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Item 1. Business

2022-02-10 compared with 2021-02-11 · 136 added, 150 removed, 181 unchanged (61% of the section changed)

We are a global leader providing Enterprise Asset Intelligence (“EAI”) solutions in the Automatic Identification and Data Capture (“AIDC”) industry.

The AIDC market consists of mobile computing, data capture, radio frequency identification devices (“RFID”), barcode printing, and other automation products and services.

The Company’s solutions are proven to help our customers and end-users achieve their critical business objectives, including improved operational efficiency, optimized workflows, increased asset utilization, improved regulatory compliance, and better customer experiences.

The AIDC market consists of mobile computing, data capture, radio frequency identification devices (“RFID”), barcode printing, and other workflow automation products and services.

The Company’s solutions are proven to help our customers and end-users digitize and automate their workflows to achieve their critical business objectives, including improved productivity and operational efficiency, optimized regulatory compliance, and better customer experiences.

We design, manufacture, and sell a broad range of AIDC products, including:

mobile computers, barcode scanners and imagers, RFID readers, specialty printers for barcode labeling and personal identification, real-time location systems (“RTLS”), related accessories and supplies, such as labels and other consumables, and software applications.

We also provide a full range of services, including maintenance, technical support, repair, managed and professional services, as well as cloud-based subscriptions.

End-users of our products, solutions and services include retail and e-commerce, transportation and logistics, manufacturing, healthcare, hospitality, warehouse and distribution, energy and utilities, government, public safety, education, and banking enterprises around the world.

We provide our products, solutions and services globally through a direct sales force

and extensive network of approximately 10,000 channel partners.

We provide products, solutions and services in approximately 180 countries, with 128 facilities and approximately 8,800 employees worldwide.

Through innovative application of our technologies, we are leading an evolution of the traditional AIDC market into EAI, which encompasses solutions that sense information from enterprise assets, including packages moving through a supply chain, equipment in a factory, workers in a warehouse, and shoppers in a store.

Data from enterprise assets, including status, location, utilization, and preferences, is then analyzed to provide actionable insights.

Finally, with the benefits of mobility, these insights can be delivered to the right user at the right time to drive more effective actions.

As a result, our solutions and technologies enable enterprises to “sense, analyze, and act” more effectively to improve operational effectiveness and achieve critical business objectives.

The evolution of the AIDC market is being driven by strong underlying secular trends in technology.

These trends include the internet of things ( “IoT” ), cloud-based data analytics, mobility, as well as artificial intelligence and automation.

The IoT enables an exchange of information among a proliferation of smart, connected devices.

Newer solutions, which include these smart, connected devices, capture a much broader range of information than is possible with traditional AIDC solutions and communicate this information in real-time.

Cloud computing and expanded data analytics are allowing enterprises to make better business decisions through improved timeliness and visibility to information and workflows.

While traditional AIDC solutions sporadically capture limited amounts of data and populate static enterprise systems, EAI solutions continuously analyze real-time data from many sources to generate actionable insights.

The continued rapid growth of mobile devices and application software are also significantly expanding mobile computing use cases in the enterprise.

With this expanded mobility, end-users can consume or act upon dynamic enterprise data and information anytime and anywhere.

Computer vision solutions, which enable the automatic extraction and understanding of useful information from a digital image or video, are also driving the expansion of intelligent automation, which leverages our sense-analyze-act framework to improve workflows with or without a human operator.

We also provide a full range of services, including maintenance, technical support, repair, managed and professional services, as well as cloud-based software subscriptions and robotics automation solutions.

End-users of our products, solutions and services include those in the retail and e-commerce, manufacturing, transportation and logistics, healthcare, public sector, and other industries.

our products, solutions and services globally through a direct sales force and extensive network of over 10,000 channel partners, operating in approximately 180 countries, with 128 facilities and approximately 9,800 employees worldwide.

Through continual innovation of our technologies, we are leading an evolution of the traditional AIDC market into EAI, which encompasses solutions that sense key operational information such as packages moving through a supply chain, equipment in a factory, workers and robots in a warehouse, shoppers in a store, and patients in a hospital.

Data from enterprise assets, including status, condition, location, utilization, and preferences, is then analyzed to provide prioritized actionable insights.

Finally, with the benefits of cloud computing and connectivity, these insights and directives can be delivered to the right user at the right time to drive the best next action.

As a result, our solutions enable enterprises to “sense, analyze, and act” more effectively throughout their workflows.

The evolution of the AIDC market to transform workflows is being driven by strong underlying secular trends in technology, which include the internet of things ( “IoT” ), cloud-based data analytics, intelligent automation, mobility, computer vision, as well as artificial intelligence and machine learning.

The IoT enables the real-time exchange of an increasingly broad set of information among a proliferation of smart, connected devices.

Cloud computing and expanded data analytics are allowing enterprises to make better business decisions through improved timeliness and increased visibility into workflows.

While traditional AIDC solutions sporadically capture limited amounts of data and populate static enterprise systems, newer solutions that can leverage artificial intelligence through machine learning can analyze real-time data from many sources to generate actionable insights.

The continued rapid growth of mobile devices and application software are also significantly expanding mobile computing use cases throughout enterprises and supply chains.

With these expanded capabilities, end-users can consume and act upon dynamic enterprise data and information anytime and anywhere.

Additionally, computer vision (including machine vision) technology, which enables the automatic extraction and understanding of useful information from a digital image or video, provides a key element in many of our solutions.

On October 7, 2021, the Company acquired Antuit Holdings Pte.

(“Antuit”) for $145 million in cash, net of cash acquired.

Antuit is a provider of demand-sensing and pricing optimization software solutions for retail and consumer products companies.

Through this acquisition, the Company expands its portfolio of software solution offerings to customers in these industries by combining Antuit’s platform with its existing software solutions and EVM products.

The operating results of Antuit are included in the EVM segment.

On August 9, 2021, the Company acquired Fetch Robotics, Inc.

(“Fetch”) for total purchase consideration of $301 million, which consisted of $290 million in cash paid, net of cash acquired, and the fair value of the Company’s existing minority ownership interest in Fetch of $11 million, as remeasured upon acquisition.

Fetch is a provider of autonomous mobile robot solutions for customers who operate in the manufacturing, distribution, and fulfillment industries, enabling customers to optimize workflows through robotic automation.

Through this acquisition, the Company intends to expand its automation solution offerings within these industries.

The operating results of Fetch are included within the EVM segment.

Adaptive Vision:

On May 17, 2021, the Company acquired Adaptive Vision Sp.

(“Adaptive Vision”) for $18 million in cash, net of cash acquired.

Adaptive Vision is a provider of graphical machine vision software with applications in the manufacturing industry, as well as a provider of libraries and other offerings for machine vision developers.

The operating results of Adaptive Vision are included within the EVM segment.

On September 1, 2020, the Company acquired Reflexis Systems, Inc.

(“Reflexis”) for $547 million in cash, net of cash acquired.

Reflexis is a provider of task and workforce management, execution, and communication solutions for customers in the retail, food service, hospitality, and banking industries.

Through its acquisition of Reflexis, the Company intends to enhance its solution offerings to customers in those industries by combining Reflexis’ platform with its existing software solutions and EVM products.

The operating results of Reflexis are included within the EVM segment beginning September 1, 2020.

Reflexis is a provider of task and workforce management, execution, and communication software solutions for customers in the retail, food service, hospitality, and banking industries.

Through this acquisition, the Company intends to enhance its solution offerings to customers in those industries by combining Reflexis’ platform with its existing software solutions and EVM products.

The operating results of Reflexis are included within the EVM segment.

On November 5, 2019, the Company acquired Cortexica Vision Systems Limited (“Cortexica”) for $7 million in cash.

Cortexica is a provider of computer vision-based artificial intelligence solutions primarily serving the retail industry, expanding upon the Company’s initiative to advance our solutions offerings.

The operating results of Cortexica are included within the EVM segment beginning November 5, 2019.

Cortexica is a provider of computer vision-based artificial intelligence solutions primarily serving the retail industry.

The operating results of Cortexica are included within the EVM segment.

On May 31, 2019, the Company acquired Profitect, Inc.

(“Profitect”) for total purchase consideration of $79 million, which consisted of $75 million in cash paid, net of cash acquired, and the fair value of the Company’s existing minority ownership interest in Profitect of $4 million, as remeasured upon acquisition.

Profitect is a provider of prescriptive analytics primarily serving the retail industry.

In acquiring Profitect, the Company enhanced its existing software solutions within the retail industry, with possible future applications in other industries.

The operating results of Profitect are included within the EVM segment beginning May 31, 2019.

Profitect is a provider of prescriptive analytics software primarily serving the retail industry.

Through this acquisition, the Company enhanced its existing software solutions within the retail industry by combining Profitect’s platform with its existing software solutions and EVM products.

The operating results of Profitect are included within the EVM segment.

On February 21, 2019, the Company acquired Temptime Corporation (“Temptime”) for $180 million in cash, net of cash acquired.

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Through this acquisition, the Company expanded its product offerings within the healthcare industry, with possible future applications in other industries involving temperature-sensitive products.

The operating results of Temptime are included within the AIT segment beginning February 21, 2019.

On August 14, 2018, the Company acquired Xplore Technologies Corporation (“Xplore”) for $72 million in cash.

Xplore designs, integrates, markets and sells rugged tablets that are primarily used by industrial, government, and field service organizations.

The acquisition of Xplore expanded the Company’s portfolio of mobile computing devices to serve a wider range of customers.

The operating results of Xplore are included within the EVM segment beginning August 14, 2018.

The operating results of Temptime are included within the AIT segment.

See Note 5, Business Acquisitions in the Notes to Consolidated Financial Statements for additional details.

Our operations consist of two reportable segments:

(1) Asset Intelligence & Tracking (“AIT”), primarily comprised of barcode and card printing, supplies, services, location solutions, and retail solutions;

and (2) Enterprise Visibility & Mobility (“EVM”), primarily comprised of mobile computing, data capture, RFID, services and solutions.

Operations and Technologies

Our operations consist of two reportable segments that provide complementary offerings to our customers:

Asset Intelligence & Tracking (“AIT”), which includes barcode and card printing, supplies, services, and location solutions;

and Enterprise Visibility & Mobility (“EVM”), which includes mobile computing, data capture, RFID, fixed industrial scanning and machine vision, services and workflow optimization solutions.

Asset Intelligence & Tracking

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They also include specialty printing for receipts and tickets for improved customer service and productivity gains.

Plastic cards are used for secure, reliable personal identification (e.g.

Our printers use thermal printing technology, which creates images by heating certain pixels of an electrical printhead to selectively image a ribbon or heat-sensitive substrate.

Our printers integrate company-designed mechanisms, electrical systems, and firmware that supports serial, parallel, Ethernet, USB, Bluetooth, or 802.11 wireless communications with appropriate security protocols.

Enclosures of metal or high-impact plastic help ensure durability of our printers.

Printing instructions can be received as a proprietary language such as Zebra Programming Language II, as a print driver-provided image, or as user-defined Extensible Markup Language.

These features make our printers easy to integrate into most computer systems.

We also provide dye-sublimination thermal card printers that produce high quality images and are used for secure, reliable personal identification (e.g.

state identification cards, drivers’ licenses, and healthcare identification cards), access control (e.g.

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credit, debit and ATM cards).

Our RFID printers and encoders are used to print and encode passive RFID labels.

Additionally, we provide RFID printers that encode data into passive RFID transponders embedded in a label or card.

We offer a wide range of accessories and options for our printers, including vehicle mounts and battery chargers.

We produce and sell stock and customized thermal labels, receipts, ribbons, plastic cards, and RFID tags suitable for use with our printers, and also wristbands which can be imaged in most commercial laser printers.

We support our printing products, resellers, and end-users with an extensive line of superior quality, high-performance supplies optimized to a particular end-user’s needs.

We produce and sell stock and customized thermal labels, receipts, ribbons, plastic cards, and RFID tags suitable for use with our printers, as well as wristbands for use in laser printers.

We support our printing products, resellers, and end-users with an extensive line of superior quality, high-performance supplies optimized to a particular end-user’s needs, such as chemical or abrasion resistance, extreme temperature environments, exceptional image quality, or long life.

We promote the use of supplies with our printing equipment.

Our supplies business also includes temperature-monitoring labels primarily used in vaccine distribution, as well as self-laminating wristbands for use in laser printers.

Our supplies business also includes temperature-monitoring labels primarily used in vaccine distribution, which incorporate chemical indicators designed to change color upon exceeding predefined time and/or temperature thresholds.

We provide a full range of maintenance, technical support, and repair services.

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Location Solutions:

The Company offers a range of RTLS and services which incorporate active and passive RFID and other tracking technologies to enable users to locate, track, manage, and optimize the utilization of enterprise assets and personnel.

The Company offers a range of RTLS and services that generate precise, on-demand information about the physical location and status of high-valued assets, equipment, and people.

These solutions incorporate active and passive RFID technologies, beacons, and other tracking technologies to enable users to locate, track, manage, and optimize the utilization of enterprise assets and personnel.

We provide substantially all elements of the location solution, including tags, sensors, exciters, middleware software, and application software.

Our location solutions are deployed primarily in manufacturing, aerospace, transportation and logistics, sports, and healthcare industries.

Retail Solutions:

The Company provides a range of physical inventory management solutions with application in the retail industry, including solutions for full store physical inventories, cycle counts, and analytics.

These solutions include the use of barcode scanners or RFID readers, along with connected software.

Enterprise Visibility & Mobility

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We design, manufacture, and sell rugged and enterprise-grade mobile computing products and accessories in a variety of specialized form factors and designs to meet a wide array of enterprise applications.

Purpose-built devices ensure reliable operations for targeted use cases, surviving years of rough handling and harsh environments.

Industrial applications include inventory management in warehouses and distribution centers;

field mobility applications include field service, post and parcel, and direct store delivery;

field mobility applications include field service, post and

parcel, and direct store delivery;

and retail and customer facing applications include e-commerce, omnichannel, mobile point of sale, inventory look-up, staff collaboration, and analytics.

Our products primarily incorporate the Android™ operating system and support local-area and wide-area voice and data communications.

Our mobile computing products often incorporate barcode scanning, global position system and RFID features, and other sensory capabilities.

We also provide related software tools, utilities, and applications.

Data Capture and RFID:

We design, manufacture, and sell barcode scanners, image capture devices, and RFID readers.

Our portfolio of barcode scanners includes laser scanning and imager products and form factors, including fixed, handheld, and embedded original equipment manufacturer (“OEM”) modules.

The Company’s data capture products capture business-critical information by decoding barcodes and images and transmitting the resulting data to enterprise systems for analysis and timely decision making.

Common applications include asset identification and tracking and workflow management in a variety of industries, including retail, transportation and logistics, manufacturing, and healthcare.

Our RFID line of data capture products is focused on ultra-high frequency (“UHF”) technology.

These RFID devices comply with the electronic product code (“EPC”) global Generation 2 UHF standard and similar standards around the world.

We also provide related accessories.

Our mobile computing products primarily incorporate the Android™ operating system and support local-area and wide-area voice and data communications.

Our products are also offered with software tools and services that enable secure data transmission while also supporting application development, device configuration, and field support to facilitate seamless, rapid deployment and maximum customer return on investment.

Our products often incorporate barcode scanning, global position system and RFID features, and other sensory capabilities.

Additionally, specialized features, such as advanced data capture technologies, data analytics technologies, voice and video collaboration tools, and advanced battery technologies, enable our customers to work more efficiently and better serve their own customers.

Data Capture, RFID, Fixed Industrial Scanning, and Machine Vision:

We design, manufacture, and sell barcode scanners, RFID readers, industrial machine vision cameras, and fixed industrial scanners.

Our portfolio of scanners includes laser scanning and imager products in a variety of form factors, including fixed, handheld, and embedded original equipment manufacturer (“OEM”) modules.

Our scanners incorporate a range of technologies including area imagers, linear imagers, and lasers, as well as read linear and two-dimensional barcodes.

They are used in a broad range of applications, ranging from supermarket checkouts to industrial warehouse optimization to patient management in hospitals.

The design of these products reflects the diverse needs of these markets, with different ergonomics, multiple communication protocols, and varying levels of ruggedness.

Our RFID products include fixed readers, RFID enabled mobile computers, and RFID sleds that utilize passive ultra-high frequency to provide high-speed, non-line of sight data capture from hundreds or thousands of RFID tags in near real-time.

Using the Electronic Product Code (“EPC”) standard, end-users across multiple industries use our RFID technology to track high-value assets, monitor shipments, and drive increased retail sales through improved inventory accuracy.

We also offer mobile computers that support high frequency near-field communications and low frequency radio technologies.

In 2021, we introduced fixed industrial scanning and machine vision solutions.

Our fixed industrial scanning products automatically track and trace items that move from production through distribution.

Our industrial machine vision cameras extend scanning capabilities to help provide quality inspection on product lines.

We also provide related software and accessories for these products.

We provide a full range of maintenance, technical support, and repair services.

We also provide managed and professional services that, among other things, help customers design, test, and deploy our solutions as well as manage their mobility devices, software applications and workflows.

Our offerings include cloud-based subscriptions with multiple service

levels, which are typically contracted through multi-year service agreements.

Our offerings include cloud-based subscriptions with multiple service levels, which are typically contracted through multi-year service agreements.

We provide our services directly and through our global network of partners.

Workflow optimization solutions:

We provide a portfolio of software-based solutions that help our customers analyze and act on data in real time, improving the agility and productivity of key operational workflows.

Our portfolio of offerings includes workforce management solutions, workflow execution and task management solutions;

prescriptive analytics solutions;

as well as communications and collaboration solutions.

Our primary focus is on frontline workers in Zebra’s core customer segments, including retail, transportation and logistics, and healthcare.

Our offerings include cloud-based subscriptions with multiple service levels, which are typically contracted through multi-period service agreements.

We sell and deliver our offerings both directly and through a set of systems integrators and other channel partners.

We provide a portfolio of solutions that help our customers improve the agility and productivity of key operational workflows by analyzing and acting on data in real time.

Our primary focus is on frontline workers in Zebra’s core customer segments, including retail, transportation and logistics, warehouse and distribution, and healthcare.

Our workflow optimization solutions include:

• Software-based solutions, which include workforce management, workflow execution and task management, demand-sensing, price optimization, prescriptive analytics, as well as communication and collaboration-based solutions.

Such solutions are typically delivered through cloud-based software subscriptions and leverage big data, artificial intelligence, and mobile and web applications to provide customers with real-time visibility and actionable insights about their business.

By analyzing labor, inventory, transactional and real-time situational data, these solutions are able to forecast demand, prescribe actions, schedule workers, and enhance collaboration.

Our software-based solutions are available with multiple service levels, and are often contracted through multi-year service agreements;

• Retail solutions, which include a range of physical inventory management solutions, including solutions for full store physical inventories, cycle counts, and analytics;

• Robotic automation solutions, which include software-powered autonomous robots that enable customers to orchestrate workflows alongside frontline workers, improving productivity and operational efficiency.

Our robotic automation solutions are available in a variety of form factors to accommodate many use cases.

Our Competitive Strengths

The following are core competitive strengths that we believe enable us to differentiate ourselves from our competitors:

An industry leader focused solely on improving enterprise operations

We are a market leader in the key technologies of EAI, including mobile computing, barcode and card printing, data capture, and RFID.

We also provide related software, services, and accessories.

An industry leader focused on improving enterprise workflows

We are focused on the key technology solutions of EAI that drive improved enterprise workflows, including mobile computing, barcode and card printing, data capture, RFID, fixed industrial scanning, machine vision, and workflow optimization solutions, along with related software, services, and accessories.

Our leadership position enables us to work with and support customers globally, in a variety of industries, who are focused on implementing leading-edge solutions.

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We are highly diversified across business segments, end markets, geographies, and customers.

Additionally, we have strong recurring business in services and supplies driven by an extensive global installed base of products.

Additionally, we have strong recurring business in services, supplies, and software driven by an extensive global installed base of purpose-built products and solutions.

Global reach and brand

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Scale advantages

We believe the size and scope of our operations, including market leadership, product development investment, portfolio breadth, and global distribution, give us advantages over our competitors.

We believe the size and scope of our operations, including market leadership, product and solution development investment, portfolio breadth, and global distribution, give us advantages over our competitors.

We believe we have the largest installed base of products compared to other companies in our industry.

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This includes increased focus on market segments and geographies that offer share-gain opportunities.

In addition, we plan to leverage our market-leading installed base to accelerate growth in attach-oriented products, including services, supplies, accessories, and software applications.

In addition, we plan to leverage our market-leading installed base to accelerate growth in attach-oriented offerings, including services, supplies, accessories, and software applications.

Our global channel partner network is vital to helping us achieve these goals.

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Advance our Enterprise Asset Intelligence vision

Our EAI vision is for every asset and worker to be connected, visible, and optimally utilized.

Our EAI vision is for every asset and front-line worker to be connected, visible, and fully optimized.

We believe that secular technology trends, particularly in IoT, cloud computing, intelligent automation, and mobility, advance our vision and are transforming our customers’ businesses and our industry, providing us with significant new opportunities to create value for our customers and for the Company.

We expect to capitalize on these trends, and in particular the proliferation of smart connected sensors and devices in our core market segments, by providing end-to-end solutions that integrate these sensors and devices with cloud-based workflows and analytics applications.

We plan to continue investing in the development of computer vision and other technologies that will enable intelligent automation solutions, providing increased visibility into the enterprise, real-time, actionable information, and improved customer experiences.

We plan to continue investing in the development of technologies that will enable intelligent automation solutions, providing increased visibility into the enterprise, real-time, actionable information, and improved customer experiences.

Our solutions will also increasingly include advanced features, functions, and user experiences to drive additional competitive differentiation and elevate our role as a solutions provider.

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Sustainable business model

Our corporate social responsibility priorities include human capital, resource conservation, and climate.

These foundational priorities include initiatives that align with our corporate values and strategic focus, and help to ensure that our business is sustainable.

Zebra’s foundational ESG priorities of human capital management, resource conservation, and climate align with our strategic focus and corporate values.

Initiatives within these priorities are advanced by our cross-functional Sustainability Council, with executive sponsorship and board oversight.

Our approach helps to ensure that our business is sustainable over the long term for the benefit of our primary stakeholder groups, including employees, customers, partners, and investors.

We are driving a high-performance, inclusive and diverse culture, striving to consistently be the employer of choice in the communities where we work and live.

We also focus on waste reduction, circular economy product innovation with certified refurbished devices, eco-packaging and sustainable product design.

Additionally, we are committed to science-based targets on carbon emission reductions in Zebra’s operations and throughout our value chain.

We operate in a highly competitive environment.

The need for companies to improve productivity and implement their strategies, as well as the secular trends around IoT, cloud computing, automation, and mobility, are some of the factors that are creating growth opportunities for established and new competitors.

The need for companies to improve productivity and implement their strategies, as well as the secular trends around IoT, cloud computing, intelligent automation, and mobility, are some of the factors that are creating growth opportunities for established and new competitors.

Key competitive factors include the breadth and quality of products, solutions and services, as well as pricing, design, performance, durability, geographic availability, warranty coverage, brand recognition, relationships with customers and channel partners, and company reputation.

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Datalogic, Honeywell, and Panasonic.

Data Capture and RFID :

Data Capture, RFID, Fixed Industrial Scanning, and Machine Vision :

Competitors that provide a broad portfolio of barcode scanning products and related services that are suitable for most global market applications include Datalogic and Honeywell.

We also compete against smaller companies that focus on limited product subsets or specific regions, including Fujian Newland and Impinj.

We also compete against smaller companies that focus on limited product subsets or specific regions, including Newland and Impinj.

Competitors in our fixed industrial scanning and machine vision business include Cognex, SICK, and Keyence.

Barcode and Card Printing :

We consider our direct competition in printing to be producers of on-demand thermal transfer and direct thermal label fixed and mobile printing systems and RFID printer/encoders.

We consider our direct competition in printing to be producers of on-demand thermal transfer and direct thermal label fixed and mobile printing systems and RFID printers/encoders.

We also compete with companies engaged in the design, manufacture, and marketing of printing systems that use technologies such as ink-jet, direct marking and laser printing, as well as card printers based on ink-jet, thermal transfer, embossing, film-based systems, encoders, laser engraving, and large-scale dye sublimation printers.

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Competitors include:

Fargo Electronics (a unit of HID Global), Honeywell, Sato, and Toshiba TEC.

Fargo Electronics (a unit of HID Global), Honeywell, Sato, Toshiba TEC, TSC, Brother, and Dymo.

The supplies industry is highly fragmented with competition comprised of numerous companies of various sizes around the world.

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Workflow optimization solutions:

We compete with a diverse and varied group of companies across our solution offerings.

Competitors include:

Ceridian, Cisco, Kronos, Theatro, and Workjam.

We compete with a diverse and varied group of companies across our solution offerings worldwide.

Competitors range from providers of software-based solutions serving customers in the retail industry to providers of autonomous mobile robot solutions serving customers in the manufacturing, distribution, and fulfillment industries.

End-users of our products, solutions and services are diversified across a wide variety of industries.

We have had three customers that each accounted for 10% or more of our Net sales over the past three years.

All three of these customers are distributors and not end-users.

No end-user has accounted for 10% or more of our Net sales during these years.

We have three customers, who are distributors of the Company’s products and solutions, that individually accounted for more than 10% of our Net sales during the past three years.

No other customer accounted for more than 10% of our Net sales during these years.

See Note 20, Segment Information & Geographic Data in the Notes to Consolidated Financial Statements for further information.

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Sales and Marketing

We sell our products, solutions, and services primarily through distributors (two-tier distribution), value added resellers (“VARs”), independent software vendors (“ISVs”), direct marketers, and OEMs.

We also sell directly to a select number of customers through our direct sales force.

We sell our products and services primarily through distributors (two-tier distribution), value added resellers (“VARs”), independent software vendors (“ISVs”), direct marketers, and OEMs, and our software solutions primarily through our direct sales force.

We also sell our products and services directly to a select number of customers through our direct sales force.

Distributors purchase our products and sell to VARs, ISVs and others, thereby increasing the distribution of our products globally.

VARs, ISVs, OEMs, and systems integrators provide customers with a variety of hardware, accessories, software applications, and services.

VARs, ISVs, OEMs, and systems integrators provide end users with a variety of hardware, accessories, software applications, and services.

VARs and ISVs typically customize solutions for specific end-user applications using their industry, systems, and applications expertise.

Some OEMs resell the Zebra-manufactured products under their own brands as part of their own product offering.

Because these sales channels provide specific software, configuration, installation, integration, and support services to end-users within various industry segments, these relationships are highly valued by end-users and allow our products to reach customers in a wide array of industries around the world.

Some OEMs resell Zebra-manufactured products and solutions under their own brands as part of their own product offerings.

Because these sales channels provide specific software, configuration, installation, integration, and support services to end-users within various industry segments, these relationships are highly valued and allow our products to reach end users in a wide array of industries around the world.

We believe that the breadth of our distributor and channel partner network is a competitive differentiator and enhances our ability to compete.

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We maintain control over portions of the supply chain, including supplier selection and price negotiations for key components.

The manufacturers purchase the components and subassemblies used in the production of our products.

The manufacturers generally purchase all the components and subassemblies used in the production of our products.

Our products are shipped to regional distribution centers, operated by third party logistics providers or the Company.

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Research and development expenditures for the years ended 2021, 2020, and 2019 were $567 million, $453 million, and $447 million, or 10.1%, 10.2% and 10.0% of Net sales, respectively.

We have approximately 2,400 engineers and innovation and design experts worldwide focused on strengthening and broadening our extensive portfolio of products and solutions.

Our Technology

Mobile Computing :

Our mobile computing products incorporate a wide array of advanced technologies in rugged, ergonomic enclosures to meet the needs of specific use cases.

Purpose-built rugged devices ensure reliable operations for targeted use cases, surviving years of rough handling and harsh environments.

A broad portfolio of enterprise accessories further tailors mobile computers to meet a wide variety of enterprise use cases.

Our mobile computers include hardened industry-standard operating systems with software features to facilitate customers’ mission-critical applications and ensure secure data transmission.

Our mobile computers are also offered with software tools and services that support application development, device configuration, and field support to facilitate smooth and rapid deployment and ensure maximum customer return on investment.

Additionally, specialized features such as advanced data capture technologies, data analytics technologies, voice and video collaboration tools, and advanced battery technologies enable our customers to work more efficiently and better serve their customers.

Data Capture and RFID :

Our data capture products allow businesses to track business critical information quickly and accurately by providing real-time visibility into business processes and performance.

These products include barcode scanners in a variety of form factors, including fixed and handheld scanners and standalone modules designed for integration into third-party OEM devices.

Our scanners incorporate a variety of technologies including area imagers, linear imagers, lasers, and read linear, and two-dimensional barcodes.

They are used in a broad range of applications, ranging from supermarket checkout to industrial warehouse optimization to patient management in hospitals.

The design of these products reflects the diverse needs of these markets, with different ergonomics, multiple communication protocols, and varying levels of ruggedness.

Our RFID products include fixed readers, RFID enabled mobile computers, and RFID sleds.

These utilize passive UHF to provide high speed, non-line of sight data capture from hundreds or thousands of RFID tags in near real-time.

Using the EPC standard, end-users across multiple industries take advantage of RFID technology to track high-value assets, monitor shipments, and drive increased retail sales though improved inventory accuracy.

We also offer mobile computers that support high frequency (“HF”) near-field communications (“NFC”) and low frequency (“LF”) radio technologies.

Barcode and Card Printing:

The Company’s printers and print engines incorporate thermal printing technology.

This technology creates an image by heating certain pixels of an electrical printhead to selectively image a ribbon or heat-sensitive substrate.

Thermal printing benefits applications requiring simple and reliable operations, yet it is flexible enough to support a wide range of specialty label materials and associated inks.

Our dye-sublimation thermal card printers produce full-color, photographic quality images that are well-suited for driver’s licenses, access and identification cards, transaction cards, and on-demand photographs.

Many of our printers also incorporate RFID technology that can encode data into passive RFID transponders embedded in a label or card.

The Company’s printers integrate company-designed mechanisms, electrical systems, and firmware.

Enclosures of metal or high-impact plastic ensure the durability of our printers.

Special mechanisms optimize handling of labels, ribbons, and plastic cards.

Fast, high-current electrical systems provide consistent image quality.

Firmware supports serial, parallel, Ethernet, USB, Bluetooth, or 802.11 wireless communications with appropriate security protocols.

Printing instructions can be received as a proprietary language such as Zebra Programming Language II (“ZPL II ® ” ), as a print driver-provided image, or as user-defined Extensible Markup Language (“XML”).

These features make our printers easy to integrate into virtually all common computer systems.

Location Solutions :

We offer a range of scalable RTLS technologies that generate precise, on-demand information about the physical location and status of high-valued assets.

These solutions use active and passive RFID technologies, beacons, and other tracking technologies to locate, track, manage, and optimize high-value assets, equipment, and people.

In addition, we offer a selection of RTLS infrastructure products that receive tag transmissions and provide location and motion calculations, database and system management functions, and asset visibility.

The flexible infrastructure supports large tag populations and a range of coverage areas.

Our supplies business includes thermal labels, receipts, ribbons, plastic cards and wristbands suitable for use with our printers, and wristbands which can be imaged in most commercial laser printers.

Our wristbands incorporate multi-layer form technology to ensure trouble-free printing, wearer comfort, and reliable barcode reading, even when exposed to harsh chemical environments.

We offer many thermal and RFID labels, card, and receipt materials, and matching ribbons for diverse applications that may require meeting unique or precise specifications, including chemical or abrasion resistance, extreme temperatures, exceptional image quality, or long life.

Also included within our supplies business are temperature monitoring labels, which incorporate chemical indicators that are designed to change color upon exceeding predefined time and/or temperature thresholds.

Workflow optimization solutions:

Our workflow optimization solutions are delivered via a hybrid cloud platform and leverage big data, artificial intelligence and mobile/web applications to provide customers with real-time visibility and actionable insights about their business.

By analyzing labor, inventory, transactional and real-time situational data, our solutions are able to forecast demand, prescribe actions, schedule workers, and enhance collaboration.

Worldwide, we have employed approximately 2,800 engineers and innovation and design experts, who along with contractors, are focused on strengthening and broadening our extensive portfolio of products and solutions.

Intellectual Property

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The Company is committed to attracting, developing, and retaining talent to enable our strategic vision.

This commitment directly shapes our approach to fostering a culture of inclusion and diversity and ensuring each employee can reach their potential.

This commitment directly shapes our approach to fostering a culture of inclusion and diversity and ensuring employees can reach their potential.

We believe that our strong Company culture is a key enabler of our success.

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In addition, we believe our compensation structure aligns with our stockholders’ long-term interests by balancing profitability and growth, as well as current market practices, and reflects the Company’s commitment to pay for performance.

In 2021, the Company conducted an employee survey focused on return to office initiatives, and created a new hybrid work model in response to employee feedback.

In addition, we implemented new programs and resources to foster employee well-being.

As recognition of the Company’s strong culture and commitment to its employees, the Company was named a top workplace by a number of organizations in 2021, including Forbes , Newsweek , Chicago Tribune , ComputerWorld and Long Island Press among others.

As of December 31, 2021, the Company had approximately 9,800 employees globally, with a majority in sales and technical roles.

Our employees reside in 54 countries with a majority of our employees located outside of the U.S.

Our employees work in 55 countries with a majority of our employees located outside of the U.S.

Some portions of our business, primarily in Europe, China, and India, are subject to labor laws that differ significantly from those in the U.S.

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We also offer annual training and certification programs.

Additionally, we conduct a robust talent review to assess our leadership pipeline and align on the skills we need to proactively develop for the future.

Additionally, on an annual basis, we conduct a comprehensive talent review to assess our leadership pipeline and align on the skills we need to proactively develop employees for the future.

This annual exercise is complemented by quarterly sessions with management to ensure we make progress on our critical talent development efforts throughout the year.

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We believe a diverse workforce and inclusive culture fosters innovation at the Company.

We expanded our Inclusion & Diversity program in 2020, after formalizing the program in 2018.

In 2020 we also launched our Inclusion & Diversity Advisory Council, comprised of Executive Leadership Team members and others from across the organization to oversee our strategy and champion our efforts.

Our Chief Executive Officer has expressed support for diversity efforts by personally signing a commitment with the CEO Action for Diversity & Inclusion, the Business Roundtable, and The Valuable 500.

We believe that to realize our inclusion and diversity vision, all employees should be engaged in promoting and actively driving inclusion and diversity.

In 2020, we expanded our Inclusion & Diversity program, after formalizing the program in 2018, and launched our Inclusion & Diversity Advisory Council, comprised of Executive Leadership Team members and others from across the organization to oversee our strategy and champion our efforts.

In 2021, we continued to expand our inclusion and diversity efforts by launching our Inclusion Champions program, which is comprised of employees who help to support key inclusion and diversity objectives and act as role models for inclusive behaviors.

We also introduced formal inclusion and diversity goals for all people leaders and strongly encouraged all employees to create inclusion and diversity goals.

The Company is also fostering inclusion and diversity through the following mechanisms:

• Inclusion Networks:

We have a number of employee-led inclusion groups including the Women’s Inclusion Network (WIN), the LGBTQ+ group called ZEAL (Zebra Equality Alliance), the Veterans group called VETZ, the Hispanic

Inclusion Network called UNIDOZ, Zebras of African Descent (ZAD), and EDGE (Empowering Dynamic Generational Employees), which is geared towards our Millennial and Gen Z early career professionals.

We have a number of employee-led inclusion groups including the Women’s Inclusion Network (WIN), the LGBTQ+ group called ZEAL (Zebra Equality Alliance), the Veterans group called VETZ, the Hispanic Inclusion Network called UNIDOZ, Zebras of African Descent (ZAD), a group advocating for inclusion and

accessibility for people of all abilities called ZoAA (Zebras of All Abilities), Asians and Allies (A2Z), and EDGE (Empowering Dynamic Generational Employees) which is geared towards our Millennial and Gen Z early career professionals.

Each group is sponsored by one or more members of our Executive Leadership Team.

We have collaborated with some of our inclusion groups to offer structured mentorship programs to focus on developing diverse talent.

• Imbedding Inclusive Behaviors :

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Additionally, our Inclusion Networks host a wide variety of events focused on increasing cultural competency.

In 2021, we also launched additional diversity and inclusion learning tools and resources, including discussion forums and on-demand learning geared specifically on allyship.

• External Outreach :

We leverage technology to remove gendered language from job postings to attract a diverse pool of applicants.

We also strive to create a diverse slate of candidates wherever possible, with additional emphasis on our director level roles and above.

We have established partnerships with Catalyst, Society of Women Engineers (SWE), National Society of Black Engineers (NSBE), Disability IN, as well as Historically Black Colleges and Universities to enhance our recruitment efforts and deepen our partnerships with diverse talent.

The Company has set aspirational program goals, striving to increase the representation of women and ethnic racial minority groups across the entire organization, including in leadership roles (director level and above).

To support these goals, we create a diverse slate of candidates wherever possible, with additional emphasis on our director level roles and above.

We have established talent acquisition partnerships with organizations such as Catalyst, Society of Women Engineers (SWE), National Society of Black Engineers (NSBE), Disability IN, Hispanic Alliance for Career Enhancement (HACE), Hiring our Heroes (HOH), Out in STEM (oSTEM), as well as Historically Black Colleges and Universities to enhance our recruitment efforts and deepen our partnerships with diverse talent.

Regulatory Matters

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Consequently, our results of operations could be positively or negatively affected by the rules and regulations adopted from time-to-time by the FCC, NTIA, or regulatory agencies in other countries.

Our products operate both on licensed and unlicensed spectrum.

Our products operate both on the licensed and unlicensed spectrum.

The availability of additional radio spectrum may provide new business opportunities, and consequently, the loss of available radio spectrum may result in the loss of business opportunities.

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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 1. Business