Costs Associated with Exit and Restructuring Activities

9 Months Ended

Sep. 29, 2012

Costs Associated with Exit and Restructuring Activities

Note 7 – Costs Associated with Exit and Restructuring Activities

In January 2011, we announced an agreement to sell a significant portion of the Zebra Enterprise Solutions (ZES) segment, which primarily consisted of Navis, to Cargotec Corporation. We retained the Location Solutions products from the former ZES, which included 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 for 2011 below represent the costs related to the consolidation and relocation of the administrative and accounting functions. We do not anticipate costs in 2012 related to this restructuring.

The following is a summary of 2011 exit and restructuring costs incurred (in thousands):

	Three Months Ended		Nine Months Ended
Type of Cost:	October 1, 2011		October 1, 2011
Severance, stay bonuses, and other employee-related expenses	$	100	$	1,171
Professional services		38		885
Relocation and transition costs		0		34
Other exit costs		0		0
Total	$	138	$	2,090

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

	Nine Months Ended
	September 29, 2012			October 1, 2011
Balance at beginning of period	$	1,048		$	1,301
Charged to earnings		0			2,090
Cash paid		(872	)		(2,086	)
Balance at the end of period	$	176		$	1,305

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