Costs Associated with Exit and Restructuring Activities

6 Months Ended

Jul. 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 Company's acquisition of the Enterprise business from Motorola Solutions, Inc. ("Acquisition") in October 2014 of $56 million life-to-date have been recorded through July 2, 2016: $13 million in the Legacy Zebra segment and $43 million in the Enterprise segment related to organizational design changes and operating efficiencies.

During the first six 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 six months ended July 2, 2016 Restated		Cumulative costs incurred through July 2, 2016
Severance, stay bonus, and other employee-related expenses	$	37	$	8	$	45
Obligations for future non-cancellable lease payments	9		2		11
Total	$	46	$	10	$	56

Exit and restructuring charges were $2 million and $3 million for the Legacy Zebra and Enterprise segments, respectively for the three month period ended July 2, 2016 and $3 million and $7 million, respectively for the six month period ended July 2, 2016. The Company expects total charges for the year ended December 31, 2016 related to the Acquisition to be in the range of $15 million to $20 million.

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

	Three months ended						Six months ended
	July 2, 2016			July 4, 2015			July 2, 2016 Restated			July 4, 2015
Balance at the beginning of the period	$	13		$	8		$	15		$	7
Charged to earnings	5			18			10			29
Cash paid	(5		)	(8		)	(12		)	(18		)
Balance at the end of the period	$	13		$	18		$	13		$	18

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

	July 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.