Discontinued Operations

9 Months Ended

Oct. 01, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Note 17 Discontinued Operations

Sale of Navis, LLC

On March 18, 2011, we sold our Navis marine terminal solutions business and the related WhereNet marine terminal solutions product line of our Zebra Enterprise Solutions ("ZES") business segment for approximately $188,588,000 in cash to Cargotec Corporation. Zebra has a short term receivable from the buyer in the amount of $27,580,000 which represents funds held in escrow that are subject to adjustment according to terms of the agreement.

Sale of proveo AG

On August 3, 2011, we entered into a Share Purchase Agreement with F Two NV (a Belgium company) to sell all of our interest in Zebra Enterprise Solutions GmbH (formerly proveo AG) business. The loss recorded upon divestiture was $1,248,000. As part of the sale, Zebra agreed with the buyer to provide a loan of up to €1,000,000 which is due one year from the sale date and bears interest at 6.5%. Zebra realized tax benefits in the amount of $13,308,000 with the divestiture of proveo AG. These tax benefits are primarily related to the difference in book basis versus tax basis.

Beginning in the first quarter of 2011, Zebra reported the results of these businesses as discontinued operations. The amounts presented below for discontinued operations include Navis and proveo assets and liabilities, and the operating results of these businesses for both 2011 and 2010 periods. With the Navis sale, Zebra consolidated the former ZES Location Solutions product line. The reporting of separate business segments will no longer be required.

The components of assets and liabilities of discontinued operations are as follows (in thousands):

	As of
	October 1, 2011		December 31, 2010
Assets:
Cash and cash equivalents	$	0	$	1,301
Accounts receivable, net		0		24,003
Inventories		0		772
Deferred income taxes		0		3,492
Prepaid expenses and other current assets		0		3,328
Property and equipment, net		0		1,890
Goodwill		0		72,230
Other intangibles, net		0		39,951
Other assets		0		1,202
Assets of discontinued operations	$	0	$	148,169
Liabilities:
Accounts payable	$	0	$	726
Accrued liabilities		0		2,927
Deferred revenue		0		17,791
Deferred rent		0		199
Other long-term liabilities		0		184
Liabilities of discontinued operations	$	0	$	21,827

Summary results for discontinued operations in our consolidated statement of earnings are as follows (in thousands):

	Three Months Ended						Nine Months Ended
	October 1, 2011			October 2, 2010			October 1, 2011			October 2, 2010
Net sales	$	233		$	16,701		$	13,945		$	48,333
Loss from discontinued operations		(1,246	)		(1,707	)		(13,970	)		(2,143	)
Income tax benefit		0			611			1,105			725
Gain (loss) on sale of discontinued operations		(1,248	)		0			66,753			0
Income tax benefit (expense) on sale		13,308			0			(11,773	)		0
Income (loss) from discontinued operations	$	10,814		$	(1,096	)	$	42,115		$	(1,418	)

The components of cash flows of discontinued operations in our consolidated statement of cash flows are as follows (in thousands):

	Nine Months Ended
	October 1, 2011			October 2, 2010
Cash flows from discontinued operations:
Net cash provided (used) by operating activities	$	(1,301	)	$	(2,152	)
Net cash provided (used) by investing activities		0			0
Net cash provided (used) by financing activities		0			0
Effect of exchange rate changes on cash		0			1,112
Net decrease in cash and cash equivalents	$	(1,301	)	$	(1,040	)
Cash and cash equivalents at beginning of period	$	1,301		$	1,693
Cash and cash equivalents at end of period	$	0		$	653