Costs Associated with Exit and Restructuring Activities

6 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Costs Associated with Exit and Restructuring Activities

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 14, Segment Information.

Total exit and restructuring charges of $17 million life-to-date specific to the Productivity Plan have been recorded through June 30, 2018 and relate to severance and related benefits and other expenses. Exit and restructuring charges of $1 million and $5 million were recorded in the respective three and six-month periods ended June 30, 2018, respectively. Total remaining charges associated with this plan are expected to be less than $6 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						Six Months Ended
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
Balance at the beginning of the period	$	7		$	11		$	8		$	10
Charged to earnings, net	1			1			5			5
Cash paid	(4		)	(5		)	(9		)	(8		)
Balance at the end of the period	$	4		$	7		$	4		$	7

The $4 million accrual as of June 30, 2018 is reflected within the Consolidated Balance Sheet as $3 million within Accrued liabilities and $1 million within Other long-term liabilities. The long-term portion of the accrual relates to non-cancellable lease payments associated with exited facilities whose latest term expires May 2021.