Costs Associated with Exit and Restructuring

12 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

Costs Associated with Exit and Restructuring

Costs Associated with Exit and Restructuring

Total exit and restructuring charges of $46 million life to date specific to the Acquisition have been recorded through December 31, 2015: $10 million in the Legacy Zebra segment and $36 million in the Enterprise segment related to organizational design changes. See Note 4 Business Combinations for specific information regarding the Acquisition.

During 2015, the Company incurred exit and restructuring costs specific to the Acquisition as follows (in millions) (restated):

Type of Cost	Cumulative costs incurred through December 31, 2014		Costs incurred for the year ended December 31, 2015 Restated		Cumulative costs incurred through December 31, 2015 Restated
Severance, stay bonuses, and other employee-related expenses	$	6	$	31	$	37
Obligations for future non-cancellable lease payments	—		9		9
Total	$	6	$	40	$	46

Exit and restructuring charges for the year ended December 31, 2015 were $10 million and $30 million for the Legacy Zebra and the Enterprise segments, respectively. The Company expects additional charges related to the Acquisition through the end of 2016 ranging from $10 million to $20 million.

As of December 31, 2014, the Company incurred the following exit and restructuring costs related to the 2014 organization design changes, Location Solutions business management structure and manufacturing operations relocation and restructuring, which included the Acquisition (in millions):

Type of Cost	Cumulative costs incurred through December 31, 2013		Costs incurred for the year ended December 31, 2014		Cumulative costs incurred through December 31, 2014
Severance, stay bonuses, and other employee-related expenses	$	7	$	6	$	13

A rollforward of the exit and restructuring accruals is as follows (in millions):

	Year Ended December 31,
	2013			2014		2015 Restated
Balance at beginning of year	$	1		$	1	$	7
Charged to earnings	6			6		40
Cash paid	(6		)	—		(32		)
Balance at the end of year	$	1		$	7	$	15

Liabilities related to exit and restructuring activities are included in the following accounts in the Consolidated Balance Sheets (in millions):

	December 31,
	2013		2014		2015 Restated
Accrued liabilities	$	1	$	7	$	10
Other long-term liabilities	—		—		5
Total liabilities related to exit and restructuring activities	$	1	$	7	$	15

Payments of the related, long-term liabilities will be completed by October 2024.