ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Delaware | 36-2675536 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Name of Exchange on which Registered | |
Class A Common Stock, par value $.01 per share | The NASDAQ Stock Market, LLC |
Large accelerated filer X | Accelerated filer |
Non-accelerated filer (Do not check if a smaller reporting company) | Smaller reporting company |
• | Market acceptance of Zebra’s products and solution offerings and competitors’ offerings and the potential effects of technological changes, |
• | The effect of global market conditions, including North America, Latin America, Asia-Pacific, Europe, Middle East, and Africa regions in which we do business, |
• | Our ability to control manufacturing and operating costs, |
• | Risks related to the manufacturing of Zebra’s products and conducting business operations in non-U.S. countries, including the risk of depending on key suppliers who are also in non-U.S. countries, |
• | Zebra’s ability to purchase sufficient materials, parts and components to meet customer demand, particularly in light of global economic conditions, |
• | The availability of credit and the volatility of capital markets, which may affect our suppliers, customers and ourselves, |
• | Success of integrating acquisitions, including the Enterprise business we acquired in October 2014 from Motorola Solutions, Inc., |
• | Interest rate and financial market conditions, |
• | Access to cash and cash equivalents held outside the United States, |
• | The effect of natural disasters on our business, |
• | The impact of changes in foreign and domestic governmental policies, laws or regulations, |
• | The impact of foreign exchange rates due to the large percentage of our sales and operations being outside the U.S., |
• | The outcome of litigation in which Zebra may be involved, particularly litigation or claims related to infringement of third-party intellectual property rights, and |
• | The outcome of any future tax matters or tax law changes. |
Item 1. | Business |
Year Ended December 31, | ||||||||
2015 | 2014 | 2013 | ||||||
Customer A | 17.0 | % | 17.1 | % | 16.8 | % | ||
Customer B | 10.0 | % | 12.2 | % | 13.1 | % | ||
Customer C | 9.6 | % | 10.5 | % | 12.3 | % |
Item 1A. | Risk Factors |
• | Fluctuating foreign currency rates could restrict sales, increase costs of purchasing, and impact collection of receivables outside of the U.S.; |
• | Volatility in foreign credit markets may affect the financial well-being of our customers and suppliers; |
• | Violations of anti-corruption laws, including the Foreign Corrupt Practices Act and the U.K. Bribery Act; |
• | Adverse changes in, or uncertainty of, local business laws or practices, including the following: |
• | Foreign governments may impose burdensome tariffs, quotas, taxes, trade barriers or capital flow restrictions; |
• | Restrictions on the export or import of technology may reduce or eliminate the ability to sell in or purchase from certain markets; |
• | Political and economic instability may reduce demand for our products or put our non-U.S. assets at risk; |
• | Potentially limited intellectual property protection in certain countries may limit recourse against infringing on our products or cause Zebra to refrain from selling in certain geographic territories; |
• | Staffing may be difficult along with higher turnover at international operations; |
• | A government controlled exchange rate and limitations on the convertibility of currencies, including the Chinese yuan; |
• | Transportation delays and customs related delays that may affect production and distribution of Zebra’s products; |
• | Effectively managing and overseeing operations that are distant and remote from corporate headquarters may be difficult; and |
• | Integration and enforcement of laws varies significantly among jurisdictions and may change significantly over time. |
• | Evolving industry standards, |
• | Frequent new product and service introductions, |
• | Evolving distribution channels, |
• | Increasing demand for customized product and software solutions, |
• | Changing customer demands, and |
• | Changing security protocols. |
• | Technologically advanced systems that satisfy user demands, |
• | Superior customer service, |
• | High levels of quality and reliability, and |
• | Dependable and efficient distribution networks. |
• | Managing our distribution channel partners; |
• | Managing our contract manufacturing and supply chain; |
• | Manufacturing an increased number of products; |
• | Increased administrative and operational burden; |
• | Maintaining and improving information technology infrastructure to support growth; |
• | Increased logistical problems common to complex, expansive operations; and |
• | Increasing international operations. |
• | Difficulties and uncertainties in retaining the customers or other business relationships from the acquired entities; |
• | The loss of key employees of acquired entities; |
• | The ability of acquired entities to fulfill their customers’ obligations; |
• | The discovery of unanticipated issues or liabilities; |
• | Pre-closing and post-closing acquisition-related earnings charges could adversely impact operating results and cash flows in any given period, and the impact may be substantially different from period to period; |
• | The failure of acquired entities to meet or exceed expected returns could result in impairment of goodwill or intangible assets acquired; and |
• | The acquired entities’ ability to implement internal controls and accounting systems necessary to be compliant with requirements applicable to public companies subject to SEC reporting, which could result in misstated financial reports. |
• | Zebra may experience difficulty in satisfying its obligations with respect to its existing indebtedness or future indebtedness; |
• | Zebra’s ability to obtain additional financing for working capital, capital expenditures, acquisitions or general corporate purposes may be impaired; |
• | Zebra plans to use a substantial portion of cash flow from operations to pay interest and principal on its indebtedness, which may reduce the funds available to Zebra for other purposes, such as acquisitions and capital expenditures; |
• | Zebra may be at a competitive disadvantage with reduced flexibility in planning for, or responding to, changing conditions in the industry, including increased competition; and |
• | Zebra may be more vulnerable to economic downturns and adverse developments in the business. |
• | incur additional indebtedness or guarantees; |
• | pay dividends or make other distributions or repurchase or redeem its stock or prepay or redeem certain indebtedness; |
• | sell or dispose of assets and issue capital stock of restricted subsidiaries; |
• | incur liens or enter into sale-leaseback transactions; |
• | enter into agreements restricting its subsidiaries’ ability to pay dividends; |
• | enter into transactions with affiliates; |
• | engage in new lines of business; |
• | consolidate, merge or enter into other fundamental changes; |
• | make loans, investments and/or acquisitions; and |
• | enter into amendments or modifications of certain material subordinated debt agreements or organizational documents. |
• | finance operations; |
• | make needed capital expenditures; |
• | make strategic acquisitions or investments or enter into alliances; |
• | withstand a future downturn in our business or the economy in general; |
• | engage in business activities, including future opportunities, that may be in Zebra’s interest; and |
• | plan for or react to market conditions or otherwise execute Zebra’s business strategies. |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosures |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
2015 | High | Low | 2014 | High | Low | |||||||||||||
First Quarter | $ | 92.48 | $ | 74.40 | First Quarter | $ | 72.76 | $ | 52.61 | |||||||||
Second Quarter | 119.47 | 88.41 | Second Quarter | 87.53 | 60.06 | |||||||||||||
Third Quarter | 117.00 | 71.95 | Third Quarter | 86.02 | 72.10 | |||||||||||||
Fourth Quarter | 83.02 | 63.92 | Fourth Quarter | 79.11 | 58.95 |
Item 6. | Selected Financial Data |
Year Ended December 31, | |||||||||||||||||||||
(Loss)/Earnings (1) | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
Net sales | $ | 3,652 | $ | 1,671 | $ | 1,038 | $ | 996 | $ | 983 | |||||||||||
Cost of sales | 2,008 | 893 | 535 | 505 | 496 | ||||||||||||||||
Gross profit | 1,644 | 778 | 503 | 491 | 487 | ||||||||||||||||
Acquisition and integration costs | 144 | 127 | 5 | 3 | — | ||||||||||||||||
Exit and restructuring costs | 39 | 6 | 6 | 1 | 2 | ||||||||||||||||
Other operating expenses | 1,408 | 556 | 332 | 323 | 303 | ||||||||||||||||
Total operating expenses | 1,591 | 689 | 343 | 327 | 305 | ||||||||||||||||
Operating income | 53 | 89 | 160 | 164 | 182 | ||||||||||||||||
(Loss) income from continuing operations before income taxes | (164 | ) | (2 | ) | 17 | (2 | ) | 164 | 164 | 180 | |||||||||||
(Loss) income from continuing operations, net of tax | (137 | ) | 32 | 134 | 122 | 131 | |||||||||||||||
Income (loss) from discontinued operations, net of tax (3) | — | — | — | 1 | 44 | ||||||||||||||||
Net (loss) income | $ | (137 | ) | $ | 32 | $ | 134 | $ | 123 | $ | 175 | ||||||||||
Basic earnings per share: | |||||||||||||||||||||
(Loss) income from continuing operations | $ | (2.69 | ) | $ | 0.64 | $ | 2.65 | $ | 2.36 | $ | 2.42 | ||||||||||
Income (loss) from discontinued operations (3) | — | — | — | 0.02 | 0.82 | ||||||||||||||||
Net (loss) income | $ | (2.69 | ) | $ | 0.64 | $ | 2.65 | $ | 2.38 | $ | 3.24 | ||||||||||
Diluted earnings per share: | |||||||||||||||||||||
(Loss) income from continuing operations | $ | (2.69 | ) | $ | 0.63 | $ | 2.63 | $ | 2.35 | $ | 2.40 | ||||||||||
Income (loss) from discontinued operations (3) | — | — | — | 0.02 | 0.82 | ||||||||||||||||
Net (loss) income | $ | (2.69 | ) | $ | 0.63 | $ | 2.63 | $ | 2.37 | $ | 3.22 | ||||||||||
Weighted average shares outstanding | |||||||||||||||||||||
Basic | 50,996,297 | 50,789,173 | 50,692,942 | 51,566,468 | 53,853,579 | ||||||||||||||||
Diluted | 50,996,297 | 51,379,698 | 51,063,189 | 51,843,051 | 54,190,871 |
December 31, | |||||||||||||||||||
Balance Sheet (1) | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||
Cash and cash equivalents, investments and marketable securities | $ | 192 | $ | 418 | $ | 416 | $ | 394 | $ | 327 | |||||||||
Working capital (4) | 456 | 719 | 635 | 616 | 476 | ||||||||||||||
Total assets | 5,024 | 5,539 | 1,120 | 968 | 899 | ||||||||||||||
Long-term obligations (5) | 3,234 | 3,346 | 15 | 14 | 12 | ||||||||||||||
Stockholders’ equity | 913 | 1,040 | 959 | 857 | 777 |
(1) | Includes the Enterprise business from its date of acquisition October 27, 2014. |
(2) | 2015 includes interest expense of $197 million and forward swaps gain of $4 million. 2014 includes interest expense of $57 million and forward swaps loss of $5 million. |
(3) | In 2011, the Company sold two businesses, Navis, LLC and Proveo AG and reported the results as discontinued operations. |
(4) | Calculated as current assets minus current liabilities. |
(5) | Long-term obligations includes long-term debt, deferred revenue, and other long-term liabilities. |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Year Ended December 31, | Percent Change 2015 vs 2014 | Percent Change 2014 vs 2013 | ||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||
Net sales | $ | 3,652 | $ | 1,671 | $ | 1,038 | 118.6 | % | 60.9 | % | ||||||
Gross profit | 1,644 | 778 | 503 | 111.3 | % | 54.5 | % | |||||||||
Operating expenses | 1,591 | 689 | 343 | 130.8 | % | 100.8 | % | |||||||||
Operating income | $ | 53 | $ | 89 | $ | 160 | (40.1 | )% | (44.5 | )% | ||||||
Gross margin | 45.0 | % | 46.6 | % | 48.5 | % |
Year Ended December 31, | Percent Change 2015 vs 2014 | Percent Change 2014 vs 2013 | ||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||
Hardware | $ | 2,865 | $ | 1,234 | $ | 740 | 132.2 | % | 66.6 | % | ||||||
Supplies | 268 | 265 | 244 | 1.2 | % | 8.7 | % | |||||||||
Service and Software | 519 | 172 | 54 | 201.8 | % | 220.8 | % | |||||||||
Total Net sales | $ | 3,652 | $ | 1,671 | 1,038 |
Year Ended December 31, | Percent Change 2015 vs 2014 | Percent Change 2014 vs 2013 | ||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||
Europe, Middle East, and Africa | $ | 1,194 | $ | 583 | $ | 326 | 104.8 | % | 78.6 | % | ||||||
Latin America | 220 | 135 | 99 | 63.6 | % | 35.9 | % | |||||||||
Asia-Pacific | 463 | 216 | 153 | 114.2 | % | 41.4 | % | |||||||||
Total International | 1,877 | 934 | 578 | 101.0 | % | 61.4 | % | |||||||||
North America | 1,775 | 737 | 460 | 140.9 | % | 60.3 | % | |||||||||
Total Net sales | $ | 3,652 | $ | 1,671 | $ | 1,038 |
Year Ended December 31, | Percent Change 2015 vs 2014 | Percent Change 2014 vs 2013 | ||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||
Selling and marketing | $ | 486 | $ | 213 | $ | 138 | 128.0 | % | 54.5 | % | ||||||
Research and development | 394 | 151 | 91 | 160.8 | % | 65.8 | % | |||||||||
General and administrative | 277 | 138 | 96 | 100.2 | % | 43.2 | % | |||||||||
Amortization of intangible assets | 251 | 54 | 7 | 363.7 | % | 632.7 | % | |||||||||
Acquisition and integration costs | 144 | 127 | 5 | 13.6 | % | NM | ||||||||||
Exit and restructuring costs | 39 | 6 | 6 | 553.9 | % | 2.0 | % | |||||||||
Total Operating expenses | $ | 1,591 | $ | 689 | $ | 343 | 130.8 | % | 100.8 | % |
Year Ended December 31, | Percent Change 2015 vs 2014 | Percent Change 2014 vs 2013 | ||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||
Foreign exchange loss | $ | (22 | ) | $ | (9 | ) | $ | (1 | ) | 151.7 | % | NM | ||||
Interest expense, net | (194 | ) | (62 | ) | — | 213.0 | % | NM | ||||||||
Other, net | (1 | ) | (1 | ) | 5 | (25.4 | )% | (126.8 | )% | |||||||
Total other (expenses)/income | $ | (217 | ) | $ | (72 | ) | 4 | 201.6 | % | NM |
Year Ended December 31, | Percent Change 2015 vs 2014 | Percent Change 2014 vs 2013 | |||||||||||||
2015 | 2014 | 2013 | |||||||||||||
Income tax (benefit) expense | $ | (27 | ) | $ | (15 | ) | 30 | 76.7 | % | (150.7 | )% |
Year Ended December 31, | Percent Change 2015 vs 2014 | Percent Change 2014 vs 2013 | ||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||
Net sales | $ | 1,287 | $ | 1,195 | $ | 1,038 | 7.7 | % | 15.1 | % | ||||||
Gross profit | 655 | 598 | 504 | 9.6 | % | 18.7 | % | |||||||||
Operating expenses | 395 | 360 | 325 | 9.7 | % | 10.6 | % | |||||||||
Operating income | $ | 260 | $ | 238 | $ | 179 | 9.4 | % | 33.3 | % | ||||||
Gross margin | 50.9 | % | 50.0 | % | 48.5 | % |
Year Ended December 31, | Percent Change 2015 vs 2014 | ||||||||||
2015 | 2014 | ||||||||||
Net sales | $ | 2,381 | $ | 482 | 393.9 | % | |||||
Gross profit | 1,009 | 215 | 369.6 | % | |||||||
Operating expenses | 761 | 150 | 407.9 | % | |||||||
Operating income | $ | 248 | $ | 65 | 281.6 | % | |||||
Gross margin | 42.4 | % | 44.5 | % |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Cash flow (used in) provided by: | |||||||||||
Operating activities | $ | 111 | $ | 248 | $ | 194 | |||||
Investing activities | (148 | ) | (3,111 | ) | (153 | ) | |||||
Financing activities | (149 | ) | 3,192 | (44 | ) | ||||||
Effect of exchange rates on cash balances | (16 | ) | 2 | 1 | |||||||
Net (decrease) increase in cash and cash equivalents | $ | (202 | ) | $ | 331 | $ | (2 | ) |
Senior Notes | $ | 1,050 | |
Term loan | 2,035 | ||
Less: debt issuance costs | (26 | ) | |
Less: unamortized discounts | (47 | ) | |
Total outstanding debt | $ | 3,012 |
Payments due by period | |||||||||||||||||||
Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
Operating lease obligations | $ | 140 | $ | 26 | $ | 47 | $ | 29 | $ | 38 | |||||||||
Deferred compensation liability | 9 | — | — | — | 9 | ||||||||||||||
Long-term debt – principal payments | 3,085 | — | — | — | 3,085 | ||||||||||||||
Interest payments | 1,080 | 173 | 345 | 346 | 216 | ||||||||||||||
Interest rate swap | 57 | 8 | 25 | 20 | 4 | ||||||||||||||
Purchase obligations | 260 | 260 | — | — | — | ||||||||||||||
Total | $ | 4,631 | $ | 467 | $ | 417 | $ | 395 | $ | 3,352 |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
December 31, | |||||||
Foreign exchange | 2015 | 2014 | |||||
Dollar/Pound | |||||||
Effect on Pretax Income | $ | 1 | $ | — | |||
Effect on Diluted EPS (after tax) | $ | 0.01 | $ | — | |||
Dollar/Euro | |||||||
Effect on Pretax Income | $ | 13 | $ | 5 | |||
Effect on Diluted EPS (after tax) | $ | 0.16 | $ | 0.07 | |||
Euro/Pound | |||||||
Effect on Pretax Income | $ | 1 | N/A | ||||
Effect on Diluted EPS (after tax) | $ | 0.02 | |||||
Dollar/Czech Koruna | |||||||
Effect on Pretax Income | $ | 1 | N/A | ||||
Effect on Diluted EPS (after tax) | $ | 0.01 | |||||
Dollar/Brazilian Real | |||||||
Effect on Pretax Income | $ | 1 | N/A | ||||
Effect on Diluted EPS (after tax) | $ | 0.01 | |||||
Dollar/Canadian dollar | |||||||
Effect on Pretax Income | $ | 1 | N/A | ||||
Effect on Diluted EPS (after tax) | $ | 0.01 | |||||
Dollar/Malaysian Ringgit | |||||||
Effect on Pretax Income | $ | — | N/A | ||||
Effect on Diluted EPS (after tax) | $ | — |
Item 8. | Financial Statements and Supplementary Data |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosures |
Item 9A. | Controls and Procedures |
Item 9B. | Other Information |
Item 10. | Directors, Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accounting Fees and Services |
Item 15. | Exhibits, Financial Statement Schedules |
ZEBRA TECHNOLOGIES CORPORATION |
By: /s/ Anders Gustafsson |
Anders Gustafsson |
Chief Executive Officer |
Signature | Title | Date |
/s/ Anders Gustafsson Anders Gustafsson | Chief Executive Officer and Director (Principal Executive Officer) | February 29, 2016 |
/s/ Michael C. Smiley Michael C. Smiley | Chief Financial Officer (Principal Financial Officer) | February 29, 2016 |
/s/ Stephen Boshold Stephen Boshold | Acting Chief Accounting Officer | February 29, 2016 |
/s/ Michael A. Smith Michael A. Smith | Director and Chairman of the Board of Directors | February 29, 2016 |
/s/ Chirantan Desai Chirantan Desai | Director | February 29, 2016 |
/s/ Richard Keyser Richard Keyser | Director | February 29, 2016 |
/s/ Andrew Ludwick Andrew Ludwick | Director | February 29, 2016 |
/s/ Ross W. Manire Ross W. Manire | Director | February 29, 2016 |
/s/ Frank B. Modruson Frank B. Modruson | Director | February 29, 2016 |
/s/ Janice M. Roberts Janice M. Roberts | Director | February 29, 2016 |
December 31, | |||||||
2015 | 2014 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 192 | $ | 394 | |||
Investments and marketable securities | — | 24 | |||||
Accounts receivable, net | 674 | 671 | |||||
Inventories, net | 394 | 394 | |||||
Deferred income taxes | — | 123 | |||||
Income tax receivable | 4 | 13 | |||||
Prepaid expenses and other current assets | 68 | 53 | |||||
Total Current assets | 1,332 | 1,672 | |||||
Property and equipment, net | 298 | 255 | |||||
Goodwill | 2,493 | 2,490 | |||||
Other intangibles, net | 757 | 1,029 | |||||
Long-term deferred income taxes | 52 | — | |||||
Other long-term assets | 92 | 93 | |||||
Total Assets | $ | 5,024 | $ | 5,539 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 289 | $ | 327 | |||
Accrued liabilities | 358 | 421 | |||||
Deferred revenue | 198 | 196 | |||||
Current portion of long-term debt | — | 4 | |||||
Income taxes payable | 31 | 5 | |||||
Total Current liabilities | 876 | 953 | |||||
Long-term debt | 3,012 | 3,156 | |||||
Long-term deferred tax liability | 1 | 200 | |||||
Long-term deferred revenue | 124 | 116 | |||||
Other long-term liabilities | 98 | 74 | |||||
Total Liabilities | 4,111 | 4,499 | |||||
Stockholders’ Equity: | |||||||
Preferred stock, $.01 par value; authorized 10,000,000 shares; none issued | — | — | |||||
Class A common stock, $.01 par value; authorized 150,000,000 shares; issued 72,151,857 shares | 1 | 1 | |||||
Additional paid-in capital | 194 | 147 | |||||
Treasury stock at cost, 19,990,006 and 20,497,520 shares at December 31, 2015 and December 31, 2014, respectively | (631 | ) | (634 | ) | |||
Retained earnings | 1,398 | 1,535 | |||||
Accumulated other comprehensive loss | (49 | ) | (9 | ) | |||
Total Stockholders’ Equity | 913 | 1,040 | |||||
Total Liabilities and Stockholders’ Equity | $ | 5,024 | $ | 5,539 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net sales | |||||||||||
Net sales of tangible products | $ | 3,133 | $ | 1,499 | $ | 984 | |||||
Revenue from services and software | 519 | 172 | 54 | ||||||||
Total Net sales | 3,652 | 1,671 | 1,038 | ||||||||
Cost of sales | |||||||||||
Cost of sales of tangible products | 1,631 | 792 | 508 | ||||||||
Cost of services and software | 377 | 101 | 27 | ||||||||
Total Cost of sales | 2,008 | 893 | 535 | ||||||||
Gross profit | 1,644 | 778 | 503 | ||||||||
Operating expenses: | |||||||||||
Selling and marketing | 486 | 213 | 138 | ||||||||
Research and development | 394 | 151 | 91 | ||||||||
General and administrative | 277 | 138 | 96 | ||||||||
Amortization of intangible assets | 251 | 54 | 7 | ||||||||
Acquisition and integration costs | 144 | 127 | 5 | ||||||||
Exit and restructuring costs | 39 | 6 | 6 | ||||||||
Total Operating expenses | 1,591 | 689 | 343 | ||||||||
Operating income | 53 | 89 | 160 | ||||||||
Other (expenses) income: | |||||||||||
Foreign exchange loss | (22 | ) | (9 | ) | (1 | ) | |||||
Interest expense, net | (194 | ) | (62 | ) | — | ||||||
Other, net | (1 | ) | (1 | ) | 5 | ||||||
Total Other (expenses) income | (217 | ) | (72 | ) | 4 | ||||||
(Loss) income before income taxes | (164 | ) | 17 | 164 | |||||||
Income tax (benefit) expense | (27 | ) | (15 | ) | 30 | ||||||
Net (loss) income | $ | (137 | ) | $ | 32 | $ | 134 | ||||
Basic (loss) earnings per share | $ | (2.69 | ) | $ | 0.64 | $ | 2.65 | ||||
Diluted (loss) earnings per share | $ | (2.69 | ) | $ | 0.63 | $ | 2.63 | ||||
Basic weighted average shares outstanding | 50,996,297 | 50,789,173 | 50,692,942 | ||||||||
Diluted weighted average and equivalent shares outstanding | 50,996,297 | 51,379,698 | 51,063,189 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net (loss) income | $ | (137 | ) | $ | 32 | $ | 134 | ||||
Other comprehensive (loss) income, net of tax: | |||||||||||
Unrealized (loss) gain on anticipated sales hedging transactions | (6 | ) | 7 | — | |||||||
Unrealized (loss) on forward interest rate swaps hedging transactions | (7 | ) | (8 | ) | — | ||||||
Foreign currency translation adjustment | (27 | ) | 1 | 1 | |||||||
Comprehensive (loss) income | $ | (177 | ) | $ | 32 | $ | 135 |
Class A Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total | |||||||||||||||||||
Balance at December 31, 2012 | $ | 1 | $ | 139 | $ | (642 | ) | $ | 1,369 | $ | (10 | ) | $ | 857 | ||||||||||
Repurchase of 1,356,861 shares of Class A common stock | — | — | (63 | ) | — | — | (63 | ) | ||||||||||||||||
Issuance of 963,750 treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards net of cancellations | — | (11 | ) | 34 | — | — | 23 | |||||||||||||||||
Repurchased 165,610 shares in exchange for the payment of taxes related to the net share settlements of equity awards | (8 | ) | (8 | ) | ||||||||||||||||||||
Additional tax benefit resulting from exercise of options | — | 2 | — | — | — | 2 | ||||||||||||||||||
Share-based compensation | — | 13 | — | — | — | 13 | ||||||||||||||||||
Net income | — | — | — | 134 | — | 134 | ||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 1 | 1 | ||||||||||||||||||
Balance at December 31, 2013 | $ | 1 | $ | 143 | $ | (679 | ) | $ | 1,503 | $ | (9 | ) | $ | 959 | ||||||||||
Issuance of 1,370,705 treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards net of cancellations | — | (22 | ) | 50 | — | — | 28 | |||||||||||||||||
Repurchased 65,914 shares in exchange for the payment of taxes related to the net share settlements of equity awards | (5 | ) | (5 | ) | ||||||||||||||||||||
Additional tax benefit resulting from exercise of options | — | 6 | — | — | — | 6 | ||||||||||||||||||
Share-based compensation | — | 20 | — | — | — | 20 | ||||||||||||||||||
Net income | — | — | — | 32 | — | 32 | ||||||||||||||||||
Unrealized gain anticipated sales hedging transactions (net of income taxes) | — | — | — | — | 7 | 7 | ||||||||||||||||||
Unrealized loss on forward interest rate swaps hedging transactions (net of income taxes) | — | — | — | — | (8 | ) | (8 | ) | ||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 1 | 1 | ||||||||||||||||||
Balance at December 31, 2014 | $ | 1 | $ | 147 | $ | (634 | ) | $ | 1,535 | $ | (9 | ) | $ | 1,040 | ||||||||||
Issuance of 646,395 treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards net of cancellations | — | 1 | 16 | — | — | 17 | ||||||||||||||||||
Repurchased 138,881 shares in exchange for the payment of taxes related to the net share settlements of equity awards | (13 | ) | (13 | ) | ||||||||||||||||||||
Issuance of warrants exercisable for 250,000 shares, exercise price $89.34, expiration April 5, 2017 | — | 4 | — | — | — | 4 | ||||||||||||||||||
Additional tax benefit resulting from exercise of options | — | 11 | — | — | — | 11 | ||||||||||||||||||
Equity based compensation | — | 31 | — | — | — | 31 | ||||||||||||||||||
Net loss | — | — | — | (137 | ) | — | (137 | ) | ||||||||||||||||
Unrealized loss on anticipated sales hedging transactions (net of income taxes) | — | — | — | — | (6 | ) | (6 | ) | ||||||||||||||||
Unrealized loss on forward interest rate swaps hedging transactions (net of income taxes) | — | — | — | — | (7 | ) | (7 | ) | ||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (27 | ) | (27 | ) | ||||||||||||||||
Balance at December 31, 2015 | $ | 1 | $ | 194 | $ | (631 | ) | $ | 1,398 | $ | (49 | ) | $ | 913 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income | $ | (137 | ) | $ | 32 | $ | 134 | ||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 320 | 81 | 32 | ||||||||
Amortization of debt issuance cost and discount | 16 | 2 | — | ||||||||
Equity-based compensation | 31 | 20 | 13 | ||||||||
Excess tax benefit from share-based compensation | (12 | ) | (6 | ) | (4 | ) | |||||
Deferred income taxes | (124 | ) | (44 | ) | 8 | ||||||
Realized (gain) loss on forward interest rate swaps | (4 | ) | 5 | — | |||||||
All other, net | 14 | 4 | — | ||||||||
Changes in assets and liabilities, net of businesses acquired: | |||||||||||
Accounts receivable | (6 | ) | (70 | ) | (7 | ) | |||||
Inventories | (10 | ) | (2 | ) | 3 | ||||||
Other assets | (6 | ) | (13 | ) | — | ||||||
Accounts payable | (21 | ) | 62 | 7 | |||||||
Accrued liabilities | (13 | ) | 164 | 6 | |||||||
Deferred revenue | 17 | 10 | 2 | ||||||||
Income taxes | 38 | (5 | ) | — | |||||||
Other operating activities | 8 | 8 | — | ||||||||
Net cash provided by operating activities | 111 | 248 | 194 | ||||||||
Cash flows from investing activities: | |||||||||||
Acquisition of businesses, net of cash acquired | (52 | ) | (3,399 | ) | (95 | ) | |||||
Purchases of property and equipment | (122 | ) | (39 | ) | (20 | ) | |||||
Proceeds from the sale of long-term investments | 3 | — | — | ||||||||
Acquisition of intangible assets | — | — | (2 | ) | |||||||
Purchases of long-term investments | (1 | ) | (2 | ) | (12 | ) | |||||
Purchases of investments and marketable securities | (1 | ) | (651 | ) | (410 | ) | |||||
Maturities of investments and marketable securities | — | 336 | 49 | ||||||||
Proceeds from sales of investments and marketable securities | 25 | 644 | 337 | ||||||||
Net cash used in investing activities | (148 | ) | (3,111 | ) | (153 | ) | |||||
Cash flows from financing activities: | |||||||||||
Payment of debt issuance costs | — | (24 | ) | — | |||||||
Proceeds from issuance of long-term debt | — | 3,189 | — | ||||||||
Purchase of treasury stock | — | — | (63 | ) | |||||||
Payment of long term-debt | (165 | ) | — | — | |||||||
Proceeds from exercise of stock options and stock purchase plan purchases | 17 | 26 | 23 | ||||||||
Taxes paid related to net share settlement of equity awards | (13 | ) | (5 | ) | (8 | ) | |||||
Excess tax benefit from share-based compensation | 12 | 6 | 4 | ||||||||
Net cash (used in) provided by financing activities | (149 | ) | 3,192 | (44 | ) | ||||||
Effect of exchange rate changes on cash | (16 | ) | 2 | 1 | |||||||
Net (decrease) increase in cash and cash equivalents | (202 | ) | 331 | (2 | ) | ||||||
Cash and cash equivalents at beginning of year | 394 | 63 | 65 | ||||||||
Cash and cash equivalents at end of year | $ | 192 | $ | 394 | $ | 63 | |||||
Supplemental disclosures of cash flow information: | |||||||||||
Income taxes paid | $ | 38 | $ | 17 | $ | 18 | |||||
Interest paid | $ | 183 | $ | — | $ | — |
• | April 4, |
• | July 4, |
• | October 3, and |
• | December 31. |
• | Salaries, benefits, and other R&D personnel related costs, |
• | Consulting and other outside services used in the R&D process, |
• | Engineering supplies, |
• | Engineering related information systems costs, and |
• | Allocation of building and related costs. |
Year Ended December 31, | |||||||||||
Warranty reserve | 2015 | 2014 | 2013 | ||||||||
Balance at the beginning of the year | $ | 25 | $ | 4 | $ | 4 | |||||
Acquisition | — | 21 | — | ||||||||
Warranty expense | 30 | 13 | 7 | ||||||||
Warranty payments | (33 | ) | (13 | ) | (7 | ) | |||||
Balance at the end of the year | $ | 22 | $ | 25 | $ | 4 |
Year Ended December 31, | |||||||||||
Compensation costs and related income tax benefit | 2015 | 2014 | 2013 | ||||||||
Cost of sales | $ | 3 | $ | 1 | $ | 1 | |||||
Selling and marketing | 8 | 4 | 2 | ||||||||
Research and development | 8 | 3 | 2 | ||||||||
General and administration | 14 | 12 | 8 | ||||||||
Total compensation expense | $ | 33 | $ | 20 | $ | 13 | |||||
Income tax benefit | $ | 11 | $ | 7 | $ | 5 |
Cash and cash equivalents | $ | 101 | |
Accounts receivable (1) | 440 | ||
Inventories | 264 | ||
Deferred income taxes, current | 142 | ||
Other current assets | 22 | ||
Property and equipment | 123 | ||
Deferred income taxes | 85 | ||
Intangible assets | 994 | ||
Other non-current assets | 49 | ||
Deferred revenue | (172 | ) | |
Tax liabilities | (10 | ) | |
Deferred income taxes, current | (36 | ) | |
Other current liabilities (2) | (364 | ) | |
Long-term deferred revenue | (103 | ) | |
Unrecognized tax benefits | (6 | ) | |
Other non-current liabilities | (24 | ) | |
Deferred income taxes | (299 | ) | |
Total identifiable net assets | $ | 1,206 |
(1) | Based on the purchase price allocations, accounts receivable estimated fair value is $440 million and a gross contractual value of $461 million. The difference represents The Company’s best estimate of the contractual cash flows that will not be collected. |
(2) | Other current liabilities include accounts payable, customer reserves, and employee compensation and related benefits. |
Amount | Weighted Avg Amortization Period (in years) | ||||
Customer relationships | $ | 450 | 7.0 years | ||
Unpatented technology | 270 | 3.9 years | |||
Patented technology | 215 | 3.5 years | |||
Trade names | 40 | 2 years | |||
Backlog | 19 | 1 year | |||
Acquired other intangibles | $ | 994 |
Level 1: | Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. (e.g. U.S. Treasuries and money market funds) | |
Level 2: | Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | |
Level 3: | Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Forward contracts (2) | $ | 6 | $ | 1 | $ | — | $ | 7 | |||||||
Money market investments related to the deferred compensation plan | 9 | — | — | 9 | |||||||||||
Total Assets at fair value | $ | 15 | $ | 1 | $ | — | $ | 16 | |||||||
Liabilities: | |||||||||||||||
Forward interest rate swap contracts (3) | $ | — | $ | 26 | $ | — | $ | 26 | |||||||
Liabilities related to the deferred compensation plan | 9 | — | — | 9 | |||||||||||
Total Liabilities at fair value | $ | 9 | $ | 26 | $ | — | $ | 35 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
U.S. government and agency securities | $ | 11 | $ | — | $ | — | $ | 11 | |||||||
Obligations of government-sponsored enterprises (1) | — | 1 | — | 1 | |||||||||||
State and municipal bonds | — | 5 | — | 5 | |||||||||||
Corporate securities | — | 7 | — | 7 | |||||||||||
Investments subtotal | 11 | 13 | — | 24 | |||||||||||
Forward contracts (2) | 2 | 7 | — | 9 | |||||||||||
Money market investments related to the deferred compensation plan | 6 | — | — | 6 | |||||||||||
Total Assets at fair value | $ | 19 | $ | 20 | $ | — | $ | 39 | |||||||
Liabilities: | |||||||||||||||
Forward interest rate swap contracts (3) | $ | — | $ | 17 | $ | — | $ | 17 | |||||||
Liabilities related to the deferred compensation plan | 6 | — | — | 6 | |||||||||||
Total Liabilities at fair value | $ | 6 | $ | 17 | $ | — | $ | 23 |
(1) | Includes investments in notes issued by the Federal Home Loan Mortgage Corporation and the Federal Home Loan Bank. |
(2) | The fair value of forward contracts is calculated as follows: |
a. | Fair value of a collar or put option contract associated with forecasted sales hedges is calculated using bid and ask rates for similar contracts. |
b. | Fair value of regular forward contracts associated with forecasted sales hedges is calculated using the period-end exchange rate adjusted for current forward points. |
c. | Fair value of hedges against net assets is calculated at the period end exchange rate adjusted for current forward points unless the hedge has been traded but not settled at period end (Level 2). If this is the case, the fair value is calculated at the rate at which the hedge is being settled (Level 1). As a result, transfers from Level 2 to Level 1 of the fair value hierarchy totaled $6 million and $2 million as of December 31, 2015 and 2014, respectively. |
(3) | The fair value of forward interest rate swap is based upon a valuation model that uses relevant observable market inputs at the quoted intervals, such as forward yield curves, and is adjusted for the Company's own credit risk and the interest rate swap terms. See gross balance reporting in Note 13 Derivative Instruments. |
December 31, 2014 | |||
Balance at beginning of the year | $ | 3 | |
Transfers to Level 3 | — | ||
Total losses (realized or unrealized): | |||
Included in earnings | (1 | ) | |
Included in other comprehensive income (loss) | — | ||
Purchases and settlements (net) | (2 | ) | |
Balance at end of year | $ | — | |
Total gains (losses) for the period included in earnings attributable to the change in unrealized losses relating to assets still held at end of 2014 | $ | — |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
U.S. government and agency securities | $ | 11 | $ | — | $ | — | $ | 11 | |||||||
Obligations of government-sponsored enterprises | 1 | — | — | 1 | |||||||||||
State and municipal bonds | 5 | — | — | 5 | |||||||||||
Corporate securities | 7 | — | — | 7 | |||||||||||
Total investments | $ | 24 | $ | — | $ | — | $ | 24 |
Unrealized Loss < 12 months | Unrealized Loss > 12 months | ||||||||||||||||||
Number of investments | Aggregate Market Value | Unrealized Losses | Number of investments | Aggregate Market Value | Unrealized Losses | ||||||||||||||
Government securities | — | $ | — | $ | — | 1 | $ | 8 | $ | — | |||||||||
State and municipal bonds | — | — | — | 2 | 1 | — | |||||||||||||
Corporate Securities | 1 | 1 | — | 11 | 3 | — | |||||||||||||
Other | — | — | — | 1 | — | — | |||||||||||||
Total | 1 | $ | 1 | $ | — | 15 | $ | 12 | $ | — |
Year Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Proceeds | $ | 25 | $ | 644 | $ | 337 | ||||||
Realized gains | — | 1 | 1 | |||||||||
Realized losses | — | (1 | ) | — | ||||||||
Net realized gains included in other comprehensive income (loss) as of the end of the prior year | — | — | — |
December 31, | |||||||
2015 | 2014 | ||||||
Accounts receivable, gross | $ | 680 | $ | 672 | |||
Accounts receivable reserves | (6 | ) | (1 | ) | |||
Accounts receivable, net | $ | 674 | $ | 671 |
December 31, | |||||||
2015 | 2014 | ||||||
Raw material | $ | 178 | $ | 140 | |||
Work in process | — | — | |||||
Finished goods | 272 | 260 | |||||
Inventories, gross | 450 | 400 | |||||
Inventory reserves | (56 | ) | (6 | ) | |||
Inventories, net | $ | 394 | $ | 394 |
December 31, | |||||||
2015 | 2014 | ||||||
Buildings | $ | 50 | $ | 49 | |||
Land | 10 | 10 | |||||
Machinery, equipment and tooling | 210 | 178 | |||||
Furniture and office equipment | 20 | 14 | |||||
Computers and software | 180 | 147 | |||||
Leasehold improvements | 63 | 21 | |||||
Projects in progress - other | 21 | 29 | |||||
554 | 448 | ||||||
Less accumulated depreciation and amortization | (256 | ) | (193 | ) | |||
Net property and equipment | $ | 298 | $ | 255 |
December 31, | |||||||
2015 | 2014 | ||||||
Unamortized computer software costs | $ | 40 | $ | 41 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Amortization of capitalized software | $ | 9 | $ | 9 | $ | 9 | |||||
Total depreciation expense charged to operations | 69 | 27 | 25 |
December 31, 2015 | |||||||||||
Gross Amount | Accumulated Amortization | Net Amount | |||||||||
Amortized intangible assets | |||||||||||
Current technology | $ | 25 | $ | (19 | ) | $ | 6 | ||||
Trade names | 40 | (24 | ) | 16 | |||||||
Unpatented technology | 270 | (87 | ) | 183 | |||||||
Patent and patent rights | 247 | (99 | ) | 148 | |||||||
Customer relationships | 517 | (113 | ) | 404 | |||||||
Total | $ | 1,099 | $ | (342 | ) | $ | 757 | ||||
Amortization expense for the year ended December 31, 2015 | $ | 251 |
Estimated amortization expense: | Amount | ||
For the year ended December 31, 2016 | $ | 234 | |
For the year ended December 31, 2017 | 198 | ||
For the year ended December 31, 2018 | 108 | ||
For the year ended December 31, 2019 | 88 | ||
For the year ended December 31, 2020 | 42 | ||
Thereafter | 87 | ||
Total | $ | 757 |
December 31, 2014 | |||||||||||
Gross Amount | Accumulated Amortization | Net Amount | |||||||||
Amortized intangible assets | |||||||||||
Current technology | $ | 23 | $ | (16 | ) | $ | 7 | ||||
Trade names | 40 | (2 | ) | 38 | |||||||
Unpatented technology | 280 | (13 | ) | 267 | |||||||
Patent and patent rights | 245 | (32 | ) | 213 | |||||||
Customer relationships | 532 | (28 | ) | 504 | |||||||
Total | $ | 1,120 | $ | (91 | ) | $ | 1,029 | ||||
Amortization expense for the year ended December 31, 2014 | $ | 54 |
Total | |||
Goodwill as of December 31, 2013 | $ | 156 | |
Opening balance sheet adjustments – Hart Systems 2014 (Retail Solutions) | (2 | ) | |
Acquisition – Enterprise | 2,336 | ||
Goodwill as of December 31, 2014 | 2,490 | ||
Opening balance sheet adjustments – Enterprise 2015 | 11 | ||
Foreign exchange impact | (8 | ) | |
Goodwill as of December 31, 2015 | $ | 2,493 |
December 31, | |||||||
2015 | 2014 | ||||||
Investments related to the deferred compensation plan | $ | 9 | $ | 6 | |||
Long-term investments | 31 | 32 | |||||
Other long-term assets | 25 | 23 | |||||
Long-term trade receivable | 11 | 17 | |||||
Long-term notes receivable | 14 | 14 | |||||
Deposits | 2 | 1 | |||||
Total | $ | 92 | $ | 93 |
December 31, | |||||||
2015 | 2014 | ||||||
Accrued payroll | $ | 47 | $ | 48 | |||
Accrued warranty | 22 | 25 | |||||
Accrued taxes | 10 | 11 | |||||
Interest payable | 36 | 35 | |||||
Amount owed to seller | — | 49 | |||||
Customer reserves | 38 | 39 | |||||
Restructuring liability | 9 | 7 | |||||
Accrued incentive compensation | 47 | 31 | |||||
Accrued other expenses | 149 | 176 | |||||
Total accrued liabilities | $ | 358 | $ | 421 |
Type of Cost | Cumulative costs incurred through December 31, 2014 | Costs incurred for the year ended December 31, 2015 | Cumulative costs incurred through December 31, 2015 | |||||||||
Severance, stay bonuses, and other employee-related expenses | $ | 6 | $ | 30 | $ | 36 | ||||||
Obligations for future non-cancellable lease payments | — | 9 | 9 | |||||||||
Total | $ | 6 | $ | 39 | $ | 45 |
Type of Cost | Cumulative costs incurred through December 31, 2013 | Costs incurred for the year ended December 31, 2014 | Cumulative costs incurred through December 31, 2014 | |||||||||
Severance, stay bonuses, and other employee-related expenses | $ | 7 | $ | 6 | $ | 13 |
Year Ended December 31, | ||||||||||||
2013 | 2014 | 2015 | ||||||||||
Balance at beginning of year | $ | 1 | $ | 1 | $ | 7 | ||||||
Charged to earnings | 6 | 6 | 39 | |||||||||
Cash paid | (6 | ) | — | (32 | ) | |||||||
Balance at the end of year | $ | 1 | $ | 7 | $ | 14 |
December 31, | ||||||||||||
2013 | 2014 | 2015 | ||||||||||
Accrued liabilities | $ | 1 | $ | 7 | $ | 9 | ||||||
Other long-term liabilities | — | — | 5 | |||||||||
Total liabilities related to exit and restructuring activities | $ | 1 | $ | 7 | $ | 14 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Realized gain (loss) from foreign exchange derivatives | $ | 11 | $ | 6 | $ | (2 | ) | ||||
(Loss) gain on net foreign currency assets | (33 | ) | (15 | ) | 1 | ||||||
Foreign exchange (loss) gain | $ | (22 | ) | $ | (9 | ) | $ | (1 | ) |
December 31, | |||||||
2015 | 2014 | ||||||
Notional balance of outstanding contracts (in millions): | |||||||
British Pound/US dollar | £ | 5 | £ | 5 | |||
Euro/US dollar | € | 133 | € | 40 | |||
British Pound/Euro | £ | 7 | £ | — | |||
Canadian Dollar/US dollar | $ | 5 | $ | — | |||
Czech Koruna/US dollar | Kč | 140 | Kč | ||||
Brazilian Real/US dollar | R$ | 28 | R$ | — | |||
Malaysian Ringgit/US dollar | RM | 13 | RM | — | |||
Net fair value of outstanding contracts | $ | 1 | $ | — |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Change in unrealized (loss) gain on anticipated sales hedging: | |||||||
Gross | $ | (8 | ) | $ | 9 | ||
Income tax (benefit) expense | (2 | ) | 2 | ||||
Net | $ | (6 | ) | $ | 7 |
December 31, | |||||||
2015 | 2014 | ||||||
Notional balance of outstanding contracts versus the dollar | € | 193 | € | 89 | |||
Hedge effectiveness | 100 | % | 100 | % |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net gain (loss) included in revenue | $ | 14 | $ | 2 | $ | (4 | ) |
December 31, | |||||||
2015 | 2014 | ||||||
Assets: | |||||||
Prepaid expenses and other current assets | $ | 7 | $ | 9 | |||
Total | $ | 7 | $ | 9 |
December 31, | |||||||
2015 | 2014 | ||||||
Accrued liabilities | $ | 1 | $ | — | |||
Other long-term liabilities | 14 | 2 | |||||
Hedge Effectiveness | 100 | % | 100 | % |
Gross Fair Value | Counterparty Offsetting | Net Fair Value in the Consolidated Balance Sheets | |||||||||
Counterparty A | $ | 12 | $ | 6 | $ | 6 | |||||
Counterparty B | 4 | 2 | 2 | ||||||||
Counterparty C | 4 | 2 | 2 | ||||||||
Counterparty D | 9 | 3 | 6 | ||||||||
Counterparty E | 4 | 1 | 3 | ||||||||
Counterparty F | 4 | 2 | 2 | ||||||||
Counterparty G | 5 | — | 5 | ||||||||
Total | $ | 42 | $ | 16 | $ | 26 |
Year 2016 | $ | 1,010 | |
Year 2017 | 697 | ||
Year 2018 | 544 | ||
Year 2019 | 544 | ||
Year 2020 | 272 | ||
Year 2021 | 272 | ||
Notional balance of outstanding contracts | $ | 3,339 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Interest income/(expense) on forward interest-rate swaps | $ | 4 | $ | (5 | ) | $ | — |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
Change in unrealized (losses) gains on forward interest rate swap hedging: | |||||||
Gross | $ | (12 | ) | $ | (12 | ) | |
Income tax (benefit) | (5 | ) | (4 | ) | |||
Net | $ | (7 | ) | $ | (8 | ) |
December 31, | |||||||
2015 | 2014 | ||||||
Senior Notes | $ | 1,050 | $ | 1,050 | |||
Term loan | 2,035 | 2,200 | |||||
Less: debt issuance costs | (26 | ) | (30 | ) | |||
Less: unamortized discounts | (47 | ) | (60 | ) | |||
Total outstanding debt | 3,012 | 3,160 | |||||
Current maturities of long-term debt | — | 16 | |||||
Less: current portion of unamortized discounts | — | (9 | ) | ||||
Less: current portion of debt issuance costs | — | (3 | ) | ||||
Total short-term debt | — | 4 | |||||
Long-term debt, less current maturities | $ | 3,012 | $ | 3,156 |
Payments Due By Period | |||
2016 | $ | 26 | |
2017 | 25 | ||
2018 | 22 | ||
2019 | 18 | ||
2020 | 11 | ||
Thereafter | 38 | ||
Total minimum lease obligations | $ | 140 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Rent expense | $ | 45 | $ | 21 | $ | 16 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Weighted average shares: | |||||||||||
Basic weighted average shares outstanding | 50,996,297 | 50,789,173 | 50,692,942 | ||||||||
Effect of dilutive securities outstanding | — | 590,525 | 370,247 | ||||||||
Diluted weighted average and equivalent shares outstanding | 50,996,297 | 51,379,698 | 51,063,189 | ||||||||
Net (loss) income | $ | (137 | ) | $ | 32 | $ | 134 | ||||
Basic per share amounts: | |||||||||||
Basic weighted average shares outstanding | 50,996,297 | 50,789,173 | 50,692,942 | ||||||||
Per share amount | $ | (2.69 | ) | $ | 0.64 | $ | 2.65 | ||||
Diluted per share amounts: | |||||||||||
Diluted weighted average shares outstanding | 50,996,297 | 51,379,698 | 51,063,189 | ||||||||
Per share amount | $ | (2.69 | ) | $ | 0.63 | $ | 2.63 |
Year Ended December 31, | ||||||||
2015 | 2014 | 2013 | ||||||
Potentially dilutive shares | 1,421,506 | 175,902 | 168,472 |
Vesting period | RSA’s | PSA’s | Total | |||||
At grant | 9,194 | — | 9,194 | |||||
After three years of service | 176,588 | 106,411 | 282,999 | |||||
Total | 185,782 | 106,411 | 292,193 |
2015 | 2014 | 2013 | |||
Expected dividend yield | 0% | 0% | 0% | ||
Forfeiture rate | 10.24% | 10.32% | 10.31% | ||
Volatility | 33.98% | 34.92% | 32.00% | ||
Risk free interest rate | 1.53% | 1.73% | 0.82% | ||
Range of interest rates | 0.02% - 2.14% | 0.02% - 2.61% | 0.02% - 1.78% | ||
Expected weighted-average life | 5.32 years | 5.36 years | 5.42 years | ||
Fair value of SARs granted (in millions) | $12 | $5 | $5 | ||
Weighted-average grant date fair value of SARs granted (per underlying share) | $35.00 | $24.98 | $13.86 |
2015 | 2014 | 2013 | |||||||||||||||||||||
Options | Shares | Weighted- Average Exercise Price | Shares | Weighted- Average Exercise Price | Shares | Weighted- Average Exercise Price | |||||||||||||||||
Outstanding at beginning of year | 415,960 | $ | 40.19 | 956,502 | $ | 42.77 | 1,532,569 | $ | 41.69 | ||||||||||||||
Granted | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Exercised | (209,976 | ) | 43.53 | (540,542 | ) | 44.76 | (543,922 | ) | 39.54 | ||||||||||||||
Forfeited | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Expired | (1,550 | ) | $ | 51.62 | 0 | 0 | (32,145 | ) | 45.81 | ||||||||||||||
Outstanding at end of year | 204,434 | $ | 36.66 | 415,960 | $ | 40.19 | 956,502 | $ | 42.77 | ||||||||||||||
Exercisable at end of year | 204,434 | $ | 36.66 | 415,960 | $ | 40.19 | 956,502 | $ | 42.77 | ||||||||||||||
Intrinsic value of exercised options (in millions) | $ | 10 | $ | 15 | $ | 4 |
Outstanding | Exercisable | ||
Aggregate intrinsic value - (in millions) | $11 | $11 | |
Weighted-average remaining contractual term | 2.1 years | 2.1 years |
2015 | 2014 | 2013 | ||||||||||||||||||||||
SARs | Shares | Weighted- Average Exercise Price | Shares | Weighted- Average Exercise Price | Shares | Weighted- Average Exercise Price | ||||||||||||||||||
Outstanding at beginning of year | 1,292,142 | $ | 42.20 | 1,402,784 | $ | 36.36 | 1,535,804 | $ | 31.66 | |||||||||||||||
Granted | 332,159 | 107.31 | 195,560 | 74.59 | 326,811 | 46.13 | ||||||||||||||||||
Exercised | (179,702 | ) | 40.71 | (267,077 | ) | 34.03 | (376,673 | ) | 25.44 | |||||||||||||||
Forfeited | (45,441 | ) | 75.26 | (38,738 | ) | 50.57 | (80,515 | ) | 37.54 | |||||||||||||||
Expired | (1,547 | ) | 47.11 | (387 | ) | 46.07 | (2,643 | ) | 33.70 | |||||||||||||||
Outstanding at end of year | 1,397,611 | $ | 56.78 | 1,292,142 | $ | 42.20 | 1,402,784 | $ | 36.36 | |||||||||||||||
Exercisable at end of year | 736,075 | $ | 35.90 | 586,344 | $ | 33.03 | 520,426 | $ | 30.51 | |||||||||||||||
Intrinsic value of exercised SARs (in millions) | $ | 11 | $ | 11 | $ | 8 |
Outstanding | Exercisable | ||
Aggregate intrinsic value - (in millions) | $52 | $40 | |
Weighted-average remaining contractual term | 6.8 years | 5.3 years |
2015 | 2014 | 2013 | |||||||||||||||||||
Restricted Stock Awards | Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | |||||||||||||||
Outstanding at beginning of year | 691,621 | $ | 60.06 | 435,377 | $ | 40.92 | 444,362 | $ | 35.43 | ||||||||||||
Granted | 185,782 | 107.17 | 423,644 | 73.42 | 167,515 | 46.17 | |||||||||||||||
Released | (253,801 | ) | 51.95 | (153,200 | ) | 43.16 | (161,976 | ) | 31.28 | ||||||||||||
Forfeited | (57,155 | ) | 75.11 | (14,200 | ) | 54.08 | (14,524 | ) | 40.79 | ||||||||||||
Outstanding at end of year | 566,447 | $ | 77.68 | 691,621 | $ | 60.06 | 435,377 | $ | 40.92 |
2015 | 2014 | 2013 | |||||||||||||||||||
Performance Share Awards | Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | |||||||||||||||
Outstanding at beginning of year | 374,180 | $ | 61.53 | 195,159 | $ | 42.25 | 265,829 | $ | 35.55 | ||||||||||||
Granted | 106,411 | 75.77 | 233,111 | 73.00 | 187,794 | 35.17 | |||||||||||||||
Released | (120,000 | ) | 38.67 | (33,535 | ) | 41.45 | (253,484 | ) | 27.90 | ||||||||||||
Forfeited | (27,961 | ) | 73.45 | (20,555 | ) | 41.45 | (4,980 | ) | 41.46 | ||||||||||||
Outstanding at end of year | 332,630 | $ | 73.40 | 374,180 | $ | 61.53 | 195,159 | $ | 42.25 |
Year ended December 31, | |||||
Restricted Stock Units (Shares) | 2015 | 2014 | |||
Outstanding at beginning of year | 41,964 | — | |||
Granted | 11,618 | 42,071 | |||
Released | (8,689 | ) | (4 | ) | |
Forfeited | (6,147 | ) | (103 | ) | |
Outstanding at end of year | 38,746 | 41,964 |
Year Ended December 31, 2015 | Year Ended December 31, 2014 | ||||
Performance Stock Units | Shares | Shares | |||
Outstanding at beginning of year | 10,345 | — | |||
Granted | — | 10,345 | |||
Released | — | — | |||
Forfeited | (1,272 | ) | — | ||
Outstanding at end of year | 9,073 | 10,345 |
2015 | 2014 | 2013 | |||||||||
Fair market value | $ | 77.38 | $ | 64.99 | $ | 42.45 | |||||
Option price | $ | 73.51 | $ | 61.74 | $ | 40.33 | |||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||
Expected volatility | 41 | % | 31 | % | 19 | % | |||||
Risk free interest rate | 0.02 | % | 0.05 | % | 0.05 | % |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
United States | $ | (293 | ) | $ | (122 | ) | $ | 48 | |||
Outside United States | 129 | 139 | 116 | ||||||||
Total | $ | (164 | ) | $ | 17 | $ | 164 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Current: | |||||||||||
Federal | $ | 62 | $ | 6 | $ | 9 | |||||
State | 2 | 4 | 1 | ||||||||
Foreign | 33 | 19 | 12 | ||||||||
Total current | 97 | 29 | 22 | ||||||||
Deferred: | |||||||||||
Federal | (100 | ) | (38 | ) | 7 | ||||||
State | (22 | ) | (5 | ) | 1 | ||||||
Foreign | (2 | ) | (1 | ) | — | ||||||
Total deferred | (124 | ) | (44 | ) | 8 | ||||||
Total | $ | (27 | ) | $ | (15 | ) | $ | 30 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
(Benefit) provision computed at statutory rate | $ | (57 | ) | $ | 6 | $ | 57 | ||||
State income tax, net of Federal tax benefit | (2 | ) | (1 | ) | 1 | ||||||
US impact of Enterprise acquisition and integration | 45 | 7 | — | ||||||||
Tax credits | (11 | ) | (3 | ) | (1 | ) | |||||
Foreign rate differential | (30 | ) | (33 | ) | (26 | ) | |||||
Change in valuation allowance | 13 | 3 | — | ||||||||
Effect of rate changes on deferred taxes | (7 | ) | — | — | |||||||
US income inclusion | 7 | 3 | — | ||||||||
Change in contingent income tax reserves | 6 | 3 | — | ||||||||
Other | 9 | — | (1 | ) | |||||||
(Benefit) provision for income taxes | $ | (27 | ) | $ | (15 | ) | $ | 30 |
December 31, | |||||||
2015 | 2014 | ||||||
Deferred tax assets: | |||||||
Capitalized research expenditures | $ | 46 | $ | 27 | |||
Capitalized software costs | 43 | — | |||||
Accrued bonus | 17 | 12 | |||||
Inventory items | 27 | 2 | |||||
Other accruals | 43 | 55 | |||||
Deferred revenue | 59 | 79 | |||||
Equity based compensation expense | 17 | 14 | |||||
Unrealized gain and losses on securities and investments | 10 | 9 | |||||
Net operating loss carryforwards | 63 | 27 | |||||
Tax credits | 35 | 62 | |||||
Sales return/rebate reserve | 12 | 8 | |||||
Valuation allowance | (48 | ) | (57 | ) | |||
Total deferred tax assets | 324 | 238 | |||||
Deferred tax liabilities: | |||||||
Unrealized loss on other investments | — | (1 | ) | ||||
Depreciation and amortization | (273 | ) | (311 | ) | |||
Undistributed earnings | — | (3 | ) | ||||
Total deferred tax liabilities | (273 | ) | (315 | ) | |||
Net deferred tax assets (liabilities) | $ | 51 | $ | (77 | ) |
Year ended December 31, | ||||||
2015 | 2014 | |||||
Balance at beginning of year | $ | 19 | $ | 4 | ||
Additions for tax positions related to the current year | 2 | 1 | ||||
Additions for tax positions related to prior years | 15 | 2 | ||||
Reductions for tax positions related to prior years | (2 | ) | 0 | |||
Settlements for tax positions | (1 | ) | 0 | |||
Additions related to Acquisition | $ | 0 | $ | 12 | ||
Balance at end of year | $ | 33 | $ | 19 |
China | 2003 - 2015 |
France | 2011 - 2015 |
Germany | 2009 - 2015 |
India | 1998 - 2015 |
Japan | 2012 - 2015 |
United Kingdom | 2009 - 2015 |
• | Unrealized (loss) gain on anticipated sales hedging transactions relate to derivative instruments used to hedge the exposure related to currency exchange rates for forecasted Euro sales. These hedges are designated as cash flow hedges, and the Company defers income statement recognition of gains and losses until the hedged transaction occurs. See Note 13 Derivative Instruments. |
• | Unrealized (loss) gain on forward interest rate swaps hedging transactions refer to the hedging of the interest rate risk exposure associated with the variable rate commitment entered into for the Acquisition. See Note 13 Derivative Instruments for more details. |
• | Unrealized (loss) gain on investments are deferred from the Consolidated Statements of Operations recognition until the gains or losses are realized. |
• | Foreign currency translation adjustment relates to the Company's non-U.S. subsidiary companies that have designated a functional currency other than the U.S. dollar. The Company is required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive income. |
Unrealized losses) gains on sales hedging | Unrealized (losses)/ gains on forward interest rate swaps | Unrealized gains (losses) on investments | Currency Translation Adjustments | Total | ||||||||||||||||
Balance at December 31, 2012 | $ | (2 | ) | $ | — | $ | — | $ | (8 | ) | $ | (10 | ) | |||||||
Other comprehensive (loss)/income before reclassifications | (3 | ) | — | — | 1 | (2 | ) | |||||||||||||
Amounts reclassified from AOCI | 3 | — | — | — | 3 | |||||||||||||||
Tax (expense) benefit | — | — | — | — | — | |||||||||||||||
Other comprehensive income/(loss) | — | — | — | 1 | 1 | |||||||||||||||
Balance at December 31, 2013 | (2 | ) | — | — | (7 | ) | (9 | ) | ||||||||||||
Other comprehensive income/(loss) before reclassifications | 8 | (12 | ) | — | 1 | (3 | ) | |||||||||||||
Amounts reclassified from AOCI | 1 | — | — | — | 1 | |||||||||||||||
Tax (expense) benefit | (2 | ) | 4 | — | — | 2 | ||||||||||||||
Other comprehensive income/(loss) | 7 | (8 | ) | — | 1 | — | ||||||||||||||
Balance at December 31, 2014 | 5 | (8 | ) | — | (6 | ) | (9 | ) | ||||||||||||
Other comprehensive income/(loss) before reclassifications | 7 | (12 | ) | — | (12 | ) | (17 | ) | ||||||||||||
Amounts reclassified from AOCI | (15 | ) | 1 | — | (15 | ) | (29 | ) | ||||||||||||
Tax benefit (expense) | 2 | 4 | — | — | 6 | |||||||||||||||
Other comprehensive (loss)/ income | (6 | ) | (7 | ) | — | (27 | ) | (40 | ) | |||||||||||
Balance at December 31, 2015 | $ | (1 | ) | $ | (15 | ) | $ | — | $ | (33 | ) | $ | (49 | ) |
Year Ended December 31, | |||||||||||||
Comprehensive Income Components | Financial Statement Line Item | 2015 | 2014 | 2013 | |||||||||
Unrealized (gain) loss on sales hedging: | |||||||||||||
Total before tax | Net sales of tangible products | $ | (15 | ) | $ | 1 | $ | 3 | |||||
Tax (benefit) expense | 3 | — | (1 | ) | |||||||||
Net of taxes | (12 | ) | 1 | 2 | |||||||||
Unrealized loss/(gain) on forward interest rate swaps: | |||||||||||||
Total before tax | Interest expense/(income) | 1 | — | — | |||||||||
Tax expense (benefit) | — | — | — | ||||||||||
Net of taxes | 1 | — | — | ||||||||||
Unrealized (gain) loss on investments | |||||||||||||
Total before tax | Other (expense) income – Other, net | — | — | — | |||||||||
Tax expense (benefit) | — | — | — | ||||||||||
Net of taxes | — | — | — | ||||||||||
Cumulative Foreign Currency Translation | Foreign exchange income (loss) | (15 | ) | — | — | ||||||||
Total amounts reclassified from AOCI | $ | (26 | ) | $ | 1 | $ | 2 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Net sales: | |||||||||||
Legacy Zebra - Net sales | $ | 1,287 | $ | 1,195 | $ | 1,038 | |||||
Enterprise - Net sales | 2,381 | 482 | — | ||||||||
Total segment net sales | 3,668 | 1,677 | 1,038 | ||||||||
Corporate, eliminations (1) | (16 | ) | (6 | ) | 0 | ||||||
Total | $ | 3,652 | $ | 1,671 | $ | 1,038 | |||||
Operating income (loss): | |||||||||||
Legacy Zebra - Operating income | $ | 260 | $ | 238 | $ | 178 | |||||
Enterprise - Operating income | 248 | 65 | — | ||||||||
Total segment operating income | 508 | 303 | 178 | ||||||||
Corporate, eliminations (2) | (455 | ) | (214 | ) | (18 | ) | |||||
Total | $ | 53 | $ | 89 | $ | 160 |
(1) | Amounts included in Corporate, eliminations consist of purchase accounting adjustments related to the Acquisition. |
(2) | Amounts included in Corporate, eliminations consist of purchase accounting adjustments not reported in segments; amortization expense, acquisition/integration expense and exit and restructuring costs. |
Year Ended December 31, | North America | Europe, Middle East & Africa | Latin America | Asia | Total | ||||||||||||||
2015 | |||||||||||||||||||
Net sales | $ | 1,775 | $ | 1,194 | $ | 220 | $ | 463 | $ | 3,652 | |||||||||
Long-lived assets | 275 | 10 | 3 | 10 | 298 | ||||||||||||||
2014 | |||||||||||||||||||
Net sales | $ | 737 | $ | 583 | $ | 135 | $ | 216 | $ | 1,671 | |||||||||
Long-lived assets | 238 | 10 | 2 | 5 | 255 | ||||||||||||||
2013 | |||||||||||||||||||
Net sales | $ | 460 | $ | 326 | $ | 99 | $ | 153 | $ | 1,038 | |||||||||
Long-lived assets | 98 | 8 | 1 | 3 | 110 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
United States | $ | 2,046 | $ | 875 | $ | 563 | |||||
United Kingdom | 1,102 | 558 | 324 | ||||||||
Singapore | 175 | 155 | 140 | ||||||||
Other | 329 | 83 | 11 | ||||||||
Total | $ | 3,652 | $ | 1,671 | $ | 1,038 |
Year Ended December 31, | |||||||||||
2015 | 2014 | 2013 | |||||||||
Hardware | $ | 2,865 | $ | 1,234 | $ | 740 | |||||
Supplies | 268 | 265 | 244 | ||||||||
Services and Software | 519 | 172 | 54 | ||||||||
Total | $ | 3,652 | $ | 1,671 | $ | 1,038 |
Year Ended December 31, | ||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||
Zebra | Enterprise | Total | Zebra | Enterprise | Total | Zebra | Enterprise | Total | ||||||||||||
Customer A | 5.5 | % | 11.6 | % | 17.1 | % | 11.5 | % | 5.6 | % | 17.1 | % | 16.8 | % | — | 16.8 | % | |||
Customer B | 4.6 | % | 5.4 | % | 10.0 | % | 9.2 | % | 3.0 | % | 12.2 | % | 13.1 | % | — | 13.1 | % | |||
Customer C | 5.2 | % | 4.4 | % | 9.6 | % | 8.7 | % | 1.8 | % | 10.5 | % | 12.3 | % | — | 12.3 | % |
2015 | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total Year | |||||||||||||||
Net sales | |||||||||||||||||||
Net sales of tangible products | $ | 755 | $ | 762 | $ | 787 | $ | 829 | $ | 3,133 | |||||||||
Revenue from services and software | 138 | 128 | 129 | 124 | 519 | ||||||||||||||
Total Net sales | 893 | 890 | 916 | 953 | 3,652 | ||||||||||||||
Cost of sales | |||||||||||||||||||
Cost of sales of tangible products | 386 | 407 | 403 | 435 | 1,631 | ||||||||||||||
Cost of services and software | 98 | 90 | 99 | 90 | 377 | ||||||||||||||
Total Cost of sales | 484 | 497 | 502 | 525 | 2,008 | ||||||||||||||
Gross profit | 409 | 393 | 414 | 428 | 1,644 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Selling and marketing | 122 | 125 | 120 | 119 | 486 | ||||||||||||||
Research and development | 96 | 99 | 100 | 99 | 394 | ||||||||||||||
General and administrative | 66 | 70 | 67 | 74 | 277 | ||||||||||||||
Amortization of intangible assets | 68 | 64 | 59 | 60 | 251 | ||||||||||||||
Acquisition and integration costs | 26 | 31 | 37 | 50 | 144 | ||||||||||||||
Exit and restructuring costs | 11 | 18 | 6 | 4 | 39 | ||||||||||||||
Total Operating expenses | 389 | 407 | 389 | 406 | 1,591 | ||||||||||||||
Operating income (loss) | 20 | (14 | ) | 25 | 22 | 53 | |||||||||||||
Other (expense) income | |||||||||||||||||||
Foreign exchange (loss) income | (27 | ) | 11 | (6 | ) | — | (22 | ) | |||||||||||
Interest, net | (51 | ) | (49 | ) | (45 | ) | (49 | ) | (194 | ) | |||||||||
Other, net | — | (1 | ) | — | — | (1 | ) | ||||||||||||
Total Other (expenses)/income | (78 | ) | (39 | ) | (51 | ) | (49 | ) | (217 | ) | |||||||||
(Loss) Income before income taxes | (58 | ) | (53 | ) | (26 | ) | (27 | ) | (164 | ) | |||||||||
Income tax expense (benefit) | (33 | ) | 23 | 3 | (20 | ) | (27 | ) | |||||||||||
Net (loss) income | $ | (25 | ) | $ | (76 | ) | $ | (29 | ) | $ | (7 | ) | $ | (137 | ) | ||||
Basic earnings per share: | $ | (0.50 | ) | $ | (1.50 | ) | $ | (0.57 | ) | $ | (0.13 | ) | $ | (2.69 | ) | ||||
Diluted earnings per share: | $ | (0.50 | ) | $ | (1.50 | ) | $ | (0.57 | ) | $ | (0.13 | ) | $ | (2.69 | ) | ||||
Basic weighted average shares outstanding | 50,666,970 | 50,917,161 | 51,151,541 | 51,207,102 | 50,996,297 | ||||||||||||||
Diluted weighted average and equivalent shares outstanding | 50,666,970 | 50,917,161 | 51,151,541 | 51,207,102 | 50,996,297 | ||||||||||||||
High/Low Stock Price: | |||||||||||||||||||
High | $92.48 | $119.47 | $117.00 | $83.02 | $119.47 | ||||||||||||||
Low | $74.40 | $88.41 | $71.95 | $63.92 | $63.92 |
2014 | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total Year | |||||||||||||||
Net sales | |||||||||||||||||||
Net sales of tangible products | $ | 262 | $ | 270 | $ | 283 | $ | 684 | $ | 1,499 | |||||||||
Revenue from services and software | 26 | 18 | 21 | 107 | 172 | ||||||||||||||
Total Net sales | 288 | 288 | 304 | 791 | 1,671 | ||||||||||||||
Cost of sales | |||||||||||||||||||
Cost of sales of tangible products | 130 | 137 | 142 | 383 | 792 | ||||||||||||||
Cost of services and software | 10 | 9 | 10 | 72 | 101 | ||||||||||||||
Total Cost of sales | 140 | 146 | 152 | 455 | 893 | ||||||||||||||
Gross profit | 148 | 142 | 152 | 336 | 778 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Selling and marketing | 35 | 36 | 37 | 105 | 213 | ||||||||||||||
Research and development | 23 | 24 | 25 | 79 | 151 | ||||||||||||||
General and administrative | 28 | 26 | 25 | 59 | 138 | ||||||||||||||
Amortization of intangible assets | 2 | 3 | 3 | 46 | 54 | ||||||||||||||
Acquisition and integration costs | 6 | 20 | 35 | 66 | 127 | ||||||||||||||
Exit and restructuring costs | — | — | — | 6 | 6 | ||||||||||||||
Total Operating expenses | 94 | 109 | 125 | 361 | 689 | ||||||||||||||
Operating income (loss) | 54 | 33 | 27 | (25 | ) | 89 | |||||||||||||
Other (expense) income | |||||||||||||||||||
Foreign exchange (loss) income | — | — | — | (9 | ) | (9 | ) | ||||||||||||
Interest, net | — | (2 | ) | — | (60 | ) | (62 | ) | |||||||||||
Other, net | — | — | (2 | ) | 1 | (1 | ) | ||||||||||||
Total Other (expenses)/income | — | (2 | ) | (2 | ) | (68 | ) | (72 | ) | ||||||||||
Income (loss) before income taxes | 54 | 31 | 25 | (93 | ) | 17 | |||||||||||||
Income tax expense (benefit) | 12 | 4 | 10 | (41 | ) | (15 | ) | ||||||||||||
Net income (loss) | $ | 42 | $ | 27 | $ | 15 | $ | (52 | ) | $ | 32 | ||||||||
Basic earnings per share: | $ | 0.83 | $ | 0.54 | $ | 0.29 | $ | (1.02 | ) | $ | 0.64 | ||||||||
Diluted earnings per share: | $ | 0.82 | $ | 0.54 | $ | 0.29 | $ | (1.02 | ) | $ | 0.63 | ||||||||
Basic weighted average shares outstanding | 50,402,469 | 50,606,008 | 50,835,492 | 50,452,097 | 50,789,173 | ||||||||||||||
Diluted weighted average and equivalent shares outstanding | 50,974,303 | 51,277,628 | 51,460,537 | 50,452,097 | 51,379,698 | ||||||||||||||
High/Low Stock Price: | |||||||||||||||||||
High | $72.76 | $87.53 | $86.02 | $79.11 | $87.53 | ||||||||||||||
Low | $52.61 | $60.06 | $72.10 | $58.95 | $52.61 |
Description | Balance at Beginning of Period | Charged to Costs and Expenses | Deductions / (Recoveries) | Balance at End of Period | |||||||||||
Valuation account for accounts receivable: | |||||||||||||||
Year ended December 31, 2015 | $ | 1 | $ | 5 | $ | — | $ | 6 | |||||||
Year ended December 31, 2014 | — | 1 | — | 1 | |||||||||||
Year ended December 31, 2013 | 1 | — | 1 | — | |||||||||||
Valuation accounts for inventories: | |||||||||||||||
Year ended December 31, 2015 | $ | 6 | $ | 54 | $ | 4 | $ | 56 | |||||||
Year ended December 31, 2014 | 13 | 6 | 13 | 6 | |||||||||||
Year ended December 31, 2013 | 14 | 8 | 9 | 13 | |||||||||||
Valuation accounts for deferred tax assets: | |||||||||||||||
Year ended December 31, 2015 | $ | 57 | $ | 5 | $ | 14 | $ | 48 | |||||||
Year ended December 31, 2014 | — | 57 | — | 57 | |||||||||||
Year ended December 31, 2013 | — | — | — | — |
2.1 | (22 | ) | Master Acquisition Agreement, dated as of April 14, 2014, between Zebra Technologies Corporation and Motorola Solutions, Inc. |
2.2 | (21 | ) | Amendment No. 1 to Master Acquisition Agreement, dated October 24, 2014, between Zebra Technologies Corporation and Motorola Solutions, Inc. |
2.3 | (21 | ) | Amendment No. 2 to Master Acquisition Agreement, dated October 26, 2014, between Zebra Technologies Corporation and Motorola Solutions, Inc. |
2.4 | (23 | ) | Amendment No. 4 to Master Acquisition Agreement, dated February 9, 2015 between Zebra Technologies Corporation and Motorola Solutions, Inc. |
2.5 | (22 | ) | Intellectual Property Agreement, dated as of April 14, 2014, between Zebra Technologies Corporation and Motorola Solutions, Inc. |
2.6 | (21 | ) | Amendment No. 1 to Intellectual Property Agreement, dated as of October 27, 2014, between Zebra Technologies Corporation and Motorola Solutions, Inc. |
2.7 | (22 | ) | Employee Matters Agreement, dated as of April 14, 2014, between Zebra Technologies Corporation and Motorola Solutions, Inc. |
3.1(i) | (4 | ) | Restated Certificate of Incorporation of the Company. |
3.1(ii) | (19 | ) | Amended and Restated By-laws of Zebra Technologies Corporation, as amended as of January 7, 2013. |
4.1 | (3 | ) | Specimen stock certificate representing Class A Common Stock. |
4.2 | (20 | ) | Indenture, dated as of October 15, 2014, between Zebra Technologies Corporation and U.S. Bank National Association, as trustee, relating to the 7.25% Senior Notes due 2022. |
4.3 | (20 | ) | Registration Rights Agreement, dated as of October 27, 2014, between Zebra Technologies Corporation and Morgan Stanley & Co., as representative of the initial purchasers. |
4.4 | (21 | ) | Supplemental Indenture, dated as of October 27, 2014, by and among Zebra Technologies Corporation, the guarantors and U.S. Bank National Association, as trustee, relating to the 7.25% Senior Notes due 2022. |
10.1 | (6 | ) | Employment Agreement between the Company and Hugh Gagnier dated December 12, 2007. + |
10.2 | (5 | ) | Amendment No. 1 to Employment Agreement between the Company and Hugh Gagnier dated December 30, 2008. + |
10.3 | (18 | ) | Employment Agreement between the Company and Michael H. Terzich dated November 16, 2007. + |
10.4 | (14 | ) | Employment Agreement between Michael C. Smiley and the Company dated May 1, 2008. + |
10.5 | (5 | ) | Form of Amendment No. 1 to Employment Agreement by and between the Company and each executive officer other than Messrs. Gustafsson and Gagnier, each dated December 30, 2008.+ |
10.6 | (8 | ) | Form of Stock Option Agreement under the 2006 Incentive Compensation Plan for awards granted to executive officers on or after April 25, 2007 and prior to December 2, 2008. + |
10.7 | (12 | ) | Form of indemnification agreement between Zebra Technologies Corporation and each director and executive officer. + |
10.8 | (15 | ) | Form of Director Stock Option Agreement (1-Year Vesting) under the 2006 Incentive Compensation Plan for awards granted to directors on or after May 22, 2008 and prior to December 2, 2008. + |
10.9 | (15 | ) | Form of Director Stock Option Agreement (4-Year Vesting) under the 2006 Incentive Compensation Plan for awards granted to directors on or after May 22, 2008 and prior to December 2, 2008. + |
10.10 | (17 | ) | Form of Director Stock Option Agreement (1-Year Vesting) under the 2006 Incentive Compensation Plan for awards granted to directors on or after December 2, 2008. + |
10.11 | (17 | ) | Form of Director Stock Option Agreement (4-Year Vesting) under the 2006 Incentive Compensation Plan for awards granted to directors on or after December 2, 2008. + |
10.12 | (17 | ) | Amendment to outstanding Stock Option Agreements under the 2006 Incentive Compensation Plan, dated December 2, 2008. + |
10.13 | (17 | ) | Form of Stock Option Agreement under the 2006 Incentive Compensation Plan for awards granted to executive officers on or after December 2, 2008. + |
10.16 | (16 | ) | Purchase Agreement, dated as of September 30, 2014, between Zebra Technologies Corporation and Morgan Stanley & Co. LLC, as representative of the initial purchasers. |
10.17 | (10 | ) | 2006 Incentive Compensation Plan. + |
10.18 | (17 | ) | Amendment to the 2006 Incentive Compensation Plan dated December 2, 2008. + |
10.19 | (27 | ) | 2011 Long-Term Incentive Plan (Amended and Restated as of May 15, 2014). + |
10.20 | (11 | ) | 2011 Short-Term Incentive Plan. + |
10.21 | (26 | ) | 2015 Long-Term Incentive Plan. + |
10.22 | (26 | ) | 2015 Short-Term Incentive Plan. + |
10.23 | (13 | ) | 2005 Executive Deferred Compensation Plan, as amended. + |
10.24 | (9 | ) | Form of Amendment to Employment Agreement between Zebra Technologies Corporation and executive officers. + |
10.25 | (12 | ) | Amended and Restated Employment Agreement between Zebra Technologies Corporation and Anders Gustafsson dated as of May 6, 2010. + |
10.26 | (12 | ) | Letter Agreement between Zebra Technologies Corporation and Anders Gustafsson dated as of May 6, 2010. + |
10.27 | (12 | ) | Form of 2010-2011 time-vested stock appreciation rights agreement for employees other than CEO. + |
10.28 | (7 | ) | Form of 2012 time-vested stock appreciation rights agreement for employees other than CEO. + |
10.29 | (28 | ) | Form of 2013-15 time-vested stock appreciation rights agreement for employees other than CEO. + |
10.30 | (12 | ) | Form of 2010 time-vested stock appreciation rights agreement for CEO. + |
10.31 | (7 | ) | Form of 2011-12 time-vested stock appreciation rights agreement for CEO. + |
10.32 | (28 | ) | Form of 2013-15 time-vested stock appreciation rights agreement for CEO. + |
10.33 | (12 | ) | Form of 2009 time-vested stock appreciation rights agreement for non-employee directors. + |
10.34 | (12 | ) | Form of 2010 time-vested stock appreciation rights agreement for non-employee directors. + |
10.35 | (1 | ) | Form of 2011 time-vested stock appreciation rights agreement for non-employee directors. + |
10.36 | (7 | ) | Form of 2012 stock appreciation rights agreement for non-employee directors. + |
10.37 | (28 | ) | Form of 2013 time-vested restricted stock agreement for employees other than CEO. + |
10.38 | (2 | ) | Form of May 2015 time-vested restricted stock agreement for employees other than CEO. + |
10.39 | (28 | ) | Form of 2013 performance-based restricted stock agreement for employees other than CEO. + |
10.40 | (2 | ) | Form of May 2014 performance-based restricted stock agreement for employees other than CEO. + |
10.41 | (24 | ) | Form of November 2014 performance-based restricted stock agreement for employees other than CEO. + |
10.42 | (25 | ) | Form of 2015 performance-vested equity agreement for employees other than CEO. + |
10.43 | (28 | ) | Form of 2013-15 time-vested restricted stock agreement for CEO. + |
10.44 | (28 | ) | Form of 2013 performance-based restricted stock agreement for CEO. + |
10.45 | (24 | ) | Form of November 2014 performance-based restricted stock agreement for CEO. + |
10.46 | (26 | ) | Form of 2015 performance-vested equity agreement for CEO. + |
10.47 | (21 | ) | Credit Agreement, dated October 27, 2014, by and among Zebra, the lenders and issuing banks party thereto, JPMorgan Chase Bank, N.A., and Morgan Stanley Senior Funding, Inc. |
10.48 | Sublease Agreement dated November 15, 2013 between Hewitt Associates, LLC and Zebra Technologies Corporation. * | ||
21.1 | Subsidiaries of the Company. | ||
23.1 | Consent of Ernst & Young LLP, independent registered public accounting firm. | ||
31.1 | Certification pursuant to Rule 13a-14(a)/15d-14(a). | ||
31.2 | Certification pursuant to Rule 13a-14(a)/15d-14(a). | ||
32.1 | Certification Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
32.2 | Certification Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
101 | The following financial information from Zebra Technologies Corporation Annual Report on Form 10-K, for the year ended December 31, 2014, formatted in XBRL (Extensible Business Reporting Language): (i) the consolidated balance sheets; (ii) the consolidated statements of earnings (loss); (iii) the consolidated statements of comprehensive income (loss); (iv) the consolidated statements of stockholders equity; (v) the consolidated statements of cash flows; and (vi) notes to consolidated financial statements. |
(1) | Incorporated by reference from Current Report on Form 8-K dated May 19, 2011. |
(2) | Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended March 29, 2014. |
(3) | Incorporated by reference from Registration Statement on Form S-1, File No. 33-41576. |
(4) | Incorporated by reference from Current Report on Form 8-K dated August 1, 2012. |
(5) | Incorporated by reference from Current Report on Form 8-K dated January 5, 2009. |
(6) | Incorporated by reference from Current Report on Form 8-K filed on December 17, 2007. |
(7) | Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended June 30, 2012. |
(8) | Incorporated by reference from Current Report on Form 8-K filed on May 1, 2007. |
(9) | Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended October 2, 2010. |
(10) | Incorporated by reference from Current Report on Form 8-K filed on May 15, 2006. |
(11) | Incorporated by reference from Proxy Statement dated April 15, 2011 for the 2011 Annual Meeting of Stockholders. |
(12) | Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended April 3, 2010. |
(13) | Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended March 29, 2008. |
(14) | Incorporated by reference from Current Report on Form 8-K filed on May 7, 2008. |
(15) | Incorporated by reference from Current Report on Form 8-K filed on May 29, 2008. |
(16) | Incorporated by reference from Current Report on Form 8-K dated September 30, 2014. |
(17) | Incorporated by reference from Current Report on Form 8-K filed on December 8, 2008. |
(18) | Incorporated by reference from Form 10-K for fiscal year ended December 31, 2008. |
(19) | Incorporated by reference from Current Report on Form 8-K dated January 7, 2013. |
(20) | Incorporated by reference from Current Report on Form 8-K dated October 15, 2014. |
(21) | Incorporated by reference from Current Report on Form 8-K dated October 24, 2014. |
(22) | Incorporated by reference from Current Report on Form 8-K dated April 14, 2014. |
(23) | Incorporated by reference from Current Report on Form 8-K dated February 9, 2015. |
(24) | Incorporated by reference from Annual Report on Form 10-K for the year ended December 31, 2014. |
(25) | Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended June 30, 2015. |
(26) | Incorporated by reference from Proxy Statement dated April 15, 2015 for the 2015 Annual Meeting of Stockholders. |
(27) | Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended June 28, 2014. |
(28) | Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended March 30, 2013. |
+ | Management contract or compensatory plan or arrangement required to be filed as an exhibit to this Annual Report on Form 10-K. |
* | Included with this annual Report on Form 10-K |
If to Sublandlord: | c/o Aon Service Corporation Attention: Corporate Real Estate 200 E. Randolph, 6th Floor Chicago, Illinois 60601 |
with a copy to: | Jones Lang LaSalle Attention: Lease Administration 525 William Penn Place 3 Mellon Center, 20th floor Pittsburgh, Pennsylvania 15259-0001 |
If to Subtenant | Prior to Subtenant’s fully occupying the Sublease Premises: |
Date: February 29, 2016 | By: | /s/ Anders Gustafsson | |
Anders Gustafsson | |||
Chief Executive Officer |
Date: February 29, 2016 | By: | /s/ Michael C. Smiley | |
Michael C. Smiley | |||
Chief Financial Officer |
1. | The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: February 29, 2016 | By: | /s/ Anders Gustafsson | |
Anders Gustafsson | |||
Chief Executive Officer |
1. | The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
February 29, 2016 | By: | /s/ Michael C. Smiley | |
Michael C. Smiley | |||
Chief Financial Officer |
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Feb. 22, 2016 |
Jul. 04, 2015 |
|
Document And Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ZBRA | ||
Entity Registrant Name | ZEBRA TECHNOLOGIES CORP | ||
Entity Central Index Key | 0000877212 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 52,149,195 | ||
Entity Public Float | $ 5,649,249,748 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued | 72,151,857 | 72,151,857 |
Treasury Stock, Shares | 19,990,006 | 20,497,520 |
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (137) | $ 32 | $ 134 |
Other comprehensive (loss) income, net of tax: | |||
Unrealized (loss) gain on anticipated sales hedging transactions | (6) | 7 | 0 |
Unrealized (loss) on forward interest rate swaps hedging transactions | (7) | (8) | 0 |
Foreign currency translation adjustment | (27) | 1 | 1 |
Comprehensive (loss) income | $ (177) | $ 32 | $ 135 |
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Repurchase of Class A Common Stock, shares | 1,356,861 | ||
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards, shares | 646,395 | 1,370,705 | 963,750 |
Shares Paid for Tax Withholding for Share Based Compensation | 138,881 | 65,914 | 165,610 |
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 250,000 | ||
Investment Warrants, Exercise Price | $ 89.34 |
Description of Business |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Zebra Technologies Corporation and its wholly-owned subsidiaries ("Zebra" or "Company") designs, manufactures, sells and supports a broad range of direct thermal and thermal transfer label printers, radio frequency identification printer/encoders, dye sublimation card printers, real-time locating solutions, related accessories and support software. These products are used principally in automatic identification (auto ID), data collection and personal identification applications and are distributed world-wide through a network of resellers, distributors and end-users representing a wide cross-section of industrial, service and government organizations. In October 2014, Zebra acquired the Enterprise business (“Enterprise”) from Motorola Solutions, Inc. (“MSI”), for $3.45 billion in cash (the “Acquisition”). Enterprise is an industry leader in mobile computing and advanced data capture technologies and services, which complement Zebra’s printing and radio frequency identification devices ("RFID") products. Its products include rugged and enterprise-grade mobile computers; laser, imaging and radio frequency identification based data capture products; wireless LAN (“WLAN”) solutions and software; and applications that are associated with these products and services. Enterprise service revenues include revenues arising from maintenance, integration services and device and network management. |
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation. These accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States and include the accounts of Zebra and its wholly owned subsidiaries. All significant intercompany accounts, transactions and unrealized profit were eliminated in consolidation. Fiscal Calendar. Zebra operates on a 4 week/4 week/5 week fiscal quarter, and each fiscal quarter ends on a Saturday. The fiscal year always begins on January 1 and ends on December 31. This fiscal calendar results in some fiscal quarters being either greater than or less than 13 weeks, depending on the days of the week those dates fall. During the 2015 fiscal year, our quarter end dates were as follows:
Use of Estimates. These consolidated financial statements were prepared using estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of estimates include: loss contingencies; product warranties; useful lives of our tangible and intangible assets; allowances for doubtful accounts; and share-based compensation forfeiture rates. Actual results could differ from those estimates. Cash and Cash Equivalents. Cash consists primarily of deposits with banks. In addition, the Company considers highly liquid short-term investments with original maturities of less than three months to be cash equivalents. These highly liquid short-term investments are readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of a change in value because of changes in interest rates. Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable consist primarily of amounts due to us from our customers in the course of normal business activities. Collateral on trade accounts receivable is generally not required. The Company maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on our assessment of known delinquent accounts. Accounts are written off against the allowance account when they are determined to be no longer collectible. Inventories. Inventories are stated at the lower of cost or market, and cost is determined by the first-in, first-out ("FIFO") method. Manufactured inventories consist of the following costs: components, direct labor and manufacturing overhead. Purchased inventories also include internal purchasing overhead costs. We review inventory quantities on hand and record a provision for excess and obsolete inventory based on forecasts of product demand and production requirements or historical consumption when appropriate. Property and Equipment. Property and equipment is stated at cost. Depreciation and amortization is computed primarily using the straight-line method over the estimated useful lives of the various classes of property and equipment, which are 30 years for buildings and range from 3 to 10 years for other property. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. Income Taxes. The Company accounts for income taxes under the liability method in accordance with Accounting Standards Codification ("ASC") 740, Income Taxes. Accordingly, deferred income taxes are provided for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities are measured using tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the benefit of tax positions when it is more likely than not to be sustained on its technical merits. The Company recognizes interest and penalties related to income tax matters as part of income tax expense. Goodwill. Goodwill is not amortized, but is evaluated for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. If a quantitative assessment is completed as part of our impairment analysis for a reporting unit, we engage a third party appraisal firm to assist in the determination of estimated fair value for each reporting unit. This determination includes estimating the fair value using both the income and market approaches. The income approach requires management to estimate a number of factors for each reporting unit, including projected future operating results, economic projections, anticipated future cash flows and discount rates. The market approach estimates fair value using comparable marketplace fair value data from within a comparable industry grouping. The determination of the fair value of the reporting units and the allocation of that value to individual assets and liabilities within those reporting units requires us to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the selection of appropriate peer group companies; control premiums appropriate for acquisitions in the industries in which we compete; the discount rates; terminal growth rates; and forecasts of revenue, operating income, depreciation and amortization and capital expenditures. The allocation requires several analyses to determine the fair value of assets and liabilities including, among other things, customer relationships and trade names. Although we believe our estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting units, the amount of any goodwill impairment charge, or both. We also compared the sum of the estimated fair values of the reporting units to the Company’s total value as implied by the market value of the Company’s securities. This comparison indicated that, in total, our assumptions and estimates were reasonable. However, future declines in the overall market value of the Company’s securities may indicate that the fair value of one or more reporting units has declined below its carrying value. One measure of the sensitivity of the amount of goodwill impairment charges to key assumptions is the amount by which each reporting unit “passed” (fair value exceeds the carrying amount) or “failed” (the carrying amount exceeds fair value) the first step of the goodwill impairment test. Our reporting units’ fair values exceeded their carrying values. Other Intangibles. Other intangible assets capitalized consist primarily of current technology, customer relationships, trade names, unpatented technology, and patent rights. These assets are recorded at cost and amortized on a straight-line basis over a weighted-average life of 3.0 years, which approximates the estimated useful lives. Weighted average lives remaining by intangible asset class are as follows: Current technology 1.9 years; Trade names 0.8 years; Unpatented technology 2.4 years; Patent and patent rights 2.2 years and Customer relationships 4.7 years. Amortization of Debt Issuance Costs. The Company capitalizes costs incurred in connection with borrowings or establishment of credit facilities. These costs are amortized over the life of the borrowing or life of the credit facility using the effective interest method. Revenue Recognition. Revenue includes sales of hardware, supplies and services (including repair services and extended service contracts, which typically occur over time, and professional services, which typically occur at the inception of a project). We enter into revenue arrangements that may consist of multiple deliverables of our hardware products and services due to the needs of our customers. For this type of revenue arrangements, we apply the guidance in ASC 605 "Revenue Recognition" to identify the separate units of accounting by determining whether the delivered items have value to the customer on a standalone basis. Generally, our multiple deliverables arrangements do not have a right of return. We also follow the accounting principles that establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price (TPE) and (iii) best estimate of the selling price (ESP). Generally, our agreements contain termination provisions whereby we are entitled to payment for delivered equipment and services rendered through the date of the termination. Some of our agreements may also contain cancellation provisions that in certain cases result in customer penalties. We may enter into multiple agreements with a single customer. In those cases we follow the guidance in ASC 985 "Software" to determine whether these agreements should be accounted for as a single multiple element arrangement. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title has passed to the customer, which typically happens at the point of shipment provided that no significant obligations remain, the price is fixed and determinable and collectability of the sales price is reasonably assured. For hardware sales, in addition to the criteria discussed above, revenue recognition incorporates allowances for discounts, price protection, returns and customer incentives that can be reasonably estimated. In addition to cooperative marketing and other incentive programs, the Company has arrangements with some distributors, which allow for price protection and limited rights of return, generally through stock rotation programs. Under the price protection programs, the Company gives distributors credits for the difference between the original price paid and the Company’s then current price. Under the stock rotation programs, distributors are able to exchange certain products based on the number of qualified purchases made during the period. We monitor and track these programs and record a provision for future payments or credits granted as reductions of revenue based on historical experience. Recorded revenues are reduced by these allowances. The Company enters into post contract maintenance and support agreements; revenues are deferred and then recognized ratably over the service period and the cost of providing these services is expensed as incurred. The Company includes shipping and handling charges billed to customers as revenue when the product ships; any costs incurred related to these services are included in cost of sales. Research and Development Costs. Research and development costs ("R&D") are expensed as incurred. These costs include:
Advertising. Advertising is expensed as incurred. Advertising costs totaled $22 million for the year ended December 31, 2015, $13 million for the year ended December 31, 2014 and $7 million for the year ended December 31, 2013. Warranty. The Company generally provides warranty coverage of 1 year on mobile computers and WLAN products. Advanced data capture products are warranted from 1 to 5 years, depending on the product. Printers are warranted for one year against defects in material and workmanship. Thermal printheads are warranted for 6 months and batteries are warranted for 1 year. Battery based products, such as location tags, are covered by a 90 days warranty. A provision for warranty expense is adjusted quarterly based on historical warranty experience. The following table is a summary of the Company’s accrued warranty obligation (in millions):
Fair Value of Financial Instruments. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Our financial assets and financial liabilities that require recognition under the accounting guidance generally include our available-for-sale investments, employee deferred compensation plan investments, foreign currency derivatives and interest rate swaps. In accordance with ASC 815, "Derivatives and Hedging" we recognize derivative instruments and hedging activities as either assets or liabilities on the balance sheet and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. See Note 13 Derivative Instruments for additional information on our derivatives and hedging activities. The Company has foreign currency forwards to hedge certain foreign currency exposures and interest rate swaps to hedge a portion of the variability in future cash flows on debt. We use broker quotations or market transactions, in either the listed or over-the-counter markets to value our foreign currency exchange contracts and relevant observable market inputs at quoted intervals, such as forward yield curves and the Company’s own credit risk to value our interest rate swaps. The Company’s investments in marketable debt securities are classified as available-for-sale except for securities held in the Company’s deferred compensation plans, which are considered to be trading securities. In general we use quoted prices in active markets for identical assets to determine fair value. If active markets for identical assets are not available to determine fair value, then we use quoted prices for similar assets or inputs that are observable either directly or indirectly. Share-Based Compensation. At December 31, 2015, the Company had a general share-based compensation plan and an employee stock purchase plan under which shares of our common stock were available for future grants and sales, and which are described more fully in Note 18 Share-Based Compensation. We account for these plans in accordance with ASC 505 "Equity" and ASC 718 "Compensation - Stock Compensation." The Company recognizes compensation costs using the straight-line method over the vesting period upon grant of up to 4 years. The compensation expense and the related income tax benefit for share-based compensation were included in the Consolidated Statement of Operations as follows (in millions):
Foreign Currency Translation. The consolidated balance sheets of the Company’s non-U.S. subsidiaries, not having a U.S. dollar functional currency, are translated into U.S. dollars using the year-end exchange rate, and statement of earnings items are translated using the average exchange rate for the year. The resulting translation gains or losses are recorded in stockholders’ equity as a cumulative translation adjustment, which is a component of accumulated other comprehensive (loss) income. Acquisition and Integration Costs. The Company expenses acquisition and integration costs as incurred. The Company incurred transaction expenses of approximately $144 million, $127 million, and $5 million, which have been recorded in acquisition and integration costs in the consolidated statements of operations for the years ended December 31, 2015, 2014 and 2013, respectively. Acquisitions. We account for acquired businesses using the acquisition method of accounting. This method requires that the purchase price be allocated to the identifiable assets acquired and liabilities assumed at their estimated fair values. The excess of the purchase price over the identifiable assets acquired and liabilities assumed is recorded as goodwill. The estimates used to determine the fair value of long-lived assets, such as intangible assets, can be complex and require significant judgments. We use information available to us to make fair value determinations and engage independent valuation specialists, when necessary, to assist in the fair value determination of significant acquired long-lived assets. While we use our best estimates and assumptions as a part of the purchase price allocation process, our estimates are inherently uncertain and subject to refinement. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from customer relationships, customer attrition rates and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but due to the inherent uncertainty during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of. The Company accounts for long-lived assets in accordance with the provisions of ASC 360 "Property, Plant and Equipment." The statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposition of the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Recently Issued Accounting Pronouncements. Recently Adopted. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-03 “Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this ASU. This standard is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. Upon adoption, an entity must apply the new guidance retrospectively to all prior periods presented in the financial statements. As permitted, the Company early adopted this ASU beginning in the second quarter of calendar year 2015. The impact of this ASU reduced both long-term assets and long-term debt by $26 million at December 31, 2015. It also reduced long-term assets, short-term debt and long-term debt by $30 million, $3 million, and $27 million, respectively, at December 31, 2014. This ASU has no impact on the consolidated statements of operations or cash flows. In August 2015, the FASB issued ASU 2015-15 “Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update).” This ASU indicates that the guidance in ASU 2015-03, discussed above, does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Given the absence of authoritative guidance within ASU 2015-03, the SEC staff has indicated that they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. However, in conjunction with ASU 2015-03, the Company has elected to present debt issuance costs associated with its line-of-credit arrangement as a direct deduction from the carrying amount of its total debt liability regardless of whether there are any outstanding borrowings on the line-of-credit arrangement and amortizing these costs using the straight line method over its term. This ASU has no impact on the consolidated statements of operations or cash flows. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This update is to be applied prospectively and is effective for interim and annual periods beginning after December 15, 2015 with earlier adoption permitted. The Company elected to early adopt this ASU during the third quarter of 2015. See Note 3 Business Combinations for additional information. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” to simplify the presentation of deferred taxes. The amendments in this update require that deferred tax assets and liabilities be classified as non-current on the balance sheet. This ASU is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016 with earlier adoption permitted. Companies can adopt the guidance either prospectively or retrospectively. In order to simplify the presentation of deferred taxes in its consolidated balance sheet, the Company elected to early adopt this ASU prospectively during the fourth quarter of 2015. As a result, the prior periods were not retrospectively adjusted. This ASU has no impact on the consolidated statements of operations or cash flows. Not Yet Effective In May 2014, the FASB issued update 2014-9, ASC 606, "Revenue from Contracts with Customers." The core principle is that a company should recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration, which the entity expects to receive in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which deferred the effective date for all entities by one year so it is now effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Earlier application is prohibited. Management is still assessing the impact of adoption on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement." This update provides guidance to customers about whether a cloud computing arrangement includes a software license or should be accounted for differently. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change generally accepted accounting principles for a customer’s accounting for service contracts. This update is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Entities have the option of applying the guidance (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. Management is still assessing the impact of adoption on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value for entities that measure inventory using first-in, first-out (FIFO) or average cost. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal years beginning after December 15, 2016 and for interim periods therein. Early adoption is permitted and the guidance must be applied prospectively after the date of adoption. Management is still assessing the impact of adoption on its consolidated financial statements. In January, 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, "Fair Value Measurements", and as such these investments may be measured at cost. ASU 2016-01 will be effective for the Company’s fiscal year beginning January 1, 2018 and subsequent interim periods. Early adoption of the amendment in this ASU is not permitted. Amendments should be applied by means of cumulative effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values including disclosure requirements should be applied prospectively to equity investments that exist as of the date of adoption of the ASU. Management is still assessing the impact of adoption on its consolidated financial statements. |
Business Combinations |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Business Combinations On October 27, 2014, the Company completed the Acquisition from MSI for a purchase price of $3.45 billion. The Acquisition enables the Company to further sharpen its strategic focus on providing mission-critical Enterprise Asset Intelligence solutions for its customers. Certain assets and liabilities historically associated with the Enterprise business were retained by MSI, including MSI’s iDEN infrastructure business. The Acquisition was completed pursuant to the Master Acquisition Agreement dated April 14, 2014, as amended (the “Master Acquisition Agreement”) and was structured as a combination of stock and asset acquisitions and a merger of certain US entities, resulting in 100% ownership of Enterprise. The Company financed the Acquisition through a combination of cash on hand and borrowings of $3.25 billion (the “Indebtedness”), including the sale of 7.25% senior notes due 2022 in an aggregate principal amount of $1.05 billion and a credit agreement with various lenders that provided a term loan of $2.2 billion due 2021. See Note 14 Long-Term Debt. The consideration paid to MSI was 100% cash in the amount of $3.45 billion. During the year ended December 31, 2015, the Company paid additional consideration of $51 million to MSI which included a $2 million opening cash adjustment and settlement of working capital adjustments. In connection with its acquisitions, the Company incurred related transaction expenses, which have been recorded in acquisition and integration costs in the consolidated statements of operations of approximately $144 million, $127 million and $5 million for the years ended December 31, 2015, 2014 and 2013, respectively. In connection with the closing of the Acquisition, the Company issued stock-based awards to Enterprise employees with value equivalent to the unvested portion of the employees’ awards as of the date of close. The new awards issued were in the form of performance restricted stock, performance stock units, restricted stock and restricted stock units. Under MSI’s legacy equity awards, in the event that an Enterprise employee’s employment is terminated as a result of a divestiture of the MSI business, unvested awards at the time of divestiture would vest on a pro rata basis through the divestiture date, with the remaining awards (or portion of awards) being forfeited. Consequently, the legacy MSI awards held by Enterprise employees vested pro rata up to the date of Acquisition and the remaining awards (or portions of awards) were forfeited. The replacement grants of equity awards by the Company to Enterprise employees representing the unvested (and therefore forfeited) legacy MSI awards require future service to be rendered to Zebra, beginning on the grant date. As a result, the fair value of the replacement awards is recognized as compensation cost in the post-combination financial statements, and there was no adjustment to the Acquisition purchase price. Goodwill represents the consideration paid in excess of the fair value of the net tangible and intangible assets acquired. The Company paid this premium for a number of reasons, including acquiring an experienced workforce and enhanced technology capabilities as further described above. The purchase price was allocated to identifiable tangible and intangible assets acquired and liabilities assumed based on their estimated fair values resulting in goodwill of $2.339 billion. See Note 9 Goodwill and Other Intangibles. During 2015, the Company adjusted certain preliminary values from 2014. The fair value adjustments resulted in an increase of $96 million in assets, an increase of $107 million in liabilities, a foreign currency translation adjustment of $8 million and a corresponding increase to goodwill of $3 million. Certain intangible assets including goodwill are denominated in foreign currency and, as such, include the effects of foreign currency translation. The following table summarizes the fair values of the assets acquired and the liabilities assumed at the date of the Acquisition (in millions):
The intangible assets of $994 million consist of the following (in millions):
As of December 31, 2015 and December 31, 2014, there were $20 million of indemnification assets recorded to reflect MSI’s obligation to reimburse the Company for pre-acquisition tax liabilities, statutory bonus accruals, and sales incentive plan accruals assumed. The amounts were recorded in accordance with the Master Acquisition Agreement. Goodwill has been assigned to the Enterprise operating segment. The amount of tax deductible goodwill is $103 million. Concurrent with the closing of the transaction, we entered into Transition Services Agreements (“TSAs”) with MSI, whereby MSI provides various services; primarily information technology. Our costs under the TSAs commenced in November 2014. Zebra is scheduled to exit the TSAs in October 2017, which is a 12 month extension from the original October 2016 exit date. The monthly cost is approximately $5 million per month. These costs are being reduced as we discontinue certain services and transition these services into our own processes. We incurred $10 million under the TSAs from October 28th through December 31, 2014 and $58 million under the TSA from January 1, 2015 through December 31, 2015. During September 2015, the Company received a revised valuation report from a third party valuation firm. After reviewing the results of the valuation reports, the Company reduced the value of intangible assets $20 million, property and equipment $3 million and deferred revenue $1 million and increased inventory $1 million with a corresponding $21 million increase to goodwill. As discussed in Note 2 Summary of Significant Accounting Policies, the Company has adopted ASU 2015-16 “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The fair value, balance sheet adjustments recorded during the third quarter of 2015 and related income statement effects that would have been recognized in previous periods even if we had not early adopted ASU 2015-16 are immaterial. Hart Systems In the fourth quarter 2013, The Company acquired all of the outstanding membership interests in Hart Systems, LLC (a New York limited liability company) for approximately $96 million with $61 million of the purchase price allocated to goodwill. As of September 27, 2014 the purchase price allocation was finalized and the amount of goodwill was reduced to $59 million for adjustments related to deferred taxes. The Consolidated Statements of Operations includes the impact of this acquisition subsequent to the December 18, 2013 acquisition date. |
Fair Value Measurements |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Financial assets and liabilities are to be measured using inputs from three levels of the fair value hierarchy in accordance with ASC Topic 820, "Fair Value Measurements." Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into the following three broad levels:
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. In addition, the Company considers counterparty credit risk in the assessment of fair value Financial assets and liabilities carried at fair value as of December 31, 2015, are classified below (in millions):
Financial assets and liabilities carried at fair value as of December 31, 2014, are classified below (in millions):
The following table presents the Company’s activity for assets measured at fair value on a recurring basis using significant unobservable inputs, Level 3 as defined in ASC 820 for the year ended December 31, 2014 (in millions): There was no activity for 2015.
The Company had no investments as of December 31, 2015. The following is a summary of investments as of December 31, 2014 (in millions):
The carrying value for the Company's financial instruments that are classified as current assets (other than short-term investments) and current liabilities' approximate fair value due to their short maturities. |
Investments and Marketable Securities |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments and Marketable Securities | Investments and Marketable Securities Investments in marketable debt securities are classified based on intent and ability to sell investment securities. The Company’s available-for-sale securities are used to fund future acquisitions and other operating needs and therefore can be sold prior to maturity. Investments in marketable debt securities for which the Company intends to sell within the next year are classified as current and those that we intend to hold in excess of one year are classified as non-current. Changes in the market value of available-for-sale securities are reflected in the accumulated other comprehensive income caption of stockholders’ equity in the balance sheet, until we dispose of the securities. Once these securities are disposed of, either by sale or maturity, the accumulated changes in market value are transferred to investment income. On the Consolidated Statements of Cash Flows, changes in the balances of available-for-sale securities are shown as purchases, sales and maturities of investments and marketable securities under investing activities. Changes in market value of trading securities would be recorded in investment income as they occur, and the related cash flow statement includes changes in the balances of trading securities as operating cash flows. As of December 31, 2015, there were no investments and marketable securities. For the years ended December 31, 2015, 2014 and 2013, changes in unrealized gains and losses on available-for-sale securities were immaterial. The following table shows the number, aggregate market value and unrealized losses (in millions) of investments with market values that were less than amortized cost as of December 31, 2014. These lower market values are primarily caused by fluctuations in interest rates and credit spreads. All remaining investments and marketable securities have been sold during 2015.
Using the specific identification method, the proceeds and realized gains on the sales of available-for-sale securities were as follows (in millions):
Included in the Company’s cash, restricted cash, investments and marketable securities are amounts held by foreign subsidiaries. The Company had $166 million as of December 31, 2015, and $268 million as of December 31, 2014 of foreign cash and investments out of the Company's total cash positions of $192 million and $394 million, respectively. |
Accounts Receivable |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable | Accounts Receivable The components of accounts receivable, net are as follows (in millions):
|
Inventories |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The components of inventories, net are as follows (in millions):
|
Property and Equipment |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment is comprised of the following (in millions):
Other items related to property and equipment are as follows (in millions):
|
Goodwill and Other Intangibles |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangibles | Goodwill and Other Intangibles In 2014, the Company acquired intangible assets in the amount of $994 million for developed technology, customer relationships and trade names associated with the Acquisition. These intangible assets have an estimated useful life ranging from 1 to 8 years. See Note 3 Business Combinations for specific information regarding the Acquisition. Other intangibles, net are as follows (in millions):
Certain intangible assets including goodwill are denominated in foreign currency and, as such, include the effects of foreign currency translation. Changes in the net carrying value amount of goodwill were as follows (in millions):
Gross goodwill was $266 million and accumulated impairments were $110 million as of December 31, 2013. As of December 31, 2015 goodwill totaled $2.3 billion for the Enterprise reportable segment and $154 million for the Legacy Zebra reportable segment. The Retail Solutions Group reporting unit had total goodwill of $59.0 million as of December 31, 2015. During the fourth quarter of 2015, we finalized the determination of estimated fair value of the Retail Solutions Group reporting unit as of the first day of the fourth quarter of 2015. The determination of fair value and the allocation of that value to individual assets and liabilities within the Retail Solutions Group reporting unit requires us to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the selection of appropriate peer group companies; a control premium appropriate for acquisitions in the industries in which the Retail Solutions Group reporting unit competes; a discount rate; a terminal growth rate; and forecasts of revenue, operating income, depreciation and amortization and capital expenditures. The estimate of fair value indicated that the fair value of the Retail Solutions Group reporting unit exceeded its carrying value by approximately 12% as of the valuation date. Although we believe our estimate of fair value is reasonable, actual financial results could differ from that estimate due to the inherent uncertainty involved in making such estimate. |
Other Long-Term Assets |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Long-Term Assets | Other Long-Term Assets Other long-term assets consist of the following (in millions):
The long-term investments, which are accounted for using the cost method of accounting, are primarily in venture capital backed technology companies and the Company's ownership interest is between 1.9% to 17.4%. Under the cost method of accounting, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions and additional investments. |
Accrued Liabilities |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued Liabilities The components of accrued liabilities are as follows (in millions):
|
Costs Associated with Exit and Restructuring |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs Associated with Exit and Restructuring | Costs Associated with Exit and Restructuring Total exit and restructuring charges of $45 million life to date specific to the Acquisition have been recorded through December 31, 2015: $9 million in the Legacy Zebra segment and $36 million in the Enterprise segment related to organizational design changes. See Note 3 Business Combinations for specific information regarding the Acquisition. During 2015, the Company incurred exit and restructuring costs specific to the Acquisition as follows (in millions):
Exit and restructuring charges for the year ended December 31, 2015 were $9 million and $30 million for the Legacy Zebra and the Enterprise segments, respectively. The Company expects additional charges related to the Acquisition through the end of 2016 ranging from $10 million to $20 million. As of December 31, 2014, the Company incurred the following exit and restructuring costs related to the 2014 organization design changes, Location Solutions business management structure and manufacturing operations relocation and restructuring, which included the Acquisition (in millions):
A rollforward of the exit and restructuring accruals is as follows (in millions):
Liabilities related to exit and restructuring activities are included in the following accounts in the Consolidated Balance Sheets (in millions):
Payments of the related, long-term liabilities will be completed by October 2024. |
Derivative Instruments |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments The Company conducts business on a multinational basis in a wide variety of foreign currencies; as such the Company manages these risks using derivative financial instruments. The exposure to market risk for changes in foreign currency exchange rates arises from cross-border financing activities between subsidiaries, and foreign currency denominated monetary assets and liabilities. The objective is to preserve the economic value of non-functional currency denominated cash flows. Therefore, the goal is to hedge transaction exposures with natural offsets to the fullest extent possible and, once these opportunities have been exhausted, through foreign exchange forward and option contracts with third parties. The Company entered into a credit agreement, which provides for a term loan of $2.2 billion (“Term Loan”) and a revolving credit facility of $250 million (“Revolving Credit Facility”). See Note 14 Long-Term Debt. As such, the Company has exposure to market risk for changes in interest expense calculated off of variable interest rates on the term facility that was used to fund the Acquisition. The Company entered into forward interest rate swaps to hedge a portion of the interest rate risk associated with the Term Loan. The fair value of the forward starting interest rate swap contracts is estimated using market quoted forward interest rates for the London Interbank Offered Rate (“LIBOR”) at the balance sheet date and the application of such rates subject to the interest rate swap terms. In accordance with ASC 815 “Derivative and Hedging,” the Company recognizes derivative instruments as either assets or liabilities on the balance sheet and measures them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated as and qualifies for hedge accounting. The Company’s master netting and other similar arrangements with the respective counterparties allow for net settlement under certain conditions, which are designed to reduce credit risk by permitting net settlement with the same counterparty. Credit and Market Risk Financial instruments, including derivatives, expose the Company to counterparty credit risk for nonperformance and to market risk related to interest and currency exchange rates. The Company manages its exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. Its counterparties in derivative transactions are commercial banks with significant experience using derivative instruments. The Company monitors the impact of market risk on the fair value and cash flows of its derivative and other financial instruments considering reasonably possible changes in interest rates and currency exchange rates and restricts the use of derivative financial instruments to hedging activities. The Company continually monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. The terms and conditions of the Company's credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. Fair Value of Derivative Instruments The Company has determined that derivative instruments for hedges that have traded but have not settled are considered Level 1 in the fair value hierarchy, and hedges that have not traded are considered Level 2 in the fair value hierarchy. Derivative instruments are used to manage risk and are not used for trading or other speculative purposes, nor does the Company use leveraged derivative financial instruments. The foreign currency exchange contracts are valued using broker quotations or market transactions, in either the listed or over-the-counter markets. Hedging of Monetary Net Assets The Company uses forward contracts to manage exposure related to its British Pound, Canadian Dollar, Czech Koruna, Brazilian Real, Malaysian Ringgit and Euro denominated net assets. Forward contracts typically mature within three months after execution of the contracts. The Company records monetary gains and losses on these contracts and options in income each quarter along with the transaction gains and losses related to its net asset positions, which would ordinarily offset each other. Summary financial information related to these activities included in the Company's consolidated statements of operations as other (expense) income is as follows (in millions):
Hedging of Anticipated Sales The Company manages the exchange rate risk of anticipated Euro denominated sales using put options, forward contracts, and participating forwards. The Company designates these contracts as cash flow hedges, which mature within twelve months after the execution of the contracts. Gains and losses on these contracts are deferred in other comprehensive income until the contracts are settled and the hedged sales are realized. The deferred gain or loss will then be reported as an increase or decrease to sales. Summary financial information related to the cash flow hedges within comprehensive (loss) income is as follows (in millions):
Summary financial information related to the cash flow hedges of future revenues is as follows (in millions, except percentages):
Forward Contracts The Company records its forward contracts at fair value on its consolidated balance sheets as a current asset or liability, depending upon the fair value calculation as detailed in Note 4 Fair Value Measurements. The amounts recorded on the consolidated balance sheets are as follows (in millions):
Forward Interest Rate Swaps The forward interest rate swaps hedge the interest rate risk associated with the variable interest payments on the Company's Term Loan that was used to fund the Acquisition. In June 2014, the Company entered into a commitment letter for a new variable rate credit facility to fund the Acquisition and also entered into two tranches of floating-to-fixed forward interest rate swaps (“Original Swaps”). These Original Swaps were used to economically hedge interest rate risk associated with the variable rate commitment until July 30, 2014, and as such, changes in their fair value were recognized in earnings in other (expense) income. Effective July 30, 2014, the Original Swaps were designated as cash flow hedges of interest rate exposure associated with variability in future cash flows on the variable rate commitment. On October 27, 2014, the variable rate commitment was funded and the Company entered into a Term Loan that accrues interest at a variable rate of LIBOR (subject to a floor of 0.75% per annum) plus a margin of 4.0%. On October 30, 2014, the Company discontinued hedge accounting for the Original Swaps due to the syndication of the Original Swaps to a group of commercial banks, ("Syndicated Swaps"), which resulted in their termination. The changes in fair value of the Original Swaps between July 30, 2014 and their termination were included in other comprehensive (loss) income, and any ineffectiveness was insignificant. The amounts included in other comprehensive (loss) income will be amortized to earnings in other (expense) income as the interest payments under the Term Loan affect earnings. The Syndicated Swaps were not designated as hedges and the changes in fair value are recognized in earnings in other (expense) income. On November 20, 2014, the Company entered into additional floating-to-fixed forward starting interest rate swaps (“New Swaps”) and designated these as cash flow hedges of interest rate exposure associated with variability in future cash flows on its Term Loan. To offset the impact to earnings of the changes in fair value of the Syndicated Swaps, the Company also entered into fixed-to-floating forward starting interest rate swaps (“Offsetting Swaps”), which were not designated in a hedging relationship and the changes in the fair value are recognized in earnings in other income (expense). Changes in fair value of the New Swaps that are designated as cash flow hedges and are effective at offsetting variability in the future cash flows on the Company’s Term Loan are recognized in other comprehensive (loss) income. Ineffectiveness is immediately recognized in earnings. The balance sheet position of the New Swaps designated in a hedge relationship is as follows (in millions):
The forward interest rate swaps not designated in a hedging relationship are recorded in a net liability position of $11 million as of December 31, 2015 and $15 million as of December 31, 2014 in the Consolidated Balance Sheets. The gross and net amounts offset at December 31,2015 were as follows (in millions):
The New Swaps, each with a term of one year, are designated as cash flow hedges of interest rate exposure associated with variability in future cash flows on the Term Loan. The notional amount of the designated New Swaps effective in each year of the cash flow hedge relationships does not exceed the principal amount of the Term Loan, which is hedged. The New Swaps have the following notional amounts per year (in millions):
The gain (loss) recognized on the forward interest rate swaps not designated in a hedge relationship is combined with interest expense, net in the consolidated statements of operations is as follows (in millions):
The loss recognized in other comprehensive unrealized loss on the forward interest rate swaps designated in a hedging relationship is as follows (in millions):
No significant (loss) gain was reclassified from accumulated other comprehensive (loss) income into interest expense on the forward interest rate swaps designated in a hedging relationship during the years ended December 31, 2015 and 2014. At December 31, 2015, the Company has approximately $11 million in losses on the forward interest rate swaps designated in a hedging relationship that are being reclassified from accumulated other comprehensive loss into earnings during the next four quarters. |
Long-Term Debt |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt Private Offering On October 15, 2014, the Company completed a private offering of $1.05 billion aggregate principal of 7.25% Senior Notes due October 15, 2022 (the “Senior Notes”). The Senior Notes yielded an effective interest rate of 7.61% at issuance. The Senior Notes are governed by the terms of the indenture, dated as of October 15, 2014, by and among the Company and U.S. Bank National Association, as Trustee. Interest on the Senior Notes is payable in cash on April 15 and October 15 of each year. The indenture covering the Senior Notes contains certain covenants limiting among other things, the ability of the Company and its restricted subsidiaries, with certain exceptions as described in the Indenture, to: (i) incur indebtedness or issue certain preferred stock; (ii) incur liens; (iii) pay dividends or make distributions in respect of capital stock; (iv) purchase or redeem capital stock; (v) make investments or certain other restricted payments; (vi) sell assets; (vii) issue or sell stock of restricted subsidiaries; (viii) enter into transactions with stockholders or affiliates; or (ix) effect a consolidation or merger. The Senior Notes are guaranteed, jointly and severally, on a senior and unsecured basis by its direct and indirect wholly-owned existing and future domestic restricted subsidiaries, subject to certain exceptions. The Senior Notes rank equal in right of payment to all of our existing and future unsecured, unsubordinated obligations. The Senior Notes are effectively subordinated to the secured obligations of the Company and subsidiaries to the extent of the value of the assets securing such obligations. Credit Facilities On October 27, 2014, the Company entered into a credit agreement, which provides for a term loan of $2.2 billion and a revolving credit facility of $250 million. Borrowings under the Term Loan bear interest at a variable rate plus an applicable margin, subject to an all-in floor of 4.75%. As of December 31 2015, the Term Loan interest rate was 4.75%. Interest payments are payable quarterly. The Company has entered into interest rate swaps to manage interest rate risk on its long-term debt. See Note 13 Derivative Instruments. The credit agreement requires the Company to prepay the Term Loan and Revolving Credit Facility, under certain circumstances or transactions defined in the credit agreement. Also, the Company may make optional prepayments of the Term Loans, in whole or in part, without premium or penalty. The Company made optional principal prepayments of $165 million in 2015. In February 2016, the Company made additional optional principal prepayments of $80 million. Unless satisfied by further optional prepayments, the Company is required to make a scheduled principal payment of $1.99 billion due on October 27, 2021. The Revolving Credit Facility is available for working capital and other general corporate purposes including letters of credit. The amount (including letters of credit) cannot exceed $250 million. As of December 31, 2015, the Company established letters of credit totaling $3 million, which reduced funds available for other borrowings under the agreement to $247 million. The Revolving Credit Facility will mature and the related commitments will terminate on October 27, 2019. Borrowings under the Revolving Credit Facility bear interest at a variable rate plus an applicable margin. As of December 31, 2015, the Revolving Credit Facility interest rate was 3.25%. Interest payments are payable quarterly. As of December 31, 2015 and December 31, 2014, the Company did not have any borrowings against the Revolving Credit Facility. In addition to paying interest on outstanding principal amounts under the Revolving Credit Facility, the Company is required to pay a quarterly commitment fee to the lenders with respect to the unutilized commitments. The commitment fee rate is currently 0.375%. The commitment fee rate will be adjusted to 0.250%, 0.375% or 0.500% depending on the Company’s consolidated total secured net leverage ratio. The Revolving Credit Facility contains certain covenants limiting among other things, the ability of the Company and its restricted subsidiaries, with certain exceptions as described in the agreement, to: (i) incur indebtedness, make guarantees or issue certain equity securities; (ii) pay dividends on its capital stock or redeem, repurchase or retire its capital stock; (iii) make certain investments, loans and acquisitions; (iv) sell certain assets or issue capital stock of restricted subsidiaries; (v) create liens or engage in sale-leaseback transactions; (vi) merge, consolidate or transfer or dispose of substantially all of their assets; (vii) engage in certain transactions with affiliates; (viii) alter the business it conducts; (ix) amend, prepay, redeem or purchase subordinated debt; and (x) enter into agreements limiting subsidiary dividends and distributions. The Revolving Credit Facility also requires the Company to comply with a financial covenant consisting of a quarterly maximum consolidated total secured net leverage ratio test that will be tested only at the end of the fiscal quarter if 20% of the commitments under the Revolving Credit Facility have been drawn and remain outstanding. The Term Loan and obligations under the Revolving Credit Facility are collateralized by a security interest in substantially all of the Company’s assets as defined in the security agreement and guaranteed by its direct and indirect wholly-owned existing and future domestic restricted subsidiaries, subject to certain exceptions. Debt issue costs of $26 million were recorded as of December 31, 2015; $19 million relates to the Senior Notes, $2 million relates to the Term Loan, and $5 million relates to the Revolver. These costs are amortized over 8, 7 and 7 years, respectively. The Company entered into a bridge financing facility prior to the Acquisition, to ensure financing would be in place to consummate the transaction. Upon the closing of the Acquisition, at which time the Company had secured other long-term financing, the Company incurred $19 million of costs related to the bridge financing facility, which are included in interest expense for the year ended December 31, 2014. The following table summarizes the carrying value of the Company's debt (in millions):
The estimated fair value of our long-term debt approximated $3.1 billion at December 31, 2015 and $3.3 billion at December 31, 2014. These fair value amounts represent the estimated value at which the Company’s lenders could trade its debt within the financial markets and does not represent the settlement value of these long-term debt liabilities to the Company. The fair value of the long-term debt will continue to vary each period based on fluctuations in market interest rates, as well as changes to the Company’s credit ratings. This methodology resulted in a Level 2 classification in the fair value hierarchy. |
Contractual Obligations and Commitments |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Obligations and Commitments | Contractual Obligations and Commitments Leases. Minimum future obligations under all non-cancelable operating leases as of December 31, 2015 are as follows (in millions):
Rent expense for operating leases charged to operations was as follows (in millions):
The operating lease information includes a variety of properties around the world. These properties are used as manufacturing facilities, distribution centers and sales offices. Lease terms range from 1 year to 13 years with breaking periods specified in the lease agreements. |
Contingencies |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is subject to a variety of investigations, claims, suits and other legal proceedings that arise from time to time in the ordinary course of business, including but not limited to, intellectual property, employment, tort and breach of contract matters. The Company currently believes that the outcomes of such proceedings, individually and in the aggregate, will not have a material adverse impact on its business, cash flows, financial position, or results of operations. Any legal proceedings are subject to inherent uncertainties, and the Company's view of these matters and its potential effects may change in the future. In re Technologies, Inc. Securities Litigation In connection with the acquisition of the Enterprise business from Motorola Solutions, Inc., the Company acquired Symbol Technologies, Inc., a subsidiary of Motorola Solutions. A putative federal class action lawsuit, Waring v. Symbol Technologies, Inc., et al., ("Waring Action") was filed on August 16, 2005 against Symbol Technologies, Inc. and two of its former officers in the United States District Court for the Eastern District of New York by Robert Waring. After the filing of the Waring Action, several additional purported class actions were filed against Symbol and the same former officers making substantially similar allegations (collectively, the "New Class Actions"). The Waring Action and the New Class Actions were consolidated for all purposes and on April 26, 2006, the Court appointed the Iron Workers Local # 580 Pension Fund as lead plaintiff and approved its retention of lead counsel on behalf of the putative class. On August 30, 2006, the lead plaintiff filed a Consolidated Amended Class Action Complaint (the “Amended Complaint”), and named additional former officers and directors of Symbol as defendants. The lead plaintiff alleges that the defendants misrepresented the effectiveness of Symbol’s internal controls and forecasting processes, and that, as a result, all of the defendants violated Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and the individual defendants violated Section 20(a) of the Exchange Act. The lead plaintiff alleges that it was damaged by the decline in the price of Symbol’s stock following certain purported corrective disclosures and seeks unspecified damages. By orders entered on June 25 and August 3, 2015, the court granted lead plaintiff’s motion for class certification, certifying a class of investors that includes those that purchased Symbol common stock between April 29, 2003 and August 1, 2005. The parties have substantially completed fact and expert discovery. However, by order entered on January 8, 2016, the court granted Symbol’s request for certain additional fact and expert discovery; pursuant to a proposed scheduling order filed on January 21, 2016, the parties agreed to complete that discovery by approximately June 17, 2016. There are also certain discovery motions pending that could, if granted, reopen fact discovery. The court has held in abeyance all other deadlines, including for the filing of dispositive motions, and has not set a date for trial. The Company establishes an accrued liability for loss contingencies related to legal matters when the loss is both probable and estimable. In addition, for some matters for which a loss is probable or reasonably possible, an estimate of the amount of loss or range of loss is not possible, and we may be unable to estimate the possible loss or range of losses that could potentially result from the application of non-monetary remedies. Currently, the Company is unable to reasonably estimate the amount of reasonably possible losses for this matter. |
Earnings Per Share |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Earnings (loss) per share were computed as follows (dollars in millions, except per-share amounts):
Anti-dilutive securities consist primarily of stock appreciation rights (SARs) with an exercise price greater than the average market closing price of the Class A common stock. Due to a net loss in 2015, options, awards and warrants were anti-dilutive and therefore excluded from the 2015 earnings per share calculation. For years 2014 and 2013, options and awards were included in the earnings per share calculation. These excluded outstanding options, awards and warrants are as follows:
|
Share-Based Compensation |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation The Company has share-based compensation and employee stock purchase plans under which shares of the Company's Class A common stock are available for future grants and sales. On May 14, 2015, the Company’s stockholders approved the 2015 Zebra Technologies Corporation Long-Term Incentive Plan (the 2015 Plan), which included authorization for issuance of awards of 4,000,000 shares. The 2015 Plan became effective immediately and superseded the 2011 Long-Term Incentive Plan (the 2011 Plan), except that the 2011 Plan remains in effect with respect to awards granted under the 2011 Plan until such awards have been exercised, forfeited, cancelled, expired or otherwise terminated in accordance with the terms of such awards. The types of awards available under the 2015 Plan are stock appreciation rights (SARs), restricted stock, restricted stock units, performance shares and units and performance-based cash bonuses. Employees, directors and consultants of the Company and its subsidiaries are eligible to participate in the 2015 Plan. The Compensation Committee of the Board of Directors administers the 2015 Plan. As of December 31, 2015, 3,430,707 shares were available for grant under the 2015 plan. Under the 2015 Plan, 325,512 SARs were outstanding as of December 31, 2015. The 2011 Plan was superseded by the 2015 Plan. As of December 31, 2015, 672,290 SARs were outstanding under the 2011 Plan. The SARs granted under the 2011 Plan have an exercise or grant price equal to the closing market price of the Company’s Class A common stock on the date of grant. SAR’s generally vest over a four year period. These awards expire on the earlier of (a) ten years following the grant date, (b) immediately if the employee is terminated for cause, (c) ninety days after termination of employment if the employee is terminated involuntarily other than for cause, (d) thirty days after termination of employment if the employee voluntarily terminates his or her employment, or (e) one year after termination of employment if the employee’s employment terminates due to death, disability, or retirement. The Company’s restricted stock grants consist of time-vested restricted stock awards ("RSAs") and performance vested restricted stock awards ("PSAs"). The following table shows the number of RSAs and PSAs granted during 2015 and the vesting schedule.
These RSAs and PSAs vest at each vesting date if the employee remains employed by the Company throughout the applicable time period, but will vest in whole or in part (as set forth in each restricted stock agreement) before the end of the vesting period in the event of death, disability, a change in control (as defined in the 2015 Plan), or termination by the Company other than for Cause, as defined in each restricted stock agreement. The restricted stock is forfeited in certain situations specified in the restricted stock agreement, including, if the employee’s employment is terminated by the Company for Cause or if the employee resigns for other than good reason. The Company’s restricted stock awards are expensed over the vesting period of the related award, which is typically 3 years. Some awards, including those granted annually to non-employee directors as an equity retainer fee, were vested upon grant. Compensation cost is calculated as the market date fair value on grant date multiplied by the number of shares granted. The 2006 Long-Term Incentive Plan ("the 2006 Plan") was superseded by the 2011 Plan. As of December 31, 2015, options and SARs for 644,407 shares were outstanding and exercisable under the 2006 Plan. These options and SARs expire on the earlier of (a) 10 years following the grant date, or (b) immediately if the employee is terminated for cause, (c) ninety days after termination of employment if the employee is terminated involuntarily other than for cause, (d) thirty days after termination of employment if the employee voluntarily terminates his or her employment, or (e) 1 year after termination of employment if the employee’s employment terminates due to death, disability, or retirement. The 1997 Stock Option Plan ("the 1997 Plan") was superseded by the 2006 Plan. As of December 31, 2015, options for 7,655 shares were outstanding and exercisable under the 1997 Plan. These options terms are the same as noted in the paragraph above regarding the 2006 Plan. On May 19, 2011 the Company’s stockholders adopted the 2011 Employee Stock Purchase Plan (which replaced the 2001 Stock Purchase plan) under which employees who work a minimum of 20 hours per week may elect to withhold up to 10% of their cash compensation through regular payroll deductions to purchase shares of Class A common stock from the Company over a period not to exceed 12 months at a purchase price per share, which is equal to the lesser of: (1) 95% of the fair market value of the shares as of the date of the grant, or (2) 95% of the fair market value of the shares as of the date of purchase. Stock purchase plan expense for the year ended December 31, 2015 was $1 million. Stock purchase plan expense for the years ended December 31, 2014 and 2013 was less than $1 million. Pre-tax share-based compensation expense recognized in the statements of operations was $33 million, $20 million and $13 million for the years ended December 31, 2015, 2014 and 2013, respectively. Tax related benefits of $11 million, $7 million and $5 million were also recognized for the years ended December 31, 2015, 2014 and 2013, respectively. The fair value of share-based compensation is estimated on the date of grant using a binomial model. Volatility is based on an average of the implied volatility in the open market and the annualized volatility of the Company’s stock price over its entire stock history. Stock option grants in the table below include both stock options, all of which were non-qualified, and SARs that will be settled in the Class A common stock or cash. Restricted stock grants are valued at the market closing price on the grant date. The following table shows the weighted-average assumptions used for grants of SARs, as well as the fair value of the grants based on those assumptions:
The forfeiture rate is based on the historical annualized forfeiture rate, which is consistent with prior year rates. The risk free interest rate used is the implied yield currently available from the U.S. Treasury zero-coupon yield curve over the contractual term of the SARs or options. The expected weighted-average life is based on historical exercise behavior, which combines the average life of the SARs or options that have already been exercised or cancelled with the exercise life of all unexercised SARs and options. The exercise life of unexercised SARs and options assumes that the SARs or option will be exercised at the midpoint of the vesting date and the full contractual term. These assumptions are consistent with the assumptions used in prior years. Stock option activity was as follows:
The following table summarizes information about stock options outstanding at December 31, 2015:
SAR activity was as follows:
The terms of the SARs are established under the applicable Plan and the applicable SAR agreement. Once vested, a SAR entitles the holder to receive a payment equal to the difference between the per-share grant price of the SAR and the fair market value of a share of Class A common stock on the date the SAR is exercised, multiplied by the number of SARs exercised. Exercised SARs are settled in whole shares of Class A common stock, and any fraction of a share is settled in cash. Vesting of SARs granted in 2015 is as follows: 332,159 SARs vest annually in four equal amounts on each of the first four anniversaries of the grant date. Vesting of SARs granted in 2014 is as follows: 195,560 SARs vest annually in four equal amounts on each of the first four anniversaries of the grant date. All SARs expire 10 years after the grant date. The following table summarizes information about SARs outstanding at December 31, 2015:
Restricted stock award activity was as follows:
The Company issued 728,940 and 1,383,195 shares in connection with share-based compensation and employee stock purchase programs for the years ended December 31, 2015 and 2014, respectively. Performance share award activity was as follows:
Restricted stock unit activity was as follows:
Performance stock unit activity was as follows:
As of December 31, 2015 total unearned compensation costs related to the Company’s share-based compensation plans was $45 million, which will be amortized over the weighted average remaining service period of 2.4 years. The fair value of the purchase rights issued to employees under the stock purchase plan is estimated using the following weighted-average assumptions for purchase rights granted. Expected lives of 3 months to 1 year have been used along with these assumptions.
|
Income Taxes |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The Company recognized a tax benefit of $27 million for the year ended December 31, 2015 compared to a tax benefit of $15 million for the year ended December 31, 2014. The Company’s effective tax rates were 16.1% and (95.0)% as of December 31, 2015 and December 31, 2014, respectively. The Company’s effective tax rate was lower than the federal statutory rate of 35% primarily due to pre-tax losses in the United States and corporate structure alignment initiatives in various non-US jurisdictions. Since the date of the Enterprise acquisition, as part of its corporate initiatives, the Company has been executing its integration plan for the Enterprise business (the “Integration Plan”). The Company anticipates completing the Integration Plan as soon as practicable and expects that the Integration Plan will allow the combined businesses to achieve further synergies and cost savings associated with the acquisition. As part of the Integration Plan, the Company began realigning certain acquired assets of the Enterprise business with and into the Company’s corporate structure and business model. The geographical sources of (loss) income before income taxes were as follows (in millions):
The (benefit) provision for income taxes consists of the following (in millions):
The provision for income taxes differs from the amount computed by applying the U.S. statutory federal income tax rate of 35% to income before income taxes. A reconciliation of the provision for income taxes is below (in millions):
The primary reason for the difference between the US statutory rate of 35% and the Company’s effective tax rate is due to a combination of higher profits in lower rate international jurisdictions, research and experimental credits, foreign tax credits and other items. The significant jurisdictions driving the foreign rate differential are the UK, Singapore and Luxembourg. The US impact of Enterprise acquisition and integration of $45 million includes one-time charges of approximately $32 million. Tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows (in millions):
The Company earns a significant amount of our operating income outside the U.S. With the exception of the acquired unrepatriated earnings related to the Enterprise acquisition, it is the Company’s policy to consider foreign earnings and profits to be permanently reinvested in foreign jurisdictions. As part of the Enterprise acquisition, the acquired earnings & profits and previously taxed income (“PTI”), including excess cash balances pursuant to the Master Acquisition Agreement (“MAA”) of the newly acquired MSI foreign subsidiaries will not be permanently reinvested. As a result, the Company established a deferred tax liability in purchase accounting in the amount of approximately $3 million. This amount was reversed in 2015. The Company has not recognized deferred tax liabilities for unremitted earnings of approximately $720 million and $466 million as of December 31, 2015 and 2014, respectively. It is not practicable to determine the amount of unrecognized deferred tax liabilities on these indefinitely reinvested earnings. As of December 31, 2014, the Company had approximately $37 million of net operating losses ("NOLs") and tax credits from MSI. Of this amount, the Company has utilized approximately $35 million of NOLs and tax credits against its US tax liability in 2015 and written off approximately $2 million of these tax credits. The Company has elected to capitalize and amortize approximately $139 million of research and experimentation costs and approximately $120 million of software costs in the US. At December 31, 2015, the Company has approximately $450 million of NOLs and approximately $35 million of credit carryforwards. Of this amount, approximately $100 million of NOLs and $33 million of credit carryforwards are expected to expire by 2035 and approximately $350 million of NOLs and $2 million of credit carryforwards will carry forward indefinitely. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):
At December 31, 2015 and December 31, 2014, there are $23 million and $19 million of unrecognized tax benefits that if recognized would affect the annual effective tax rate. The Company anticipates that it is reasonably possible that $4 million of unrecognized tax benefits may reverse in 2016, due to statute of limitation expiration and settlements with the tax authorities. The Company regularly assesses the reasonableness of the unrecognized tax benefits to determine the adequacy of its provision for income taxes; however there can be no assurance on the final determination of these unrecognized tax benefits. The Company’s continuing practice is to recognize interest and/or penalties related to income tax matters as part of income tax expense. The Company accrued $3 million of interest and penalties in the consolidated balance sheets as of December 31, 2015 and 2014. The Company is currently undergoing audits of the 2013 and 2014 US federal income tax returns and its 2012 UK tax return. The tax years 2011 through 2015 remain open to examination by multiple state taxing jurisdictions. Below is a summary of open tax years by major jurisdiction outside of the United States.
|
Other Comprehensive (Loss) Income |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive (Loss) Income | Other Comprehensive (Loss) Income Stockholders’ equity includes certain items classified as other comprehensive income (loss), including:
The components of accumulated other comprehensive (loss) income ("AOCI") for each of the three years ended December 31 are as follows (in millions):
Reclassification out of AOCI to earnings were as follows (in millions):
|
Segment Information and Geographic Data |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information and Geographic Data | Segment Information and Geographic Data Prior to the Acquisition on October 27, 2014, the Company's operations were within 1 reportable segment. As a result of the Acquisition, the company has realigned its operations into 2 reportable segments; Legacy Zebra and Enterprise. The operating segments have been identified based on the financial data utilized by the Company's Chief Executive Officer (the chief operating decision maker) to assess segment performance and allocate resources among the Company's segments. The chief operating decision maker used adjusted operating income to access segment profitability. The accounting policies of the segments are in accordance with Note 2 Summary of Significant Accounting Policies. Segment assets are not reviewed by the Company’s chief operating decision maker and therefore are not disclosed below. Financial information by segment is presented as follows:
Information regarding the Company’s operations by geographic area is contained in the following table. These amounts are reported in the geographic area of the destination of the final sale. We manage our business based on these regions rather than by individual countries. (in millions):
Net sales by country that are greater than 10% of total net sales are as follows (in millions):
Net sales by country are determined by the country from where the products are invoiced when they leave the Company’s warehouse. Generally, our United States sales company serves North America and Latin America; United Kingdom sales company serves Europe, Middle East, and Africa; and our Singapore sales company serves Asia-Pacific. Long-lived assets, which were predominately located in the United States, were 87.0%, 89.6% and 89.2% of total long-lived assets as of December 31, 2015, 2014, and 2013, respectively. Net sales by major product category are as follows (in millions):
|
Major Customers |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Customers | Major Customers Our net sales to significant customers as a percentage of the total Company's net sales were as follows:
All three of the above customers are distributors and not end-users. No other customer accounted for 10% or more of total net sales during these years. There are three customers at December 31, 2015 and one customer at December 31, 2014 that each accounted for more than 10% of outstanding accounts receivable. In 2015, the three largest customers accounted for 19%, 14% and 11% of accounts receivable while in 2014 one customer accounted for 12%. |
Quarterly Results of Operations (unaudited) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Results of Operations (unaudited) | Quarterly Results of Operations (unaudited) (In millions, except share data and stock prices)
|
Subsequent Events |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In February 2016, the Company made additional optional principal prepayments of $80 million under its Term Loan. See Note 14 Long-Term Debt. |
Valuation and Qualifying Accounts |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts | Valuation and Qualifying Accounts (Amounts in millions)
See accompanying report of independent registered public accounting firm. ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES Schedule II Valuation and Qualifying Accounts (Amounts in millions)
|
Summary of Significant Accounting Policies (Policies) |
12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation. These accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States and include the accounts of Zebra and its wholly owned subsidiaries. All significant intercompany accounts, transactions and unrealized profit were eliminated in consolidation. |
||||||||||||||||||||
Fiscal Calendar | Fiscal Calendar. Zebra operates on a 4 week/4 week/5 week fiscal quarter, and each fiscal quarter ends on a Saturday. The fiscal year always begins on January 1 and ends on December 31. This fiscal calendar results in some fiscal quarters being either greater than or less than 13 weeks, depending on the days of the week those dates fall. During the 2015 fiscal year, our quarter end dates were as follows:
|
||||||||||||||||||||
Use of Estimates | Use of Estimates. These consolidated financial statements were prepared using estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of estimates include: loss contingencies; product warranties; useful lives of our tangible and intangible assets; allowances for doubtful accounts; and share-based compensation forfeiture rates. Actual results could differ from those estimates. |
||||||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash consists primarily of deposits with banks. In addition, the Company considers highly liquid short-term investments with original maturities of less than three months to be cash equivalents. These highly liquid short-term investments are readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of a change in value because of changes in interest rates. |
||||||||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable consist primarily of amounts due to us from our customers in the course of normal business activities. Collateral on trade accounts receivable is generally not required. The Company maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on our assessment of known delinquent accounts. Accounts are written off against the allowance account when they are determined to be no longer collectible. |
||||||||||||||||||||
Inventories | Inventories. Inventories are stated at the lower of cost or market, and cost is determined by the first-in, first-out ("FIFO") method. Manufactured inventories consist of the following costs: components, direct labor and manufacturing overhead. Purchased inventories also include internal purchasing overhead costs. We review inventory quantities on hand and record a provision for excess and obsolete inventory based on forecasts of product demand and production requirements or historical consumption when appropriate. |
||||||||||||||||||||
Property and Equipment | Property and Equipment. Property and equipment is stated at cost. Depreciation and amortization is computed primarily using the straight-line method over the estimated useful lives of the various classes of property and equipment, which are 30 years for buildings and range from 3 to 10 years for other property. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. |
||||||||||||||||||||
Income Taxes | Income Taxes. The Company accounts for income taxes under the liability method in accordance with Accounting Standards Codification ("ASC") 740, Income Taxes. Accordingly, deferred income taxes are provided for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities are measured using tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the benefit of tax positions when it is more likely than not to be sustained on its technical merits. The Company recognizes interest and penalties related to income tax matters as part of income tax expense. |
||||||||||||||||||||
Other Intangibles | Other Intangibles. Other intangible assets capitalized consist primarily of current technology, customer relationships, trade names, unpatented technology, and patent rights. These assets are recorded at cost and amortized on a straight-line basis over a weighted-average life of 3.0 years, which approximates the estimated useful lives. Weighted average lives remaining by intangible asset class are as follows: Current technology 1.9 years; Trade names 0.8 years; Unpatented technology 2.4 years; Patent and patent rights 2.2 years and Customer relationships 4.7 years. |
||||||||||||||||||||
Amortization of Debt Issuance Costs | Amortization of Debt Issuance Costs. The Company capitalizes costs incurred in connection with borrowings or establishment of credit facilities. These costs are amortized over the life of the borrowing or life of the credit facility using the effective interest method. |
||||||||||||||||||||
Revenue Recognition | Revenue Recognition. Revenue includes sales of hardware, supplies and services (including repair services and extended service contracts, which typically occur over time, and professional services, which typically occur at the inception of a project). We enter into revenue arrangements that may consist of multiple deliverables of our hardware products and services due to the needs of our customers. For this type of revenue arrangements, we apply the guidance in ASC 605 "Revenue Recognition" to identify the separate units of accounting by determining whether the delivered items have value to the customer on a standalone basis. Generally, our multiple deliverables arrangements do not have a right of return. We also follow the accounting principles that establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price (TPE) and (iii) best estimate of the selling price (ESP). Generally, our agreements contain termination provisions whereby we are entitled to payment for delivered equipment and services rendered through the date of the termination. Some of our agreements may also contain cancellation provisions that in certain cases result in customer penalties. We may enter into multiple agreements with a single customer. In those cases we follow the guidance in ASC 985 "Software" to determine whether these agreements should be accounted for as a single multiple element arrangement. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title has passed to the customer, which typically happens at the point of shipment provided that no significant obligations remain, the price is fixed and determinable and collectability of the sales price is reasonably assured. For hardware sales, in addition to the criteria discussed above, revenue recognition incorporates allowances for discounts, price protection, returns and customer incentives that can be reasonably estimated. In addition to cooperative marketing and other incentive programs, the Company has arrangements with some distributors, which allow for price protection and limited rights of return, generally through stock rotation programs. Under the price protection programs, the Company gives distributors credits for the difference between the original price paid and the Company’s then current price. Under the stock rotation programs, distributors are able to exchange certain products based on the number of qualified purchases made during the period. We monitor and track these programs and record a provision for future payments or credits granted as reductions of revenue based on historical experience. Recorded revenues are reduced by these allowances. The Company enters into post contract maintenance and support agreements; revenues are deferred and then recognized ratably over the service period and the cost of providing these services is expensed as incurred. The Company includes shipping and handling charges billed to customers as revenue when the product ships; any costs incurred related to these services are included in cost of sales. |
||||||||||||||||||||
Research and Development Costs | Research and Development Costs. Research and development costs ("R&D") are expensed as incurred. These costs include:
|
||||||||||||||||||||
Advertising | Advertising. Advertising is expensed as incurred. |
||||||||||||||||||||
Warranty | Warranty. The Company generally provides warranty coverage of 1 year on mobile computers and WLAN products. Advanced data capture products are warranted from 1 to 5 years, depending on the product. Printers are warranted for one year against defects in material and workmanship. Thermal printheads are warranted for 6 months and batteries are warranted for 1 year. Battery based products, such as location tags, are covered by a 90 days warranty. A provision for warranty expense is adjusted quarterly based on historical warranty experience. |
||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Our financial assets and financial liabilities that require recognition under the accounting guidance generally include our available-for-sale investments, employee deferred compensation plan investments, foreign currency derivatives and interest rate swaps. In accordance with ASC 815, "Derivatives and Hedging" we recognize derivative instruments and hedging activities as either assets or liabilities on the balance sheet and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. See Note 13 Derivative Instruments for additional information on our derivatives and hedging activities. The Company has foreign currency forwards to hedge certain foreign currency exposures and interest rate swaps to hedge a portion of the variability in future cash flows on debt. We use broker quotations or market transactions, in either the listed or over-the-counter markets to value our foreign currency exchange contracts and relevant observable market inputs at quoted intervals, such as forward yield curves and the Company’s own credit risk to value our interest rate swaps. The Company’s investments in marketable debt securities are classified as available-for-sale except for securities held in the Company’s deferred compensation plans, which are considered to be trading securities. In general we use quoted prices in active markets for identical assets to determine fair value. If active markets for identical assets are not available to determine fair value, then we use quoted prices for similar assets or inputs that are observable either directly or indirectly. |
||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation. At December 31, 2015, the Company had a general share-based compensation plan and an employee stock purchase plan under which shares of our common stock were available for future grants and sales, and which are described more fully in Note 18 Share-Based Compensation. We account for these plans in accordance with ASC 505 "Equity" and ASC 718 "Compensation - Stock Compensation." The Company recognizes compensation costs using the straight-line method over the vesting period upon grant of up to 4 years. |
||||||||||||||||||||
Foreign Currency Translation | Foreign Currency Translation. The consolidated balance sheets of the Company’s non-U.S. subsidiaries, not having a U.S. dollar functional currency, are translated into U.S. dollars using the year-end exchange rate, and statement of earnings items are translated using the average exchange rate for the year. The resulting translation gains or losses are recorded in stockholders’ equity as a cumulative translation adjustment, which is a component of accumulated other comprehensive (loss) income. |
||||||||||||||||||||
Acquisition and Integration Costs | Acquisition and Integration Costs. The Company expenses acquisition and integration costs as incurred. |
||||||||||||||||||||
Acquisitions | Acquisitions. We account for acquired businesses using the acquisition method of accounting. This method requires that the purchase price be allocated to the identifiable assets acquired and liabilities assumed at their estimated fair values. The excess of the purchase price over the identifiable assets acquired and liabilities assumed is recorded as goodwill. The estimates used to determine the fair value of long-lived assets, such as intangible assets, can be complex and require significant judgments. We use information available to us to make fair value determinations and engage independent valuation specialists, when necessary, to assist in the fair value determination of significant acquired long-lived assets. While we use our best estimates and assumptions as a part of the purchase price allocation process, our estimates are inherently uncertain and subject to refinement. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from customer relationships, customer attrition rates and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but due to the inherent uncertainty during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. |
||||||||||||||||||||
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of | Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of. The Company accounts for long-lived assets in accordance with the provisions of ASC 360 "Property, Plant and Equipment." The statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposition of the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. |
||||||||||||||||||||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements. Recently Adopted. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-03 “Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this ASU. This standard is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. Upon adoption, an entity must apply the new guidance retrospectively to all prior periods presented in the financial statements. As permitted, the Company early adopted this ASU beginning in the second quarter of calendar year 2015. The impact of this ASU reduced both long-term assets and long-term debt by $26 million at December 31, 2015. It also reduced long-term assets, short-term debt and long-term debt by $30 million, $3 million, and $27 million, respectively, at December 31, 2014. This ASU has no impact on the consolidated statements of operations or cash flows. In August 2015, the FASB issued ASU 2015-15 “Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update).” This ASU indicates that the guidance in ASU 2015-03, discussed above, does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Given the absence of authoritative guidance within ASU 2015-03, the SEC staff has indicated that they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. However, in conjunction with ASU 2015-03, the Company has elected to present debt issuance costs associated with its line-of-credit arrangement as a direct deduction from the carrying amount of its total debt liability regardless of whether there are any outstanding borrowings on the line-of-credit arrangement and amortizing these costs using the straight line method over its term. This ASU has no impact on the consolidated statements of operations or cash flows. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This update is to be applied prospectively and is effective for interim and annual periods beginning after December 15, 2015 with earlier adoption permitted. The Company elected to early adopt this ASU during the third quarter of 2015. See Note 3 Business Combinations for additional information. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” to simplify the presentation of deferred taxes. The amendments in this update require that deferred tax assets and liabilities be classified as non-current on the balance sheet. This ASU is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016 with earlier adoption permitted. Companies can adopt the guidance either prospectively or retrospectively. In order to simplify the presentation of deferred taxes in its consolidated balance sheet, the Company elected to early adopt this ASU prospectively during the fourth quarter of 2015. As a result, the prior periods were not retrospectively adjusted. This ASU has no impact on the consolidated statements of operations or cash flows. Not Yet Effective In May 2014, the FASB issued update 2014-9, ASC 606, "Revenue from Contracts with Customers." The core principle is that a company should recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration, which the entity expects to receive in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers: Deferral of the Effective Date," which deferred the effective date for all entities by one year so it is now effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Earlier application is prohibited. Management is still assessing the impact of adoption on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement." This update provides guidance to customers about whether a cloud computing arrangement includes a software license or should be accounted for differently. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change generally accepted accounting principles for a customer’s accounting for service contracts. This update is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Entities have the option of applying the guidance (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. Management is still assessing the impact of adoption on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value for entities that measure inventory using first-in, first-out (FIFO) or average cost. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal years beginning after December 15, 2016 and for interim periods therein. Early adoption is permitted and the guidance must be applied prospectively after the date of adoption. Management is still assessing the impact of adoption on its consolidated financial statements. In January, 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, "Fair Value Measurements", and as such these investments may be measured at cost. ASU 2016-01 will be effective for the Company’s fiscal year beginning January 1, 2018 and subsequent interim periods. Early adoption of the amendment in this ASU is not permitted. Amendments should be applied by means of cumulative effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values including disclosure requirements should be applied prospectively to equity investments that exist as of the date of adoption of the ASU. Management is still assessing the impact of adoption on its consolidated financial statements. |
Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accrued Warranty Obligation | The following table is a summary of the Company’s accrued warranty obligation (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation Expense and Related Tax Benefit for Equity Based Payments | The compensation expense and the related income tax benefit for share-based compensation were included in the Consolidated Statement of Operations as follows (in millions):
|
Business Combinations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Estimated Fair Value of Assets and Liabilities | The following table summarizes the fair values of the assets acquired and the liabilities assumed at the date of the Acquisition (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Intangible Assets | The intangible assets of $994 million consist of the following (in millions):
|
Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Carried at Fair Value | Financial assets and liabilities carried at fair value as of December 31, 2015, are classified below (in millions):
Financial assets and liabilities carried at fair value as of December 31, 2014, are classified below (in millions):
The Company had no investments as of December 31, 2015. The following is a summary of investments as of December 31, 2014 (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | The following table presents the Company’s activity for assets measured at fair value on a recurring basis using significant unobservable inputs, Level 3 as defined in ASC 820 for the year ended December 31, 2014 (in millions): There was no activity for 2015.
|
Investments and Marketable Securities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Market Value and Unrealized Losses of Investment | The following table shows the number, aggregate market value and unrealized losses (in millions) of investments with market values that were less than amortized cost as of December 31, 2014. These lower market values are primarily caused by fluctuations in interest rates and credit spreads. All remaining investments and marketable securities have been sold during 2015.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Realized Gains on the Sales of Available-For-Sale Securities | Using the specific identification method, the proceeds and realized gains on the sales of available-for-sale securities were as follows (in millions):
|
Accounts Receivable (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accounts Receivable | The components of accounts receivable, net are as follows (in millions):
|
Inventories (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventories | The components of inventories, net are as follows (in millions):
|
Property and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Property and Equipment | Property and equipment is comprised of the following (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Items Related to Property and Equipment | Other items related to property and equipment are as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and Amortization Related to Property and Equipment |
|
Goodwill and Other Intangibles (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Intangible Assets | Other intangibles, net are as follows (in millions):
Certain intangible assets including goodwill are denominated in foreign currency and, as such, include the effects of foreign currency translation. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Amortization Expense |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Net Carrying Value of Goodwill | Changes in the net carrying value amount of goodwill were as follows (in millions):
|
Other Long-Term Assets(Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Assets | Other long-term assets consist of the following (in millions):
|
Accrued Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accrued Liabilities | The components of accrued liabilities are as follows (in millions):
|
Costs Associated with Exit and Restructuring (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Exit and Restructuring Costs Incurred | Liabilities related to exit and restructuring activities are included in the following accounts in the Consolidated Balance Sheets (in millions):
During 2015, the Company incurred exit and restructuring costs specific to the Acquisition as follows (in millions):
Exit and restructuring charges for the year ended December 31, 2015 were $9 million and $30 million for the Legacy Zebra and the Enterprise segments, respectively. The Company expects additional charges related to the Acquisition through the end of 2016 ranging from $10 million to $20 million. As of December 31, 2014, the Company incurred the following exit and restructuring costs related to the 2014 organization design changes, Location Solutions business management structure and manufacturing operations relocation and restructuring, which included the Acquisition (in millions):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Expenses Related to Exit and Restructuring Activities | A rollforward of the exit and restructuring accruals is as follows (in millions):
|
Derivative Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information Related to Hedging of Net Assets Included in Consolidated Statement of Earnings | Summary financial information related to these activities included in the Company's consolidated statements of operations as other (expense) income is as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information Related to Cash Flow Hedges | Summary financial information related to the cash flow hedges within comprehensive (loss) income is as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information Related to Cash Flow Hedges of Future Revenues | Summary financial information related to the cash flow hedges of future revenues is as follows (in millions, except percentages):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forward Contract Amounts Recorded in Consolidated Balance Sheet | The balance sheet position of the New Swaps designated in a hedge relationship is as follows (in millions):
The amounts recorded on the consolidated balance sheets are as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Gross and Net Amount Offset | The gross and net amounts offset at December 31,2015 were as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Series of Forward Starting Swaps Each with a Term of One Year | The New Swaps have the following notional amounts per year (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Gain (Loss) Recognized on Forward Interest Rate Swaps Not Designated in Hedge Relationship | The gain (loss) recognized on the forward interest rate swaps not designated in a hedge relationship is combined with interest expense, net in the consolidated statements of operations is as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Forward Interest Rate Swaps Designated in Hedging Relationship | The loss recognized in other comprehensive unrealized loss on the forward interest rate swaps designated in a hedging relationship is as follows (in millions):
|
Long-Term Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Carrying Value of Debt | The following table summarizes the carrying value of the Company's debt (in millions):
|
Contractual Obligations and Commitments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum future obligations under all non-cancelable operating leases as of December 31, 2015 are as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Rent Expense for Operating Leases | Rent expense for operating leases charged to operations was as follows (in millions):
|
Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Earnings (Loss) Per Share | Earnings (loss) per share were computed as follows (dollars in millions, except per-share amounts):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Potentially Dilutive Securities Excluded from Earnings (Loss) Per Share Calculation | These excluded outstanding options, awards and warrants are as follows:
|
Share-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RSAs and PSAs Granted and Vesting Schedule of Awards | The following table shows the number of RSAs and PSAs granted during 2015 and the vesting schedule.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Assumptions Used for Grants of Stock Options and SARs | The following table shows the weighted-average assumptions used for grants of SARs, as well as the fair value of the grants based on those assumptions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | Stock option activity was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Outstanding and Exercisable Options | The following table summarizes information about stock options outstanding at December 31, 2015:
The following table summarizes information about SARs outstanding at December 31, 2015:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of SAR Activity | SAR activity was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Stock Award Activity | Restricted stock award activity was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Performance Share Award Activity | Performance stock unit activity was as follows:
Performance share award activity was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Stock Unit Activity | Restricted stock unit activity was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used | The fair value of the purchase rights issued to employees under the stock purchase plan is estimated using the following weighted-average assumptions for purchase rights granted. Expected lives of 3 months to 1 year have been used along with these assumptions.
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Income (Loss) Before Income Taxes | The geographical sources of (loss) income before income taxes were as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Provision (Benefit) for Income Taxes | The (benefit) provision for income taxes consists of the following (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Provision for Income Taxes | A reconciliation of the provision for income taxes is below (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Deferred Tax Assets and Liabilities | Tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Open Tax Years by Major Jurisdiction Outside of the United States | Below is a summary of open tax years by major jurisdiction outside of the United States.
|
Other Comprehensive (Loss) Income (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Comprehensive Income (Loss) | The components of accumulated other comprehensive (loss) income ("AOCI") for each of the three years ended December 31 are as follows (in millions):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Reclassification out of AOCI to earnings were as follows (in millions):
|
Segment Information and Geographic Data (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information by Reportable Segments | The accounting policies of the segments are in accordance with Note 2 Summary of Significant Accounting Policies. Segment assets are not reviewed by the Company’s chief operating decision maker and therefore are not disclosed below. Financial information by segment is presented as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information Regarding Operations by Geographic Area | Information regarding the Company’s operations by geographic area is contained in the following table. These amounts are reported in the geographic area of the destination of the final sale. We manage our business based on these regions rather than by individual countries. (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales by Country | Net sales by country that are greater than 10% of total net sales are as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales by Major Product Category | Net sales by major product category are as follows (in millions):
|
Major Customers (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Customers as Percentage of Total Net Sales | Our net sales to significant customers as a percentage of the total Company's net sales were as follows:
|
Quarterly Results of Operations (unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | (In millions, except share data and stock prices)
|
Description of Business - Additional Information (Detail) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | |
---|---|---|---|
Oct. 27, 2014 |
Oct. 31, 2014 |
Dec. 31, 2015 |
|
Enterprise Business | |||
Business Acquisition [Line Items] | |||
Cost of business acquisition | $ 3,450 | $ 3,450 | $ 3,450 |
Summary of Significant Accounting Policies - Summary of Accrued Warranty Obligation (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Warranty reserve | |||
Balance at the beginning of the year | $ 25 | $ 4 | $ 4 |
Acquisition | 0 | 21 | 0 |
Warranty expense | 30 | 13 | 7 |
Warranty payments | (33) | (13) | (7) |
Balance at the end of the year | $ 22 | $ 25 | $ 4 |
Summary of Significant Accounting Policies - Compensation Expense and Related Tax Benefit for Equity Based Payments (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | $ 33 | $ 20 | $ 13 |
Income tax benefit | 11 | 7 | 5 |
Cost of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | 3 | 1 | 1 |
Selling and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | 8 | 4 | 2 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | 8 | 3 | 2 |
General and administration | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | $ 14 | $ 12 | $ 8 |
Business Combinations - Summary of Estimated Fair Value of Assets and Liabilities (Detail) - Enterprise Business $ in Millions |
Oct. 27, 2014
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Cash and cash equivalents | $ 101 |
Accounts receivable | 440 |
Inventories | 264 |
Deferred income taxes, current | 142 |
Other current assets | 22 |
Property and equipment | 123 |
Deferred income taxes | 85 |
Intangible assets | 994 |
Other non-current assets | 49 |
Deferred revenue | (172) |
Tax liabilities | (10) |
Deferred income taxes, current | (36) |
Other current liabilities | (364) |
Long-term deferred revenue | (103) |
Unrecognized tax benefits | (6) |
Other non-current liabilities | (24) |
Deferred income taxes | (299) |
Total identifiable net assets | $ 1,206 |
Business Combinations - Summary of Estimated Fair Value of Assets and Liabilities (Footnotes) (Detail) $ in Millions |
Oct. 27, 2014
USD ($)
|
---|---|
Business Combinations [Abstract] | |
Accounts receivable estimated fair value | $ 440 |
Gross contractual value | $ 461 |
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2014
USD ($)
| |
Fair Value on Recurring Basis Using Significant Unobservable Inputs | |
Balance at beginning of the year | $ 3 |
Transfers to Level 3 | 0 |
Included in earnings | (1) |
Included in other comprehensive income (loss) | 0 |
Purchases and settlements (net) | (2) |
Balance at end of year | 0 |
Total gains (losses) for the period included in earnings attributable to the change in unrealized losses relating to assets still held at end of 2014 | $ 0 |
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $ 6 | $ 2 |
Investments, Fair Value Disclosure | $ 24 |
Investments and Marketable Securities - Changes in Unrealized Gains and Losses on Available-for-sale Securities (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Investments, Debt and Equity Securities [Abstract] | |
Changes in unrealized gains and losses on available-for- sale securities, net of tax, recorded in accumulated other comprehensive income (loss) | $ 0 |
Investments and Marketable Securities - Schedule of Realized Gains on Sales of Available-for-Sale Securities (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds | $ 25 | $ 644 | $ 337 |
Realized gains | 0 | 1 | 1 |
Realized losses | 0 | (1) | 0 |
Net realized gains included in other comprehensive income (loss) as of the end of the prior year | $ 0 | $ 0 | $ 0 |
Investments and Marketable Securities - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Changes in unrealized gains and losses on available-for- sale securities, net of tax, recorded in accumulated other comprehensive income (loss) | $ 0 | |||
Foreign cash and investments | 166 | $ 268 | ||
Cash and cash equivalents | $ 192 | $ 394 | $ 63 | $ 65 |
Accounts Receivable - Components of Accounts Receivable (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Receivables [Abstract] | ||
Accounts receivable, gross | $ 680 | $ 672 |
Accounts receivable reserves | (6) | (1) |
Accounts receivable, net | $ 674 | $ 671 |
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw material | $ 178 | $ 140 |
Work in process | 0 | 0 |
Finished goods | 272 | 260 |
Inventories, gross | 450 | 400 |
Inventory reserves | (56) | (6) |
Inventories, net | $ 394 | $ 394 |
Property and Equipment - Other Items Related to Property and Equipment (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Property, Plant and Equipment [Abstract] | |||
Unamortized computer software costs | $ 40 | $ 41 | |
Amortization of capitalized software | 9 | 9 | $ 9 |
Total depreciation expense charged to operations | $ 69 | $ 27 | $ 25 |
Goodwill and Other Intangibles - Amortized Intangible Assets (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2014 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Amount | $ 1,099 | $ 1,120 | $ 1,099 | $ 1,120 | |||||||
Accumulated Amortization | (342) | (91) | (342) | (91) | |||||||
Total | 757 | 1,029 | 757 | 1,029 | |||||||
Amortization expense | 60 | $ 59 | $ 64 | $ 68 | 46 | $ 3 | $ 3 | $ 2 | 251 | 54 | $ 7 |
Current technology | |||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Amount | 25 | 23 | 25 | 23 | |||||||
Accumulated Amortization | (19) | (16) | (19) | (16) | |||||||
Total | 6 | 7 | 6 | 7 | |||||||
Trade names | |||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Amount | 40 | 40 | 40 | 40 | |||||||
Accumulated Amortization | (24) | (2) | (24) | (2) | |||||||
Total | 16 | 38 | 16 | 38 | |||||||
Unpatented technology | |||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Amount | 270 | 280 | 270 | 280 | |||||||
Accumulated Amortization | (87) | (13) | (87) | (13) | |||||||
Total | 183 | 267 | 183 | 267 | |||||||
Patent and patent rights | |||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Amount | 247 | 245 | 247 | 245 | |||||||
Accumulated Amortization | (99) | (32) | (99) | (32) | |||||||
Total | 148 | 213 | 148 | 213 | |||||||
Customer relationships | |||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Gross Amount | 517 | 532 | 517 | 532 | |||||||
Accumulated Amortization | (113) | (28) | (113) | (28) | |||||||
Total | $ 404 | $ 504 | $ 404 | $ 504 |
Goodwill and Other Intangibles - Estimated Amortization Expense (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
For the year ended December 31, 2016 | $ 234 | |
For the year ended December 31, 2017 | 198 | |
For the year ended December 31, 2018 | 108 | |
For the year ended December 31, 2019 | 88 | |
For the year ended December 31, 2020 | 42 | |
Thereafter | 87 | |
Total | $ 757 | $ 1,029 |
Goodwill and Other Intangibles - Changes in Net Carrying Value of Goodwill (Detail) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Goodwill | ||
Beginning balance | $ 2,490.0 | $ 156.0 |
Opening balance sheet adjustments | 3.0 | |
Ending balance | 2,493.0 | 2,490.0 |
Hart Systems LLC | ||
Goodwill | ||
Opening balance sheet adjustments | (2.0) | |
Ending balance | 59.0 | |
Enterprise Business | ||
Goodwill | ||
Opening balance sheet adjustments | 11.0 | |
Foreign exchange impact | (8.0) | |
Acquisition – Enterprise | $ 2,336.0 | |
Ending balance | $ 2,300.0 |
Other Long-Term Assets - Components of Other Assets (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Investments related to the deferred compensation plan | $ 9 | $ 6 |
Long-term investments | 31 | 32 |
Other long-term assets | 25 | 23 |
Long-term trade receivable | 11 | 17 |
Long-term notes receivable | 14 | 14 |
Deposits | 2 | 1 |
Total | $ 92 | $ 93 |
Other Long-Term Assets - Additional Information (Detail) - Enterprise Business |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Percentage of interest acquired | 1.90% |
Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Percentage of interest acquired | 17.40% |
Accrued Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued payroll | $ 47 | $ 48 |
Accrued warranty | 22 | 25 |
Accrued taxes | 10 | 11 |
Interest payable | 36 | 35 |
Amount owed to seller | 0 | 49 |
Customer reserves | 38 | 39 |
Restructuring liability | 9 | 7 |
Accrued incentive compensation | 47 | 31 |
Accrued other expenses | 149 | 176 |
Total accrued liabilities | $ 358 | $ 421 |
Costs Associated with Exit and Restructuring - Summary of Exit and Restructuring Costs Incurred (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | 24 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2014 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Restructuring and Related Activities [Abstract] | |||||||||||||
Severance, stay bonuses, and other employee-related expenses | $ 30 | $ 6 | $ 7 | $ 36 | $ 13 | ||||||||
Obligations for future non-cancellable lease payments | 9 | 0 | 9 | ||||||||||
Total | $ 4 | $ 6 | $ 18 | $ 11 | $ 6 | $ 0 | $ 0 | $ 0 | $ 39 | $ 6 | $ 6 | $ 45 |
Costs Associated with Exit and Restructuring - Liabilities and Expenses Related to Exit and Restructuring Activities (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2014 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
|
Restructuring Reserve [Roll Forward] | ||||||||||||
Balance at beginning of year | $ 7 | $ 1 | $ 7 | $ 1 | $ 1 | $ 1 | ||||||
Charged to earnings | $ 4 | $ 6 | $ 18 | $ 11 | $ 6 | $ 0 | $ 0 | $ 0 | 39 | 6 | 6 | 45 |
Cash paid | (32) | 0 | (6) | |||||||||
Balance at the end of year | $ 14 | $ 7 | $ 14 | $ 7 | $ 1 | $ 14 |
Costs Associated with Exit and Restructuring Costs Associated with Exit and Restructuring Amounts in the Balance Sheets (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
---|---|---|---|---|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | $ 14 | $ 7 | $ 1 | $ 1 |
Accrued liabilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | 9 | 7 | 1 | |
Other long-term liabilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | $ 5 | $ 0 | $ 0 |
Derivative Instruments - Financial Information Related to Cash Flow Hedges (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Derivative [Line Items] | |||
Unrealized loss on anticipated sales hedging transactions (net of income taxes) | $ (6) | $ 7 | $ 0 |
Cash Flow Hedging | |||
Derivative [Line Items] | |||
Gross | (8) | 9 | |
Income tax (benefit) expense | (2) | 2 | |
Unrealized loss on anticipated sales hedging transactions (net of income taxes) | $ (6) | $ 7 |
Derivative Instruments - Financial Information Related to Cash Flow Hedges of Future Revenues (Detail) - Cash Flow Hedging € in Millions, $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2015
EUR (€)
|
Dec. 31, 2014
EUR (€)
|
|
Derivative [Line Items] | |||||
Hedge effectiveness | 100.00% | 100.00% | |||
Net gain (loss) included in revenue | $ | $ 14 | $ 2 | $ (4) | ||
Foreign Exchange Forward | |||||
Derivative [Line Items] | |||||
Notional balance of outstanding contracts (in millions): | € | € 193 | € 89 |
Derivative Instruments - Forward Contract Amounts Recorded in Consolidated Balance Sheet (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Assets: | $ 7 | $ 9 |
Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets: | $ 7 | $ 9 |
Derivative Instruments - Schedule of Location of Forward Interest Rate Swaps Designated in Hedge Relationship (Detail) - USD ($) |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Accrued liabilities | $ 358,000,000 | $ 421,000,000 |
Other long-term liabilities | 98,000,000 | 74,000,000 |
Forward Interest Rate Swap Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Accrued liabilities | 1,000,000 | 0 |
Other long-term liabilities | 14,000,000 | 2,000,000 |
Hedge Effectiveness | $ 1 | $ 1 |
Derivative Instruments - Schedule of Volume of Forward Interest Rate Swaps Designated in Hedge Relationship (Detail) $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional balance of outstanding contracts | $ 3,339 |
Derivative Instruments - Schedule of Gain (Loss) Recognized on Forward Interest Rate Swaps Not Designated in Hedge Relationship (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Interest income/(expense) on forward interest-rate swaps | $ 4 | $ (5) | $ 0 |
Forward Interest Rate Swap Contracts | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Interest income/(expense) on forward interest-rate swaps | $ 4 | $ (5) | $ 0 |
Derivative Instruments - Schedule of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Forward Interest Rate Swaps Designated in Hedging Relationship (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
---|---|---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net | $ (49) | $ (9) | $ (9) | $ (10) |
Forward Interest Rate Swap Contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gross | (12) | (12) | ||
Income tax (benefit) | (5) | (4) | ||
Net | $ (7) | $ (8) |
Long-Term Debt - Summary of Carrying Value of Debt (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Debt Instrument [Line Items] | ||
Current maturities of long-term debt | $ 0 | $ 4 |
Long-term debt, less current maturities | 3,012 | 3,156 |
Carry Value of Debt | ||
Debt Instrument [Line Items] | ||
Senior Notes | 1,050 | 1,050 |
Term loan | 2,035 | 2,200 |
Less debt issuance costs | (26) | (30) |
Less unamortized discounts | (47) | (60) |
Total outstanding debt | 3,012 | 3,160 |
Current maturities of long-term debt | 0 | 16 |
Less: current portion of unamortized discounts | 0 | (9) |
Less: current portion of debt issuance costs | 0 | (3) |
Total short-term debt | 0 | 4 |
Long-term debt, less current maturities | $ 3,012 | $ 3,156 |
- Schedule of Minimum Lease Payments (Details) $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2016 | $ 26 |
2017 | 25 |
2018 | 22 |
2019 | 18 |
2020 | 11 |
Thereafter | 38 |
Total minimum lease obligations | $ 140 |
- Schedule of Rent Expense (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 45 | $ 21 | $ 16 |
Contractual Obligations and Commitments (Details) |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Minimum | |
Operating Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 1 year |
Maximum | |
Operating Leased Assets [Line Items] | |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 13 years |
Contingencies Contingencies (Details) |
Aug. 16, 2005
officer
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Number of former officers being sued | 2 |
Earnings Per Share - Computation of Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2014 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Weighted average shares: | |||||||||||
Basic weighted average shares outstanding (in shares) | 51,207,102 | 51,151,541 | 50,917,161 | 50,666,970 | 50,452,097 | 50,835,492 | 50,606,008 | 50,402,469 | 50,996,297 | 50,789,173 | 50,692,942 |
Effect of dilutive securities outstanding (in shares) | 0 | 590,525 | 370,247 | ||||||||
Diluted weighted average shares outstanding (in shares) | 51,207,102 | 51,151,541 | 50,917,161 | 50,666,970 | 50,452,097 | 51,460,537 | 51,277,628 | 50,974,303 | 50,996,297 | 51,379,698 | 51,063,189 |
Net (loss) income | $ (7) | $ (29) | $ (76) | $ (25) | $ (52) | $ 15 | $ 27 | $ 42 | $ (137) | $ 32 | $ 134 |
Basic per share amounts: | |||||||||||
Per share amount (in USD per share) | $ (2.69) | $ 0.64 | $ 2.65 | ||||||||
Diluted per share amounts: | |||||||||||
Per share amount (in USD per share) | $ (2.69) | $ 0.63 | $ 2.63 |
Earnings Per Share - Potentially Dilutive Securities Excluded from Earnings (Loss) Per Share Calculation (Detail) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Earnings Per Share [Abstract] | |||
Potentially dilutive shares (in shares) | 1,421,506 | 175,902 | 168,472 |
Share-Based Compensation - Weighted-Average Assumptions Used for Grants of Stock Options and SARs (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of interest rates, minimum | 0.02% | 0.02% | 0.02% |
Range of interest rates, maximum | 2.14% | 2.61% | 1.78% |
Stock Option and Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Forfeiture rate | 10.24% | 10.32% | 10.31% |
Volatility | 33.98% | 34.92% | 32.00% |
Risk free interest rate | 1.53% | 1.73% | 0.82% |
Expected weighted-average life | 5 years 3 months 25 days | 5 years 4 months 10 days | 5 years 5 months 1 day |
Fair value of SARs granted (in millions) | $ 12 | $ 5 | $ 5 |
Weighted-average grant date fair value of SARs granted (per underlying share) (in USD per share) | $ 35.00 | $ 24.98 | $ 13.86 |
Share-Based Compensation - Summary of Outstanding and Exercisable Options and SARs (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Stock Option | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Aggregate intrinsic value, Outstanding | $ 11 |
Aggregate intrinsic value, Exercisable | $ 11 |
Weighted-average remaining contractual term, Outstanding | 2 years 1 month 12 days |
Weighted-average remaining contractual term, Exercisable | 2 years 1 month 12 days |
Stock Appreciation Rights (SARs) | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Aggregate intrinsic value, Outstanding | $ 52 |
Aggregate intrinsic value, Exercisable | $ 40 |
Weighted-average remaining contractual term, Outstanding | 6 years 9 months 7 days |
Weighted-average remaining contractual term, Exercisable | 5 years 3 months 7 days |
Share-Based Compensation - Summary of Restricted Stock Award Activity (Detail) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Restricted Stock Awards | |||
Granted | 292,193 | ||
Restricted Stock Awards | |||
Restricted Stock Awards | |||
Outstanding at beginning of year | 691,621 | 435,377 | 444,362 |
Granted | 185,782 | 423,644 | 167,515 |
Shares, Released | (253,801) | (153,200) | (161,976) |
Shares, Forfeited | (57,155) | (14,200) | (14,524) |
Outstanding at end of year | 566,447 | 691,621 | 435,377 |
Weighted-Average Grant Date Fair Value, Outstanding at beginning of year | $ 60.06 | $ 40.92 | $ 35.43 |
Weighted-Average Grant Date Fair Value, Granted | 107.17 | 73.42 | 46.17 |
Weighted-Average Grant Date Fair Value, Released | 51.95 | 43.16 | 31.28 |
Weighted-Average Grant Date Fair Value, Forfeited | 75.11 | 54.08 | 40.79 |
Weighted-Average Grant Date Fair Value, Outstanding at end of period | $ 77.68 | $ 60.06 | $ 40.92 |
Share-Based Compensation - Summary of Performance Share Award Activity (Detail) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Performance Share Awards | |||
Granted | 292,193 | ||
Performance Share Awards | |||
Performance Share Awards | |||
Shares, Outstanding at beginning of year | (374,180) | (195,159) | (265,829) |
Granted | 106,411 | 233,111 | 187,794 |
Shares, Released | (120,000) | (33,535) | (253,484) |
Shares, Forfeited | (27,961) | (20,555) | (4,980) |
Shares, Outstanding at end of period | (332,630) | (374,180) | (195,159) |
Weighted-Average Grant Date Fair Value, Outstanding at beginning of year | $ 61.53 | $ 42.25 | $ 35.55 |
Weighted-Average Grant Date Fair Value, Granted | 75.77 | 73.00 | 35.17 |
Weighted-Average Grant Date Fair Value, Released | 38.67 | 41.45 | 27.90 |
Weighted-Average Grant Date Fair Value, Forfeited | 73.45 | 41.45 | 41.46 |
Weighted-Average Grant Date Fair Value, Outstanding at end of period | $ 73.40 | $ 61.53 | $ 42.25 |
Share-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Restricted Stock Awards and Units | |||
Granted | 292,193 | ||
Restricted Stock | |||
Restricted Stock Awards and Units | |||
Outstanding at beginning of year | 691,621 | 435,377 | 444,362 |
Granted | 185,782 | 423,644 | 167,515 |
Released | (253,801) | (153,200) | (161,976) |
Forfeited | (57,155) | (14,200) | (14,524) |
Outstanding at end of year | 566,447 | 691,621 | 435,377 |
Performance Stock Units | |||
Restricted Stock Awards and Units | |||
Outstanding at beginning of year | 10,345,000 | 0 | |
Granted | 0 | 10,345,000 | |
Released | 0 | 0 | |
Forfeited | (1,272,000) | 0 | |
Outstanding at end of year | 9,073,000 | 10,345,000 | 0 |
Restricted Stock Units (RSUs) | |||
Restricted Stock Awards and Units | |||
Outstanding at beginning of year | 41,964,000 | 0 | |
Granted | 11,618,000 | 42,071,000 | |
Released | (8,689,000) | (4,000) | |
Forfeited | (6,147,000) | (103,000) | |
Outstanding at end of year | 38,746,000 | 41,964,000 | 0 |
Share-Based Compensation Share-Based Compensation Assumptions Used (Details) - Stock Compensation Plan - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair market value | $ 77.38 | $ 64.99 | $ 42.45 |
Option price | $ 73.51 | $ 61.74 | $ 40.33 |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 41.00% | 31.00% | 19.00% |
Risk free interest rate | 0.02% | 0.05% | 0.05% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected weighted-average life | 3 months | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected weighted-average life | 1 year |
Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2014 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ (293) | $ (122) | $ 48 | ||||||||
Outside United States | 129 | 139 | 116 | ||||||||
(Loss) income before income taxes | $ (27) | $ (26) | $ (53) | $ (58) | $ (93) | $ 25 | $ 31 | $ 54 | $ (164) | $ 17 | $ 164 |
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2014 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Oct. 03, 2015 |
Sep. 27, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Current: | |||||||||||||
Federal | $ 62 | $ 6 | $ 9 | ||||||||||
State | 2 | 4 | 1 | ||||||||||
Foreign | 33 | 19 | 12 | ||||||||||
Total current | 97 | 29 | 22 | ||||||||||
Deferred: | |||||||||||||
Federal | (100) | (38) | 7 | ||||||||||
State | (22) | (5) | 1 | ||||||||||
Foreign | (2) | (1) | 0 | ||||||||||
Total deferred | (124) | (44) | 8 | ||||||||||
(Benefit) provision for income taxes | $ (20) | $ 3 | $ 23 | $ (33) | $ (41) | $ 10 | $ 4 | $ 12 | $ (27) | $ (15) | $ (27) | $ (15) | $ 30 |
Income Taxes - Reconciliation of Provision for Income Taxes (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2014 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Oct. 03, 2015 |
Sep. 27, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax Disclosure [Abstract] | |||||||||||||
(Benefit) provision computed at statutory rate | $ (57) | $ 6 | $ 57 | ||||||||||
State income tax, net of Federal tax benefit | (2) | (1) | 1 | ||||||||||
US impact of Enterprise acquisition and integration | 45 | 7 | 0 | ||||||||||
Tax credits | (11) | (3) | (1) | ||||||||||
Foreign rate differential | (30) | (33) | (26) | ||||||||||
Change in valuation allowance | 13 | 3 | 0 | ||||||||||
Effect of rate changes on deferred taxes | (7) | 0 | 0 | ||||||||||
US income inclusion | 7 | 3 | 0 | ||||||||||
Change in contingent income tax reserves | 6 | 3 | 0 | ||||||||||
Other | 9 | 0 | (1) | ||||||||||
(Benefit) provision for income taxes | $ (20) | $ 3 | $ 23 | $ (33) | $ (41) | $ 10 | $ 4 | $ 12 | $ (27) | $ (15) | $ (27) | $ (15) | $ 30 |
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred tax assets: | ||
Capitalized research expenditures | $ 46 | $ 27 |
Capitalized software costs | 43 | 0 |
Accrued bonus | 17 | 12 |
Inventory items | 27 | 2 |
Other accruals | 43 | 55 |
Deferred revenue | 59 | 79 |
Equity based compensation expense | 17 | 14 |
Unrealized gain and losses on securities and investments | 10 | 9 |
Net operating loss carryforwards | 63 | 27 |
Tax credits | 35 | 62 |
Sales return/rebate reserve | 12 | 8 |
Valuation allowance | (48) | (57) |
Total deferred tax assets | 324 | 238 |
Deferred: | ||
Unrealized loss on other investments | 0 | (1) |
Depreciation and amortization | (273) | (311) |
Undistributed earnings | 0 | (3) |
Total deferred tax liabilities | (273) | (315) |
Net deferred tax assets (liabilities) | $ 51 | |
Net deferred tax assets (liabilities) | $ (77) |
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Reconciliation of Unrecognized Tax Benefits | ||
Balance at beginning of year | $ 19 | $ 4 |
Additions for tax positions related to the current year | 2 | 1 |
Additions for tax positions related to prior years | 15 | 2 |
Settlements for tax positions | (2) | 0 |
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount | 1 | 0 |
Additions related to Acquisition | 0 | 12 |
Balance at end of year | $ 33 | $ 19 |
Segment Information and Geographic Data - Additional Information (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Geographic Concentration Risk | United States | Long Lived Assets | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 87.00% | 89.60% | 89.20% |
Segment Information and Geographic Data - Segment Information by Reportable Segments (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2014 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Net sales: | |||||||||||
Net sales: | $ 953 | $ 916 | $ 890 | $ 893 | $ 791 | $ 304 | $ 288 | $ 288 | $ 3,652 | $ 1,671 | $ 1,038 |
Operating income (loss): | |||||||||||
Operating income (loss): | $ 22 | $ 25 | $ (14) | $ 20 | $ (25) | $ 27 | $ 33 | $ 54 | 53 | 89 | 160 |
Sales Revenue Segment | |||||||||||
Net sales: | |||||||||||
Net sales: | 3,668 | 1,677 | 1,038 | ||||||||
Operating income (loss): | |||||||||||
Operating income (loss): | 508 | 303 | 178 | ||||||||
Intersegment Eliminations | |||||||||||
Net sales: | |||||||||||
Net sales: | (16) | (6) | 0 | ||||||||
Operating income (loss): | |||||||||||
Operating income (loss): | (455) | (214) | (18) | ||||||||
Zebra Legacy | |||||||||||
Net sales: | |||||||||||
Net sales: | 1,287 | 1,195 | 1,038 | ||||||||
Operating income (loss): | |||||||||||
Operating income (loss): | 260 | 238 | 178 | ||||||||
Enterprise Solutions | |||||||||||
Net sales: | |||||||||||
Net sales: | 2,381 | 482 | 0 | ||||||||
Operating income (loss): | |||||||||||
Operating income (loss): | $ 248 | $ 65 | $ 0 |
Segment Information and Geographic Data - Net Sales by Country (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2014 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | $ 953 | $ 916 | $ 890 | $ 893 | $ 791 | $ 304 | $ 288 | $ 288 | $ 3,652 | $ 1,671 | $ 1,038 |
United States | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 2,046 | 875 | 563 | ||||||||
United Kingdom | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 1,102 | 558 | 324 | ||||||||
Singapore | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 175 | 155 | 140 | ||||||||
Other | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | $ 329 | $ 83 | $ 11 |
Segment Information and Geographic Data - Net Sales by Major Product Category (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2014 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Revenue from External Customer [Line Items] | |||||||||||
Total Net sales | $ 953 | $ 916 | $ 890 | $ 893 | $ 791 | $ 304 | $ 288 | $ 288 | $ 3,652 | $ 1,671 | $ 1,038 |
Hardware | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total Net sales | 2,865 | 1,234 | 740 | ||||||||
Supplies | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total Net sales | 268 | 265 | 244 | ||||||||
Services and Software | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total Net sales | $ 519 | $ 172 | $ 54 |
Quarterly Results of Operations (unaudited) - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2014 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Oct. 03, 2015 |
Sep. 27, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
|
Net sales of tangible products | $ 829 | $ 787 | $ 762 | $ 755 | $ 684 | $ 283 | $ 270 | $ 262 | $ 3,133 | $ 1,499 | $ 984 | |||
Revenue from services and software | 124 | 129 | 128 | 138 | 107 | 21 | 18 | 26 | 519 | 172 | 54 | |||
Total Net sales | 953 | 916 | 890 | 893 | 791 | 304 | 288 | 288 | 3,652 | 1,671 | 1,038 | |||
Cost of sales of tangible products | 435 | 403 | 407 | 386 | 383 | 142 | 137 | 130 | 1,631 | 792 | 508 | |||
Cost of services and software | 90 | 99 | 90 | 98 | 72 | 10 | 9 | 10 | 377 | 101 | 27 | |||
Total Cost of sales | 525 | 502 | 497 | 484 | 455 | 152 | 146 | 140 | 2,008 | 893 | 535 | |||
Gross profit | 428 | 414 | 393 | 409 | 336 | 152 | 142 | 148 | 1,644 | 778 | 503 | |||
Selling and marketing | 119 | 120 | 125 | 122 | 105 | 37 | 36 | 35 | 486 | 213 | 138 | |||
Research and development | 99 | 100 | 99 | 96 | 79 | 25 | 24 | 23 | 394 | 151 | 91 | |||
General and administrative | 74 | 67 | 70 | 66 | 59 | 25 | 26 | 28 | 277 | 138 | 96 | |||
Amortization of intangible assets | 60 | 59 | 64 | 68 | 46 | 3 | 3 | 2 | 251 | 54 | 7 | |||
Acquisition and integration costs | 50 | 37 | 31 | 26 | 66 | 35 | 20 | 6 | 144 | 127 | 5 | |||
Exit and restructuring costs | 4 | 6 | 18 | 11 | 6 | 0 | 0 | 0 | 39 | 6 | 6 | $ 45 | ||
Total Operating expenses | 406 | 389 | 407 | 389 | 361 | 125 | 109 | 94 | 1,591 | 689 | 343 | |||
Operating income | 22 | 25 | (14) | 20 | (25) | 27 | 33 | 54 | 53 | 89 | 160 | |||
Foreign exchange (loss) income | 0 | (6) | 11 | (27) | (9) | 0 | 0 | 0 | (22) | (9) | (1) | |||
Interest, net | (49) | (45) | (49) | (51) | (60) | 0 | (2) | 0 | (194) | (62) | ||||
Other, net | 0 | 0 | (1) | 0 | 1 | (2) | 0 | 0 | (1) | (1) | 5 | |||
Total Other (expenses) income | (49) | (51) | (39) | (78) | (68) | (2) | (2) | 0 | (217) | (72) | 4 | |||
(Loss) Income before income taxes | (27) | (26) | (53) | (58) | (93) | 25 | 31 | 54 | (164) | 17 | 164 | |||
Income tax expense (benefit) | (20) | 3 | 23 | (33) | (41) | 10 | 4 | 12 | $ (27) | $ (15) | (27) | (15) | 30 | |
Net (loss) income | $ (7) | $ (29) | $ (76) | $ (25) | $ (52) | $ 15 | $ 27 | $ 42 | $ (137) | $ 32 | $ 134 | |||
Basic earnings per share (in USD per share) | $ (0.13) | $ (0.57) | $ (1.50) | $ (0.50) | $ (1.02) | $ 0.29 | $ 0.54 | $ 0.83 | $ (2.69) | $ 0.64 | ||||
Diluted earnings per share (in USD per share) | $ (0.13) | $ (0.57) | $ (1.50) | $ (0.50) | $ (1.02) | $ 0.29 | $ 0.54 | $ 0.82 | $ (2.69) | $ 0.63 | $ 2.63 | |||
Basic weighted average shares outstanding | 51,207,102 | 51,151,541 | 50,917,161 | 50,666,970 | 50,452,097 | 50,835,492 | 50,606,008 | 50,402,469 | 50,996,297 | 50,789,173 | 50,692,942 | |||
Diluted weighted average and equivalent shares outstanding | 51,207,102 | 51,151,541 | 50,917,161 | 50,666,970 | 50,452,097 | 51,460,537 | 51,277,628 | 50,974,303 | 50,996,297 | 51,379,698 | 51,063,189 | |||
Maximum | ||||||||||||||
Stock Price (in USD per share) | $ 83.02 | $ 117.00 | $ 119.47 | $ 92.48 | $ 79.11 | $ 86.02 | $ 87.53 | $ 72.76 | $ 119.47 | $ 87.53 | ||||
Minimum | ||||||||||||||
Stock Price (in USD per share) | $ 63.92 | $ 71.95 | $ 88.41 | $ 74.40 | $ 58.95 | $ 72.10 | $ 60.06 | $ 52.61 | $ 63.92 | $ 52.61 |
Subsequent Events (Details) - Term Loan - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Feb. 04, 2016 |
Dec. 31, 2015 |
|
Subsequent Event [Line Items] | ||
Repayments of Debt | $ 165 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Repayments of Debt | $ 80 |
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Valuation account for accounts receivable: | |||
Valuation Account for Accounts Receivable | |||
Balance at Beginning of Period | $ 1 | $ 0 | $ 1 |
Charged to Costs and Expenses | 5 | 1 | 0 |
Deductions / (Recoveries) | 0 | 0 | 1 |
Balance at End of Period | 6 | 1 | 0 |
Valuation accounts for inventories: | |||
Valuation Account for Accounts Receivable | |||
Balance at Beginning of Period | 6 | 13 | 14 |
Charged to Costs and Expenses | 54 | 6 | 8 |
Deductions / (Recoveries) | 4 | 13 | 9 |
Balance at End of Period | 56 | 6 | 13 |
Valuation accounts for deferred tax assets: | |||
Valuation Account for Accounts Receivable | |||
Balance at Beginning of Period | 57 | 0 | 0 |
Charged to Costs and Expenses | 5 | 57 | 0 |
Deductions / (Recoveries) | 14 | 0 | 0 |
Balance at End of Period | $ 48 | $ 57 | $ 0 |
/G7BPC)$6FKW\)(W?R9)@YF2,4J0DKFUEB(CN:[+$(J8,U&XA<>1/&'@67.W>1.T"4ZC93QAX%ESMWD3M W?2));7#*/O_
MP+C@A8O@ ?*)&W ^9>Q1<,4+%\4#Y%,WFRECCX(K7K@H'B"?4D..0/8PN.:%
MT3P91D.$=3<3Q!X$W^\0H%.!K@/82@(HP^T">TFF$[&99)",V+?:BG'KA&BU
M&W-GJ!9A/\GTBN[O-\&7[S'#Z4\M/W;M'M?ZVUD_:%5%[,K/F[-+_\#4$L#!!0 ( "&(74C[U5$G
M* ( &\& 8 >&PO=V]R:W-H965T
8=7
MY< [^,E-)[0E)W3^9.,!M(@.?/OL;D=)[]_/FDAH70B_^-BD*Y42A\/R0-97
M6OT#4$L#!!0 ( "&(74A@#/6&PO=V]R:W-H965T
M)MP 2*NL5N%M.\ A2>B'7^/>L^=72$\_C1?TI
M3.O<'[F!1Y3OHK:=,YM04D/#1VE?<7J&>81;+UBA-.%+JM%85 N%$L4_XRKZ
ML$[Q3[Z=:=<)V4S(5L(V"<9CHV#S![>\+#1.Q S
8=7Y< [^,%-)[0E
M)W3^9.,!M(@.?/OL;D=)[]_/FDAH70CO?6S2E4J)PV%Y(.LKK?X"4$L#!!0
M ( "&(74B-%\UUH@$ +$# 9 >&PO=V]R:W-H965T