Costs Associated with Exit and Restructuring Activities

In the first quarter of 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”). The Company completed all initiatives under the Acquisition Plan as of December 31, 2017. Actions under the Productivity Plan include organizational design changes, process improvements and automation. 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 13, Segment Information.

Total exit and restructuring charges of $16 million life-to-date specific to the Productivity Plan have been recorded through March 31, 2018 and relate to severance and related benefits and other expenses. Exit and restructuring charges of $4 million were recorded in the three-month period ended March 31, 2018. Total remaining charges associated with this plan are expected to be in the range of $4 million to $8 million with activities expected to be substantially complete by the end of fiscal 2018.

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



	Three Months Ended
	March 31, 2018			April 1, 2017
Balance at the beginning of the period	$	8		$	10
Charged to earnings, net	4			4
Cash paid	(5		)	(3		)
Balance at the end of the period	$	7		$	11

Liabilities related to exit and restructuring activities are included in the following balance sheet captions in the Company’s Consolidated Balance Sheets (in millions):



	March 31, 2018		December 31, 2017
Accrued liabilities	$	6	$	6
Other long-term liabilities	1		2
Total liabilities related to exit and restructuring activities	$	7	$	8

Settlement of the specified long-term balance will be completed by May 2021 due to the remaining obligation of non-cancellable lease payments associated with exited facilities.