Costs Associated with Exit and Restructuring

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Costs Associated with Exit and Restructuring

Costs Associated with Exit and Restructuring

Total exit and restructuring charges of $65 million life-to-date specific to the Acquisition, including the sale of the Company's WLAN business, have been recorded through December 31, 2016: $15 million in the Legacy Zebra segment and $50 million in the Enterprise segment related to organizational design changes. See Note 3 Business Combinations and Divestitures for specific information regarding the Acquisition.

During the period ended December 31, 2016, the Company incurred exit and restructuring costs specific to the Acquisition as follows (in millions):

Type of Cost	Cumulative costs incurred through December 31, 2016		Costs incurred for the year ended December 31, 2016		Cumulative costs incurred through December 31, 2015
Severance, stay bonuses, and other employee-related expenses	$	54	$	17	$	37
Obligations for future non-cancellable lease payments	11		2		9
Total	$	65	$	19	$	46

Exit and restructuring charges for the year ended December 31, 2016 were $5 million and $14 million for the Legacy Zebra and the Enterprise segments, respectively. The Company expects remaining charges related to this program in 2017 to be in the range of $5 to $7 million.

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

	Year Ended December 31,
	2016			2015
Balance at beginning of year	$	15		$	7
Charged to earnings	19			40
Cash paid	(22		)	(32		)
WLAN divestiture	(2		)	—
Balance at the end of year	$	10		$	15

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

	December 31,
	2016		2015
Accrued liabilities	$	7	$	10
Other long-term liabilities	3		5
Total liabilities related to exit and restructuring activities	$	10	$	15

Settlement of the specified long-term balance will be completed by October 2023 due to the remaining obligation of non-cancellable lease payments associated with the exited facilities.