Discontinued Operations

12 Months Ended

Dec. 31, 2013

Discontinued Operations And Disposal Groups [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. As of December 31, 2011, Zebra had a short term receivable from the buyer in the amount of $27,580,000 which represented funds held in escrow, of which, we received $13,790,000 in the first quarter of 2012 and the remaining $13,790,000 in the third quarter of 2012.

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. 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. As part of the sale, Zebra agreed with the buyer to provide a revolving loan of up to €1,000,000 which was due on August 3, 2012 and bore interest at 6.5%. Zebra considered this loan unlikely to be repaid in full and established a reserve for the maximum loss. During 2012, the maximum value on Zebra’s loan to the purchaser was reduced to €526,058 and Zebra recorded a gain of $930,000 as a result of reducing the loan loss reserve to the new maximum loss. During 2013, Zebra received some additional payments on the loan and the remaining balance outstanding was forgiven. Zebra recorded a gain of $201,000 as a result of the payments received and loan cancellation.

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, 2013, 2012 and 2011. With the Navis sale, Zebra consolidated the remaining ZES Location Solutions operations.

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

	Year Ended December 31
	2013		2012		2011
Net sales	$	0	$	0	$	13,945
Loss from discontinued operations	$	7	$	(141)	$	(13,971)
Income tax benefit (expense)		(75)		218		1,299
Gain on sale of discontinued operations		201		930		68,745
Income tax expense on sale		0		0		(11,773)
Income from discontinued operations	$	133	$	1,007	$	44,300

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

	Year Ended December  31
	2013		2012		2011
Cash flows from discontinued operations:
Net cash (used) by operating activities	$	0	$	0	$	(1,301)
Net cash provided by (used in) by investing activities		0		0		0
Net cash provided by (used in) by financing activities		0		0		0
Effect of exchange rate changes on cash		0		0		0
Net decrease in cash and cash equivalents		0		0		(1,301)
Cash and cash equivalents at beginning of period		0		0		1,301
Cash and cash equivalents at end of period	$	0	$	0	$	0