Costs Associated with Exit and Restructuring Activities

6 Months Ended

Jul. 04, 2015

Restructuring and Related Activities [Abstract]

Costs Associated with Exit and Restructuring Activities

Note 10 – Costs Associated with Exit and Restructuring Activities

Total restructuring and related charges of $34.7 million life to date specific to the Acquisition have been recorded through July 4, 2015: $6.9 million in the Legacy Zebra segment and $27.8 million in the Enterprise segment related to organizational design changes.

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


Type of Cost	Cost incurred through December 31, 2014		Costs incurred for the six months ended July 4, 2015		Total costs incurred as of July 4, 2015
Severance, stay bonuses, and other employee-related expenses	$	5,557	$	24,963	$	30,520
Obligations for future lease payments		0		3,824		3,824
Professional services		16		331		347

Total	$	5,573	$	29,118	$	34,691

Exit and restructuring charges for the three and six month periods ended July 4, 2015 were $5.3 million and $6.9 million for the Legacy Zebra segment and $12.6 million and $22.2 million for the Enterprise segment, respectively. The Company expects additional charges related to the Acquisition through the end of 2016.

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


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

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

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


	Three Months Ended July 4, 2015			Three Months Ended June 28, 2014			Six Months Ended July 4, 2015			Six Months Ended June 28, 2014
Balance at the beginning of period	$	8,241		$	329		$	6,830		$	1,252
Charged to earnings		17,949			287			29,118			554
Cash paid		(8,496	)		(114	)		(18,254	)		(1,304	)

Balance at the end of period	$	17,694		$	502		$	17,694		$	502

Liabilities related to exit and restructuring activities are included in accrued liabilities and other long-term liabilities. Payments of the related, long-term liabilities will be completed by August 2019.