Costs Associated with Exit and Restructuring Activities

3 Months Ended

Mar. 30, 2013

Costs Associated with Exit and Restructuring Activities

Note 7 – Costs Associated with Exit and Restructuring Activities

In December 2012, Zebra began a plan, “2012 restructuring 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. Costs incurred for 2013 and costs expected to be incurred relate to the following: restructuring of Zebra’s manufacturing operations, relocation of a significant portion of Zebra’s supply chain operations from the U.S. to China and consolidating activities domestically, restructuring of our sales operations and corporate restructuring.

As of March 30, 2013, 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	Cost incurred through December 31, 2012		Costs incurred for the three months ended March 30, 2013		Total costs incurred as of March 30, 2013		Additional costs expected to be incurred		Total costs expected to be incurred
Severance, stay bonuses, and other employee-related expenses	$	960	$	1,862	$	2,822	$	2,728	$	5,550
Professional services		0		12		12		298		310
Relocation and transition costs		0		21		21		459		480
Total	$	960	$	1,895	$	2,855	$	3,485	$	6,340

Liabilities and expenses below relate to the 2011 and 2012 exit and restructuring plans (in thousands):

	Three Months Ended
	March 30, 2013			March 31, 2012
Balance at beginning of period	$	967		$	1,048
Charged to earnings		1,895			0
Cash paid		(2,161	)		(337	)
Balance at the end of period	$	701		$	711

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.