Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Note 23 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 the years ended December 31, 2011, 2010 and 2009. With the Navis sale, Zebra consolidated the former ZES Location Solutions product line.

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

	As of
	December 31, 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):

	Year Ended December 31
	2011			2010			2009
Net sales	$	13,945		$	62,489		$	65,103
Loss from discontinued operations		(13,971	)		(4,673	)		(1,796)
Income tax benefit		1,299			1,837			409
Gain on sale of discontinued operations		68,745			0			0
Income tax expense on sale		(11,773	)		0			0
Income (loss) from discontinued operations	$	44,300		$	(2,836	)	$	(1,387)

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

	Year Ended December  31
	2011			2010			2009
Cash flows from discontinued operations:
Net cash provided (used) by operating activities	$	(1,301	)	$	(2,164	)	$	(1,271)
Net cash provided (used) by investing activities		0			0			0
Net cash provided (used) by financing activities		0			0			0
Effect of exchange rate changes on cash		0			1,771			(475)
Net decrease in cash and cash equivalents		(1,301	)		(393	)		(1,746)
Cash and cash equivalents at beginning of period		1,301			1,694			3,440
Cash and cash equivalents at end of period	$	0		$	1,301		$	1,694