Costs Associated with Exit or Disposal Activities

12 Months Ended

Dec. 31, 2012

Costs Associated with Exit or Disposal Activities

Note 10 Costs Associated with Exit or Disposal Activities

In December 2012, Zebra began a plan to restructure its Location Solutions business management structure and announced a project to further optimize our manufacturing operations costs, which includes the consolidation and relocation of support functions. The costs below incurred for the year ended December 31, 2012 represent the costs related to the restructuring of Location solutions business management structure. The costs expected to be incurred relate to the restructuring of Zebra’s manufacturing operations and relocation of this portion of Zebra’s business from the U.S. to China and consolidating some activities domestically.

As of December 31, 2012, we have incurred the following exit and restructuring costs related to the location solutions business management structure and manufacturing operations relocation and restructuring (in thousands):

Type of Cost	Costs incurred for the year ended December 31, 2012		Additional costs expected to be incurred		Total costs     expected to be     incurred
Severance, stay bonuses, and other employee-related expenses	$	960	$	4,590	$	5,550
Professional services		0		310		310
Relocation and transition costs		0		480		480
Total	$	960	$	5,380	$	6,340

In January 2011, we announced an agreement to sell 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 incurred for the year ended December 31, 2011, represent the costs related to the consolidation and relocation of the administrative and accounting functions. There are no costs in 2012 related to this restructuring as this project was completed in 2011.

As of December 31, 2012, we have incurred the following exit and restructuring costs related to consolidating the former ZES administrative and accounting function into our corporate facilities (in thousands):

Type of Cost	Costs incurred for the year ended December 31, 2011		Costs incurred for the year ended December 31, 2012		Total costs     incurred as of     2012
Severance, stay bonuses, and other employee-related expenses	$	1,113	$	0	$	1,113
Professional services		890		0		890
Relocation and transition costs		38		0		38
Total	$	2,041	$	0	$	2,041

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

	Year Ended December 31,
	2012		2011
Balance at beginning of period	$	1,048	$	1,479
Charged to earnings		960		2,041
Cash paid		(1,041)		(2,472)
Balance at the end of period	$	967	$	1,048

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