Costs Associated with Exit and Restructuring

12 Months Ended

Dec. 31, 2014

Restructuring and Related Activities [Abstract]

Costs Associated with Exit and Restructuring

Note 12 Costs Associated with Exit and Restructuring

During the fourth quarter 2014, Zebra incurred restructuring costs resulting from organizational design changes. The costs below incurred for the year ended December 31, 2014 and costs expected to be incurred represent the costs related to these restructuring activities primarily related to the acquisition.

Costs incurred through December 31, 2013 and costs expected to be incurred relate to the following: restructuring of Zebra’s manufacturing operations; relocation of a significant portion of Zebra’s supply chain operations from the U.S. to China; consolidating activities domestically; restructuring of our sales operations; restructuring certain corporate functions; and amending the Location Solutions “2012 restructuring plan” by adding additional restructuring charges to be incurred. These restructuring charges were complete by the third quarter 2014.

As of December 31, 2014, we have 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 (in thousands):


Type of Cost	Cost incurred through December 31, 2013		Costs incurred for the twelve months ended December 31, 2014		Total costs incurred as of December 31, 2014		Additional costs expected to be incurred		Total costs expected to be incurred

Severance, stay bonuses, and other employee-related expenses	$	6,650	$	5,991	$	12,641	$	0	$	12,641
Professional services		180		16		196		0		196
Relocation and transition costs		20		0		20		0		20

Total	$	6,850	$	6,007	$	12,857	$	0	$	12,857

As of December 31, 2013, we incurred the following exit and restructuring costs related to the Location Solutions business management structure and manufacturing operations relocation and restructuring (in thousands):


Type of Cost	Cost incurred through December 31, 2012		Costs incurred for the twelve months ended December 31, 2013		Total costs incurred as of December 31, 2013		Additional costs expected to be incurred		Total costs expected to be incurred

Severance, stay bonuses, and other employee-related expenses	$	960	$	5,690	$	6,650	$	61	$	6,711
Professional services		0		180		180		0		180
Relocation and transition costs		0		20		20		0		20

Total	$	960	$	5,890	$	6,850	$	61	$	6,911

Liabilities and expenses related to exit activities were as follows (in thousands):


	Year Ended December 31,
	2014		2013		2012

Balance at beginning of period	$	1,252	$	967	$	1,048
Charged to earnings		6,007		5,890		960
Cash paid		(429)		(5,605)		(1,041)

Balance at the end of period	$	6,830	$	1,252	$	967

Liabilities related to exit activities are included in the accrued liabilities line item on the balance sheet. Exit costs are included in operating expenses under the line item exit and restructuring costs.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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