Costs Associated With Exit Or Disposal Activities

6 Months Ended

Jul. 02, 2011

Costs Associated With Exit Or Disposal Activities

Costs Associated With Exit Or Disposal Activities

Note 7 – Costs Associated with Exit or Disposal Activities

In January 2011, we announced an agreement to sell a portion of ZES, which primarily consists of Navis, to Cargotec Corporation. Following the transaction which was completed on March 18, 2011, we retained the Location Solutions products from the former ZES, which includes active RFID real-time location solutions and associated tags and readers. In the first quarter of 2011, we also announced a plan to consolidate any remaining administrative and accounting functions from the former ZES into our corporate facilities in Illinois. The costs below for the three and six months ended July 2, 2011, represent the costs related to the consolidation and relocation of the administrative and accounting functions.

In 2008, we announced plans to establish regional distribution and configuration centers, consolidate our supplier base, and transfer final assembly of thermal printers to Jabil Circuit, Inc., a global third-party electronics manufacturer. We substantially completed these actions in 2010, and the costs noted below for the three and six months ended July 3, 2010, relate to the completion of this transfer.

The following is a summary of exit and restructuring costs incurred (in thousands):

	Three Months Ended						Six Months Ended
Type of Cost:	July 2, 2011			July 3, 2010			July 2, 2011		July 3, 2010
Severance, stay bonuses, and other employee-related expenses	$	(208	)	$	(327	)	$	1,071	$	100
Professional services		295			77			847		110
Relocation and transition costs		5			653			34		1,959
Other exit costs		(26	)		63			—		63
Total	$	66		$	466		$	1,952	$	2,232

Liabilities and expenses related to exit activities were as follows (in thousands):

	Six Months Ended
	July 2, 2011			July 3, 2010
Balance at beginning of period	$	1,301		$	3,038
Charged to earnings		1,952			2,232
Cash paid		(1,696	)		(3,032	)
Balance at the end of period	$	1,557		$	2,238

Liabilities related to exit activities are included in the accrued liabilities line item on the balance sheet. All current exit costs are included in operating expenses under the line item exit and restructuring costs.