Zebra Technologies CorporationZBRA

Reputation and brand · Esg environmental social governance performance

From time to time, we create and publish voluntary disclosures regarding ESG matters. If our ESG practices or business portfolio do not meet evolving investor or other stakeholder expectations and standards, then our reputation, our ability to attract or retain employees and our attractiveness as an investment, supplier, business partner, or acquiror could be negatively impacted.

Market position and competition · Competitive pressure and market share loss

The Company participates in a competitive industry, which may become more competitive. Competitors may be able to respond more quickly to new or emerging technology and changes in customer requirements. The markets that we serve are rapidly evolving and highly competitive.

Market position and competition · Disruptive competitors and new market entrants

We may not be able to effectively anticipate and react to new entrants in the marketplace competing with our offerings. Further, as we expand into markets beyond our core offerings, we may face well established competitors, placing us at a disadvantage in a new competitive landscape.

Strategic execution · Merger acquisition and divestiture risks

Inability to consummate future acquisitions at appropriate prices could negatively impact our growth rate and stock price. Our ability to expand revenues, earnings, and cash flow may be affected in part by our ability to identify and successfully acquire and integrate businesses at appropriate prices and to realize anticipated synergies.

Innovation and product development · Product development and randd investment risks

The Company may not be able to continue to develop offerings to address user needs effectively. To be successful, we must adapt to rapidly changing technological and application needs by continually improving our offerings, as well as introducing new offerings to address user demands.

Innovation and product development · Intellectual property protection and infringement

The inability to protect intellectual property could harm our reputation, and our competitive position may be materially damaged. Our intellectual property is valuable and provides us with certain competitive advantages. We use copyrights, patents, trademarks, trade secrets, confidentiality provisions and contracts to protect these proprietary rights.

Project and contract management · Large contract concentration

Large, multi-year, and fixed-price contracts may expose the Company to risks that could lead to losses and adversely affect our business. We enter into large, multi-year contracts with our customers, some of which are on a fixed-price basis, that could subject us to financial risks if we fail to properly estimate our costs.

Supply chain and procurement · Supplier operation and dependance

We utilize the services of subcontractors to perform under many of our contracts, and the inability of our subcontractors to perform in a timely and compliant manner could negatively impact our performance obligations as the prime contractor. We engage subcontractors on many of our contracts and our use of subcontractors has and may continue to increase as we expand our global business.

Human capital and workforce · Talent acquisition and retention

Our business success depends on our ability to attract, retain, develop and motivate key personnel. Our business and results of operations could be adversely affected by increased competition for highly skilled employees, higher employee turnover, or increased compensation and benefit costs.

Technology infrastructure · Technology systems and infrastructure failure

If we experience a significant disruption in our IT systems, our business, reputation, and operating results could be adversely affected. Our business processes depend on our IT systems, and the IT systems and processes of third parties to provide offerings, maintain financial records, retain sensitive data such as intellectual property, proprietary business information.

Legal and litigation · Intellectual property disputes

Third parties may allege that the Company or our suppliers infringe upon their intellectual property rights. Periodically, third parties claim that we or our suppliers infringe upon their intellectual property rights. As we continue to expand our business and incorporate new technologies into our offerings, these types of claims may increase.

Tax and financial reporting · Financial reporting and accounting standards

We could be adversely impacted by changes in accounting standards and subjective assumptions, estimates, and judgments by management related to complex accounting matters. Generally accepted accounting principles and related accounting pronouncements, implementation guidelines, and interpretations with regard to a wide range of matters that are relevant to our businesses are highly complex and involve many subjective assumptions, estimates, and judgments.

Tax and financial reporting · Tax compliance and changes in tax law

Taxing authority challenges may lead to tax payments exceeding current reserves. We are subject to, and may become subject to, ongoing tax examinations in various jurisdictions. As a result, we may record incremental tax expense based on expected outcomes of such matters.

Legal and litigation · Litigation and legal proceedings

The unfavorable outcome of any pending or future litigation, arbitration, or administrative action could have a material adverse effect on our financial condition or results of operations. From time to time we are a party to litigation, arbitration, or administrative actions. Our financial results and reputation could be negatively impacted by unfavorable outcomes to any pending or future litigation or administrative actions.

Natural and catastrophic events · Climate change and environmental impact

Increased public awareness and worldwide focus on environmental and climate change issues has led to legislative and regulatory efforts to limit greenhouse gas emissions, and may result in more international, federal or regional requirements or industry standards to reduce or mitigate global warming. Environmental, Social, and Governance ('ESG') requirements and other increased regulation of climate change concerns could subject us to additional costs and restrictions.

Geopolitical and trade · International conflicts and tensions

Geopolitical turmoil, including regional conflicts, terrorism and war could result in market instability, which could negatively impact our business results. The war between Russia and Ukraine, conflicts in the Middle East region, the risk of increased tensions between China and Taiwan, and other instances of geopolitical turmoil could limit our ability to sell our offerings.

Geopolitical and trade · Trade policies tariffs and sanctions

Geopolitical turmoil and uncertainty could have a negative impact on our ability to sell and ship our offerings, collect payments from and support customers in certain regions. Geopolitical turmoil could result in: increased energy costs, which could increase the cost of manufacturing, selling and delivering our offerings; inflation, which has resulted in increases in the cost of manufacturing.

Natural and catastrophic events · Pandemic and public health crises

A natural or man-made disaster, or a widespread public health issue, may have a material impact on our global operations, our customers and our vendors, which could adversely impact our business results and financial condition. Natural and man-made disasters, and widespread public health issues including pandemics, may occur in the future.

Capital structure and performance · Debt management and refinancing

Our indebtedness could adversely affect our business. Our indebtedness could have important consequences, including the following: We may experience difficulty in satisfying our obligations with respect to our existing indebtedness or future indebtedness; Our ability to obtain additional financing for working capital, capital expenditures, acquisitions, or general corporate purposes may be impaired.

Market and investment · Interest rate and yield curve risk

Our use of derivative financial instruments to reduce interest rate risk may result in added volatility in our operating results. We have utilized, and in the future may utilize, derivative financial instruments to reduce interest rate risk associated with our indebtedness. From time to time, we have entered into forward interest rate swap agreements to manage variable interest rate risk.