Subsequent Event

6 Months Ended

Jun. 28, 2014

Subsequent Events [Abstract]

Subsequent Event

Note 18 – Subsequent Event

During 2012, Zebra established a foreign holding company and restructured the ownership structure of its foreign affiliates. The new structure introduced leverage which favorably impacted Zebra’s effective tax rate and the Company recorded a benefit of $6.1 million during the first two quarters of 2014. However, the change in UK tax code, signed into law on July 17, 2014, will impact the tax position of the Company due to limitations on interest deductions and the Company expects to record a discrete charge of $6.1 million in the third quarter of 2014. This discrete charge is expected to be fully offset in the fourth quarter of 2014, if the Company is able to close the recently announced acquisition transaction of the Enterprise business of Motorola Solutions, Inc. in 2014. In addition, if this is the case, the interest deduction currently disallowed in Q3 will be taken as a benefit in Q4. At this time, the Company expects the acquisition transaction to close in 2014 and will record the full year tax benefit in the fourth quarter of 2014.