVID-19, and certain other vaccines are in the late stages of development to provide such treatment.

At this time, the availability of authorized vaccines is highly limited, and the time required to make these vaccines available to all members of the public remains uncertain.

Further, we have experienced higher than normal employee absentee rates for employees who are unable to work from home, and even as employees return to our offices, we may be prevented from conducting business activities at full capacity for an indefinite period of time.

The potential negative effects to our operations, including reductions in production levels, research and development activities, and increased costs resulting from our efforts to mitigate the impact of COVID-19, may adversely affect our ability to deliver our products, solutions and services.

In addition, the continued spread of COVID-19 has led to disruption and volatility in the worldwide credit and financial markets, which could limit our ability to obtain external financing and result in a higher rate of losses on our accounts receivables due to credit defaults, adversely affecting our liquidity.

While the COVID-19 pandemic has not materially impacted our liquidity and capital resources to date, the duration and severity of any further economic or market impact of the pandemic remains uncertain and there can be no assurance that it will not have an adverse effect on our liquidity and capital resources, including our ability to access capital markets, in the future.

If COVID-19 becomes more prevalent in the locations where our customers, suppliers, or we conduct business, we may experience more pronounced disruptions in our operations.

If we are not able to respond to and manage the impact of such events effectively, our business and results of operations in future periods may be adversely affected.

Moreover, the impacts of the COVID-19 pandemic may exacerbate other pre-existing risks, such as global economic conditions, political, regulatory, social, financial, operational and cybersecurity as well as similar risks relating to our suppliers and customers, any of which could have a material adverse effect on our business.

Zebra could be adversely impacted by the United Kingdom’s withdrawal from the European Union.

Zebra maintains its European regional headquarters and a label converting facility in the U.K.

and has significant operations and sales throughout Europe.

Z ebra maintains its European regional headquarters and a label converting facility in the U.K.

and has significant operations and sales throughout Europe, including its regional distribution center located in Heerenveen, Netherlands.

Following the U.K.

formally withdrawing from the E.U.

on January 31, 2020, the U.K.

formally withdrew from the E.U.

After withdrawal, the U.K.

entered into a transition period that is due to end on December 31, 2020.

During this transition period, the U.K.

will negotiate the terms of its future relationship with the E.U.

Since the U.K.’s referendum in June 2016 to withdraw from the E.U., markets have been more volatile, including fluctuations in the British pound, that could adversely impact Zebra’s operating costs in the U.K.

Such market volatility could also cause customers to alter or delay buying decisions that would adversely impact Zebra’s sales in the U.K.

and throughout Europe.

Our European business involves cross border transactions between the U.K.

The future trade relationship between the U.K.

could adversely impact Zebra’s operations in the region by increasing importation requirements or disrupting shipments between the E.U.

or vice versa.

The terms of the U.K.’s

withdrawal from the E.U.

and resulting impacts to Zebra’s operations are currently uncertain and could adversely affect the Company’s financial performance.

entered into a transition period that ended on December 31, 2020.

The E.U.-U.K.

Trade and Cooperation Agreement was entered into on December 24, 2020 and details the future relationship between the U.K.

and E.U., and has resolved much uncertainty.

Nevertheless, effective January 1, 2021, customs borders are in place between Great Britain and Northern Ireland and Great Britain and the E.U., which could adversely impact Zebra’s operations and financial performance due to the increase in importation requirements that may lead to disrupted or delayed shipments in the region.

Such disrupted or delayed shipments may also result in shortages of products and components or loss of customer confidence, which could affect Zebra’s financial performance.

We are exposed to risks under large, multi-year system and solutions and services contracts that may negatively impact our business.

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(ii) financial risks, including the accuracy of estimates inherent in projecting costs associated with large, long-term contracts and the related impact on operating results;

and (iii) cybersecurity risks, especially in managed services contracts with customers that process personal data.

Recovery of front-loaded costs incurred on long-term managed services contracts with customers is dependent on the continued viability of such customers.

and (iii) cybersecurity risks, especially in solutions or managed services contracts with customers that process personal data.

Recovery of front-loaded costs incurred on long-term managed services and software-based solutions contracts with customers is dependent on the continued viability of such customers.

The insolvency of customers could result in a loss of anticipated future revenue attributable to that program or product, which could have an adverse impact on our profitability.

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If our initial cost estimates are incorrect, we can lose money on these contracts.

Because many of these contracts involve new technologies and applications and require the Company to engage subcontractors and can last multiple years, unforeseen events, such as technological difficulties, fluctuations in the price of raw materials, problems with our subcontractors or suppliers, and other cost overruns, can result in the contract pricing becoming less favorable or even unprofitable to us and have an adverse impact on our financial results.

Because many of these contracts involve new

technologies and applications and require the Company to engage subcontractors and can last multiple years, unforeseen events, such as technological difficulties, fluctuations in the price of raw materials, problems with our subcontractors or suppliers, and other cost overruns, can result in the contract pricing becoming less favorable or even unprofitable to us and have an adverse impact on our financial results.

In addition, a significant increase in inflation rates could have an adverse impact on the profitability of longer-term contracts.

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If one of our suppliers, subcontractors, distributors, resellers, or TPSRs violates labor or other laws or implements labor or other business practices that are regarded as unethical, the shipment of finished products to us could be interrupted, orders could be canceled, relationships could be terminated, and our reputation could be damaged.

If one of our suppliers or subcontractors fails to procure necessary license rights to trademarks, copyrights, or patents, legal action could be taken against us that could impact the salability of the Company’s products and expose us to financial obligations to a third-party.

If one of our suppliers or subcontractors fails to procure necessary license rights to trademarks, copyrights, or patents, legal action could be taken against us that could impact the salability of the Company’s products and solutions, and expose us to financial obligations to a third-party.

Any of these events could have a negative impact on our sales and results of operations.

We rely on third-party dealers, distributors, and resellers to sell many of our products, and their failure to effectively bring our products to market may negatively affect our results of operation and financial results.

In addition to our own sales force, we offer our products through a variety of third-party dealers, distributors, and resellers who may also market other products that compete with our products.

Failure of one or more of our third-party dealers, distributors, or resellers to effectively promote our products could affect our ability to bring products to market and have a negative impact on our results of operations.

Any changes to our channel program may cause some of our third-party dealers, distributors, or resellers to exit the program due to modifications to the program structure, which may reduce our ability to bring products to market and could have a negative impact on our results of operations.

We rely on third-party dealers, distributors, and resellers to sell many of our products and solutions, and their failure to effectively bring our products and solutions to market may negatively affect our results of operation and financial results.

In addition to our own sales force, we offer our products and solutions through a variety of third-party dealers, distributors, and resellers who may also market other products and solutions that compete with ours.

Failure of one or more of our third-party dealers, distributors, or resellers to effectively promote our products and solutions could affect our ability to bring products and solutions to market and have a negative impact on our results of operations.

Any changes to our channel program may cause some of our third-party dealers, distributors, or resellers to exit the program due to modifications to the program structure, which may reduce our ability to bring products and solutions to market and could have a negative impact on our results of operations.

Some of these third-parties are smaller and more likely to be impacted by a significant decrease in available credit that could result from a weakness in the financial markets.

If credit pressures or other financial difficulties result in insolvency for third-party dealers, distributors, or resellers and we are unable to successfully transition end-customers to purchase our products from other third-parties or from us directly, it may cause, and in some cases, has caused, a negative impact on our financial results.

If credit pressures or other financial difficulties result in insolvency for third-party dealers, distributors, or resellers and we are unable to successfully transition end-customers to purchase our products and solutions from other third-parties or from us directly, it may cause, and in some cases, has caused, a negative impact on our financial results.

Final assembly of certain of our products is performed by third-party electronics manufacturers.

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This transition could be costly and time consuming.

From time to time we may diversify our product sourcing footprint, similar to the actions we are currently taking with our efforts to reduce our reliance on Chinese-based manufacturing, which may result in additional costs.

From time to time we may diversify our product sourcing footprint, similar to the actions we took with our efforts to reduce our reliance on Chinese-based manufacturing, which may result in additional costs.

Our future operating results depend on our ability to purchase a sufficient amount of materials, parts, and components, as well as services and software to meet the demands of customers.

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In addition, certain supplies are available only from a single source or limited sources and we may not be able to diversify sources in a timely manner.

If demand for our products or services increases from our current expectations or if suppliers are unable or unwilling to meet our demand for other reasons, including as a result of natural disasters, public health issues, severe weather conditions, or financial issues, we could experience an interruption in supplies or a significant increase in the price of supplies that could have a negative impact on our business.

If demand for our products, solutions or services increases from our current expectations or if suppliers are unable or unwilling to meet our demand for other reasons, including as a result of natural disasters, public health issues, severe weather conditions, or financial issues, we could experience an interruption in supplies or a significant increase in the price of supplies that could have a negative impact on our business.

We have experienced shortages in the past that have negatively impacted our results of operations and may experience such shortages in the future.

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The impact of changes in customs duties and trade policies in the United States and corresponding actions by other countries in which the Company does business could adversely affect our financial performance.

government has imposed customs duties on various imports from China that are intended to address trade imbalances.

These actions will result in increased customs duties and will likely result in the renegotiation of some U.S.

trade agreements.

In response to such actions, China has instituted customs duties on certain U.S.

Other governments could also institute customs duties on U.S.

goods similar to China’s actions in response to the U.S.

government’s customs duties.

The Company currently imports a significant percentage of our products into the U.S.

and China, and an increase in customs duties with respect to these imports could negatively impact the Company’s financial performance.

The Company commenced efforts to diversify its product sourcing footprint in order to reduce its reliance on Chinese-based manufacturing and mitigate the impacts of related customs duties.

Failure to effectively manage transition activities associated with product sourcing diversification may negatively impact our results of operations and financial performance.

Such customs duties also may cause the U.S.’ trading partners, other than

China, to take actions with respect to U.S.

imports or U.S.

investment activities in their respective countries.

Any potential changes in trade policies in the U.S.

and the potential corresponding actions by other countries in which the Company does business could adversely affect the Company’s financial performance.

The Company currently imports a significant percentage of our products into the U.S., and an increase in customs duties with respect to these imports could negatively impact the Company’s financial performance.

During 2020, the Company successfully completed efforts to diversify its product sourcing footprint in order to reduce its reliance on Chinese-based manufacturing and mitigate the impacts of related customs duties.

Taxing authority challenges may lead to tax payments exceeding current reserves.

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The taxation of our business is subject to the application of multiple, and sometimes conflicting, tax laws and regulations, as well as multinational tax conventions.

Many countries have recently adopted, or are considering the adoption of, revisions to their respective tax laws based on the on-going reports issued by the Organization for Economic Co-operation and Development (“OECD”)/G20 Base Erosion and Profit Shifting (“BEPS”) Project, which could materially impact our tax liability due to our organizational structure and significant operations outside of the U.S.

Many countries have recently adopted, or are considering the adoption of, revisions to their respective tax laws based on the on-going reports issued by the Organization for Economic Co-operation and

Development (“OECD”)/G20 Base Erosion and Profit Shifting (“BEPS”) Project, which could materially impact our tax liability due to our organizational structure and significant operations outside of the U.S.

Our effective tax rate is highly dependent upon the geographic distribution of our worldwide earnings or losses resulting from our structure and operating model, the tax regulations and tax holidays in each geographic region, and the availability of tax credits and carry-forwards.

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Adverse economic conditions or reduced information technology spending may negatively impact our business.

General disruption of financial markets and a related general economic downturn could adversely affect our business and financial condition through a reduction in demand for our products by our customers.

If a slowdown were severe enough, it could require further impairment testing and write-downs of goodwill and other intangible assets.

1 unchanged sentence

A tightening of financial credit could adversely affect our customers, suppliers, outsourced manufacturers, and channel partners (e.g., distributors and resellers) from obtaining adequate credit for the financing of significant purchases.

An economic downturn could also result in a decrease in or cancellation of orders for our products and services;

An economic downturn could also result in a decrease in or cancellation of orders for our products, solutions and services;

negatively impacting the ability to collect accounts receivable on a timely basis;

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Higher volatility and fluctuations in foreign exchange rates for the U.S.

Dollar against currencies such as the Euro, the British Pound, the Chinese Yuan, and the Brazilian Real could negatively impact product sales, margins, and cash flows.

Dollar against currencies such as the Euro, British Pound Sterling, Czech Koruna, Brazilian Real, and Chinese Yuan could negatively impact product sales, margins, and cash flows.

It is important that we are able to obtain many different types of insurance, and if we are not able to obtain insurance or exhaust our coverage, we may be forced to retain the risk.

We have many types of insurance coverage and are also self-insured for some risks and obligations.

While the cost and availability of most insurance is stable, there are still certain types and levels of insurance that remain difficult to obtain, such as professional liability insurance, which is expensive to obtain for the amount of coverage often requested by certain customers.

As we grow our global solutions and services business, we are being asked to obtain higher amounts of professional liability insurance, which could result in higher costs to do business.

Natural disasters and certain risks arising from securities claims, professional liability, and public liability are potential self-insured events that could negatively impact our financial results.

In addition, while we maintain insurance for certain risks, the amount of our insurance coverage may not be adequate to cover all claims or liabilities, and we may be forced to bear substantial costs from an accident, incident, or claim.

Our third-party insurance coverage varies from time to time in both type and amount depending on availability, cost and our decisions with respect to risk retention.

Economic conditions and uncertainties in global markets may adversely affect the cost and other terms upon which we are able to obtain third-party insurance.

In addition, our third-party insurance policies are subject to deductibles, policy limits, and exclusions that result in our retention of a level of risk on a self-insurance basis.

Further, certain types of coverages may be difficult or expensive to obtain.

We self-insure against certain business risks and expenses where we believe we can adequately self-insure against the anticipated exposure and risk or where insurance is either not deemed cost-effective or is not available.

If the amount of our third-party insurance coverage is not available or adequate to cover all claims or liabilities, or to the extent we have elected to self-insure, we may be forced to bear substantial costs from an accident, incident, or claim.

Losses not covered by insurance could be substantial and unpredictable and could adversely affect our financial condition and results of operations.

Our indebtedness could adversely affect our business.

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• Our ability to obtain additional financing for working capital, capital expenditures, acquisitions, or general corporate purposes may be impaired;

We plan to use a substantial portion of cash flow from operations to pay interest and principal on our indebtedness, which may reduce the funds available for other purposes, such as acquisitions and capital expenditures;

• We may be at a competitive disadvantage with reduced flexibility in planning for, or responding to, changing conditions in the industry, including increased competition;

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Our ability to restructure or refinance our indebtedness will depend on the condition of the capital and debt markets and our financial condition at such time.

Any refinancing of our indebtedness could be at higher interest rates and may require us to comply with more onerous covenants, which could further restrict business operations.

Any refinancing of our indebtedness could be at higher interest rates and may require us to comply with more onerous covenants,

which could further restrict business operations.

The terms of anticipated or future debt instruments may limit or prevent us from taking any of these actions.

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Laws and regulations relating to the handling of personal data may result in increased costs, legal claims, or fines against the Company.

As part of our operations, the Company collects, uses, stores, and transfers personal data of third parties and employees in and across various jurisdictions.

The governing bodies in such jurisdictions have adopted or are considering adopting laws and regulations regarding the collection, use, transfer, storage, and disclosure of personal data obtained from third parties and employees;

for example, the General Data Protection Regulation effective May 2018.

These laws may result in burdensome or inconsistent requirements affecting the collection, use, storage, transfer, and disclosure of our third-party and employee personal data.

Compliance may require changes in services, business practices, or internal systems that result in

increased costs, lower revenue, reduced efficiency, or greater difficulty in competing with foreign-based firms.

Failure to comply with existing or new rules may result in claims against the Company or significant penalties or orders to stop the alleged noncompliant activity.

As part of our operations, the Company collects, uses, stores, and transfers personal data of third parties, employees and limited customer data in and across various jurisdictions.

Laws and regulations relating to the handling of such personal data may result in increased costs, legal claims, or fines against the Company.

Existing laws and emerging regulations may be inconsistent across jurisdictions and are subject to evolving and differing (sometimes conflicting) interpretations.

Government officials, regulators and privacy advocates are increasingly scrutinizing how companies collect, process, use, store, share and transmit personal data, which may result in new interpretations of existing laws that impact our business.

Compliance with these laws may require us to, among other things, make changes in services, business practices, or internal systems that may result in increased costs, lower revenue, reduced efficiency, or greater difficulty in competing with foreign-based firms.

Further, there is no assurance that we will be able to meet additional requirements that may be imposed on the transfer of personal data without incurring expenses.

We may experience reluctance or refusal by customers to purchase or continue to use our services due to concerns regarding their data protection obligations.

Our actual or perceived failure to comply with applicable laws and regulations or other obligations to which we may be subject, or to protect personal data from unauthorized access, use, or other processing, may subject the Company to enforcement actions and regulatory investigations, claims, legal proceedings or other actions, reputational harm and loss of goodwill, any of which could have a material adverse effect on our operations, financial performance, and business.

The unfavorable outcome of any pending or future litigation, arbitration, or administrative action could have a material adverse effect on our financial condition or results of operations.

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Our operations and the products we manufacture and/or sell are subject to a wide range of product regulatory and safety, consumer, worker safety, and environmental laws and regulations.

Compliance with such existing or future laws and regulations could subject us to future costs or liabilities, impact our production capabilities, constrict our ability to sell, expand or acquire facilities, restrict what products and services we can offer, and generally impact our financial performance.

Some of these laws are environmental and relate to the use, disposal, remediation, emission and discharge of, and exposure to hazardous substances.

Compliance with such existing or future laws and regulations could subject us to future costs or liabilities, impact our production capabilities, constrict our ability to sell, expand or acquire facilities, restrict what products, solutions and services we can offer, and generally impact our financial performance.

these laws are environmental and relate to the use, disposal, remediation, emission and discharge of, and exposure to hazardous substances.

These laws often impose liability and can require parties to fund remedial studies or actions regardless of fault.

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There are also demanding and rapidly changing laws around the globe related to issues such as product safety, radio interference, radio frequency radiation exposure, medical related functionality, and consumer and social mandates pertaining to use of wireless or electronic equipment.

These laws, and changes to these laws, could have a substantial impact on whether we can offer certain products, solutions, and services, and on what capabilities and characteristics our products or services can or must include.

These laws impact our products and negatively affect our ability to manufacture and sell products competitively.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1A. Risk Factors