The company completed several acquisitions in 2023, including IPVideo Corporation, Rave Mobile Safety, and Futurecom Systems Group, expanding its capabilities in video security, mass notification, and radio communications. These acquisitions are intended to enhance the company's product offerings and market presence.

The company is focused on integrating its LMR, Video, and Command Center technologies to provide unified solutions for public safety and enterprise customers. This strategy aims to remove silos and barriers between people and technologies, improving safety and security outcomes.

The company's R&D expenditures increased to $858 million in 2023, up from $779 million in 2022, reflecting a commitment to innovation and product development. The R&D programs are focused on LMR Communications, Video, and Command Center technologies.

The company's operating margins increased in 2023 to 23%, up from 18.2% in 2022, indicating improved operational efficiency. This expansion was driven by higher sales, lower direct material costs, and a reduction in intangible amortization expenses.

The company reduced its inventory carrying levels in 2023 compared to 2022, reflecting improved supply conditions of semiconductors. The company expects to continue actively managing inventory levels in the future.

The company is addressing the impact of the CMA's remedies order on the Airwave contract by recognizing revenue according to the price control. The company has filed an appeal with the United Kingdom Court of Appeal and is awaiting a decision. Backlog in the Software and Services segment was reduced by $777 million related to the Airwave contract.

The company acknowledges the increasing sophistication of cybersecurity threats and the potential for disruptions to its IT systems, those of its outsource partners, suppliers, or customers. These threats could result in substantial costs, loss of critical data, and reputational damage.

The company faces complex and changing laws and regulations regarding privacy, data protection, AI, and biometrics, which could increase costs and potential liabilities. These regulations could also make it more challenging or costly to offer certain products and services.

A portion of the company's business is dependent on U.S. government contracts, which are subject to specific laws and regulations. Violations of these regulations could lead to terminations, suspension, or debarment from U.S. government contracting.

The company acknowledges operating in highly competitive markets that are sensitive to technological advances, with competition coming from both existing and new competitors. Competitive factors include product quality, reliability, technological capabilities, cost-effectiveness, and industry experience.

The company is broadening its reach beyond its global LMR installed base to integrate Video and Command Center solutions. This strategy aims to provide customers with a unified system for critical communications, video security, access control, data, and analytics.

The company anticipates facing additional competition from public telecommunications carriers and video solution startups, as demand for technologies continues to grow. This increased competition could impact the company's market share and profitability.

The company reduced its inventory carrying levels in 2023 compared to 2022, indicating improved supply chain management and operational efficiency. This reduction was in response to improved semiconductor supply conditions.

The company is working to diversify its supply chain, but continues to procure certain materials and components from single-source vendors. A material disruption from a single-source vendor could have a material adverse impact on the company's results of operations.

The company utilizes subcontractors for many of its contracts, and the inability of these subcontractors to perform in a timely and compliant manner or to adhere to the company's Human Rights Policy could negatively impact its business.

The company's R&D programs are focused on the development of LMR Communications, Video, and Command Center technologies. These programs aim to expand and improve the company's products through new introductions and continuous enhancements.

The company actively participates in the development of standards for interoperable, mission-critical digital two-way radio systems. Its patents are used in standards in which its products and services are based.

The company seeks to obtain patents, copyright registrations, and trademark registrations to protect its proprietary positions. As of December 31, 2023, the company owned approximately 6,560 granted patents and had approximately 775 patent applications pending.

The company returned approximately $1.4 billion of capital to shareholders in 2023 through $804 million in share repurchases and $589 million in dividends. The company also increased its quarterly dividend by 11% in November 2023.

The Board of Directors authorized an additional $2 billion increase to the share repurchase program, bringing the total authorization to $18 billion. As of December 31, 2023, the company had $2.5 billion of authority remaining for future repurchases.

The company agreed to repurchase $1 billion of its 1.75% senior convertible notes for $1.59 billion in cash. This transaction is expected to be funded from cash on the balance sheet and short-term borrowings.

The company is increasingly subject to federal, state, local, and international laws, regulations, and industry standards relating to climate change. The company expects to see increased demand to meet voluntary criteria related to reduction of greenhouse gas emissions and increasing energy efficiency.

The company's U.K. subsidiaries have committed to achieving net zero emissions by 2050, in response to the U.K. government's requirements for companies bidding on contracts. This commitment reflects the company's focus on sustainability.

The company values diversity, equity, and inclusion and continues to incorporate DEI practices into its recruiting. The company also launched the GO ALL INclusive initiative and designated Juneteenth and National Day for Truth and Reconciliation as paid company holidays.

The company faces risks related to current global economic and political conditions, including impacts from inflation, low economic growth, currency fluctuations, and tight credit markets. These conditions could impact the company's business, financial condition, results of operations, and cash flows.

Government regulation of radio frequencies may limit the growth of private and public safety narrowband and broadband systems or reduce barriers to entry for new competitors. Regulatory changes in current spectrum bands may require modifications to some of the company's products.

The company enters into large, multi-year system and services contracts with municipal, state, and nationwide government and commercial customers. These contracts expose the company to risks, including technological risks, financial risks, and political or regulatory risks.