Costs Associated with Exit and Restructuring Activities

3 Months Ended

Apr. 02, 2016

Restructuring and Related Activities [Abstract]

Costs Associated with Exit and Restructuring Activities

Costs Associated with Exit and Restructuring Activities

Total exit and restructuring charges specific to the Acquisition of $51 million life to date have been recorded through April 2, 2016: $11 million in the Legacy Zebra segment and $40 million in the Enterprise segment related to organizational design changes and operating efficiencies.

During the first three months of 2016, the Company incurred exit and restructuring costs specific to the Acquisition as follows (in millions) (restated):

	Cumulative costs incurred through December 31, 2015 Restated		Costs incurred for the three months ended April 2, 2016 Restated		Cumulative costs incurred through April 2, 2016
Severance, stay bonuses, and other employee-related expenses	$	37	$	2	$	39
Obligations for future non-cancellable lease payments	9		3		12
Total	$	46	$	5	$	51

Exit and restructuring charges for the three month period ended April 2, 2016 were $1 million and $4 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.

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

	April 2, 2016 Restated			April 4, 2015
Balance at beginning of the period	$	15		$	7
Charged to earnings	5			11
Cash paid	(7		)	(10		)
Balance at the end of the period	$	13		$	8

Liabilities related to exit and restructuring activities are included in the following accounts in the consolidated balance sheets (in millions):

	April 2, 2016		December 31, 2015 Restated
Accrued liabilities	$	7	$	10
Other long-term liabilities	6		5
Total liabilities related to exit and restructuring activities	$	13	$	15

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