ZEBRA TECHNOLOGIES CORP, 10-Q filed on 4/29/2025
Quarterly Report
v3.25.1
Cover - shares
 3 Months Ended
Mar. 29, 2025
Apr. 22, 2025
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 29, 2025  
Document Transition Report false  
Entity File Number 000-19406  
Entity Registrant Name Zebra Technologies Corporation  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 36-2675536  
Entity Address, Address Line One 3 Overlook Point  
Entity Address, City or Town Lincolnshire  
Entity Address, State or Province IL  
Entity Address, Postal Zip Code 60069  
City Area Code 847  
Local Phone Number 634-6700  
Title of 12(b) Security Class A Common Stock, par value $.01 per share  
Trading Symbol ZBRA  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   50,854,327
Amendment Flag false  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0000877212  
Current Fiscal Year End Date --12-31  
v3.25.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Mar. 29, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 879 $ 901
Accounts receivable, net of allowances for doubtful accounts of $1 each as of March 29, 2025 and December 31, 2024 617 692
Inventories, net 681 693
Income tax receivable 20 20
Prepaid expenses and other current assets 94 134
Total Current assets 2,291 2,440
Property, plant and equipment, net 309 305
Right-of-use lease assets 165 167
Goodwill 3,927 3,891
Other intangibles, net 423 422
Deferred income taxes 545 512
Other long-term assets 239 231
Total Assets 7,899 7,968
Current liabilities:    
Current portion of long-term debt 69 79
Accounts payable 559 633
Accrued liabilities 411 503
Deferred revenue 464 453
Income taxes payable 78 36
Total Current liabilities 1,581 1,704
Long-term debt 2,103 2,092
Long-term lease liabilities 153 155
Deferred income taxes 57 57
Long-term deferred revenue 309 304
Other long-term liabilities 70 70
Total Liabilities 4,273 4,382
Stockholders’ Equity:    
Preferred stock, $.01 par value; authorized 10,000,000 shares; none issued 0 0
Class A common stock, $.01 par value; authorized 150,000,000 shares; issued 72,151,857 shares 1 1
Additional paid-in capital 719 669
Treasury stock at cost, 21,013,606 and 20,645,798 shares as of March 29, 2025 and December 31, 2024, respectively (2,025) (1,900)
Retained earnings 4,996 4,860
Accumulated other comprehensive loss (65) (44)
Total Stockholders’ Equity 3,626 3,586
Total Liabilities and Stockholders’ Equity $ 7,899 $ 7,968
v3.25.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Mar. 29, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 1 $ 1
Preferred stock, par value (in USD per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Common stock, par value (in USD per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 150,000,000 150,000,000
Common stock, shares issued (in shares) 72,151,857 72,151,857
Treasury stock, shares (in shares) 21,013,606 20,645,798
v3.25.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Net sales:    
Total Net sales $ 1,308 $ 1,175
Cost of sales:    
Total Cost of sales 663 612
Gross profit 645 563
Operating expenses:    
Selling and marketing 161 148
Research and development 151 138
General and administrative 111 81
Amortization of intangible assets 24 26
Acquisition and integration costs 3 1
Exit and restructuring costs 0 10
Total Operating expenses 450 404
Operating income 195 159
Other (loss) income, net:    
Foreign exchange (loss) gain (5) 3
Interest expense, net (23) (17)
Other expense, net (2) (3)
Total Other expense, net (30) (17)
Income before income tax 165 142
Income tax expense 29 27
Net income $ 136 $ 115
Basic earnings per share (in USD per share) $ 2.64 $ 2.24
Diluted earnings per share (in USD per share) $ 2.62 $ 2.23
Tangible Products    
Net sales:    
Total Net sales $ 1,062 $ 929
Cost of sales:    
Total Cost of sales 542 498
Services and Software    
Net sales:    
Total Net sales 246 246
Cost of sales:    
Total Cost of sales $ 121 $ 114
v3.25.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Statement of Comprehensive Income [Abstract]    
Net income $ 136 $ 115
Other comprehensive income, net of tax:    
Changes in unrealized gains (losses) on sales hedging (28) 9
Foreign currency translation adjustment 7 (5)
Comprehensive income $ 115 $ 119
v3.25.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Millions
Total
Class A Common Stock
Additional Paid-in Capital
Treasury Stock
Retained Earnings
Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2023   51,378,862        
Beginning balance at Dec. 31, 2023 $ 3,036 $ 1 $ 615 $ (1,858) $ 4,332 $ (54)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuances of treasury shares related to share based-compensation plans, net of forfeitures (in shares)   21,106        
Net share issuances and tax withholding payments related to share-based compensation plans (3)   (3)      
Share-based compensation 17   17      
Net income (loss) 115       115  
Changes in unrealized gains and losses on sales hedging (net of income taxes) 9         9
Foreign currency translation adjustment (5)         (5)
Ending balance (in shares) at Mar. 30, 2024   51,399,968        
Ending balance at Mar. 30, 2024 3,169 $ 1 629 (1,858) 4,447 (50)
Beginning balance (in shares) at Dec. 31, 2024   51,506,059        
Beginning balance at Dec. 31, 2024 3,586 $ 1 669 (1,900) 4,860 (44)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuances of treasury shares related to share based-compensation plans, net of forfeitures (in shares)   6,550        
Net share issuances and tax withholding payments related to share-based compensation plans (1)   (1)      
Share-based compensation 51   51      
Repurchase of common stock (in shares)   (374,358)        
Repurchase of common stock (125)     (125)    
Net income (loss) 136       136  
Changes in unrealized gains and losses on sales hedging (net of income taxes) (28)         (28)
Foreign currency translation adjustment 7         7
Ending balance (in shares) at Mar. 29, 2025   51,138,251        
Ending balance at Mar. 29, 2025 $ 3,626 $ 1 $ 719 $ (2,025) $ 4,996 $ (65)
v3.25.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Cash flows from operating activities:    
Net income $ 136 $ 115
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 41 43
Share-based compensation 51 17
Deferred income taxes (23) (21)
Unrealized gain on forward interest rate swaps 0 (20)
Other, net 1 1
Changes in operating assets and liabilities:    
Accounts receivable, net 84 (80)
Inventories, net 15 98
Other assets 3 (9)
Accounts payable (76) 13
Accrued liabilities (110) (28)
Deferred revenue 16 (9)
Income taxes 42 43
Settlement liability 0 (45)
Cash receipts on forward interest rate swaps 0 7
Other operating activities (2) 0
Net cash provided by operating activities 178 125
Cash flows from investing activities:    
Acquisition of businesses (62) 0
Purchases of property, plant and equipment (20) (14)
Proceeds from sale of short-term investments 0 3
Net cash used in investing activities (82) (11)
Cash flows from financing activities:    
Payments of debt 0 (284)
Proceeds from issuance of debt 0 151
Payments for repurchases of common stock (125) 0
Net payments related to share-based compensation plans (1) (3)
Change in unremitted cash collections from servicing factored receivables 2 9
Other financing activities 5 3
Net cash used in financing activities (119) (124)
Effect of exchange rate changes on cash and cash equivalents, including restricted cash 1 (1)
Net decrease in cash and cash equivalents, including restricted cash (22) (11)
Cash and cash equivalents, including restricted cash, at beginning of period 901 138
Cash and cash equivalents, including restricted cash, at end of period 879 127
Less restricted cash, included in Prepaid expenses and other current assets 0 0
Cash and cash equivalents at end of period 879 127
Supplemental disclosures of cash flow information:    
Income taxes paid 9 3
Interest paid inclusive of forward interest rate swaps $ 16 $ 30
v3.25.1
Description of Business and Basis of Presentation
 3 Months Ended
Mar. 29, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Basis of Presentation Description of Business and Basis of Presentation
Zebra Technologies Corporation and its subsidiaries (“Zebra” or the “Company”) is a global leader providing innovative Enterprise Asset Intelligence (“EAI”) products, services, and software solutions (“offerings”) in the automatic identification and data capture industry. We design, manufacture, and sell a broad range of offerings, including cloud-based software subscriptions, that capture and move data. We also provide a full range of services, including maintenance, technical support, repair, managed and professional services. End-users of our offerings include those in retail and e-commerce, manufacturing, transportation and logistics, healthcare, public sector, and other industries. We provide our offerings globally through a direct sales force and an extensive network of channel partners.

Management prepared these unaudited interim consolidated financial statements according to the rules and regulations of the Securities and Exchange Commission for interim financial information and notes. As permitted under Article 10 of Regulation S-X and the instructions of Form 10-Q, these consolidated financial statements do not include all the information and notes required by United States Generally Accepted Accounting Principles (“GAAP”) for complete financial statements, although management believes that the disclosures made are adequate to make the information not misleading. These interim financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

In the opinion of the Company, these interim financial statements include all adjustments (of a normal, recurring nature) necessary to fairly present its Consolidated Balance Sheet as of March 29, 2025, the Consolidated Statements of Operations, Comprehensive Income, Stockholders’ Equity, and Cash Flows for the three months ended March 29, 2025 and March 30, 2024. These results, however, are not necessarily indicative of the results expected for the full fiscal year ending December 31, 2025.
v3.25.1
Significant Accounting Policies
 3 Months Ended
Mar. 29, 2025
Accounting Policies [Abstract]  
Significant Accounting Policies Significant Accounting Policies
For a discussion of our significant accounting policies, see Note 2, Significant Accounting Policies within Part II, Item 8 “Financial Statements and Supplementary Data” in the Annual Report on Form 10-K for the year ended December 31, 2024. There have been no changes to our significant accounting policies since our Annual Report on Form 10-K for the year ended December 31, 2024.
v3.25.1
Revenues
 3 Months Ended
Mar. 29, 2025
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The Company recognizes revenue to depict the transfer of goods, solutions or services to a customer at an amount that reflects the consideration which it expects to receive for providing those goods, solutions or services.

Revenues for tangible products are generally recognized upon shipment, whereas revenues for services and solution offerings are generally recognized over time by using an output or time-based method, assuming all other criteria for revenue recognition have been met. Revenues for software are recognized either upon delivery or over time using a time-based method, depending on how control is transferred to the customer. In cases where a bundle of products, services, solutions and/or software are delivered to the customer, judgment is required to select the method of progress which best reflects the transfer of control.

Disaggregation of Revenue
The following table presents our Net sales disaggregated by product category for each of our segments (in millions):

Three Months Ended
March 29, 2025March 30, 2024
SegmentTangible ProductsServices and SoftwareTotalTangible ProductsServices and SoftwareTotal
AIT$432 $30 $462 $365 $27 $392 
EVM630 216 846 564 219 783 
Total$1,062 $246 $1,308 $929 $246 $1,175 
In addition, refer to Note 17, Segment Information & Geographic Data for Net sales to customers by geographic region.

Performance Obligations
The Company’s remaining performance obligations relate to services and software solutions. The aggregated transaction price allocated to remaining performance obligations for arrangements with an original term exceeding one year was $1.18 billion and $1.19 billion, inclusive of deferred revenue, as of March 29, 2025 and December 31, 2024, respectively. On average, remaining performance obligations as of March 29, 2025 and December 31, 2024 are expected to be recognized over a period of approximately two years.

Contract Balances
Progress on satisfying performance obligations under contracts with customers related to billed revenues is reflected on the Consolidated Balance Sheets in Accounts receivable, net. Progress on satisfying performance obligations under contracts with customers related to unbilled revenues (“contract assets”) is reflected on the Consolidated Balance Sheets as Prepaid expenses and other current assets for revenues expected to be billed within the next twelve months, and Other long-term assets for revenues expected to be billed thereafter. The total contract asset balances were $9 million and $11 million as of March 29, 2025 and December 31, 2024, respectively. These contract assets result from timing differences between billing and satisfying performance obligations, as well as the impact from the allocation of the transaction price among performance obligations for contracts that include multiple performance obligations. Contract assets are evaluated for impairment, and no impairment losses have been recognized during the three months ended March 29, 2025 and March 30, 2024, respectively.

Deferred revenue on the Consolidated Balance Sheets consists of payments and billings in advance of our performance. The combined short-term and long-term deferred revenue balances were $773 million and $757 million as of March 29, 2025 and December 31, 2024, respectively. During the three months ended March 29, 2025, the Company recognized $141 million in revenue, which was previously included in the beginning balance of deferred revenue as of December 31, 2024. During the three months ended March 30, 2024, the Company recognized $146 million in revenue, which was previously included in the beginning balance of deferred revenue as of December 31, 2023.
v3.25.1
Inventories
 3 Months Ended
Mar. 29, 2025
Inventory Disclosure [Abstract]  
Inventories Inventories
The categories of Inventories, net are as follows (in millions): 
 March 29,
2025		December 31,
2024
Raw materials (1)
$250 $248 
Work in process3 4 
Finished goods428 441 
Total Inventories, net$681 $693 

(1) Raw material inventories primarily consist of product components as well as supplies used in repair operations.
v3.25.1
Business Acquisitions
 3 Months Ended
Mar. 29, 2025
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Business Acquisitions Business Acquisitions
Photoneo
On February 28, 2025, the Company acquired Photoneo, a leading developer and manufacturer of 3D machine vision offerings. The Company’s cash purchase consideration of $62 million was primarily allocated to technology-related intangible assets of $17 million, customer relationship assets of $6 million, and goodwill of $34 million. The technology-related intangible assets and customer relationship assets both have estimated useful lives of 7 years. The Company utilized estimated fair values as of the acquisition date to allocate the purchase consideration to the identifiable net assets acquired based on estimates and assumptions, as well as customary valuation techniques. While we believe these estimates provide a reasonable basis to record the net assets acquired, the purchase price allocation is considered preliminary and subject to adjustment during the measurement period, which is up to one year from the acquisition date.

The goodwill, which will be deductible for tax purposes, has been allocated to the EVM segment and principally relates to the expansion of our machine vision offerings across several industries.
v3.25.1
Investments
 3 Months Ended
Mar. 29, 2025
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
The carrying value of the Company’s long-term investments, which are included in Other long-term assets on the Consolidated Balance Sheets, was $110 million as of both March 29, 2025 and December 31, 2024.

The Company did not make any payments for the purchase of long-term investments during the three months ended March 29, 2025 or March 30, 2024. Net gains and losses related to the Company’s long-term investments are included within Other expense, net on the Consolidated Statements of Operations. No net gains or losses were recorded during the three months ended March 29, 2025 or March 30, 2024.
v3.25.1
Fair Value Measurements
 3 Months Ended
Mar. 29, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Financial assets and liabilities are measured using inputs from three levels of the fair value hierarchy in accordance with Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into the following three broad levels:
•Level 1: Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs (e.g. U.S. Treasuries and money market funds).
•Level 2: Observable prices that are based on inputs not quoted in active markets but corroborated by market data.
•Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs. In addition, the Company considers counterparty credit risk in the assessment of fair value.
The Company’s financial assets and liabilities carried at fair value as of March 29, 2025, are classified below (in millions):
 Level 1Level 2Level 3Total
Assets:
Investments related to the deferred compensation plan$42 $— $— $42 
Total Assets at fair value$42 $— $— $42 
Liabilities:
Foreign exchange contracts (1)
$7 $8 $— $15 
Liabilities related to the deferred compensation plan42 — — 42 
Total Liabilities at fair value$49 $8 $— $57 
The Company’s financial assets and liabilities carried at fair value as of December 31, 2024, are classified below (in millions):
Level 1Level 2Level 3Total
Assets:
Foreign exchange contracts (1)
$1 $30 $— $31 
Investments related to the deferred compensation plan41 — — 41 
Total Assets at fair value$42 $30 $— $72 
Liabilities:
Liabilities related to the deferred compensation plan$41 $— $— $41 
Total Liabilities at fair value$41 $— $— $41 

(1)The fair value of the foreign exchange contracts is calculated as follows:
•Fair value of forward contracts associated with forecasted sales hedges is calculated using the period-end exchange rate adjusted for current forward points.
•Fair value of hedges against net assets denominated in foreign currencies is calculated at the period-end exchange rate adjusted for current forward points unless the hedge has been traded but not settled at period-end (Level 2). If this is the case, the fair value is calculated at the rate at which the hedge is being settled (Level 1).
v3.25.1
Derivative Instruments
 3 Months Ended
Mar. 29, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
In the normal course of business, the Company is exposed to global market risks, including the effects of changes in foreign currency exchange rates and interest rates. The Company uses derivative instruments to manage its exposure to such risks and may elect to designate certain derivatives as hedging instruments under ASC Topic 815, Derivatives and Hedging (“ASC 815”). The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions. The Company does not hold or issue derivatives for trading or speculative purposes.

In accordance with ASC 815, the Company recognizes derivative instruments as either assets or liabilities on the Consolidated Balance Sheets and measures them at fair value. The following table presents the fair value of its derivative instruments (in millions):
Asset (Liability)
Fair Values as of
Balance Sheets ClassificationMarch 29,
2025		December 31,
2024
Derivative instruments designated as hedges:
    Foreign exchange contractsPrepaid expenses and other current assets$— $30 
    Foreign exchange contractsAccrued liabilities(8)— 
Total derivative instruments designated as hedges$(8)$30 
Derivative instruments not designated as hedges:
    Foreign exchange contractsPrepaid expenses and other current assets$— $1 
    Foreign exchange contractsAccrued liabilities(7)— 
Total derivative instruments not designated as hedges$(7)$1 
Total net derivative (liability) asset$(15)$31 
The following table presents the net gains (losses) from changes in fair values of derivatives that are not designated as hedges (in millions):
Gains (Losses) Recognized in Income
 Three Months Ended
Statements of Operations ClassificationMarch 29,
2025		March 30,
2024
Derivative instruments not designated as hedges:
Foreign exchange contractsForeign exchange (loss) gain$(8)$1 
Forward interest rate swapsInterest expense, net— 20 
Total net (loss) gain recognized in income$(8)$21 

Activities related to derivative instruments are reflected within Net cash provided by operating activities on the Consolidated Statements of Cash Flows.

Interest Rate Risk Management
The Company is exposed to market risk associated with interest rate payments on its borrowings under a term loan (“Term Loan A”), Revolving Credit Facility, and Receivables Financing Facilities, which bear interest at variable rates plus applicable margins. The Company manages its exposure to changes in interest rates by issuing both fixed and variable rate borrowings as well as periodically utilizing interest rate swaps to economically hedge interest rate exposure based on current and projected market conditions.
Credit and Market Risk Management
Financial instruments, including derivatives, expose the Company to counterparty credit risk of nonperformance and to market risk related to currency exchange rate and interest rate fluctuations. The Company manages its exposure to counterparty credit risk by establishing minimum credit standards, diversifying its counterparties, and monitoring its concentrations of credit. The Company’s counterparties are commercial banks with expertise in derivative financial instruments. The Company evaluates the impact of market risk on the fair value and cash flows of its derivative and other financial instruments by considering reasonably possible changes in interest rates and currency exchange rates. The Company continually monitors the creditworthiness of the customers to which it grants credit terms in the normal course of business. The terms and conditions of the Company’s credit policies are designed to mitigate concentrations of credit risk.

The Company’s master netting and other similar arrangements with the respective counterparties allow for net settlement under certain conditions, which are designed to reduce credit risk by permitting net settlement with the same counterparty. We present the assets and liabilities of our derivative financial instruments, for which we have net settlement agreements in place, on a net basis on the Consolidated Balance Sheets. If the derivative financial instruments had been presented gross on the Consolidated Balance Sheets, the asset and liability positions would not have been significant as of March 29, 2025 or December 31, 2024.

Foreign Currency Exchange Risk Management
The Company conducts business on a multinational basis in a variety of foreign currencies. Exposure to market risk for changes in foreign currency exchange rates arises primarily from Euro-denominated external revenues, cross-border financing activities between subsidiaries, and foreign currency denominated monetary assets and liabilities. The Company manages its objective of preserving the economic value of non-functional currency denominated cash flows by initially hedging transaction exposures with natural offsets and, once these opportunities have been exhausted, through foreign exchange forward and option contracts, as deemed appropriate.

The Company manages the exchange rate risk of anticipated Euro-denominated sales using forward contracts, which typically mature within twelve months of execution. The Company designates these derivative contracts as cash flow hedges. Unrealized gains and losses on these contracts are deferred in Accumulated other comprehensive income (loss) (“AOCI”) on the Consolidated Balance Sheets until the contract is settled and the hedged sale is realized. The realized gain or loss is then recorded as an adjustment to Net sales on the Consolidated Statements of Operations. Realized amounts reclassified to Net sales were $9 million and $1 million of gains for the three months ended March 29, 2025 and March 30, 2024, respectively. As of March 29, 2025 and December 31, 2024, the notional amounts of the Company’s foreign exchange cash flow hedges were €742 million and €592 million, respectively. The Company has reviewed its cash flow hedges for effectiveness and determined that they are highly effective.

The Company uses forward contracts, which are not designated as hedging instruments, to manage its exposures related to net assets denominated in foreign currencies. These forward contracts typically mature within one month after execution. Monetary gains and losses on these forward contracts are recorded in income and are generally offset by the transaction gains and losses related to their net asset positions. The notional values and the net fair values of these outstanding contracts were as follows (in millions):
 March 29,
2025		December 31,
2024
Notional balance of outstanding contracts:
British Pound/U.S. Dollar£16 £5 
Euro/U.S. Dollar€178 €146 
Euro/Czech Koruna€14 €16 
Japanese Yen/U.S. Dollar¥173 ¥360 
Singapore Dollar/U.S. DollarS$22 S$23 
Mexican Peso/U.S. DollarMex$204 Mex$142 
Polish Zloty/U.S. Dollarzł74 zł53 
Net fair value of assets of outstanding contracts$7 $1 
v3.25.1
Long-Term Debt
 3 Months Ended
Mar. 29, 2025
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
The following table shows the carrying value of the Company’s debt (in millions):
March 29,
2025		December 31,
2024
Term Loan A$1,575 $1,575 
Senior Notes500 500 
Receivables Financing Facilities108 108 
Total debt$2,183 $2,183 
Less: Debt issuance costs(9)(9)
Less: Unamortized discounts(2)(3)
Less: Current portion of debt(69)(79)
Total long-term debt$2,103 $2,092 

As of March 29, 2025, the future maturities of debt are as follows (in millions):
2025 (9 months remaining)$69 
202671 
20271,543 
2028— 
2029— 
Thereafter500 
Total future maturities of debt$2,183 
All borrowings as of March 29, 2025 were denominated in U.S. Dollars.
The estimated fair value of the Company’s debt approximated $2.2 billion as of both March 29, 2025 and December 31, 2024, respectively. These fair value amounts, developed based on inputs classified as Level 2 within the fair value hierarchy, represent the estimated value at which the Company’s lenders could trade its debt within the financial markets and do not represent the settlement value of these liabilities to the Company. The fair value of debt will continue to vary each period based on a number of factors, including fluctuations in market interest rates as well as changes to the Company’s credit ratings.

Term Loan A
The principal on Term Loan A is due in quarterly installments, with the next quarterly installment due in the first quarter of 2026 and the majority due upon maturity in 2027. The Company has and may make prepayments in whole or in part, without premium or penalty, and would be required to prepay certain outstanding amounts in the event of certain circumstances or transactions. As of March 29, 2025, the Term Loan A interest rate was 5.42%. Interest payments are made monthly and are subject to variable rates plus an applicable margin.

Senior Notes
In the second quarter of 2024, the Company completed a private offering of $500 million senior unsecured notes (the “Senior Notes”) with a 6.5% fixed interest rate. The Senior Notes mature on June 1, 2032, and interest is payable semi-annually in arrears in June and December of each year. The Company may make prepayments in whole or in part, without premium or penalty, and would be required to prepay certain outstanding amounts in the event of certain circumstances or transactions.

The Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by certain of Zebra’s existing and future subsidiaries. The Senior Notes contain covenants that, among other things, limit the ability of Zebra to: (i) grant or incur liens; (ii) have its subsidiaries guarantee debt without becoming guarantors; and (iii) merge or consolidate with another company or sell all or substantially all of its assets.

Revolving Credit Facility
The Company has a Revolving Credit Facility that is available for working capital and other general business purposes, including letters of credit. As of March 29, 2025, the Company had letters of credit totaling $10 million, which reduced funds available for borrowings under the Revolving Credit Facility from $1,500 million to $1,490 million. As of March 29, 2025, the Revolving Credit Facility had an average interest rate of 5.42%. Upon borrowing, interest payments are made monthly and are subject to variable rates plus an applicable margin. The Revolving Credit Facility matures on May 25, 2027.
Receivables Financing Facility
As of March 29, 2025, the Company has a Receivables Financing Facility with a borrowing limit of up to $180 million. As collateral, the Company pledges perfected first-priority security interests in its U.S. domestically originated accounts receivable. The Company has accounted for transactions under this facility as secured borrowings. The receivables financing facility matures on March 19, 2027.

As of March 29, 2025, the Company’s Consolidated Balance Sheets included $549 million of gross receivables that were pledged under the facility. As of March 29, 2025, $108 million had been borrowed, of which $47 million was classified as current. Borrowings under the facility bear interest at a variable rate plus an applicable margin. As of March 29, 2025, the facility had an average interest rate of 5.37%. Interest is paid monthly on these borrowings.

The Company’s borrowings described above include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels.

As of March 29, 2025, the Company was in compliance with all debt covenants.
v3.25.1
Leases
 3 Months Ended
Mar. 29, 2025
Leases [Abstract]  
Leases Leases
During the three months ended March 29, 2025, the Company recorded $4 million of right-of-use (“ROU”) assets obtained in exchange for lease obligations primarily related to the extension of existing leases.

Future minimum lease payments under non-cancellable leases as of March 29, 2025 were as follows (in millions):
2025 (9 months remaining)$36 
202642 
202734 
202831 
202926 
Thereafter60 
Total future minimum lease payments$229 
Less: Interest(40)
Present value of lease liabilities$189 
Reported as of March 29, 2025:
Current portion of lease liabilities$36 
Long-term lease liabilities153 
Present value of lease liabilities$189 

The current portion of lease liabilities is included within Accrued liabilities on the Consolidated Balance Sheets.
v3.25.1
Accrued Liabilities, Commitments and Contingencies
 3 Months Ended
Mar. 29, 2025
Commitments and Contingencies Disclosure [Abstract]  
Accrued Liabilities, Commitments and Contingencies Accrued Liabilities, Commitments and Contingencies
Accrued Liabilities
The components of Accrued liabilities are as follows (in millions):
March 29,
2025		December 31,
2024
Incentive compensation$72 $174 
Payroll and benefits72 76 
Unremitted cash collections due to banks on factored accounts receivable53 51 
Customer rebates48 56 
Current portion of lease liabilities36 36 
Warranty27 26 
Interest payable18 3 
Freight and duty16 12 
Other69 69 
Accrued liabilities$411 $503 

Warranties
The following table is a summary of the Company’s warranty obligations (in millions):
 Three Months Ended
 March 29,
2025		March 30,
2024
Balance at the beginning of the period$26 $27 
Warranty expense8 7 
Warranties fulfilled(7)(7)
Balance at the end of the period$27 $27 

Contingencies
The Company is subject to a variety of investigations, claims, suits, and other legal proceedings that arise from time to time in the ordinary course of business, including but not limited to, intellectual property, employment, tort, and breach of contract matters. The Company currently believes that the outcomes of such proceedings, individually and in the aggregate, will not have a material adverse impact on its business, cash flows, financial position, or results of operations. Any legal proceedings are subject to inherent uncertainties, and the Company’s view of these matters and their potential effects may change in the future. The Company records a liability for contingencies when a loss is deemed to be probable and the loss can be reasonably estimated.
v3.25.1
Share-Based Compensation
 3 Months Ended
Mar. 29, 2025
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
The Company issues share-based compensation awards under the Zebra Technologies 2018 Long-Term Incentive Plan (“2018 Plan”), approved by shareholders in 2018, which superseded and replaced all prior share-based incentive plans. Outstanding awards issued prior to the 2018 Plan are governed by the provisions of those plans until such awards have been exercised, forfeited, cancelled, expired, or otherwise terminated in accordance with their terms. Awards available under the 2018 Plan include stock-settled awards, including stock-settled restricted stock units, stock-settled performance stock units, restricted stock awards, performance share awards, stock appreciation rights, incentive stock options, and non-qualified stock options. Awards available under the 2018 Plan also include cash-settled awards, including cash-settled stock appreciation rights, cash-settled restricted stock units, and cash-settled performance stock units.

The Company uses treasury shares as its source for issuing shares under the share-based compensation programs. As of March 29, 2025, the Company had 1,424,590 shares of Class A Common stock remaining available to be issued under the 2018 Plan.

The compensation expense from the Company’s share-based compensation plans and associated income tax benefit, excluding the effects of excess tax benefits or shortfalls, are included in the Consolidated Statements of Operations as follows (in millions):
Three Months Ended
Compensation costs and related income tax benefitMarch 29, 2025March 30, 2024
Cost of sales$4 $2 
Selling and marketing10 5 
Research and development17 6 
General and administration22 8 
Total compensation expense$53 $21 
Income tax benefit$9 $3 

As of March 29, 2025, the total unearned compensation cost related to the Company’s share-based compensation plans was $190 million, which will be recognized over the weighted average remaining service period of approximately 1.7 years.

The majority of the Company’s share-based compensation awards are issued as part of its employee and non-employee director incentive program each fiscal year. Beginning in 2025, the annual employee equity incentive awards were granted in the first quarter. The non-employee director equity awards will continue to be granted in the second quarter. The Company also issues awards associated with business acquisitions and other off-cycle events. The majority of the Company’s share-based compensation is comprised of stock-settled awards.

The compensation cost of awards is expensed over each award’s service period, which is generally subject to certain employment conditions. The Company’s 2025 award agreement provisions resulted in increased recognition of compensation cost as compared to previous awards.

Stock-settled awards
The Company’s awards are typically time-vested with stock-settled RSUs vesting ratably in three annual installments and stock-settled PSUs vesting at the end of the three-year period. Upon vesting, stock-settled RSUs and PSUs convert to shares of Class A Common Stock that are released to participants.

Compensation cost is calculated as the fair market value of the Company’s Class A Common Stock on the grant date multiplied by the number of units granted, net of estimated forfeitures. The expected attainment of the performance goals for the stock-settled PSUs is reviewed at the end of each reporting period, with adjustments recorded to compensation expense in the Consolidated Statements of Operations, as necessary.

A summary of the Company’s restricted and performance stock-settled awards for the three months ended March 29, 2025 is as follows:
RSUsPSUs

UnitsWeighted-Average Grant Date Fair ValueUnitsWeighted-Average Grant Date Fair Value
Outstanding at beginning of period482,067 $295.39 241,946 $304.44 
Granted255,307 307.02 97,861 306.84 
Released(5,646)300.29 — — 
Forfeited(7,405)287.04 (1,420)304.51 
Outstanding at end of period724,323 $299.53 338,387 $305.18 

Stock Appreciation Rights (“SARs”)
SARs were previously granted primarily as part of the Company’s annual share-based compensation incentive program. Beginning in 2021, the Company no longer included SARs in its annual share-based compensation award issuances. As of March 29, 2025, there were 214,243 outstanding SARs, all of which were exercisable with a weighted-average remaining contractual life of 1 year.
Cash-settled awards
The Company also issues cash-settled share-based compensation awards, including cash-settled restricted stock units and cash-settled performance stock units that are classified as liability awards and typically have a vesting period of three years. Compensation cost is calculated as the fair market value of the Company’s Class A Common Stock on the grant date multiplied by the number of share-equivalents granted, net of forfeitures. The fair value for all cash-settled awards and the expected attainment of the performance goals for the cash-settled performance stock units is reviewed at the end of each reporting period, with adjustments recorded to compensation expense in the Consolidated Statements of Operations, as necessary. Cash settlement is based on the fair value of share equivalents at the time of vesting, which was not significant for the three months ended March 29, 2025 or March 30, 2024. Share-equivalents issued under these programs totaled 52,395 and 273 during the three months ended March 29, 2025 and March 30, 2024, respectively.

Employee Stock Purchase Plan
Eligible Zebra employees may purchase common stock at 95% of the fair market value at the date of purchase pursuant to the Zebra Technologies Corporation 2020 Employee Stock Purchase Plan (“2020 ESPP”). Employees may make purchases by cash or payroll deductions up to certain limits. The aggregate number of shares that may be purchased under the 2020 ESPP is 1,500,000 shares. As of March 29, 2025, 1,304,693 shares remained available for future purchase.
v3.25.1
Income Taxes
 3 Months Ended
Mar. 29, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s effective tax rate for the three months ended March 29, 2025 and March 30, 2024 was 17.6% and 19.0%, respectively. In the current period and prior period, the variance from the 21% federal statutory rate was primarily attributable to the tax benefit related to foreign earnings subject to U.S. taxation and the generation of U.S. tax credits.
v3.25.1
Earnings Per Share
 3 Months Ended
Mar. 29, 2025
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
Basic net earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of diluted common shares outstanding. Diluted common shares outstanding is computed using the Treasury Stock method and, in periods of income, reflects the additional shares that would be outstanding if dilutive share-based compensation awards were converted into common shares during the period.

Earnings per share (in millions, except share data):
Three Months Ended
March 29,
2025		March 30,
2024
Basic:
Net income$136 $115 
Weighted-average shares outstanding51,365,011 51,387,570 
Basic earnings per share$2.64 $2.24 
Diluted:
Net income$136 $115 
Weighted-average shares outstanding51,365,011 51,387,570 
Dilutive shares441,539 402,931 
Diluted weighted-average shares outstanding51,806,550 51,790,501 
Diluted earnings per share$2.62 $2.23 

Anti-dilutive share-based compensation awards are excluded from diluted earnings per share calculations. There were 52,843 and 18,095 shares that were anti-dilutive for the three months ended March 29, 2025 and March 30, 2024, respectively.
v3.25.1
Accumulated Other Comprehensive (Loss) Income
 3 Months Ended
Mar. 29, 2025
Equity [Abstract]  
Accumulated Other Comprehensive (Loss) Income Accumulated Other Comprehensive (Loss) Income
Stockholders’ equity includes certain items classified as AOCI, including:

•Unrealized gain (loss) on sales hedging which relates to derivative instruments used to hedge the exposure related to currency exchange rates for forecasted Euro sales. These hedges are designated as cash flow hedges, and the Company
defers income statement recognition of gains and losses until the hedged transaction occurs. See Note 8, Derivative Instruments for more details.

•Foreign currency translation adjustments which relates to the Company’s non-U.S. subsidiary companies that have designated a functional currency other than the U.S. Dollar. The Company translates the subsidiary functional currency financial statements to U.S. Dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of AOCI.

The changes in each component of AOCI during the three months ended March 29, 2025 and March 30, 2024 were as follows (in millions):
 Unrealized gain (loss) on sales hedgingForeign currency translation adjustmentsTotal
Balance at December 31, 2023$(5)$(49)$(54)
Other comprehensive income (loss) before reclassifications13 (5)8 
Amounts reclassified from AOCI(1)
(1)— (1)
Tax effect(3)— (3)
Other comprehensive income (loss), net of tax9 (5)4 
Balance at March 30, 2024$4 $(54)$(50)
Balance at December 31, 2024$22 $(66)$(44)
Other comprehensive income (loss) before reclassifications(28)7 (21)
Amounts reclassified from AOCI(1)
(9)— (9)
Tax effect9 — 9 
Other comprehensive income (loss), net of tax(28)7 (21)
Balance at March 29, 2025$(6)$(59)$(65)
(1) See Note 8, Derivative Instruments regarding the timing of reclassifications to operating results.
v3.25.1
Accounts Receivable Factoring
 3 Months Ended
Mar. 29, 2025
Transfers and Servicing [Abstract]  
Accounts Receivable Factoring Accounts Receivable Factoring
The Company has a Receivables Factoring arrangement, pursuant to which certain receivables originated from the EMEA and Asia-Pacific regions up to a maximum of €75 million are sold to a bank without recourse in exchange for cash. Such transfers are accounted for as sales and the related receivables are removed from the Company’s balance sheet. The Company does not maintain any beneficial interest in the receivables sold. The Company services the receivables on behalf of the bank, but otherwise maintains no significant continuing involvement with respect to the receivables. Sale proceeds that are representative of the fair value of factored receivables, less a factoring fee, are reflected in Cash flows from operating activities on the Consolidated Statements of Cash Flows, while sale proceeds in excess of the fair value of factored receivables are reflected in Cash flows from financing activities on the Consolidated Statements of Cash Flows.

During the three months ended March 29, 2025 and March 30, 2024, the Company received cash proceeds of $119 million and $346 million, respectively, from the sales of accounts receivables under its factoring arrangement. As of both March 29, 2025 and December 31, 2024, there were a total of $28 million of uncollected receivables that had been sold and removed from the Company’s Consolidated Balance Sheets.

As servicer of sold receivables, the Company had $53 million and $51 million of obligations that were not yet remitted to the bank as of March 29, 2025 and December 31, 2024, respectively. These obligations are included within Accrued liabilities on the Consolidated Balance Sheets, with changes in such obligations reflected within Cash flows from financing activities on the Consolidated Statements of Cash Flows.
v3.25.1
Segment Information & Geographic Data
 3 Months Ended
Mar. 29, 2025
Segment Reporting [Abstract]  
Segment Information & Geographic Data Segment Information & Geographic Data
The Company’s operations consist of two reportable segments that provide complementary offerings to our customers: Asset Intelligence & Tracking (“AIT”), which includes barcode and card printing, RFID and RTLS offerings, supplies, and services; and Enterprise Visibility & Mobility (“EVM”), which includes mobile computing, data capture, fixed industrial scanning and machine vision, services, and workflow optimization solutions. The reportable segments have been identified based on the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker or “CODM”) to assess segment performance and allocate resources among the Company’s segments. The CODM reviews adjusted operating income to assess segment profitability primarily during the Company’s annual budget and forecasting process. The CODM assesses the profitability of each segment relative to its long-term growth objectives in evaluating resource allocation priorities. Segment assets are not reviewed by the Company’s CODM and therefore are not disclosed below.

Financial information by segment is presented as follows (in millions):
 Three Months Ended
March 29,
2025		March 30,
2024
Net sales:
AIT$462 $392 
EVM846 783 
Total Net sales$1,308 $1,175 
Cost of sales:
AIT$226 $208 
EVM437 404 
Operating expenses:
AIT (1)
$136 $108 
EVM (1)
287 259 
Operating income:
AIT (2)
$100 $76 
EVM (2)
122 120 
Total segment operating income222 196 
Corporate (3)
(27)(37)
Total Operating income$195 $159 

(1)AIT and EVM segment operating expenses include Selling and marketing, Research and development, and General and administrative expenses, excluding the amounts classified within Corporate.

(2)AIT and EVM segment operating income includes depreciation and share-based compensation expense. The depreciation and share-based compensation expense amounts are proportionate to each segment’s Net sales.

(3)To the extent applicable, amounts included in Corporate consist of Amortization of intangible assets, Acquisition and integration costs, Exit and restructuring costs, as well as certain other non-recurring costs (impairment of goodwill and other intangibles, and business acquisition purchase accounting adjustments).

Information regarding the Company’s operations by geographic area is contained in the following tables. Net sales amounts are attributed to geographic area based on customer location.
Net sales by region were as follows (in millions):
Three Months Ended
March 29,
2025		March 30,
2024
North America$656 $612 
EMEA443 380 
Asia-Pacific125 112 
Latin America84 71 
Total Net sales$1,308 $1,175 
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Pay vs Performance Disclosure    
Net income $ 136 $ 115
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Mar. 29, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.1
Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 29, 2025
Accounting Policies [Abstract]  
Revenues Revenues
The Company recognizes revenue to depict the transfer of goods, solutions or services to a customer at an amount that reflects the consideration which it expects to receive for providing those goods, solutions or services.

Revenues for tangible products are generally recognized upon shipment, whereas revenues for services and solution offerings are generally recognized over time by using an output or time-based method, assuming all other criteria for revenue recognition have been met. Revenues for software are recognized either upon delivery or over time using a time-based method, depending on how control is transferred to the customer. In cases where a bundle of products, services, solutions and/or software are delivered to the customer, judgment is required to select the method of progress which best reflects the transfer of control.
Performance Obligations
The Company’s remaining performance obligations relate to services and software solutions.
Contract Balances
Progress on satisfying performance obligations under contracts with customers related to billed revenues is reflected on the Consolidated Balance Sheets in Accounts receivable, net. Progress on satisfying performance obligations under contracts with customers related to unbilled revenues (“contract assets”) is reflected on the Consolidated Balance Sheets as Prepaid expenses and other current assets for revenues expected to be billed within the next twelve months, and Other long-term assets for revenues expected to be billed thereafter.
Fair Value Measurements Fair Value Measurements
Financial assets and liabilities are measured using inputs from three levels of the fair value hierarchy in accordance with Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into the following three broad levels:
•Level 1: Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs (e.g. U.S. Treasuries and money market funds).
•Level 2: Observable prices that are based on inputs not quoted in active markets but corroborated by market data.
•Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs. In addition, the Company considers counterparty credit risk in the assessment of fair value.
Derivative Instruments Derivative Instruments
In the normal course of business, the Company is exposed to global market risks, including the effects of changes in foreign currency exchange rates and interest rates. The Company uses derivative instruments to manage its exposure to such risks and may elect to designate certain derivatives as hedging instruments under ASC Topic 815, Derivatives and Hedging (“ASC 815”). The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions. The Company does not hold or issue derivatives for trading or speculative purposes.
In accordance with ASC 815, the Company recognizes derivative instruments as either assets or liabilities on the Consolidated Balance Sheets and measures them at fair value.
v3.25.1
Revenues (Tables)
 3 Months Ended
Mar. 29, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table presents our Net sales disaggregated by product category for each of our segments (in millions):

Three Months Ended
March 29, 2025March 30, 2024
SegmentTangible ProductsServices and SoftwareTotalTangible ProductsServices and SoftwareTotal
AIT$432 $30 $462 $365 $27 $392 
EVM630 216 846 564 219 783 
Total$1,062 $246 $1,308 $929 $246 $1,175 
v3.25.1
Inventories (Tables)
 3 Months Ended
Mar. 29, 2025
Inventory Disclosure [Abstract]  
Schedule of Categories of Inventories, Net
The categories of Inventories, net are as follows (in millions): 
 March 29,
2025		December 31,
2024
Raw materials (1)
$250 $248 
Work in process3 4 
Finished goods428 441 
Total Inventories, net$681 $693 

(1) Raw material inventories primarily consist of product components as well as supplies used in repair operations.
v3.25.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 29, 2025
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets and Liabilities Carried at Fair Value
The Company’s financial assets and liabilities carried at fair value as of March 29, 2025, are classified below (in millions):
 Level 1Level 2Level 3Total
Assets:
Investments related to the deferred compensation plan$42 $— $— $42 
Total Assets at fair value$42 $— $— $42 
Liabilities:
Foreign exchange contracts (1)
$7 $8 $— $15 
Liabilities related to the deferred compensation plan42 — — 42 
Total Liabilities at fair value$49 $8 $— $57 
The Company’s financial assets and liabilities carried at fair value as of December 31, 2024, are classified below (in millions):
Level 1Level 2Level 3Total
Assets:
Foreign exchange contracts (1)
$1 $30 $— $31 
Investments related to the deferred compensation plan41 — — 41 
Total Assets at fair value$42 $30 $— $72 
Liabilities:
Liabilities related to the deferred compensation plan$41 $— $— $41 
Total Liabilities at fair value$41 $— $— $41 

(1)The fair value of the foreign exchange contracts is calculated as follows:
•Fair value of forward contracts associated with forecasted sales hedges is calculated using the period-end exchange rate adjusted for current forward points.
•Fair value of hedges against net assets denominated in foreign currencies is calculated at the period-end exchange rate adjusted for current forward points unless the hedge has been traded but not settled at period-end (Level 2). If this is the case, the fair value is calculated at the rate at which the hedge is being settled (Level 1).
v3.25.1
Derivative Instruments (Tables)
 3 Months Ended
Mar. 29, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments The following table presents the fair value of its derivative instruments (in millions):
Asset (Liability)
Fair Values as of
Balance Sheets ClassificationMarch 29,
2025		December 31,
2024
Derivative instruments designated as hedges:
    Foreign exchange contractsPrepaid expenses and other current assets$— $30 
    Foreign exchange contractsAccrued liabilities(8)— 
Total derivative instruments designated as hedges$(8)$30 
Derivative instruments not designated as hedges:
    Foreign exchange contractsPrepaid expenses and other current assets$— $1 
    Foreign exchange contractsAccrued liabilities(7)— 
Total derivative instruments not designated as hedges$(7)$1 
Total net derivative (liability) asset$(15)$31 
Schedule of Net Gains (Losses) from Changes in Fair Values of Derivatives Not Designated as Hedges
The following table presents the net gains (losses) from changes in fair values of derivatives that are not designated as hedges (in millions):
Gains (Losses) Recognized in Income
 Three Months Ended
Statements of Operations ClassificationMarch 29,
2025		March 30,
2024
Derivative instruments not designated as hedges:
Foreign exchange contractsForeign exchange (loss) gain$(8)$1 
Forward interest rate swapsInterest expense, net— 20 
Total net (loss) gain recognized in income$(8)$21 
Schedule of Notional Value and Net Fair Value of Outstanding Contracts The notional values and the net fair values of these outstanding contracts were as follows (in millions):
 March 29,
2025		December 31,
2024
Notional balance of outstanding contracts:
British Pound/U.S. Dollar£16 £5 
Euro/U.S. Dollar€178 €146 
Euro/Czech Koruna€14 €16 
Japanese Yen/U.S. Dollar¥173 ¥360 
Singapore Dollar/U.S. DollarS$22 S$23 
Mexican Peso/U.S. DollarMex$204 Mex$142 
Polish Zloty/U.S. Dollarzł74 zł53 
Net fair value of assets of outstanding contracts$7 $1 
v3.25.1
Long-Term Debt (Tables)
 3 Months Ended
Mar. 29, 2025
Debt Disclosure [Abstract]  
Schedule of Carrying Value of Long-term Debt
The following table shows the carrying value of the Company’s debt (in millions):
March 29,
2025		December 31,
2024
Term Loan A$1,575 $1,575 
Senior Notes500 500 
Receivables Financing Facilities108 108 
Total debt$2,183 $2,183 
Less: Debt issuance costs(9)(9)
Less: Unamortized discounts(2)(3)
Less: Current portion of debt(69)(79)
Total long-term debt$2,103 $2,092 
Schedule of Future Maturities of Long-term Debt
As of March 29, 2025, the future maturities of debt are as follows (in millions):
2025 (9 months remaining)$69 
202671 
20271,543 
2028— 
2029— 
Thereafter500 
Total future maturities of debt$2,183 
v3.25.1
Leases (Tables)
 3 Months Ended
Mar. 29, 2025
Leases [Abstract]  
Schedule of Future Minimum Lease Payments Under Non-cancellable Operating Leases
Future minimum lease payments under non-cancellable leases as of March 29, 2025 were as follows (in millions):
2025 (9 months remaining)$36 
202642 
202734 
202831 
202926 
Thereafter60 
Total future minimum lease payments$229 
Less: Interest(40)
Present value of lease liabilities$189 
Reported as of March 29, 2025:
Current portion of lease liabilities$36 
Long-term lease liabilities153 
Present value of lease liabilities$189 
v3.25.1
Accrued Liabilities, Commitments and Contingencies (Tables)
 3 Months Ended
Mar. 29, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Components of Accrued Liabilities
The components of Accrued liabilities are as follows (in millions):
March 29,
2025		December 31,
2024
Incentive compensation$72 $174 
Payroll and benefits72 76 
Unremitted cash collections due to banks on factored accounts receivable53 51 
Customer rebates48 56 
Current portion of lease liabilities36 36 
Warranty27 26 
Interest payable18 3 
Freight and duty16 12 
Other69 69 
Accrued liabilities$411 $503 
Schedule of Accrued Warranty Obligations
The following table is a summary of the Company’s warranty obligations (in millions):
 Three Months Ended
 March 29,
2025		March 30,
2024
Balance at the beginning of the period$26 $27 
Warranty expense8 7 
Warranties fulfilled(7)(7)
Balance at the end of the period$27 $27 
v3.25.1
Share-Based Compensation (Tables)
 3 Months Ended
Mar. 29, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Compensation Expense and Related Income Tax benefit
The compensation expense from the Company’s share-based compensation plans and associated income tax benefit, excluding the effects of excess tax benefits or shortfalls, are included in the Consolidated Statements of Operations as follows (in millions):
Three Months Ended
Compensation costs and related income tax benefitMarch 29, 2025March 30, 2024
Cost of sales$4 $2 
Selling and marketing10 5 
Research and development17 6 
General and administration22 8 
Total compensation expense$53 $21 
Income tax benefit$9 $3 
Schedule of Restricted and Performance Stock-settled Awards
A summary of the Company’s restricted and performance stock-settled awards for the three months ended March 29, 2025 is as follows:
RSUsPSUs

UnitsWeighted-Average Grant Date Fair ValueUnitsWeighted-Average Grant Date Fair Value
Outstanding at beginning of period482,067 $295.39 241,946 $304.44 
Granted255,307 307.02 97,861 306.84 
Released(5,646)300.29 — — 
Forfeited(7,405)287.04 (1,420)304.51 
Outstanding at end of period724,323 $299.53 338,387 $305.18 
v3.25.1
Earnings Per Share (Tables)
 3 Months Ended
Mar. 29, 2025
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share
Earnings per share (in millions, except share data):
Three Months Ended
March 29,
2025		March 30,
2024
Basic:
Net income$136 $115 
Weighted-average shares outstanding51,365,011 51,387,570 
Basic earnings per share$2.64 $2.24 
Diluted:
Net income$136 $115 
Weighted-average shares outstanding51,365,011 51,387,570 
Dilutive shares441,539 402,931 
Diluted weighted-average shares outstanding51,806,550 51,790,501 
Diluted earnings per share$2.62 $2.23 
v3.25.1
Accumulated Other Comprehensive (Loss) Income (Tables)
 3 Months Ended
Mar. 29, 2025
Equity [Abstract]  
Schedule of Components of AOCI
The changes in each component of AOCI during the three months ended March 29, 2025 and March 30, 2024 were as follows (in millions):
 Unrealized gain (loss) on sales hedgingForeign currency translation adjustmentsTotal
Balance at December 31, 2023$(5)$(49)$(54)
Other comprehensive income (loss) before reclassifications13 (5)8 
Amounts reclassified from AOCI(1)
(1)— (1)
Tax effect(3)— (3)
Other comprehensive income (loss), net of tax9 (5)4 
Balance at March 30, 2024$4 $(54)$(50)
Balance at December 31, 2024$22 $(66)$(44)
Other comprehensive income (loss) before reclassifications(28)7 (21)
Amounts reclassified from AOCI(1)
(9)— (9)
Tax effect9 — 9 
Other comprehensive income (loss), net of tax(28)7 (21)
Balance at March 29, 2025$(6)$(59)$(65)
(1) See Note 8, Derivative Instruments regarding the timing of reclassifications to operating results.
v3.25.1
Segment Information & Geographic Data (Tables)
 3 Months Ended
Mar. 29, 2025
Segment Reporting [Abstract]  
Schedule of Financial Information by Segments
Financial information by segment is presented as follows (in millions):
 Three Months Ended
March 29,
2025		March 30,
2024
Net sales:
AIT$462 $392 
EVM846 783 
Total Net sales$1,308 $1,175 
Cost of sales:
AIT$226 $208 
EVM437 404 
Operating expenses:
AIT (1)
$136 $108 
EVM (1)
287 259 
Operating income:
AIT (2)
$100 $76 
EVM (2)
122 120 
Total segment operating income222 196 
Corporate (3)
(27)(37)
Total Operating income$195 $159 

(1)AIT and EVM segment operating expenses include Selling and marketing, Research and development, and General and administrative expenses, excluding the amounts classified within Corporate.

(2)AIT and EVM segment operating income includes depreciation and share-based compensation expense. The depreciation and share-based compensation expense amounts are proportionate to each segment’s Net sales.

(3)To the extent applicable, amounts included in Corporate consist of Amortization of intangible assets, Acquisition and integration costs, Exit and restructuring costs, as well as certain other non-recurring costs (impairment of goodwill and other intangibles, and business acquisition purchase accounting adjustments).
Schedule of Net Sales to Customers by Geographic Region
Net sales by region were as follows (in millions):
Three Months Ended
March 29,
2025		March 30,
2024
North America$656 $612 
EMEA443 380 
Asia-Pacific125 112 
Latin America84 71 
Total Net sales$1,308 $1,175 
v3.25.1
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Disaggregation of Revenue [Line Items]    
Total Net sales $ 1,308 $ 1,175
Tangible Products    
Disaggregation of Revenue [Line Items]    
Total Net sales 1,062 929
Services and Software    
Disaggregation of Revenue [Line Items]    
Total Net sales 246 246
AIT    
Disaggregation of Revenue [Line Items]    
Total Net sales 462 392
AIT | Tangible Products    
Disaggregation of Revenue [Line Items]    
Total Net sales 432 365
AIT | Services and Software    
Disaggregation of Revenue [Line Items]    
Total Net sales 30 27
EVM    
Disaggregation of Revenue [Line Items]    
Total Net sales 846 783
EVM | Tangible Products    
Disaggregation of Revenue [Line Items]    
Total Net sales 630 564
EVM | Services and Software    
Disaggregation of Revenue [Line Items]    
Total Net sales $ 216 $ 219
v3.25.1
Revenues - Performance Obligation (Details) - USD ($)
$ in Millions
Mar. 29, 2025
Dec. 31, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Remaining performance obligation   $ 1,190
Expected recognition period   2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-03-30    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Remaining performance obligation $ 1,180  
Expected recognition period 2 years  
v3.25.1
Revenues - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]      
Contract assets $ 9   $ 11
Deferred revenue 773   $ 757
Revenue recognized which was previously included in deferred revenue $ 141 $ 146  
v3.25.1
Inventories (Details) - USD ($)
$ in Millions
Mar. 29, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Raw materials $ 250 $ 248
Work in process 3 4
Finished goods 428 441
Total Inventories, net $ 681 $ 693
v3.25.1
Business Acquisitions (Details) - USD ($)
$ in Millions
 3 Months Ended
Feb. 28, 2025
Mar. 29, 2025
Mar. 30, 2024
Dec. 31, 2024
Business Acquisition [Line Items]        
Cash purchase consideration   $ 62 $ 0  
Goodwill   $ 3,927   $ 3,891
Photoneo        
Business Acquisition [Line Items]        
Cash purchase consideration $ 62      
Goodwill 34      
Photoneo | Technology-related intangible assets        
Business Acquisition [Line Items]        
Intangible assets 17      
Photoneo | Customer relationships        
Business Acquisition [Line Items]        
Intangible assets $ 6      
Estimated useful lives 7 years      
v3.25.1
Investments (Details) - USD ($)
$ in Millions
Mar. 29, 2025
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]    
Equity securities held $ 110 $ 110
v3.25.1
Fair Value Measurements - Financial Assets and Liabilities Carried at Fair Value (Details) - USD ($)
$ in Millions
Mar. 29, 2025
Dec. 31, 2024
Assets:    
Total Assets at fair value $ 42 $ 72
Liabilities:    
Total Liabilities at fair value 57 41
Level 1    
Assets:    
Total Assets at fair value 42 42
Liabilities:    
Total Liabilities at fair value 49 41
Level 2    
Assets:    
Total Assets at fair value 0 30
Liabilities:    
Total Liabilities at fair value 8 0
Level 3    
Assets:    
Total Assets at fair value 0 0
Liabilities:    
Total Liabilities at fair value 0 0
Foreign exchange contracts    
Assets:    
Derivative assets   31
Liabilities:    
Derivative liabilities 15  
Foreign exchange contracts | Level 1    
Assets:    
Derivative assets   1
Liabilities:    
Derivative liabilities 7  
Foreign exchange contracts | Level 2    
Assets:    
Derivative assets   30
Liabilities:    
Derivative liabilities 8  
Foreign exchange contracts | Level 3    
Assets:    
Derivative assets   0
Liabilities:    
Derivative liabilities 0  
Investments related to the deferred compensation plan    
Assets:    
Investments related to the deferred compensation plan 42 41
Investments related to the deferred compensation plan | Level 1    
Assets:    
Investments related to the deferred compensation plan 42 41
Investments related to the deferred compensation plan | Level 2    
Assets:    
Investments related to the deferred compensation plan 0 0
Investments related to the deferred compensation plan | Level 3    
Assets:    
Investments related to the deferred compensation plan 0 0
Liabilities related to the deferred compensation plan    
Liabilities:    
Liabilities related to the deferred compensation plan 42 41
Liabilities related to the deferred compensation plan | Level 1    
Liabilities:    
Liabilities related to the deferred compensation plan 42 41
Liabilities related to the deferred compensation plan | Level 2    
Liabilities:    
Liabilities related to the deferred compensation plan 0 0
Liabilities related to the deferred compensation plan | Level 3    
Liabilities:    
Liabilities related to the deferred compensation plan $ 0 $ 0
v3.25.1
Derivative Instruments - Derivative Instruments (Details) - USD ($)
$ in Millions
Mar. 29, 2025
Dec. 31, 2024
Derivative [Line Items]    
Total net derivative (liability) asset $ (15) $ 31
Derivative instruments designated as hedges:    
Derivative [Line Items]    
Total net derivative (liability) asset (8) 30
Derivative instruments designated as hedges: | Prepaid expenses and other current assets | Foreign exchange contracts    
Derivative [Line Items]    
Total assets at fair value 0 30
Derivative instruments designated as hedges: | Accrued liabilities | Foreign exchange contracts    
Derivative [Line Items]    
Derivative Liability, Subject to Master Netting Arrangement, before Offset (8) 0
Derivative instruments not designated as hedges:    
Derivative [Line Items]    
Total net derivative (liability) asset (7) 1
Derivative instruments not designated as hedges: | Prepaid expenses and other current assets | Foreign exchange contracts    
Derivative [Line Items]    
Total assets at fair value 0 1
Derivative instruments not designated as hedges: | Accrued liabilities | Foreign exchange contracts    
Derivative [Line Items]    
Derivative Liability, Subject to Master Netting Arrangement, before Offset $ (7) $ 0
v3.25.1
Derivative Instruments - Net Gains (Losses) from Changes in Fair Value (Details) - Derivative instruments not designated as hedges: - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Derivative Instruments, Gain (Loss) [Line Items]    
Total net (loss) gain recognized in income $ (8) $ 21
Foreign exchange contracts    
Derivative Instruments, Gain (Loss) [Line Items]    
Total net (loss) gain recognized in income (8) 1
Forward interest rate swaps    
Derivative Instruments, Gain (Loss) [Line Items]    
Total net (loss) gain recognized in income $ 0 $ 20
v3.25.1
Derivative Instruments - Additional Information (Details)
€ in Millions, $ in Millions
 3 Months Ended
Mar. 29, 2025
USD ($)
Mar. 30, 2024
USD ($)
Mar. 29, 2025
EUR (€)
Dec. 31, 2024
USD ($)
Dec. 31, 2024
EUR (€)
Change in unrealized gain (loss) on anticipated sales hedging:          
Increase for gross asset and liability presentation $ 0     $ 0  
Derivative instruments not designated as hedges:          
Change in unrealized gain (loss) on anticipated sales hedging:          
Gain (loss) on contract (8) $ 21      
Forward interest rate swaps | Derivative instruments not designated as hedges:          
Change in unrealized gain (loss) on anticipated sales hedging:          
Gain (loss) on contract $ 0 20      
Foreign currency exchange forward | Derivative instruments not designated as hedges:          
Change in unrealized gain (loss) on anticipated sales hedging:          
Maturity period 1 month        
Foreign currency exchange forward | Derivative instruments designated as hedges: | Cash flow hedges          
Change in unrealized gain (loss) on anticipated sales hedging:          
Maturity period 12 months        
Gain (loss) on contract $ 9 $ 1      
Derivative forward long-term interest rate swap | €     € 742   € 592
v3.25.1
Derivative Instruments - Notional Values and Net Fair Value of Outstanding Contracts (Details) - Derivative instruments not designated as hedges:
€ in Millions, ¥ in Millions, £ in Millions, zł in Millions, $ in Millions, $ in Millions, $ in Millions
Mar. 29, 2025
GBP (£)
Mar. 29, 2025
EUR (€)
Mar. 29, 2025
JPY (¥)
Mar. 29, 2025
SGD ($)
Mar. 29, 2025
MXN ($)
Mar. 29, 2025
PLN (zł)
Mar. 29, 2025
USD ($)
Dec. 31, 2024
GBP (£)
Dec. 31, 2024
EUR (€)
Dec. 31, 2024
JPY (¥)
Dec. 31, 2024
SGD ($)
Dec. 31, 2024
MXN ($)
Dec. 31, 2024
PLN (zł)
Dec. 31, 2024
USD ($)
British Pound/U.S. Dollar                            
Derivative [Line Items]                            
Notional balance of outstanding contracts | £ £ 16             £ 5            
Euro/U.S. Dollar                            
Derivative [Line Items]                            
Notional balance of outstanding contracts | €   € 178             € 146          
Euro/Czech Koruna                            
Derivative [Line Items]                            
Notional balance of outstanding contracts | €   € 14             € 16          
Japanese Yen/U.S. Dollar                            
Derivative [Line Items]                            
Notional balance of outstanding contracts | ¥     ¥ 173             ¥ 360        
Singapore Dollar/U.S. Dollar                            
Derivative [Line Items]                            
Notional balance of outstanding contracts       $ 22             $ 23      
Mexican Peso/U.S. Dollar                            
Derivative [Line Items]                            
Notional balance of outstanding contracts         $ 204             $ 142    
Polish Zloty/U.S. Dollar                            
Derivative [Line Items]                            
Notional balance of outstanding contracts | zł           zł 74             zł 53  
Foreign currency exchange forward                            
Derivative [Line Items]                            
Net fair value of assets of outstanding contracts             $ 7             $ 1
v3.25.1
Long-Term Debt - Carrying Value of Debt (Details) - USD ($)
$ in Millions
Mar. 29, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Total debt $ 2,183 $ 2,183
Less: Debt issuance costs (9) (9)
Less: Unamortized discounts (2) (3)
Less: Current portion of debt (69) (79)
Total long-term debt 2,103 2,092
Term Loan A | Term Loan A    
Debt Instrument [Line Items]    
Total debt 1,575 1,575
Senior Notes | Senior Notes    
Debt Instrument [Line Items]    
Total debt 500 500
Receivables Financing Facilities | Receivables Financing Facilities    
Debt Instrument [Line Items]    
Total debt $ 108 $ 108
v3.25.1
Long-Term Debt - Future Maturities of Long-Term Debt (Details)
$ in Millions
Mar. 29, 2025
USD ($)
Debt Disclosure [Abstract]  
2025 (9 months remaining) $ 69
2026 71
2027 1,543
2028 0
2029 0
Thereafter 500
Total future maturities of debt $ 2,183
v3.25.1
Long-Term Debt - Additional Information (Details) - USD ($)
$ in Billions
Mar. 29, 2025
Dec. 31, 2024
Debt Disclosure [Abstract]    
Estimated fair value debt $ 2.2 $ 2.2
v3.25.1
Long-Term Debt - Term Loan A (Details)
Mar. 29, 2025
Term Loan A | Term Loan A  
Debt Instrument [Line Items]  
Term loan interest rate 5.42%
v3.25.1
Long-Term Debt - Senior Notes (Details) - Senior Notes - Senior Notes
Sep. 28, 2024
USD ($)
Debt Instrument [Line Items]  
Proceeds from debt issuance $ 500,000,000
Fixed-rate 6.50%
v3.25.1
Long-Term Debt - Revolving Credit Facility (Details) - Revolving Credit Facility - Amended and Restated Credit Agreement
Mar. 29, 2025
USD ($)
Line of Credit Facility [Line Items]  
Letters of credit $ 10,000,000
Maximum borrowing capacity 1,500,000,000
Funds available for other borrowing $ 1,490,000,000
Average interest rate 5.42%
v3.25.1
Long-Term Debt - Receivable Financing Facility (Details) - Receivables Financing Facilities - Receivables Financing Facilities
Mar. 29, 2025
USD ($)
Line of Credit Facility [Line Items]  
Total borrowing limits (up to) $ 180,000,000
Gross accounts receivable pledged 549,000,000
Outstanding borrowings 108,000,000
Current line of credit $ 47,000,000
Revolving credit facility interest rate 5.37%
v3.25.1
Leases - Additional Information (Details)
$ in Millions
 3 Months Ended
Mar. 29, 2025
USD ($)
Leases [Abstract]  
ROU assets obtained in exchange for lease obligations $ 4
v3.25.1
Leases - Future Minimum lease Payments Under Non-cancellable Leases (Details) - USD ($)
$ in Millions
Mar. 29, 2025
Dec. 31, 2024
Leases [Abstract]    
2025 (9 months remaining) $ 36  
2026 42  
2027 34  
2028 31  
2029 26  
Thereafter 60  
Total future minimum lease payments 229  
Less: Interest (40)  
Present value of lease liabilities 189  
Current portion of lease liabilities 36 $ 36
Long-term lease liabilities $ 153 $ 155
v3.25.1
Accrued Liabilities, Commitments and Contingencies - Components of Accrued Liabilities (Details) - USD ($)
$ in Millions
Mar. 29, 2025
Dec. 31, 2024
Mar. 30, 2024
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]        
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued liabilities Accrued liabilities    
Incentive compensation $ 72 $ 174    
Payroll and benefits 72 76    
Unremitted cash collections due to banks on factored accounts receivable 53 51    
Customer rebates 48 56    
Current portion of lease liabilities 36 36    
Warranty 27 26 $ 27 $ 27
Interest payable 18 3    
Freight and duty 16 12    
Other 69 69    
Accrued liabilities $ 411 $ 503    
v3.25.1
Accrued Liabilities, Commitments and Contingencies - Accrued Warranty Obligations (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]    
Balance at the beginning of the period $ 26 $ 27
Warranty expense 8 7
Warranties fulfilled (7) (7)
Balance at the end of the period $ 27 $ 27
v3.25.1
Share-Based Compensation - Additional Information (Details)
$ in Millions
 3 Months Ended
Mar. 29, 2025
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total unearned compensation costs related to performance share awards | $ $ 190
Total unearned compensation costs amortization period 1 year 8 months 12 days
2018 Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares available for grant (in shares) 1,424,590
RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period 3 years
RSAs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period 3 years
PSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period 3 years
PSAs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting period 3 years
SARs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Outstanding (in shares) 214,243
Outstanding, Weighted-average remaining contractual life 1 year
v3.25.1
Share-Based Compensation - Compensation Expense and Related Income Tax Benefit (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total compensation expense $ 53 $ 21
Income tax benefit 9 3
Cost of sales    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total compensation expense 4 2
Selling and marketing    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total compensation expense 10 5
Research and development    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total compensation expense 17 6
General and administration    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total compensation expense $ 22 $ 8
v3.25.1
Share-Based Compensation - Summary of Restricted and Performance Stock-settled Awards (Details)
 3 Months Ended
Mar. 29, 2025
$ / shares
shares
RSUs  
Units  
Outstanding at beginning of period (in shares) | shares 482,067
Granted (in shares) | shares 255,307
Released (in shares) | shares (5,646)
Forfeited (in shares) | shares (7,405)
Outstanding at end of period (in shares) | shares 724,323
Weighted-Average Grant Date Fair Value  
Outstanding at beginning of year (in USD per share) | $ / shares $ 295.39
Granted (in USD per share) | $ / shares 307.02
Released (in USD per share) | $ / shares 300.29
Forfeited (in USD per share) | $ / shares 287.04
Outstanding at end of year (in USD per share) | $ / shares $ 299.53
PSUs  
Units  
Outstanding at beginning of period (in shares) | shares 241,946
Granted (in shares) | shares 97,861
Released (in shares) | shares 0
Forfeited (in shares) | shares (1,420)
Outstanding at end of period (in shares) | shares 338,387
Weighted-Average Grant Date Fair Value  
Outstanding at beginning of year (in USD per share) | $ / shares $ 304.44
Granted (in USD per share) | $ / shares 306.84
Released (in USD per share) | $ / shares 0
Forfeited (in USD per share) | $ / shares 304.51
Outstanding at end of year (in USD per share) | $ / shares $ 305.18
v3.25.1
Share-Based Compensation - Cash-settled Awards (Details) - Cash-settled Awards - shares
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 3 years  
Number of shares authorized (in shares) 52,395 273
v3.25.1
Share-Based Compensation - Employee Stock Purchase Plan (Details) - 2020 ESPP - Employee Stock
 3 Months Ended
Mar. 29, 2025
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Purchase price per share fair market value percentage 95.00%
Number of shares authorized (in shares) 1,500,000
Number of shares available for grant (in shares) 1,304,693
v3.25.1
Income Taxes (Details)
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Income Tax Disclosure [Abstract]    
Effective tax rates 17.60% 19.00%
v3.25.1
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Basic:    
Net income $ 136 $ 115
Weighted-average shares outstanding (in shares) 51,365,011 51,387,570
Basic earnings per share (in USD per share) $ 2.64 $ 2.24
Diluted:    
Net income $ 136 $ 115
Weighted-average shares outstanding (in shares) 51,365,011 51,387,570
Dilutive shares (in shares) 441,539 402,931
Diluted weighted-average shares outstanding (in shares) 51,806,550 51,790,501
Diluted earnings per share (in USD per share) $ 2.62 $ 2.23
v3.25.1
Earnings Per Share - Additional Information (Details) - shares
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Earnings Per Share [Abstract]    
Anti-dilutive shares (in shares) 52,843 18,095
v3.25.1
Accumulated Other Comprehensive (Loss) Income - Schedule of Components of AOCI (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
AOCI Attributable to Parent, Net of Tax    
Beginning balance $ 3,586 $ 3,036
Other comprehensive income (loss) before reclassifications (21) 8
Amounts reclassified from AOCI (9) (1)
Tax effect 9 (3)
Other comprehensive income (loss), net of tax (21) 4
Ending balance 3,626 3,169
Total    
AOCI Attributable to Parent, Net of Tax    
Beginning balance (44) (54)
Ending balance (65) (50)
Unrealized gain (loss) on sales hedging    
AOCI Attributable to Parent, Net of Tax    
Beginning balance 22 (5)
Other comprehensive income (loss) before reclassifications (28) 13
Amounts reclassified from AOCI (9) (1)
Tax effect 9 (3)
Other comprehensive income (loss), net of tax (28) 9
Ending balance (6) 4
Foreign currency translation adjustments    
AOCI Attributable to Parent, Net of Tax    
Beginning balance (66) (49)
Other comprehensive income (loss) before reclassifications 7 (5)
Amounts reclassified from AOCI 0 0
Tax effect 0 0
Other comprehensive income (loss), net of tax 7 (5)
Ending balance $ (59) $ (54)
v3.25.1
Accounts Receivable Factoring (Details)
$ in Millions
 3 Months Ended
Mar. 29, 2025
USD ($)
Mar. 30, 2024
USD ($)
Mar. 29, 2025
EUR (€)
Dec. 31, 2024
USD ($)
Transfers and Servicing [Abstract]        
Eligible uncollected receivables available (up to) | €     € 75,000,000  
Proceeds from sale of accounts receivables $ 119 $ 346    
Uncollected receivables sold and removed from the balance sheet 28     $ 28
Unremitted cash collections due to banks on factored accounts receivable $ 53     $ 51
v3.25.1
Segment Information & Geographic Data - Additional Information (Details)
 3 Months Ended
Mar. 29, 2025
segment
Segment Reporting [Abstract]  
Reportable segments 2
v3.25.1
Segment Information & Geographic Data - Financial Information by Segments (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Net sales:    
Total Net sales $ 1,308 $ 1,175
Cost of sales: 663 612
Operating expenses: 450 404
Operating income:    
Operating income 195 159
AIT    
Net sales:    
Total Net sales 462 392
EVM    
Net sales:    
Total Net sales 846 783
Operating segments    
Operating income:    
Operating income 222 196
Operating segments | AIT    
Net sales:    
Total Net sales 462 392
Cost of sales: 226 208
Operating expenses: 136 108
Operating income:    
Operating income 100 76
Operating segments | EVM    
Net sales:    
Total Net sales 846 783
Cost of sales: 437 404
Operating expenses: 287 259
Operating income:    
Operating income 122 120
Corporate    
Operating income:    
Operating income $ (27) $ (37)
v3.25.1
Segment Information & Geographic Data - Net Sales to Customers by Geographic Region (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2025
Mar. 30, 2024
Segment Reporting Information [Line Items]    
Total Net sales $ 1,308 $ 1,175
North America    
Segment Reporting Information [Line Items]    
Total Net sales 656 612
EMEA    
Segment Reporting Information [Line Items]    
Total Net sales 443 380
Asia-Pacific    
Segment Reporting Information [Line Items]    
Total Net sales 125 112
Latin America    
Segment Reporting Information [Line Items]    
Total Net sales $ 84 $ 71