Costs Associated with Exit and Restructuring

In the first quarter 2017, the Company’s executive leadership approved an initiative to continue the Company’s efforts to increase operational efficiency (the “Productivity Plan”). The Company expects the Productivity Plan to build upon the exit and restructuring initiatives specific to the acquisition of the Enterprise business (“Enterprise”) from Motorola Solutions, Inc. in October 2014, (the “Acquisition Plan”). Actions under the Productivity Plan include organizational design changes, process improvements and automation. Implementation of actions identified through the Productivity Plan is expected to be substantially complete by December 2018. Exit and restructuring costs are not included in the operating results of our segments as they are not deemed to impact the specific segment measures as reviewed by our Chief Operating Decision Maker and therefore are reported as a component of Corporate, eliminations. See Note 15, Segment Information and Geographic Data.

Total exit and restructuring charges of $12 million life-to-date and year-to-date specific to the Productivity Plan have been recorded through December 31, 2017 and relate to severance and related benefits, lease exit costs and other expenses. Total remaining charges associated with this plan are expected to be in the range of $8 million to $12 million with activities expected to be substantially complete by the end of fiscal 2018.

Total exit and restructuring charges of $69 million life-to-date specific to the Acquisition Plan have been recorded through December 31, 2017 and include severance and related benefits, lease exit costs and other expenses. Charges related to the Acquisition Plan for the twelve-month period ended December 31, 2017 and 2016, were $4 million and $19 million, respectively. The Company has substantially completed the activities associated with the Acquisition Plan.

The Company incurred total exit and restructuring costs as follows (in millions):



Type of Cost	Cumulative costs incurred through December 31, 2017		Costs incurred for the year ended December 31, 2017		Cumulative costs incurred through December 31, 2016
Severance, stay bonuses, and other employee-related expenses	$	69	$	15	$	54
Obligations for future lease payments	12		1		11
Total	$	81	$	16	$	65

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



	Year Ended December 31,
	2017			2016
Balance at beginning of year	$	10		$	15
Charged to earnings	16			19
Cash paid	(18		)	(22		)
WLAN Divestiture	—			(2		)
Balance at the end of year	$	8		$	10

Liabilities related to exit and restructuring activities are included in the following reported financial statement line items in the Company’s Consolidated Balance Sheets (in millions):



	Year Ended December 31,
	2017		2016
Accrued liabilities	$	6	$	7
Other long-term liabilities	2		3
Total liabilities related to exit and restructuring activities	$	8	$	10

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.