Costs Associated with Exit and Restructuring Activities

9 Months Ended

Oct. 03, 2015

Restructuring and Related Activities [Abstract]

Costs Associated with Exit and Restructuring Activities

Note 10 – Costs Associated with Exit and Restructuring Activities

Total exit and restructuring charges of $40.4 million life to date specific to the Acquisition have been recorded through October 3, 2015: $8.0 million in the Legacy Zebra segment and $32.4 million in the Enterprise segment related to organizational design changes. See Note 3 Business Combinations for specific information regarding the Acquisition.

During the first nine months of 2015, the Company incurred exit and restructuring costs specific to the Acquisition as follows (in thousands):

Type of Cost	Cost incurred through December 31, 2014		Costs incurred for the nine months ended October 3, 2015		Total costs incurred as of October 3, 2015
Severance, stay bonuses, and other employee-related expenses	$	5,557	$	27,703	$	33,260
Obligations for future lease payments		0		6,900		6,900
Professional services		16		249		265
Total	$	5,573	$	34,852	$	40,425

Exit and restructuring charges for the three and nine month periods ended October 3, 2015 were $1.1 million and $8.0 million for the Legacy Zebra segment and $4.6 million and $26.9 million for the Enterprise segment, respectively. The Company expects additional charges related to the Acquisition through the end of 2016.

As of December 31, 2014, the Company incurred the following exit and restructuring costs related to 2014 organization design changes, Location Solutions business management structure and manufacturing operations relocation and restructuring, which included the Acquisition (in thousands):

Type of Cost	Cost incurred through December 31, 2013		Costs incurred for the twelve months ended December 31, 2014		Total costs incurred as of December 31, 2014
Severance, stay bonuses, and other employee-related expenses	$	6,650	$	5,991	$	12,641
Professional services		180		16		196
Relocation and transition costs		20		0		20
Total	$	6,850	$	6,007	$	12,857

A rollforward of the exit and restructuring accruals is as follows (in thousands):

	Three Months Ended October 3, 2015			Three Months Ended September 27, 2014			Nine Months Ended October 3, 2015			Nine Months Ended September 27, 2014
Balance at the beginning of period	$	17,694		$	502		$	6,830		$	1,252
Charged to earnings		5,734			(120	)		34,852			434
Cash paid		(7,072	)		29			(25,326	)		(1,275	)
Balance at the end of period	$	16,356		$	411		$	16,356		$	411

Liabilities related to exit and restructuring activities are included in accrued liabilities and other long-term liabilities. Payments of the related, long-term liabilities will be completed by October 2024.