Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 20, 2017 | Jul. 02, 2016 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ZBRA | ||
Entity Registrant Name | ZEBRA TECHNOLOGIES CORP | ||
Entity Central Index Key | 877,212 | ||
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 | 52,877,247 | ||
Entity Public Float | $ 2,589,001,121 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 156 | $ 192 |
Accounts receivable, net | 625 | 671 |
Inventories, net | 345 | 397 |
Income tax receivable | 32 | 4 |
Prepaid expenses and other current assets | 64 | 70 |
Total Current assets | 1,222 | 1,334 |
Property, plant and equipment, net | 292 | 298 |
Goodwill | 2,458 | 2,490 |
Other intangibles, net | 480 | 757 |
Long-term deferred income taxes | 113 | 70 |
Other long-term assets | 67 | 91 |
Total Assets | 4,632 | 5,040 |
Current liabilities: | ||
Accounts payable | 413 | 289 |
Accrued liabilities | 323 | 367 |
Deferred revenue | 191 | 197 |
Income taxes payable | 22 | 42 |
Total Current liabilities | 949 | 895 |
Long-term debt | 2,648 | 3,012 |
Long-term deferred tax liability | 3 | 1 |
Long-term deferred revenue | 124 | 124 |
Other long-term liabilities | 116 | 115 |
Total Liabilities | 3,840 | 4,147 |
Stockholders’ Equity: | ||
Preferred stock, $0.01 par value; authorized 10,000,000 shares; none issued | 0 | 0 |
Class A common stock, $0.01 par value; authorized 150,000,000 shares; issued 72,151,857 shares | 1 | 1 |
Additional paid-in capital | 210 | 194 |
Treasury stock at cost, 19,267,269 and 19,990,006 shares at December 31, 2016 and December 31, 2015, respectively | (614) | (631) |
Retained earnings | 1,240 | 1,377 |
Accumulated other comprehensive loss | (45) | (48) |
Total Stockholders’ Equity | 792 | 893 |
Total Liabilities and Stockholders’ Equity | $ 4,632 | $ 5,040 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
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 | 19,267,269 | 19,990,006 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales: | |||
Net sales of tangible products | $ 3,056 | $ 3,131 | $ 1,499 |
Revenue from services and software | 518 | 519 | 172 |
Total Net sales | 3,574 | 3,650 | 1,671 |
Cost of sales: | |||
Cost of sales of tangible products | 1,593 | 1,629 | 792 |
Cost of services and software | 339 | 377 | 101 |
Total Cost of sales | 1,932 | 2,006 | 893 |
Gross profit | 1,642 | 1,644 | 778 |
Operating expenses: | |||
Selling and marketing | 444 | 494 | 213 |
Research and development | 376 | 394 | 151 |
General and administrative | 307 | 283 | 138 |
Amortization of intangible assets | 229 | 251 | 54 |
Acquisition and integration costs | 125 | 145 | 127 |
Impairment of goodwill and other intangibles | 62 | 0 | 0 |
Exit and restructuring costs | 19 | 40 | 6 |
Total Operating expenses | 1,562 | 1,607 | 689 |
Operating income | 80 | 37 | 89 |
Other expenses: | |||
Foreign exchange loss | (5) | (23) | (9) |
Interest expense, net | (193) | (193) | (62) |
Other, net | (11) | (1) | (1) |
Total Other expenses | (209) | (217) | (72) |
(Loss) income before income taxes | (129) | (180) | 17 |
Income tax expense (benefit) | 8 | (22) | $ (15) |
Net (loss) income | $ (137) | $ (158) | |
Basic earnings per share (in USD per share) | $ (2.65) | $ (3.10) | $ 0.64 |
Diluted (loss) earnings per share (in USD per share) | $ (2.65) | $ (3.10) | $ 0.63 |
Basic weighted average shares outstanding (in shares) | 51,579,112 | 50,996,297 | 50,789,173 |
Diluted weighted average and equivalent shares outstanding (in shares) | 51,579,112 | 50,996,297 | 51,379,698 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (137) | $ (158) | $ 32 |
Other comprehensive (loss) income, net of tax: | |||
Unrealized gain (loss) on anticipated sales hedging transactions | 7 | (6) | 7 |
Unrealized (loss) on forward interest rate swaps hedging transactions | 0 | (7) | (8) |
Foreign currency translation adjustment | (4) | (26) | 1 |
Comprehensive (loss) income | $ (134) | $ (197) | $ 32 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Class A Common Stock Amount | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common Stock, Shares, Outstanding | 50,349,546 | |||||
Beginning Balance at Dec. 31, 2013 | $ 959 | $ 1 | $ 143 | $ (679) | $ 1,503 | $ (9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards, shares | 1,370,705 | |||||
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards net of cancellations | 28 | (22) | 50 | |||
Shares withheld related to net share settlement (in shares) | (65,914) | |||||
Treaury stock withheld related to net share settlement (in shares) | (5) | (5) | ||||
Additional tax benefit resulting from exercise of options | 6 | 6 | ||||
Share-based compensation | 20 | 20 | ||||
Net (loss) income | 32 | 32 | ||||
Unrealized loss on 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 | ||||
Ending Balance at Dec. 31, 2014 | 1,040 | $ 1 | 147 | (634) | 1,535 | (9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common Stock, Shares, Outstanding | 51,654,337 | |||||
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards, shares | 646,395 | |||||
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards net of cancellations | 17 | 1 | 16 | |||
Shares withheld related to net share settlement (in shares) | (138,881) | |||||
Treaury stock withheld related to net share settlement (in shares) | (13) | (13) | ||||
Additional tax benefit resulting from exercise of options | 11 | 11 | ||||
Share-based compensation | 31 | 31 | ||||
Net (loss) income | (158) | (158) | ||||
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 | (26) | (26) | ||||
Issuance of warrants exercisable for 250,000 shares, exercise price $89.34, expiration April 5, 2017 | 4 | 4 | ||||
Ending Balance at Dec. 31, 2015 | 893 | $ 1 | 194 | (631) | 1,377 | (48) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common Stock, Shares, Outstanding | 52,161,851 | |||||
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards, shares | 817,943 | |||||
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards net of cancellations | 11 | (14) | 25 | |||
Shares withheld related to net share settlement (in shares) | (95,206) | |||||
Treaury stock withheld related to net share settlement (in shares) | (8) | (8) | ||||
Additional tax benefit resulting from exercise of options | 3 | 3 | ||||
Share-based compensation | 27 | 27 | ||||
Net (loss) income | (137) | |||||
Unrealized loss on anticipated sales hedging transactions (net of income taxes) | 7 | |||||
Unrealized loss on forward interest rate swaps hedging transactions (net of income taxes) | 0 | |||||
Foreign currency translation adjustment | (4) | |||||
Ending Balance at Dec. 31, 2016 | $ 792 | $ 1 | $ 210 | $ (614) | $ 1,240 | $ (45) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common Stock, Shares, Outstanding | 52,884,588 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Statement of Stockholders' Equity [Abstract] | |
Repurchase of warrants number | shares | 250,000 |
Repurchase of warrants , exercise price | $ / shares | $ 89.34 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (137,000,000) | $ (158,000,000) | $ 32,000,000 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 304,000,000 | 320,000,000 | 81,000,000 |
Impairment of goodwill, intangibles and other assets | 69,000,000 | 0 | 0 |
Amortization of debt issuance cost and discount | 23,000,000 | 16,000,000 | 2,000,000 |
Share-based compensation | 27,000,000 | 31,000,000 | 20,000,000 |
Excess tax benefit from share-based compensation | (3,000,000) | (12,000,000) | (6,000,000) |
Deferred income taxes | (44,000,000) | (142,000,000) | (44,000,000) |
Unrealized (gain) loss on forward interest rate swaps | 0 | (4,000,000) | 5,000,000 |
Other | 3,000,000 | 14,000,000 | 4,000,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 34,000,000 | 2,000,000 | (70,000,000) |
Inventories, net | 34,000,000 | (13,000,000) | (2,000,000) |
Other assets | 7,000,000 | (7,000,000) | (13,000,000) |
Accounts payable | 125,000,000 | (21,000,000) | 62,000,000 |
Accrued liabilities | (29,000,000) | (5,000,000) | 164,000,000 |
Deferred revenue | 7,000,000 | 16,000,000 | 10,000,000 |
Income taxes | (41,000,000) | 47,000,000 | (5,000,000) |
Other operating activities | (7,000,000) | 26,000,000 | 8,000,000 |
Net cash provided by operating activities | 372,000,000 | 110,000,000 | 248,000,000 |
Cash flows from investing activities: | |||
Acquisition of businesses, net of cash acquired | 0 | (52,000,000) | (3,399,000,000) |
Purchases of property, plant and equipment | (77,000,000) | (122,000,000) | (39,000,000) |
Proceeds from the sale of a business | 39,000,000 | 0 | 0 |
Proceeds from the sale of long-term investments | 0 | 3,000,000 | 0 |
Purchases of long-term investments | (1,000,000) | (1,000,000) | (2,000,000) |
Purchases of investments and marketable securities | 0 | (1,000,000) | (651,000,000) |
Maturities of investments and marketable securities | 0 | 0 | 336,000,000 |
Proceeds from sales of investments and marketable securities | 0 | 25,000,000 | 644,000,000 |
Net cash used in investing activities | (39,000,000) | (148,000,000) | (3,111,000,000) |
Cash flows from financing activities: | |||
Payment of debt issuance costs | 0 | 0 | (24,000,000) |
Proceeds from issuance of long-term debt | 102,000,000 | 0 | 3,189,000,000 |
Payment of long term-debt | (484,000,000) | (165,000,000) | 0 |
Proceeds from exercise of stock options and stock purchase plan purchases | 11,000,000 | 17,000,000 | 26,000,000 |
Taxes paid related to net share settlement of equity awards | (8,000,000) | (13,000,000) | (5,000,000) |
Excess tax benefit from share-based compensation | 3,000,000 | 12,000,000 | 6,000,000 |
Net cash (used in) provided by financing activities | (376,000,000) | (149,000,000) | 3,192,000,000 |
Effect of exchange rate changes on cash | 7,000,000 | (15,000,000) | 2,000,000 |
Net (decrease) increase in cash and cash equivalents | (36,000,000) | (202,000,000) | 331,000,000 |
Cash and cash equivalents at beginning of year | 192,000,000 | 394,000,000 | 63,000,000 |
Cash and cash equivalents at end of year | 156,000,000 | 192,000,000 | 394,000,000 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 81,000,000 | 38,000,000 | 17,000,000 |
Interest paid | $ 180,000,000 | $ 183,000,000 | $ 0 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Zebra Technologies Corporation and its wholly-owned subsidiaries (“Zebra” or the “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 device (“RFID”) products. Enterprise 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. During the third quarter of 2016, the Company entered into an Asset Purchase Agreement with Extreme Networks, Inc. to dispose of its wireless LAN (“WLAN”) business (“divestiture group”), see Note 3 Business Combinations and Divestitures. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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 on which those dates fall. During the 2016 fiscal year, our quarter end dates were as follows: • April 2, • July 2, • October 1, and • December 31. 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: cash flow projections and other assumptions included in our annual goodwill impairment test; loss contingencies; product warranties; useful lives of our tangible and intangible assets; allowances for doubtful accounts; the recognition and measurement of income tax assets and liabilities; and share-based compensation forfeiture rates. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. 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. Included in the Company’s cash and cash equivalents are amounts held by foreign subsidiaries. The Company had $98 million as of December 31, 2016 and $166 million as of December 31, 2015 of foreign cash and investments out of the Company’s total cash positions of $ 156 million and $192 million , respectively. 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. The components of inventories, net are as follows (in millions): December 31, 2016 2015 Raw material $ 172 $ 178 Work in process 1 — Finished goods 254 274 Inventories, gross 427 452 Inventory reserves (82 ) (55 ) Inventories, net $ 345 $ 397 Property, Plant and Equipment. Property, plant and equipment is stated at cost. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the various classes of property, plant and equipment, which are 30 years for buildings and range from 3 to 10 years for all other asset categories. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. Property, plant and equipment, net is comprised of the following (in millions): December 31, 2016 2015 Buildings $ 51 $ 50 Land 10 10 Machinery and equipment 226 195 Furniture and office equipment 15 20 Software and computer equipment 197 180 Leasehold improvements 64 63 Projects in progress 35 36 598 554 Less accumulated depreciation (306 ) (256 ) Property, plant and equipment, net $ 292 $ 298 Depreciation expense recognized to operations was $75 million , $69 million , and $27 million for the periods ended December 31, 2016, 2015, and 2014, respectively. 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 fair value of the reporting unit is compared to the carrying amount of the reporting unit. If a reporting unit is considered impaired, the impairment is recognized in the amount by which the carrying amount exceeds the fair value of the reporting unit. 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. During the fourth quarter of 2016, the Company voluntarily changed the date of its annual goodwill impairment testing for its Specialty Printing Group reporting unit from the last business day of May to the first day of the fourth quarter. This voluntary change is preferable under the circumstances as it results in better alignment with the Company’s other reporting units’ testing dates. The voluntary change in accounting principle related to the annual testing date will not delay, accelerate, or avoid an impairment charge. This change is not applied retrospectively as it is impracticable to do so because retrospective application would require application of significant estimates and assumptions with the use of hindsight. Accordingly, the change will be applied prospectively. 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. See Note 4 Goodwill and Other Intangibles, net, for additional information. Other Intangibles. Other intangible assets capitalized consist primarily of current technology, customer relationships, trade names, unpatented technology, and patents and patent rights. These assets are recorded at cost and amortized on a straight-line basis over the asset’s useful life which range from 3 years to 15 years . 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. Cost method investments. 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 less than 20% of each investee. 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. The Company held cost method investments in the amount of $25 million and $31 million as of December 31, 2016 and 2015, respectively. The Company recognized impairments of $7 million during fiscal 2016 which were recorded within Other expenses in the Consolidated Statements of Operations. There were no impairments to cost method investments in fiscal 2015 and $2 million of impairments in fiscal 2014. 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 product maintenance service contracts, which typically occur over time, and professional services, which typically occur in the early stages 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 these 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, there is no right of return for the hardware we sell. Allocation of arrangement consideration to repair services, product maintenance services, and extended warranty is equal to the stated contractual rate for such services, in accordance with the guidance in ASC 605-20. 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 (“BESP”). 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. 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 product 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. Taxing authorities may assess tax on the Company based on the gross receipts from customers, referred to as indirect taxes. The Company’s policy is to record indirect taxes as a short-term liability and not as a component of gross revenue. Research and Development Costs. Research and development costs (“R&D”) are expensed as incurred. These costs include: • 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. Advertising. Advertising is expensed as incurred. Advertising costs totaled $18 million for the year ended December 31, 2016, $22 million for the year ended December 31, 2015 and $13 million for the year ended December 31, 2014. Warranty. The Company generally provides warranty coverage of 1 year on mobile computers. Advanced data capture products are warranted from 1 to 5 years, depending on the product. Printers are warranted for 1 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 -day 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): Year Ended December 31, Warranty reserve 2016 2015 2014 Balance at the beginning of the year $ 22 $ 25 $ 4 Acquisition — — 21 Warranty expense 31 30 13 Warranty payments (32 ) (33 ) (13 ) Balance at the end of the year $ 21 $ 22 $ 25 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 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 8 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, 2016, 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 12 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 Statements of Operations as follows (in millions): Year Ended December 31, Compensation costs and related income tax benefit 2016 2015 2014 Cost of sales $ 2 $ 3 $ 1 Selling and marketing 6 8 4 Research and development 9 8 3 General and administration 11 14 12 Total compensation expense $ 28 $ 33 $ 20 Income tax benefit $ 9 $ 11 $ 7 Foreign Currency Translation. The balance sheet accounts of the Company’s non-U.S. subsidiaries, those not designated as 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 $ 125 million , $145 million and $127 million for the years ended December 31, 2016, 2015, and 2014, respectively, which have been recorded as operating expenses in acquisition and integration costs in the Consolidated Statements of Operations. 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. Recently Issued Accounting Pronouncements. Recently Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 does 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. The Company has prospectively adopted this new standard as of January 1, 2016 and concluded that it does not have a material impact on its consolidated financial statements. Not Yet Effective In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . 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. There are two transition methods available under the new standard, either modified retrospective (cumulative effect to retained earnings) or retrospective. These standards will be effective for the Company in the first quarter of 2018. Earlier adoption is permitted only for annual periods after December 15, 2016. We have completed the assessment phase of this ASU in 2016 and developed a project plan to guide the implementation phase. We are in the process of updating our accounting policy around revenue recognition, evaluating new disclosure requirements, and identifying and implementing appropriate changes to our business processes, systems and controls to support recognition and disclosure under the new standard. The Company plans to apply the modified retrospective approach when adopting ASU 2014-09 in the first quarter of 2018. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) . The amendments in this ASU simplify goodwill impairment testing by removing the requirement of Step 2 to determine the implied fair value of goodwill of a reporting unit which fails Step 1. The implication of this update results in the amount by which a carrying amount exceeds the reporting unit’s fair value to be recognized as an impairment charge in the interim or annual period identified. The standard is effective for public companies in the first calendar quarter of 2020 with early adoption permitted on a prospective basis. Management is currently assessing early adoption of this ASU. Management does not believe this pronouncement will have a material impact on its consolidated financial statements or existing accounting policies. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory.” The ASU allows for an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this ASU eliminate the exception for an intra-entity transfer of an asset other than inventory. The standard will be effective for public companies in the first calendar quarter of 2018, with early adoption permitted and on a modified retrospective basis as of the beginning of the period of adoption. Management is currently assessing early adoption of this ASU and the impact of adoption on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . This pronouncement provides clarification guidance on eight specific cash flow presentation issues that have developed due to diversity in practice. The issues include, but are not limited to, debt prepayment or extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and cash receipts from payments on beneficial interests in securitization transactions. The amendments in this ASU where practicable will be applied retrospectively. The standard will be effective for the Company in the first quarter of 2018. Earlier adoption is permitted. Management does not believe this pronouncement will have a material impact on its consolidated financial statements or existing accounting policies. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) -Measurement of Credit Losses on Financial Instruments . The new standard requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. It replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. There are two transition methods available under the new standard dependent upon the type of financial instrument, either cumulative effect or prospective. The standard will be effective for the Company in the first quarter of 2020. Earlier adoption is permitted only for annual periods after December 15, 2018. Management is currently assessing the impact of adoption on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The Company will adopt this ASU during the first quarter of 2017 on a prospective basis. On a go forward basis, the ASU requires that entities recognize excess tax benefits and deficiencies related to employee share-based payment transactions as income tax expense and benefit versus additional paid in capital. This ASU also eliminates the requirement to reclassify excess tax benefits and deficiencies from operating activities to financing activities within the statement of cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Subtopic 842) . This ASU increases the transparency and comparability of organizations by recognizing lease assets and liabilities on the consolidated balance sheet and disclosing key quantitative and qualitative information about leasing arrangements. The principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases were not previously recognized in the consolidated balance sheet. The recognition, measurement, presentation and cash flows arising from a lease by a lessee have not significantly changed. This standard will be effective for the Company in the first quarter of 2019, with early adoption permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients that entities may elect to apply. Management is currently 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 amends various aspects of the recognition, measurement, presentation, and disclosure for financial instruments. With respect to the Company’s consolidated financial statements, the most significant impact relates to the accounting for equity investments. This standard will be effective for the Company in the first quarter of 2018. Early adoption is prohibited for those provisions that apply to the Company. Amendments should be applied by means of cumulative effect adjustment to the consolidated 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. 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 the Company in the first quarter of 2017 and must be applied prospectively after the date of adoption. Adoption of this ASU is not material to the Company’s consolidated financial statements. |
Business Combinations and Dives
Business Combinations and Divestitures | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations and Divestitures | Business Combinations and Divestitures Acquisitions 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 9 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 $52 million to MSI, which included a $2 million opening cash adjustment and settlement of working capital adjustments. 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 $2.3 billion . See Note 4 Goodwill and Other Intangibles, net. Certain intangible assets including goodwill are denominated in foreign currency and, as such, include the effects of foreign currency translation. Divestitures On September 13, 2016, the Company entered into an Asset Purchase Agreement with Extreme Networks, Inc. to dispose of its wireless LAN (“WLAN”) business (“Divestiture Group”) for a gross purchase price of $55 million . The Company recorded net proceeds of $39 million as of December 31, 2016. Final working capital adjustments are expected to be completed in 2017. In the third quarter of 2016, the Company incurred a non-cash pre-tax charge of $62 million related to the divestiture group consisting of impairments of goodwill for $32 million and other intangibles for $30 million and is shown separately on the Consolidated Statements of Operations. The sale price of the divestiture group was used as fair value in determining the impairment of the assets held for sale. Since the sales price of the divestiture group was less than its carrying value, the resulting loss was recorded as an impairment. WLAN operating results are reported in the Enterprise segment through the closing date of the WLAN divestiture of October 28, 2016. Within the fiscal year ended December 31, 2016 Consolidated Statement of Operations, the Company generated revenue and gross profit from these assets of $78 million and $37 million , respectively. On October 28, 2016, the Company completed the disposition of the Divestiture Group. There are no significant remaining assets or liabilities held on the Company’s Consolidated Balance Sheet related to the Divestiture Group as of December 31, 2016. |
Costs Associated with Exit and
Costs Associated with Exit and Restructuring | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Costs Associated with Exit and Restructuring | Costs Associated with Exit and Restructuring Total exit and restructuring charges of $65 million life-to-date specific to the Acquisition, including the sale of the Company's WLAN business, have been recorded through December 31, 2016: $15 million in the Legacy Zebra segment and $50 million in the Enterprise segment related to organizational design changes. See Note 3 Business Combinations and Divestitures for specific information regarding the Acquisition. During the period ended December 31, 2016, the Company incurred exit and restructuring costs specific to the Acquisition as follows (in millions): Type of Cost Cumulative costs incurred Costs incurred for the year ended December 31, 2016 Cumulative costs incurred Severance, stay bonuses, and other employee-related expenses $ 54 $ 17 $ 37 Obligations for future non-cancellable lease payments 11 2 9 Total $ 65 $ 19 $ 46 Exit and restructuring charges for the year ended December 31, 2016 were $5 million and $14 million for the Legacy Zebra and the Enterprise segments, respectively. The Company expects remaining charges related to this program in 2017 to be in the range of $5 to $7 million . A rollforward of the exit and restructuring accruals is as follows (in millions): Year Ended December 31, 2016 2015 Balance at beginning of year $ 15 $ 7 Charged to earnings 19 40 Cash paid (22 ) (32 ) WLAN divestiture (2 ) — Balance at the end of year $ 10 $ 15 Liabilities related to exit and restructuring activities are included in the following accounts in the Consolidated Balance Sheets (in millions): December 31, 2016 2015 Accrued liabilities $ 7 $ 10 Other long-term liabilities 3 5 Total liabilities related to exit and restructuring activities $ 10 $ 15 Settlement of the specified long-term balance will be completed by October 2023 due to the remaining obligation of non-cancellable lease payments associated with the exited facilities. |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles, net | Goodwill and Other Intangibles, net Other Intangibles, net are as follows (in millions): December 31, 2016 Gross Amount Accumulated Amortization Net Amount Amortized intangible assets Current technology $ 24 $ (21 ) $ 3 Trade names 40 (40 ) — Unpatented technology 241 (146 ) 95 Patents and patent rights 238 (161 ) 77 Customer relationships 478 (173 ) 305 Total $ 1,021 $ (541 ) $ 480 Amortization expense for the year ended December 31, 2016 $ 229 Estimated amortization expense: Amount For the year ended December 31, 2017 $ 181 For the year ended December 31, 2018 96 For the year ended December 31, 2019 83 For the year ended December 31, 2020 39 For the year ended December 31, 2021 37 Thereafter 44 Total $ 480 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 Impairment of Other Intangible assets of $30 million was recorded during the third quarter of 2016 related to the wireless LAN business divestiture within the Enterprise segment. Certain intangible assets including goodwill are denominated in foreign currency and, as such, include the effects of foreign currency translation. Foreign currency translation impacts to intangible assets and goodwill was less than one million dollars in fiscal 2016. Changes in the net carrying value amount of goodwill were as follows (in millions): Total Goodwill as of December 31, 2014 $ 2,490 Opening balance sheet adjustments – Enterprise 2015 8 Foreign exchange impact (8 ) Goodwill as of December 31, 2015 2,490 Impairment charge – wireless LAN divestiture (32 ) Goodwill as of December 31, 2016 $ 2,458 As of December 31, 2016, goodwill totaled $ 2.3 billion for the Enterprise reportable segment and $ 154 million for the Legacy Zebra reportable segment. Goodwill impairment of $32 million was recorded during the third quarter of 2016 related to the wireless LAN business divestiture within the Enterprise segment. Our reporting units’ fair values exceeded their carrying amounts ranging from approximately 20% to more than 200% . |
Investments and Marketable Secu
Investments and Marketable Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments and Marketable Securities | Investments and Marketable Securities Investments in marketable debt securities were classified based on intent and ability to sell investment securities. The Company’s available-for-sale securities were used to fund acquisitions and other operating needs and therefore could be sold prior to maturity. Changes in the market value of available-for-sale securities were reflected in the accumulated other comprehensive income caption of stockholders’ equity in the Consolidated Balance Sheet. The securities were disposed of during fiscal 2015 and have been released from other comprehensive income. The accumulated changes in market value were transferred to investment income. On the Consolidated Statements of Cash Flows, changes in the balances of available-for-sale securities were shown as purchases, sales and maturities of investments and marketable securities under investing activities. As of December 31, 2016 and 2015, there were no investments and marketable securities. For the years ended December 31, 2015 and 2014, changes in unrealized gains and losses on available-for-sale securities were immaterial. Using the specific identification method, there were no proceeds in 2016 and $25 million and $644 million of proceeds in fiscal 2015 and 2014, respectively. There were no material realized gains or losses on the sales of available-for-sale securities for the fiscal years ended 2016, 2015, and 2014. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments In the normal course of business, the Company is exposed to global market risks, including the effects of changes in foreign currency exchange rates and interest rates. The Company uses derivative instruments to manage its exposure to such risks and may elect to designate certain derivatives as hedging instruments under ASC 815, Derivatives and Hedging . The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking the hedge transactions. The Company does not hold or issue derivatives for trading or speculative purposes. In accordance with ASC 815, Derivative and Hedging , the Company recognizes derivative instruments as either assets or liabilities on the consolidated balance sheet and measures them at fair value. The following table presents the fair value of its derivative instruments (in millions): Asset (Liability) Derivatives Balance Sheet Classification Fair Value December 31 2016 2015 Derivative instruments designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ 12 $ 2 Forward interest rate swaps Accrued liabilities (3 ) (1 ) Forward interest rate swaps Other long-term liabilities (13 ) (14 ) Total derivative instruments designated as hedges $ (4 ) $ (13 ) Derivative instruments not designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ 11 $ 5 Forward interest rate swaps Accrued liabilities (1 ) (2 ) Forward interest rate swaps Other long-term liabilities (10 ) (9 ) Total derivative instruments not designated as hedges — (6 ) Total Net Derivative Liability $ (4 ) $ (19 ) See also Note 7 Fair Value Measurements. The following table presents the gains (losses) from changes in fair values of derivatives that are not designated as hedges (in millions): Gain (Loss) Recognized in Income Year Ended December 31, Statement of Operations Classification 2016 2015 2014 Derivative instruments not designated as hedges: Foreign exchange contracts Foreign exchange gain $ 5 $ 11 $ 6 Forward interest rate swaps Interest expense, net — 4 (5 ) Total gain recognized in income $ 5 $ 15 $ 1 Credit and Market Risk Management Financial instruments, including derivatives, expose the Company to counterparty credit risk of nonperformance and to market risk related to currency exchange rate and interest rate fluctuations. The Company manages its exposure to counterparty credit risk by establishing minimum credit standards, diversifying its counterparties, and monitoring its concentrations of credit. The Company’s credit risk counterparties are commercial banks with expertise in derivative financial instruments. The Company evaluates the impact of market risk on the fair value and cash flows of its derivative and other financial instruments by considering reasonably possible changes in interest rates and currency exchange rates. The Company continually monitors the creditworthiness of the 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. Foreign Currency Exchange Risk Management The Company conducts business on a multinational basis in a wide variety of foreign currencies. Exposure to market risk for changes in foreign currency exchange rates arises from euro denominated external revenues, cross-border financing activities between subsidiaries, and foreign currency denominated monetary assets and liabilities. The Company realizes its objective of preserving the economic value of non-functional currency denominated cash flows by initially hedging transaction exposures with natural offsets to the fullest extent possible and, once these opportunities have been exhausted, through foreign exchange forward and option contracts. The Company manages the exchange rate risk of anticipated euro denominated sales using put options, forward contracts, and participating forwards, all of which typically mature within twelve months of execution. The Company designates these derivative contracts as cash flow hedges. Gains and losses on these contracts are deferred in accumulated other comprehensive loss until the contract is settled and the hedged sale is realized. The gain or loss is then reported as an increase or decrease to net sales. As of December 31, 2016 and 2015, the notional amounts of the Company’s foreign exchange cash flow hedges were €341 million and €193 million , respectively. At the end of the fourth quarter of 2015, the Company expanded its hedging activities to manage the exposure from the Enterprise segment related to fluctuations of foreign currency exchange rates. The impact is reflected in the consolidated statements of comprehensive loss. The Company has reviewed cash flow hedges for effectiveness and determined they are highly effective. The Company uses forward contracts, which are not designated as hedging instruments, to manage its exposures related to its Brazilian real, British pound, Canadian dollar, Czech koruna, euro, Malaysian ringgit, Australian dollar, Swedish krona, Japanese yen and Singapore dollars denominated net assets. These forward contracts typically mature within three months after execution. Monetary gains and losses on these forward contracts are recorded in income each quarter and are generally offset by the foreign exchange gains and losses related to their net asset positions. The notional values of these outstanding contracts are as follows: December 31, 2016 2015 Notional balance of outstanding contracts (in millions): British pound/US dollar £ 3 £ 5 euro/US dollar € 148 € 133 British pound/euro £ 8 £ 7 Canadian dollar/US dollar $ 13 $ 5 Czech koruna/US dollar Kč 147 Kč 140 Brazilian real/US dollar R$ 56 R$ 28 Malaysian ringgit/US dollar RM 16 RM 13 Australian dollar/US dollar $ 50 $ — Swedish krona/US dollar kr 7 kr — Japanese yen/US dollar ¥ 48 ¥ — Singapore dollar/US dollar S$ 15 S$ — Net fair value of outstanding contracts (in millions) $ 11 $ 1 Interest Rate Risk Management In October 2014, the Company entered into a credit agreement, which provides for a term loan (“Term Loan”) of $2.2 billion and a revolving credit facility (“Revolving Credit Facility”) of $250 million . See Note 9 Long-Term Debt. Borrowings under the Term Loan bear interest at a variable rate plus an applicable margin. As a result, the Company is exposed to market risk associated with the variable interest rate payments on the Term Loan. The Company has entered into forward interest rate swaps to hedge a portion of this interest rate risk. Upon receiving a commitment in June 2014 for the Term Loan, the Company entered into floating-to-fixed forward interest rate swaps. In July 2014, these swaps were designated as cash flow hedges of interest rate exposure associated with variability in future cash flows on this variable rate loan commitment. Upon funding in October 2014, the Company terminated these swaps and discontinued hedge accounting treatment. The change in fair value of the terminated swaps which had been included in other comprehensive (loss) income up to termination will continue to be amortized to interest expense, net as the interest payments under the Term Loan affect earnings. The Company then issued new floating-to-fixed forward interest rate swaps to a syndicated group of commercial banks. These swaps were not designated as hedges and the changes in fair value are recognized in interest expense, net. To offset this impact to earnings, the Company, in November 2014, entered into fixed-to-floating forward interest rate swaps, which were also not designated in a hedging relationship and thus the changes in the fair value are recognized in interest expense, net. At the same time, the Company entered into additional floating-to-fixed interest rate swaps and designated them as cash flow hedges for hedge accounting treatment. The changes in fair value of the swaps designated as cash flow hedges are recognized in accumulated other comprehensive loss, with any ineffectiveness immediately recognized in earnings. At December 31, 2016, the Company estimated that approximately $10 million in losses on the forward interest rate swaps designated as cash flow hedges will be reclassified from accumulated other comprehensive loss into earnings during the next four quarters. 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. The following table presents the gross fair values and related offsetting counterparty fair values as well as the net fair value amounts at December 31, 2016 (in millions): 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 1 3 Counterparty D 9 3 6 Counterparty E 4 2 2 Counterparty F 4 2 2 Counterparty G 6 — 6 Total $ 43 $ 16 $ 27 The notional amount of the designated interest rate 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 Company has reviewed the interest rate swap hedges for effectiveness and determined they are 100% effective. The interest rate swaps have the following notional amounts per year (in millions): Year 2017 $ 697 Year 2018 544 Year 2019 544 Year 2020 272 Year 2021 272 Notional balance of outstanding contracts $ 2,329 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
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: 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. 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, 2016, are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts (1) $ 11 $ 12 $ — $ 23 Money market investments related to the deferred compensation plan 11 — — 11 Total Assets at fair value $ 22 $ 12 $ — $ 34 Liabilities: Forward interest rate swap contracts (2) $ — $ 27 $ — $ 27 Liabilities related to the deferred compensation plan 11 — — 11 Total Liabilities at fair value $ 11 $ 27 $ — $ 38 Financial assets and liabilities carried at fair value as of December 31, 2015, are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts (1) $ 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 (2) $ — $ 26 $ — $ 26 Liabilities related to the deferred compensation plan 9 — — 9 Total Liabilities at fair value $ 9 $ 26 $ — $ 35 (1) The fair value of foreign exchange 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 $11 million and $6 million as of December 31, 2016 and 2015, respectively. (2) The fair value of forward interest rate swap contracts 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 8 Derivative Instruments. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Commitments | Lease Commitments Leases. Minimum future obligations under all non-cancelable operating leases as of December 31, 2016 are as follows (in millions): Payments Due By Period 2017 $ 30 2018 25 2019 21 2020 16 2021 10 Thereafter 38 Total minimum lease obligations $ 140 Rent expenses associated with our operating leases were included in our Consolidated Statements of Operations as follows (in millions): Year Ended December 31, 2016 2015 2014 Rent expense $ 39 $ 45 $ 21 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 15 years with break periods specified in the lease agreements. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following table summarizes the carrying value of the Company’s debt (in millions): December 31, 2016 2015 Senior Notes $ 1,050 $ 1,050 Term Loan 1,653 2,035 Less: debt issuance costs (22 ) (26 ) Less: unamortized discounts (33 ) (47 ) Total outstanding debt $ 2,648 $ 3,012 At December 31, 2016, the future maturities of long-term debt, excluding debt discounts and issuance costs, consisted of the following (in millions): 2017 $ — 2018 — 2019 — 2020 — 2021 1,653 Thereafter 1,050 Total maturities of long-term debt $ 2,703 The estimated fair value of our long-term debt approximated $2.8 billion at December 31, 2016 and $3.1 billion at December 31, 2015. 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. 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 new 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”). On June 2, 2016, the Company entered into the first amendment to the credit agreement (the “Refinancing Amendment 1”). The Refinancing Amendment 1 lowered the index rate spread for LIBOR loans from LIBOR + 400 bp to LIBOR + 325 bp. In accounting for the amendment, the Company applied the provisions of ASC 470-50, Modifications and Extinguishments. The evaluation of the accounting was done on a creditor by creditor basis in order to determine if the terms of the debt were substantially different and, as a result, whether to apply modification or extinguishment accounting. As a result, the Company recorded a one-time $2.7 million expense in the second quarter of 2016, primarily related to costs incurred with third parties for arranger, legal and other services and the loss incurred on the extinguished debt. These expenses are reflected as non-operating expenses within the consolidated statement of operations. Additionally, the Company paid $4.9 million to the creditors in exchange for the modification and reported it as debt discount which is being amortizing over the life of the modified debt using the interest method. Borrowings under the modified Term Loan bear interest at a variable rate subject to a floor of 4.00% . On December 6, 2016, the Company entered into the second amendment to our existing credit agreement dated as of October 27, 2014 (the “Refinancing Amendment 2”). The Refinancing Amendment 2 lowered the index rate spread for LIBOR loans from LIBOR + 325 bp to LIBOR + 250 bp. Similar to Refinancing Amendment 1, the Company applied the provisions of ASC 470-50. As a result of the December 6, 2016 refinancing transaction, the Company recorded a one-time $1.7 million expense, primarily related to costs incurred with third parties for arranger, legal and other services and the loss incurred on the modified debt. These expenses are reflected as non-operating expenses within the Consolidated Statements of Operations. The Company had no costs due to creditors associated with fees for the modification. As of December 31, 2016, the Term Loan interest rate was 3.45% . 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 8 Derivative Instruments for further details. 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 against the Term Loan, in whole or in part, without premium or penalty. The Company made optional principal prepayments of $382 million in 2016. In January and February 2017, the Company made total additional optional principal prepayments of $20 million . Unless satisfied by further optional prepayments, the Company is required to make a scheduled principal payment of $ 1.7 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, 2016, the Company established letters of credit totaling $4 million , which reduced funds available for other borrowings under the agreement to $246 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, 2016, the Revolving Credit Facility interest rate was 3.50% . Interest payments are payable quarterly. As of December 31, 2016 and December 31, 2015, 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. On December 31, 2016, the Company was in compliance with all covenants. Debt issuance costs of $ 22 million were recorded as of December 31, 2016; $17 million relates to the Senior Notes, $1 million relates to the Term Loan, and $4 million relates to the Revolver. These costs are amortized over 8 , 7 and 5 years , respectively. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
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 connection with the acquisition of the Enterprise business from Motorola Solutions, Inc., the Company acquired Symbol Technologies, Inc., a subsidiary of Motorola Solutions (“Symbol”). A putative federal class action lawsuit, Waring v. Symbol Technologies, Inc., et al. , 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. The court has certified a class of investors that includes those that purchased Symbol common stock between March 12, 2004 and August 1, 2005. The parties have substantially completed fact and expert discovery. However, there are certain discovery motions pending that could, if granted, reopen fact discovery. The court has held in abeyance all other deadlines, including the deadline for the filing of dispositive motions, and has not set a date for trial. The current lead Directors and Officers (“D&O”) insurer continues to maintain its position of not agreeing to reimburse defense costs incurred by the Company in connection with this matter, and the Company disputes the position taken by the current D&O insurer. 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 the above mentioned matter. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Earnings (loss) per share were computed as follows (dollars in millions, except share data): Year Ended December 31, 2016 2015 2014 Weighted average shares: Basic weighted average shares outstanding 51,579,112 50,996,297 50,789,173 Effect of dilutive securities outstanding — — 590,525 Diluted weighted average and equivalent shares outstanding 51,579,112 50,996,297 51,379,698 Net (loss) income $ (137 ) $ (158 ) $ 32 Basic per share amounts: Basic weighted average shares outstanding 51,579,112 50,996,297 50,789,173 Per share amount $ (2.65 ) $ (3.10 ) $ 0.64 Diluted per share amounts: Diluted weighted average and equivalent shares outstanding 51,579,112 50,996,297 51,379,698 Per share amount $ (2.65 ) $ (3.10 ) $ 0.63 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 net losses in the periods ended December 31, 2016 and December 31, 2015, options, awards and warrants were anti-dilutive and therefore excluded from the diluted earnings per share calculation in the respective fiscal year ends. For 2014, options and awards were included in the diluted earnings per share calculation. The anti-dilutive shares are as follows: Year Ended December 31, 2016 2015 2014 Anti-dilutive shares 1,391,567 1,421,506 175,902 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Zebra Technologies Corporation Long-Term Incentive Plan (“2015 Plan”) which became effective in fiscal 2015, provides for incentive compensations to the Company’s non-employee directors, officers and employees. The awards available under the 2015 Plan include Stock Appreciation Rights (“SARs”), Restricted Stock Awards (“RSAs”), Performance Share Awards (“PSAs”), Cash-settled Stock Appreciation Rights (“CSRs”), Restricted Stock Units (“RSUs”), and Performance Stock Units (“PSUs”). Non-qualified stock options were available under the 2006 Long-Term Incentive Plan (“2006 Plan”). Non-qualified stock options are no longer granted under the 2015 Plan. A total of 4.0 million shares became available for delivery under the 2015 Plan. A summary of the equity awards authorized and available for future grants under the 2015 Plan is as follows: Available for future grants at December 31, 2015 3,430,707 Newly authorized options — Granted (1,204,214 ) Cancellation and forfeitures — Plan termination — Available for future grants at December 31, 2016 2,226,493 Pre-tax share-based compensation expense recognized in the statements of operations was $ 28 million , $ 33 million , and $ 20 million for the years ended December 31, 2016, 2015 and 2014, respectively. Tax related benefits of $ 9 million , $ 11 million and $ 7 million were also recognized for the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016 total unearned compensation costs related to the Company’s share-based compensation plans was $47 million , which will be amortized over the weighted average remaining service period of 2.3 years . Stock Appreciation Rights (“SARs”) A summary of the Company’s SARs outstanding under the 2015 Plan is as follows: 2016 2015 2014 Stock Awards Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of period 1,397,611 $ 56.78 1,292,142 $ 42.20 1,402,784 $ 36.36 Granted 627,971 52.13 332,159 107.31 195,560 74.59 Exercised (160,946 ) 35.37 (179,702 ) 40.71 (267,077 ) 34.03 Forfeited (115,215 ) 65.74 (45,441 ) 75.26 (38,738 ) 50.57 Expired (8,635 ) 88.65 (1,547 ) 47.11 (387 ) 46.07 Outstanding at end of period 1,740,786 $ 56.15 1,397,611 $ 56.78 1,292,142 $ 42.20 Exercisable at end of period 828,754 $ 45.14 736,075 $ 35.90 586,344 $ 33.03 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. Grants in the table below include SARs that will be settled in the Class A common stock or cash. 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: 2016 2015 2014 Expected dividend yield 0% 0% 0% Forfeiture rate 9.01% 10.24% 10.32% Volatility 43.14% 33.98% 34.92% Risk free interest rate 1.29% 1.53% 1.73% Range of interest rates 0.25%-1.75% 0.02% - 2.14% 0.02% - 2.61% Expected weighted-average life 5.33 5.32 5.36 Fair value of SARs granted (in millions) $13 $12 $5 Weighted-average grant date fair value of SARs granted $20.18 $35.00 $24.98 The following table summarizes information about SARs outstanding at December 31, 2016: Outstanding Exercisable Aggregate intrinsic value - (in millions) $ 28 $ 20 Weighted-average remaining contractual term 7.0 5.0 The intrinsic value for SARs exercised in fiscal 2016, 2015 and 2014 was $6 million , $11 million and $11 million , respectively. The total fair value of SARs vested in fiscal 2016, 2015 and 2014 was $3 million , $8 million and $9 million , respectively. Cash received from the exercise of SARs in fiscal 2016 was $6 million compared to $7 million in the prior year. The related tax benefit realized was $1 million in fiscal 2016 compared to $3 million in the prior year. The Company’s SARs are expensed over the vesting period of the related award, which is typically 4 years. Non-qualified Stock Options A summary of the Company’s options outstanding under the 2006 Plan is as follows: 2016 2015 2014 Non-qualified Options Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Outstanding at beginning of year 204,434 $ 36.66 415,960 $ 40.19 956,502 $ 42.77 Granted — — — — — — Exercised (47,393 ) 38.60 (209,976 ) 43.53 (540,542 ) 44.76 Forfeited — — — — — — Expired (2,490 ) 43.35 (1,550 ) 51.62 — — Outstanding at end of year 154,551 $ 35.96 204,434 $ 36.66 415,960 $ 40.19 Exercisable at end of year 154,551 $ 35.96 204,434 $ 36.66 415,960 $ 40.19 The following table summarizes information about non-qualified stock options outstanding at December 31, 2016: Outstanding Exercisable Aggregate intrinsic value - (in millions) $ 4 $ 4 Weighted-average remaining contractual term 1.32 1.32 There were no non-qualified stock options issued during the 12 months ended December 31, 2016. The intrinsic value for non-qualified options exercised in fiscal 2016, 2015 and 2014 was $2 million , $10 million and $15 million , respectively. There were no non-qualified options vested in fiscal 2016, 2015, and 2014. Cash received from the exercise of non-qualified options in fiscal 2016 was $2 million compared to $9 million in the prior year. The related tax benefit realized was less than $1 million in fiscal 2016 compared to $2 million in the prior year. Employee Stock Purchase Plan The Zebra Technologies Corporation 2011 Employee Stock Purchase Plan (“2011 Plan”) which became effective in fiscal 2011, and the 2011 Plan permits eligible employees to purchase common stock at 95% of the fair market value at the date of purchase. Employees may make purchases by cash or payroll deductions up to certain limits. The aggregate number of shares that may be purchased under this plan is 1.5 million . At December 31, 2016, 1 million shares were available for future purchase. Restricted Stock Awards (“RSAs”) and Performance Share Awards (“PSAs”) The Company’s restricted stock grants consist of time-vested restricted stock awards (“RSAs”) and performance vested restricted stock awards (“PSAs”). The RSAs and PSAs vest at each vesting date subject to restrictions such as continuous employment except in certain cases as set forth in each stock agreement. 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. A summary of information relative to the Company’s restricted stock awards is as follows: 2016 2015 2014 Restricted Stock Awards Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of year 566,447 $ 77.68 691,621 $ 60.06 435,377 $ 40.92 Granted 389,193 51.93 185,782 107.17 423,644 73.42 Released (275,229 ) 59.39 (253,801 ) 51.95 (153,200 ) 43.16 Forfeited (57,597 ) 70.50 (57,155 ) 75.11 (14,200 ) 54.08 Outstanding at end of year 622,814 $ 70.19 566,447 $ 77.68 691,621 $ 60.06 The fair value of each performance award granted includes assumptions around the Company’s performance goals. A summary of information relative to the Company’s performance awards is as follows: 2016 2015 2014 Performance Share Awards Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of year 332,630 $ 73.40 374,180 $ 61.53 195,159 $ 42.25 Granted 172,024 51.01 106,411 75.77 233,111 73.00 Released (111,325 ) 46.58 (120,000 ) 38.67 (33,535 ) 41.45 Forfeited (14,103 ) 75.73 (27,961 ) 73.45 (20,555 ) 41.45 Outstanding at end of year 379,226 $ 70.14 332,630 $ 73.40 374,180 $ 61.53 Other Award Types The Company also has cash-settled compensation awards including Cash-settled Stock Appreciation Rights (“CSRs”), Restricted Stock Units (“RSUs”), and Performance Stock Units (“PSUs”) (the “Awards”) that are expensed over the vesting period of the related award, which is not more than 4 years. Compensation cost is calculated at the market date fair value on grant date multiplied by the number of share-equivalents granted and the fair value is remeasured at the end of each reporting period. Share-based liabilities paid for these awards was $0.8 million in 2016 compared to $0.9 million in 2015. Share-equivalents issued under these programs totaled 95,210 , 11,618 and 52,416 in fiscal 2016, 2015, and 2014, respectively. The Company also issues stock awards to nonemployee directors. Each director receives an equity grant of shares every year during the month of May. The number of shares granted to each director is determined by dividing the value of the annual grant by the price of a share of common stock. In fiscal 2016, there were 25,088 shares granted to nonemployee directors compared to 9,194 shares and 12,953 shares in fiscal 2015 and 2014, respectively. New directors in any fiscal year earned a prorated amount. The shares vest immediately upon the grant date. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The geographical sources of (loss) income before income taxes were as follows (in millions): Year Ended December 31, 2016 2015 2014 United States $ (120 ) $ (288 ) $ (122 ) Outside United States (9 ) 108 139 Total $ (129 ) $ (180 ) $ 17 Income tax expense (benefit) consists of the following (in millions): Year Ended December 31, 2016 2015 2014 Current: Federal $ 14 $ 84 $ 6 State 6 4 4 Foreign 31 32 19 Total current 51 120 29 Deferred: Federal (31 ) (117 ) (38 ) State (6 ) (24 ) (5 ) Foreign (6 ) (1 ) (1 ) Total deferred (43 ) (142 ) (44 ) Total expense (benefit) $ 8 $ (22 ) $ (15 ) The Company recognized a tax expense of $8 million for the year ended December 31, 2016 compared to a tax benefit of $22 million for the year ended December 31, 2015. The Company’s effective tax rates were (6.2)% and 12.2% as of December 31, 2016 and December 31, 2015, respectively. The Company’s effective tax rate was lower than the federal statutory rate of 35% primarily due to the following items: Year Ended December 31, 2016 2015 2014 Provision computed at statutory rate 35.0 % 35.0 % 35.0 % State income tax, net of federal tax benefit (1.0 ) 1.1 (5.9 ) Foreign rate differential (16.0 ) 13.9 (176.5 ) Change in valuation allowance (1.0 ) (8.3 ) 17.6 US impact of Enterprise acquisition (14.1 ) (26.7 ) 41.2 Return to provision and other true ups (3.7 ) 0.0 (17.6 ) Tax credits 9.5 6.1 (17.6 ) Foreign earnings subject to US taxation (6.6 ) (3.9 ) 17.6 Change in contingent income tax reserves (1.6 ) (3.3 ) 17.6 Other (6.7 ) (1.7 ) 0.0 Provision for income taxes (6.2 )% 12.2 % (88.6 )% Tax effects of temporary differences that resulted in deferred tax assets and liabilities are as follows (in millions): December 31, 2016 2015 Deferred tax assets: Capitalized research expenditures $ 58 $ 46 Deferred revenue 57 59 Tax credits 33 32 Net operating loss carryforwards 35 65 Other accruals 35 47 Inventory items 27 27 Capitalized software costs 25 43 Sales return/rebate reserve 23 22 Share-based compensation expense 15 15 Accrued bonus 11 16 Unrealized gains and losses on securities and investments 4 10 Valuation allowance (47 ) (48 ) Total deferred tax assets 276 334 Deferred tax liabilities: Unrealized loss on other investments — — Depreciation and amortization 165 265 Undistributed earnings 1 — Total deferred tax liabilities $ 166 $ 265 At December 31, 2016, the Company has approximately $35 million (tax effected) of net operating losses (“NOLs”) and approximately $33 million (tax effected) of credit carryforwards. Approximately $29 million of NOLs will expire beginning in 2033 thru 2037, and $25 million of credits will expire beginning in 2023 thru 2032. The remaining $6 million of NOLs and $8 million of credits will begin to expire in 2021. The Company earns a significant amount of our operating income outside of the U.S. As of year ended December 31, 2016, the Company has recorded a deferred tax liability of $0.5 million for foreign withholding taxes related to unremitted earnings not expected to be indefinitely reinvested in its foreign subsidiaries. However, it remains the Company’s policy to consider foreign earnings and profits to be indefinitely reinvested with respect to the U.S. For the years ended December 31, 2016 and 2015, the Company has not recognized deferred tax liabilities in the U.S. for unremitted earnings of approximately $797 million and $720 million , respectively. It is not practicable to determine the amount of unrecognized deferred tax liabilities on these indefinitely reinvested earnings. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Year ended December 31, 2016 2015 Balance at beginning of year $ 40 $ 19 Additions for tax positions related to the current year 2 6 Additions for tax positions related to prior years 2 18 Reductions for tax positions related to prior years (2 ) (2 ) Settlements for tax positions - (1 ) Balance at end of year $ 42 $ 40 At December 31, 2016 and December 31, 2015, there are $40 million and $36 million of unrecognized tax benefits that if recognized would affect the annual effective tax rate. The Company anticipates that it is reasonably possible that $18 million of unrecognized tax benefits may reverse in 2017, due to settlements with the tax authorities. The Company is currently undergoing audits of the 2013 through 2015 U.S. federal income tax returns. The Company is engaged in an inquiry from the UK HM Revenue and Customs for the years 2012 and 2014. The tax years 2004 through 2016 remain open to examination by multiple foreign and US state taxing jurisdictions. Due to uncertainties in any tax audit outcome, the Company’s estimates of the ultimate settlement of uncertain tax positions may change and the actual tax benefits may differ significantly from the estimates. The Company recognized $1 million of interest and/or penalties related to income tax matters as part of income tax expense for the year ended December 31, 2016. The Company accrued $4 million and $3 million of interest and penalties accrued in the Consolidated Balance Sheets as of December 31, 2016 and 2015. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income Stockholders’ equity includes certain items classified as other comprehensive income (loss), including: • 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 8 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 8 Derivative Instruments for more details. • Foreign currency translation adjustment relates to the Company’s non-U.S. subsidiary companies that have been 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 (loss) income. The components of accumulated other comprehensive (loss) income (“AOCI”) for each of the three years ended December 31 are as follows (in millions): Unrealized gains (losses) on sales hedging Unrealized gains (losses) on forward interest rate swaps Foreign Currency Translation Adjustments Total Balance at December 31, 2013 $ (2 ) $ — $ (7 ) $ (9 ) Other comprehensive (loss) income before reclassifications 8 (12 ) 1 (3 ) Amounts reclassified from AOCI 1 — — 1 Tax benefit (expense) (2 ) 4 — 2 Other comprehensive income (loss) 7 (8 ) 1 — Balance at December 31, 2014 5 (8 ) (6 ) (9 ) Other comprehensive (loss) income before reclassifications 7 (12 ) (11 ) (16 ) Amounts reclassified from AOCI (15 ) 1 (15 ) (29 ) Tax benefit (expense) 2 4 — 6 Other comprehensive (loss) income (6 ) (7 ) (26 ) (39 ) Balance at December 31, 2015 (1 ) (15 ) (32 ) (48 ) Other comprehensive (loss) income before reclassifications 1 (1 ) (4 ) (4 ) Amounts reclassified from AOCI 7 2 — 9 Tax benefit (expense) (1 ) (1 ) — (2 ) Other comprehensive (loss) income 7 — (4 ) 3 Balance at December 31, 2016 $ 6 $ (15 ) $ (36 ) $ (45 ) Reclassification out of AOCI to earnings were as follows (in millions): Year Ended December 31, Comprehensive Income Components Financial Statement Line Item 2016 2015 2014 Unrealized gain (loss) on sales hedging: Total before tax Net sales of tangible products $ (7 ) $ 15 $ (1 ) Tax benefit (expense) 1 (3 ) — Net of taxes (6 ) 12 (1 ) Unrealized gain (loss) on forward interest rate swaps: Total before tax Interest expense, net (2 ) (1 ) — Tax benefit (expense) 1 — — Net of taxes (1 ) (1 ) — Foreign Currency Translation Foreign exchange loss — 15 — Total amounts reclassified from AOCI $ (7 ) $ 26 $ (1 ) |
Segment Information and Geograp
Segment Information and Geographic Data | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Data | Segment Information and Geographic Data The segment information reflects the operating results of the Company’s business segments. The Company has two reportable segments; Legacy Zebra and Enterprise. • The Legacy Zebra segment consists of barcode and card printing, location solutions, supplies, and services • The Enterprise segment consists of mobile computing, data capture, and RFID 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 between the Company’s segments. The chief operating decision maker uses adjusted operating income to evaluate segment profitability. The accounting policies of the segments are in accordance with Note 2 Summary of Significant Accounting Policies. The chief operating decision maker does not use total assets by segment to make decisions regarding resources, therefore the total asset disclosure by segment has not been included. Financial information by segment is presented as follows (in millions): Year Ended December 31, 2016 2015 2014 (3) Net sales: Legacy Zebra $ 1,247 $ 1,286 $ 1,195 Enterprise 2,337 2,380 482 Total segment net sales 3,584 3,666 1,677 Corporate, eliminations (1) (10 ) (16 ) (6 ) Total $ 3,574 $ 3,650 $ 1,671 Operating income: Legacy Zebra $ 240 $ 258 $ 238 Enterprise 286 236 65 Total segment operating income 526 494 303 Corporate, eliminations (2) (446 ) (457 ) (214 ) Total $ 80 $ 37 $ 89 (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 of intangible assets, acquisition/integration costs, impairment of goodwill and other intangibles, and exit and restructuring costs. (3) The businesses included in our Enterprise segment were acquired as part of the Acquisition. The Enterprise segment’s results, including the increases in net sales, gross profit, operating expenses, and operating income, for the year ended December 31, 2014 was primarily related to the Acquisition. Accordingly, the results for this segment for the year ended December 31, 2014 include only two months (November and December 2014). 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 regions rather than by individual countries. Geographic data for sales is as follows (in millions): Year Ended December 31, 2016 2015 2014 (1) Europe, Middle East, and Africa $ 1,138 $ 1,194 $ 583 Latin America 214 219 135 Asia-Pacific 483 463 216 Total International 1,835 1,876 934 North America 1,739 1,774 737 Total Net sales $ 3,574 $ 3,650 $ 1,671 Geographic data for long-lived assets, defined as property, plant and equipment is as follows (in millions): Year Ended December 31, 2016 2015 2014 (1) Europe, Middle East, and Africa $ 13 $ 10 $ 10 Latin America 3 3 2 Asia-Pacific 9 10 5 Total International 25 23 17 North America 267 275 238 Total long-lived assets $ 292 $ 298 $ 255 Net sales by country that are greater than 10% of total net sales are as follows (in millions): Year Ended December 31, 2016 2015 2014 (1) United States $ 1,950 $ 2,045 $ 875 United Kingdom 1,065 1,102 558 Singapore 362 175 155 Other 197 328 83 Total $ 3,574 $ 3,650 $ 1,671 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 91.4% , 87.0% and 89.6% of total long-lived assets as of December 31, 2016, 2015, and 2014, respectively. Net sales by major product category are as follows (in millions): Year Ended December 31, 2016 2015 2014 (1) Hardware $ 2,778 $ 2,863 $ 1,234 Supplies 278 268 265 Services and Software 518 519 172 Total $ 3,574 $ 3,650 $ 1,671 Our net sales to significant customers as a percentage of the total Company’s net sales were as follows: Year Ended December 31, 2016 2015 2014 (1) Legacy Zebra Enterprise Total Legacy Zebra Enterprise Total Legacy Zebra Enterprise Total Customer A 5.9 % 14.2 % 20.1 % 5.5 % 13.9 % 19.4 % 11.5 % 6.4 % 17.9 % Customer B 5.0 % 8.2 % 13.2 % 4.6 % 8.1 % 12.7 % 9.4 % 4.2 % 13.6 % Customer C 5.3 % 7.1 % 12.4 % 5.2 % 6.4 % 11.6 % 8.7 % 2.9 % 11.6 % (1) The businesses included in our Enterprise segment were acquired as part of the Acquisition. The Enterprise segment’s results, including the increases in net sales, gross profit, operating expenses and operating income, for the year ended December 31, 2014 was primarily related to the Acquisition. Accordingly, the results for this segment for the year ended December 31, 2014 include only two months (November and December 2014). 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 the years presented. There are three customers at December 31, 2016 and December 31, 2015 that each accounted for more than 10% of outstanding accounts receivable. In 2016, the three largest customers accounted for 20% , 14% , and 13% , respectively of accounts receivable while in 2015, the three largest customers accounted for 19% , 14% and 11% , respectively. |
Supplementary Financial Informa
Supplementary Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Financial Information | Supplementary Financial Information The components of accounts receivable, net are as follows (in millions): December 31, 2016 2015 Accounts receivable $ 628 $ 677 Allowance for doubtful accounts (3 ) (6 ) Accounts receivable, net $ 625 $ 671 Prepaid expenses and other current assets consist of the following (in millions): December 31, 2016 2015 Foreign Exchange Contracts $ 23 $ 7 Other 41 63 Prepaid expenses and other current assets $ 64 $ 70 The components of accrued liabilities are as follows (in millions): December 31, 2016 2015 Accrued incentive compensation $ 52 $ 68 Customer reserves 50 38 Accrued payroll 51 49 Interest payable 20 36 Accrued other expenses 150 176 Total accrued liabilities $ 323 $ 367 Summary of Quarterly Results of Operations (unaudited) (In millions): 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Total Year Total Net sales $ 849 $ 879 $ 904 $ 942 $ 3,574 Gross profit 390 406 414 432 1,642 Net (loss) income (26 ) (45 ) (83 ) 17 (137 ) Net earnings per common share: Basic $ (0.50 ) $ (0.88 ) $ (1.61 ) $ 0.34 $ (2.65 ) Diluted (0.50 ) (0.88 ) (1.61 ) 0.34 (2.65 ) 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total Year Total Net sales $ 893 $ 890 $ 916 $ 951 $ 3,650 Gross profit 409 393 414 428 1,644 Net loss (25 ) (76 ) (29 ) (28 ) (158 ) Net earnings per common share: Basic $ (0.50 ) $ (1.50 ) $ (0.57 ) $ (0.53 ) $ (3.10 ) Diluted (0.50 ) (1.50 ) (0.57 ) (0.53 ) (3.10 ) |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts (In millions) Description Balance at Beginning of Period Charged to Costs and Expenses Deductions Balance at End of Period Valuation account for accounts receivable: Year ended December 31, 2016 $ 6 $ — $ 3 $ 3 Year ended December 31, 2015 1 5 — 6 Year ended December 31, 2014 — 1 — 1 Valuation account for inventories: Year ended December 31, 2016 $ 55 $ 32 $ 5 $ 82 Year ended December 31, 2015 6 53 4 55 Year ended December 31, 2014 13 6 13 6 Valuation account for deferred tax assets: Year ended December 31, 2016 $ 48 $ 18 $ 19 $ 47 Year ended December 31, 2015 57 5 14 48 Year ended December 31, 2014 — 57 — 57 See accompanying report of independent registered public accounting firm. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 on which those dates fall. During the 2016 fiscal year, our quarter end dates were as follows: • April 2, • July 2, • October 1, and • December 31. |
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: cash flow projections and other assumptions included in our annual goodwill impairment test; loss contingencies; product warranties; useful lives of our tangible and intangible assets; allowances for doubtful accounts; the recognition and measurement of income tax assets and liabilities; and share-based compensation forfeiture rates. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. 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, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment is stated at cost. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the various classes of property, plant and equipment, which are 30 years for buildings and range from 3 to 10 years for all other asset categories. 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. |
Goodwill | 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 fair value of the reporting unit is compared to the carrying amount of the reporting unit. If a reporting unit is considered impaired, the impairment is recognized in the amount by which the carrying amount exceeds the fair value of the reporting unit. 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. During the fourth quarter of 2016, the Company voluntarily changed the date of its annual goodwill impairment testing for its Specialty Printing Group reporting unit from the last business day of May to the first day of the fourth quarter. This voluntary change is preferable under the circumstances as it results in better alignment with the Company’s other reporting units’ testing dates. The voluntary change in accounting principle related to the annual testing date will not delay, accelerate, or avoid an impairment charge. This change is not applied retrospectively as it is impracticable to do so because retrospective application would require application of significant estimates and assumptions with the use of hindsight. Accordingly, the change will be applied prospectively. 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. |
Other Intangibles | Other Intangibles. Other intangible assets capitalized consist primarily of current technology, customer relationships, trade names, unpatented technology, and patents and patent rights. These assets are recorded at cost and amortized on a straight-line basis over the asset’s useful life which range from 3 years to 15 years |
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. |
Cost Method Investments | Cost method investments. 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 less than 20% of each investee. 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. The Company held cost method investments in the amount of $25 million and $31 million as of December 31, 2016 and 2015, respectively. The Company recognized impairments of $7 million during fiscal 2016 which were recorded within Other expenses in the Consolidated Statements of Operations. There were no impairments to cost method investments in fiscal 2015 and $2 million of impairments in fiscal 2014. |
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 product maintenance service contracts, which typically occur over time, and professional services, which typically occur in the early stages 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 these 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, there is no right of return for the hardware we sell. Allocation of arrangement consideration to repair services, product maintenance services, and extended warranty is equal to the stated contractual rate for such services, in accordance with the guidance in ASC 605-20. 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 (“BESP”). 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. 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 product 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. Taxing authorities may assess tax on the Company based on the gross receipts from customers, referred to as indirect taxes. The Company’s policy is to record indirect taxes as a short-term liability and not as a component of gross revenue. |
Research and Development Costs | Research and Development Costs. Research and development costs (“R&D”) are expensed as incurred. These costs include: • 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. |
Advertising | Advertising. Advertising is expensed as incurred. |
Warranty | Warranty. The Company generally provides warranty coverage of 1 year on mobile computers. Advanced data capture products are warranted from 1 to 5 years, depending on the product. Printers are warranted for 1 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 -day 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 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 8 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, 2016, 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 12 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 balance sheet accounts of the Company’s non-U.S. subsidiaries, those not designated as 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. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements. Recently Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 does 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. The Company has prospectively adopted this new standard as of January 1, 2016 and concluded that it does not have a material impact on its consolidated financial statements. Not Yet Effective In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . 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. There are two transition methods available under the new standard, either modified retrospective (cumulative effect to retained earnings) or retrospective. These standards will be effective for the Company in the first quarter of 2018. Earlier adoption is permitted only for annual periods after December 15, 2016. We have completed the assessment phase of this ASU in 2016 and developed a project plan to guide the implementation phase. We are in the process of updating our accounting policy around revenue recognition, evaluating new disclosure requirements, and identifying and implementing appropriate changes to our business processes, systems and controls to support recognition and disclosure under the new standard. The Company plans to apply the modified retrospective approach when adopting ASU 2014-09 in the first quarter of 2018. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) . The amendments in this ASU simplify goodwill impairment testing by removing the requirement of Step 2 to determine the implied fair value of goodwill of a reporting unit which fails Step 1. The implication of this update results in the amount by which a carrying amount exceeds the reporting unit’s fair value to be recognized as an impairment charge in the interim or annual period identified. The standard is effective for public companies in the first calendar quarter of 2020 with early adoption permitted on a prospective basis. Management is currently assessing early adoption of this ASU. Management does not believe this pronouncement will have a material impact on its consolidated financial statements or existing accounting policies. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory.” The ASU allows for an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this ASU eliminate the exception for an intra-entity transfer of an asset other than inventory. The standard will be effective for public companies in the first calendar quarter of 2018, with early adoption permitted and on a modified retrospective basis as of the beginning of the period of adoption. Management is currently assessing early adoption of this ASU and the impact of adoption on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . This pronouncement provides clarification guidance on eight specific cash flow presentation issues that have developed due to diversity in practice. The issues include, but are not limited to, debt prepayment or extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and cash receipts from payments on beneficial interests in securitization transactions. The amendments in this ASU where practicable will be applied retrospectively. The standard will be effective for the Company in the first quarter of 2018. Earlier adoption is permitted. Management does not believe this pronouncement will have a material impact on its consolidated financial statements or existing accounting policies. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) -Measurement of Credit Losses on Financial Instruments . The new standard requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. It replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. There are two transition methods available under the new standard dependent upon the type of financial instrument, either cumulative effect or prospective. The standard will be effective for the Company in the first quarter of 2020. Earlier adoption is permitted only for annual periods after December 15, 2018. Management is currently assessing the impact of adoption on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The Company will adopt this ASU during the first quarter of 2017 on a prospective basis. On a go forward basis, the ASU requires that entities recognize excess tax benefits and deficiencies related to employee share-based payment transactions as income tax expense and benefit versus additional paid in capital. This ASU also eliminates the requirement to reclassify excess tax benefits and deficiencies from operating activities to financing activities within the statement of cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Subtopic 842) . This ASU increases the transparency and comparability of organizations by recognizing lease assets and liabilities on the consolidated balance sheet and disclosing key quantitative and qualitative information about leasing arrangements. The principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases were not previously recognized in the consolidated balance sheet. The recognition, measurement, presentation and cash flows arising from a lease by a lessee have not significantly changed. This standard will be effective for the Company in the first quarter of 2019, with early adoption permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients that entities may elect to apply. Management is currently 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 amends various aspects of the recognition, measurement, presentation, and disclosure for financial instruments. With respect to the Company’s consolidated financial statements, the most significant impact relates to the accounting for equity investments. This standard will be effective for the Company in the first quarter of 2018. Early adoption is prohibited for those provisions that apply to the Company. Amendments should be applied by means of cumulative effect adjustment to the consolidated 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. 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 the Company in the first quarter of 2017 and must be applied prospectively after the date of adoption. Adoption of this ASU is not material to the Company’s consolidated financial statements. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Inventory | The components of inventories, net are as follows (in millions): December 31, 2016 2015 Raw material $ 172 $ 178 Work in process 1 — Finished goods 254 274 Inventories, gross 427 452 Inventory reserves (82 ) (55 ) Inventories, net $ 345 $ 397 |
Property, Plant and Equipment | Property, plant and equipment, net is comprised of the following (in millions): December 31, 2016 2015 Buildings $ 51 $ 50 Land 10 10 Machinery and equipment 226 195 Furniture and office equipment 15 20 Software and computer equipment 197 180 Leasehold improvements 64 63 Projects in progress 35 36 598 554 Less accumulated depreciation (306 ) (256 ) Property, plant and equipment, net $ 292 $ 298 |
Summary of Accrued Warranty Obligation | The following table is a summary of the Company’s accrued warranty obligation (in millions): Year Ended December 31, Warranty reserve 2016 2015 2014 Balance at the beginning of the year $ 22 $ 25 $ 4 Acquisition — — 21 Warranty expense 31 30 13 Warranty payments (32 ) (33 ) (13 ) Balance at the end of the year $ 21 $ 22 $ 25 |
Compensation Expense and Related Tax Benefit for Share-based compensation Payments | The compensation expense and the related income tax benefit for share-based compensation were included in the Consolidated Statements of Operations as follows (in millions): Year Ended December 31, Compensation costs and related income tax benefit 2016 2015 2014 Cost of sales $ 2 $ 3 $ 1 Selling and marketing 6 8 4 Research and development 9 8 3 General and administration 11 14 12 Total compensation expense $ 28 $ 33 $ 20 Income tax benefit $ 9 $ 11 $ 7 |
Costs Associated with Exit an29
Costs Associated with Exit and Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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): December 31, 2016 2015 Accrued liabilities $ 7 $ 10 Other long-term liabilities 3 5 Total liabilities related to exit and restructuring activities $ 10 $ 15 During the period ended December 31, 2016, the Company incurred exit and restructuring costs specific to the Acquisition as follows (in millions): Type of Cost Cumulative costs incurred Costs incurred for the year ended December 31, 2016 Cumulative costs incurred Severance, stay bonuses, and other employee-related expenses $ 54 $ 17 $ 37 Obligations for future non-cancellable lease payments 11 2 9 Total $ 65 $ 19 $ 46 |
Liabilities and Expenses Related to Exit and Restructuring Activities | A rollforward of the exit and restructuring accruals is as follows (in millions): Year Ended December 31, 2016 2015 Balance at beginning of year $ 15 $ 7 Charged to earnings 19 40 Cash paid (22 ) (32 ) WLAN divestiture (2 ) — Balance at the end of year $ 10 $ 15 |
Goodwill and Other Intangible30
Goodwill and Other Intangibles, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortized Intangible Assets | Estimated amortization expense: Amount For the year ended December 31, 2017 $ 181 For the year ended December 31, 2018 96 For the year ended December 31, 2019 83 For the year ended December 31, 2020 39 For the year ended December 31, 2021 37 Thereafter 44 Total $ 480 Other Intangibles, net are as follows (in millions): December 31, 2016 Gross Amount Accumulated Amortization Net Amount Amortized intangible assets Current technology $ 24 $ (21 ) $ 3 Trade names 40 (40 ) — Unpatented technology 241 (146 ) 95 Patents and patent rights 238 (161 ) 77 Customer relationships 478 (173 ) 305 Total $ 1,021 $ (541 ) $ 480 Amortization expense for the year ended December 31, 2016 $ 229 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 |
Changes in Net Carrying Value of Goodwill | Changes in the net carrying value amount of goodwill were as follows (in millions): Total Goodwill as of December 31, 2014 $ 2,490 Opening balance sheet adjustments – Enterprise 2015 8 Foreign exchange impact (8 ) Goodwill as of December 31, 2015 2,490 Impairment charge – wireless LAN divestiture (32 ) Goodwill as of December 31, 2016 $ 2,458 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets and Liabilities | The following table presents the fair value of its derivative instruments (in millions): Asset (Liability) Derivatives Balance Sheet Classification Fair Value December 31 2016 2015 Derivative instruments designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ 12 $ 2 Forward interest rate swaps Accrued liabilities (3 ) (1 ) Forward interest rate swaps Other long-term liabilities (13 ) (14 ) Total derivative instruments designated as hedges $ (4 ) $ (13 ) Derivative instruments not designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ 11 $ 5 Forward interest rate swaps Accrued liabilities (1 ) (2 ) Forward interest rate swaps Other long-term liabilities (10 ) (9 ) Total derivative instruments not designated as hedges — (6 ) Total Net Derivative Liability $ (4 ) $ (19 ) |
Derivative Instruments, Gain (Loss) | The following table presents the gains (losses) from changes in fair values of derivatives that are not designated as hedges (in millions): Gain (Loss) Recognized in Income Year Ended December 31, Statement of Operations Classification 2016 2015 2014 Derivative instruments not designated as hedges: Foreign exchange contracts Foreign exchange gain $ 5 $ 11 $ 6 Forward interest rate swaps Interest expense, net — 4 (5 ) Total gain recognized in income $ 5 $ 15 $ 1 |
Financial Information Related to Hedging of Net Assets Included in Consolidated Statements of Operations | The notional values of these outstanding contracts are as follows: December 31, 2016 2015 Notional balance of outstanding contracts (in millions): British pound/US dollar £ 3 £ 5 euro/US dollar € 148 € 133 British pound/euro £ 8 £ 7 Canadian dollar/US dollar $ 13 $ 5 Czech koruna/US dollar Kč 147 Kč 140 Brazilian real/US dollar R$ 56 R$ 28 Malaysian ringgit/US dollar RM 16 RM 13 Australian dollar/US dollar $ 50 $ — Swedish krona/US dollar kr 7 kr — Japanese yen/US dollar ¥ 48 ¥ — Singapore dollar/US dollar S$ 15 S$ — Net fair value of outstanding contracts (in millions) $ 11 $ 1 |
Schedule of Gross and Net Amount Offset | The following table presents the gross fair values and related offsetting counterparty fair values as well as the net fair value amounts at December 31, 2016 (in millions): 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 1 3 Counterparty D 9 3 6 Counterparty E 4 2 2 Counterparty F 4 2 2 Counterparty G 6 — 6 Total $ 43 $ 16 $ 27 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The interest rate swaps have the following notional amounts per year (in millions): Year 2017 $ 697 Year 2018 544 Year 2019 544 Year 2020 272 Year 2021 272 Notional balance of outstanding contracts $ 2,329 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Carried at Fair Value | Financial assets and liabilities carried at fair value as of December 31, 2016, are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts (1) $ 11 $ 12 $ — $ 23 Money market investments related to the deferred compensation plan 11 — — 11 Total Assets at fair value $ 22 $ 12 $ — $ 34 Liabilities: Forward interest rate swap contracts (2) $ — $ 27 $ — $ 27 Liabilities related to the deferred compensation plan 11 — — 11 Total Liabilities at fair value $ 11 $ 27 $ — $ 38 Financial assets and liabilities carried at fair value as of December 31, 2015, are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts (1) $ 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 (2) $ — $ 26 $ — $ 26 Liabilities related to the deferred compensation plan 9 — — 9 Total Liabilities at fair value $ 9 $ 26 $ — $ 35 (1) The fair value of foreign exchange 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 $11 million and $6 million as of December 31, 2016 and 2015, respectively. (2) The fair value of forward interest rate swap contracts 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 8 Derivative Instruments. |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 are as follows (in millions): Payments Due By Period 2017 $ 30 2018 25 2019 21 2020 16 2021 10 Thereafter 38 Total minimum lease obligations $ 140 |
Schedule of Rent Expense for Operating Leases | Rent expenses associated with our operating leases were included in our Consolidated Statements of Operations as follows (in millions): Year Ended December 31, 2016 2015 2014 Rent expense $ 39 $ 45 $ 21 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Value of Debt | The following table summarizes the carrying value of the Company’s debt (in millions): December 31, 2016 2015 Senior Notes $ 1,050 $ 1,050 Term Loan 1,653 2,035 Less: debt issuance costs (22 ) (26 ) Less: unamortized discounts (33 ) (47 ) Total outstanding debt $ 2,648 $ 3,012 |
Schedule of Maturities of Long-term Debt | At December 31, 2016, the future maturities of long-term debt, excluding debt discounts and issuance costs, consisted of the following (in millions): 2017 $ — 2018 — 2019 — 2020 — 2021 1,653 Thereafter 1,050 Total maturities of long-term debt $ 2,703 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Earnings (Loss) Per Share | Earnings (loss) per share were computed as follows (dollars in millions, except share data): Year Ended December 31, 2016 2015 2014 Weighted average shares: Basic weighted average shares outstanding 51,579,112 50,996,297 50,789,173 Effect of dilutive securities outstanding — — 590,525 Diluted weighted average and equivalent shares outstanding 51,579,112 50,996,297 51,379,698 Net (loss) income $ (137 ) $ (158 ) $ 32 Basic per share amounts: Basic weighted average shares outstanding 51,579,112 50,996,297 50,789,173 Per share amount $ (2.65 ) $ (3.10 ) $ 0.64 Diluted per share amounts: Diluted weighted average and equivalent shares outstanding 51,579,112 50,996,297 51,379,698 Per share amount $ (2.65 ) $ (3.10 ) $ 0.63 |
Potentially Dilutive Securities Excluded from Earnings (Loss) Per Share Calculation | The anti-dilutive shares are as follows: Year Ended December 31, 2016 2015 2014 Anti-dilutive shares 1,391,567 1,421,506 175,902 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Equity Awards Activity | A summary of the equity awards authorized and available for future grants under the 2015 Plan is as follows: Available for future grants at December 31, 2015 3,430,707 Newly authorized options — Granted (1,204,214 ) Cancellation and forfeitures — Plan termination — Available for future grants at December 31, 2016 2,226,493 |
Summary of SARs Activity | A summary of the Company’s SARs outstanding under the 2015 Plan is as follows: 2016 2015 2014 Stock Awards Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of period 1,397,611 $ 56.78 1,292,142 $ 42.20 1,402,784 $ 36.36 Granted 627,971 52.13 332,159 107.31 195,560 74.59 Exercised (160,946 ) 35.37 (179,702 ) 40.71 (267,077 ) 34.03 Forfeited (115,215 ) 65.74 (45,441 ) 75.26 (38,738 ) 50.57 Expired (8,635 ) 88.65 (1,547 ) 47.11 (387 ) 46.07 Outstanding at end of period 1,740,786 $ 56.15 1,397,611 $ 56.78 1,292,142 $ 42.20 Exercisable at end of period 828,754 $ 45.14 736,075 $ 35.90 586,344 $ 33.03 |
Weighted-Average Assumptions Used for Grants of 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: 2016 2015 2014 Expected dividend yield 0% 0% 0% Forfeiture rate 9.01% 10.24% 10.32% Volatility 43.14% 33.98% 34.92% Risk free interest rate 1.29% 1.53% 1.73% Range of interest rates 0.25%-1.75% 0.02% - 2.14% 0.02% - 2.61% Expected weighted-average life 5.33 5.32 5.36 Fair value of SARs granted (in millions) $13 $12 $5 Weighted-average grant date fair value of SARs granted $20.18 $35.00 $24.98 |
Summary of Option Activity | A summary of the Company’s options outstanding under the 2006 Plan is as follows: 2016 2015 2014 Non-qualified Options Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Outstanding at beginning of year 204,434 $ 36.66 415,960 $ 40.19 956,502 $ 42.77 Granted — — — — — — Exercised (47,393 ) 38.60 (209,976 ) 43.53 (540,542 ) 44.76 Forfeited — — — — — — Expired (2,490 ) 43.35 (1,550 ) 51.62 — — Outstanding at end of year 154,551 $ 35.96 204,434 $ 36.66 415,960 $ 40.19 Exercisable at end of year 154,551 $ 35.96 204,434 $ 36.66 415,960 $ 40.19 |
Summary of Outstanding and Exercisable Options | The following table summarizes information about SARs outstanding at December 31, 2016: Outstanding Exercisable Aggregate intrinsic value - (in millions) $ 28 $ 20 Weighted-average remaining contractual term 7.0 5.0 The following table summarizes information about non-qualified stock options outstanding at December 31, 2016: Outstanding Exercisable Aggregate intrinsic value - (in millions) $ 4 $ 4 Weighted-average remaining contractual term 1.32 1.32 |
Summary of Restricted Stock Award Activity | A summary of information relative to the Company’s restricted stock awards is as follows: 2016 2015 2014 Restricted Stock Awards Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of year 566,447 $ 77.68 691,621 $ 60.06 435,377 $ 40.92 Granted 389,193 51.93 185,782 107.17 423,644 73.42 Released (275,229 ) 59.39 (253,801 ) 51.95 (153,200 ) 43.16 Forfeited (57,597 ) 70.50 (57,155 ) 75.11 (14,200 ) 54.08 Outstanding at end of year 622,814 $ 70.19 566,447 $ 77.68 691,621 $ 60.06 |
Summary of Performance Share Award Activity | A summary of information relative to the Company’s performance awards is as follows: 2016 2015 2014 Performance Share Awards Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of year 332,630 $ 73.40 374,180 $ 61.53 195,159 $ 42.25 Granted 172,024 51.01 106,411 75.77 233,111 73.00 Released (111,325 ) 46.58 (120,000 ) 38.67 (33,535 ) 41.45 Forfeited (14,103 ) 75.73 (27,961 ) 73.45 (20,555 ) 41.45 Outstanding at end of year 379,226 $ 70.14 332,630 $ 73.40 374,180 $ 61.53 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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): Year Ended December 31, 2016 2015 2014 United States $ (120 ) $ (288 ) $ (122 ) Outside United States (9 ) 108 139 Total $ (129 ) $ (180 ) $ 17 |
Components of Provision (Benefit) for Income Taxes | ncome tax expense (benefit) consists of the following (in millions): Year Ended December 31, 2016 2015 2014 Current: Federal $ 14 $ 84 $ 6 State 6 4 4 Foreign 31 32 19 Total current 51 120 29 Deferred: Federal (31 ) (117 ) (38 ) State (6 ) (24 ) (5 ) Foreign (6 ) (1 ) (1 ) Total deferred (43 ) (142 ) (44 ) Total expense (benefit) $ 8 $ (22 ) $ (15 ) |
Reconciliation of Provision for Income Taxes | The Company’s effective tax rate was lower than the federal statutory rate of 35% primarily due to the following items: Year Ended December 31, 2016 2015 2014 Provision computed at statutory rate 35.0 % 35.0 % 35.0 % State income tax, net of federal tax benefit (1.0 ) 1.1 (5.9 ) Foreign rate differential (16.0 ) 13.9 (176.5 ) Change in valuation allowance (1.0 ) (8.3 ) 17.6 US impact of Enterprise acquisition (14.1 ) (26.7 ) 41.2 Return to provision and other true ups (3.7 ) 0.0 (17.6 ) Tax credits 9.5 6.1 (17.6 ) Foreign earnings subject to US taxation (6.6 ) (3.9 ) 17.6 Change in contingent income tax reserves (1.6 ) (3.3 ) 17.6 Other (6.7 ) (1.7 ) 0.0 Provision for income taxes (6.2 )% 12.2 % (88.6 )% |
Components of Deferred Tax Assets and Liabilities | Tax effects of temporary differences that resulted in deferred tax assets and liabilities are as follows (in millions): December 31, 2016 2015 Deferred tax assets: Capitalized research expenditures $ 58 $ 46 Deferred revenue 57 59 Tax credits 33 32 Net operating loss carryforwards 35 65 Other accruals 35 47 Inventory items 27 27 Capitalized software costs 25 43 Sales return/rebate reserve 23 22 Share-based compensation expense 15 15 Accrued bonus 11 16 Unrealized gains and losses on securities and investments 4 10 Valuation allowance (47 ) (48 ) Total deferred tax assets 276 334 Deferred tax liabilities: Unrealized loss on other investments — — Depreciation and amortization 165 265 Undistributed earnings 1 — Total deferred tax liabilities $ 166 $ 265 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Year ended December 31, 2016 2015 Balance at beginning of year $ 40 $ 19 Additions for tax positions related to the current year 2 6 Additions for tax positions related to prior years 2 18 Reductions for tax positions related to prior years (2 ) (2 ) Settlements for tax positions - (1 ) Balance at end of year $ 42 $ 40 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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): Unrealized gains (losses) on sales hedging Unrealized gains (losses) on forward interest rate swaps Foreign Currency Translation Adjustments Total Balance at December 31, 2013 $ (2 ) $ — $ (7 ) $ (9 ) Other comprehensive (loss) income before reclassifications 8 (12 ) 1 (3 ) Amounts reclassified from AOCI 1 — — 1 Tax benefit (expense) (2 ) 4 — 2 Other comprehensive income (loss) 7 (8 ) 1 — Balance at December 31, 2014 5 (8 ) (6 ) (9 ) Other comprehensive (loss) income before reclassifications 7 (12 ) (11 ) (16 ) Amounts reclassified from AOCI (15 ) 1 (15 ) (29 ) Tax benefit (expense) 2 4 — 6 Other comprehensive (loss) income (6 ) (7 ) (26 ) (39 ) Balance at December 31, 2015 (1 ) (15 ) (32 ) (48 ) Other comprehensive (loss) income before reclassifications 1 (1 ) (4 ) (4 ) Amounts reclassified from AOCI 7 2 — 9 Tax benefit (expense) (1 ) (1 ) — (2 ) Other comprehensive (loss) income 7 — (4 ) 3 Balance at December 31, 2016 $ 6 $ (15 ) $ (36 ) $ (45 ) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassification out of AOCI to earnings were as follows (in millions): Year Ended December 31, Comprehensive Income Components Financial Statement Line Item 2016 2015 2014 Unrealized gain (loss) on sales hedging: Total before tax Net sales of tangible products $ (7 ) $ 15 $ (1 ) Tax benefit (expense) 1 (3 ) — Net of taxes (6 ) 12 (1 ) Unrealized gain (loss) on forward interest rate swaps: Total before tax Interest expense, net (2 ) (1 ) — Tax benefit (expense) 1 — — Net of taxes (1 ) (1 ) — Foreign Currency Translation Foreign exchange loss — 15 — Total amounts reclassified from AOCI $ (7 ) $ 26 $ (1 ) |
Segment Information and Geogr39
Segment Information and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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. The chief operating decision maker does not use total assets by segment to make decisions regarding resources, therefore the total asset disclosure by segment has not been included. Financial information by segment is presented as follows (in millions): Year Ended December 31, 2016 2015 2014 (3) Net sales: Legacy Zebra $ 1,247 $ 1,286 $ 1,195 Enterprise 2,337 2,380 482 Total segment net sales 3,584 3,666 1,677 Corporate, eliminations (1) (10 ) (16 ) (6 ) Total $ 3,574 $ 3,650 $ 1,671 Operating income: Legacy Zebra $ 240 $ 258 $ 238 Enterprise 286 236 65 Total segment operating income 526 494 303 Corporate, eliminations (2) (446 ) (457 ) (214 ) Total $ 80 $ 37 $ 89 (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 of intangible assets, acquisition/integration costs, impairment of goodwill and other intangibles, and exit and restructuring costs. (3) The businesses included in our Enterprise segment were acquired as part of the Acquisition. The Enterprise segment’s results, including the increases in net sales, gross profit, operating expenses, and operating income, for the year ended December 31, 2014 was primarily related to the Acquisition. Accordingly, the results for this segment for the year ended December 31, 2014 include only two months (November and December 2014). |
Information Regarding Operations by Geographic Area | Geographic data for long-lived assets, defined as property, plant and equipment is as follows (in millions): Year Ended December 31, 2016 2015 2014 (1) Europe, Middle East, and Africa $ 13 $ 10 $ 10 Latin America 3 3 2 Asia-Pacific 9 10 5 Total International 25 23 17 North America 267 275 238 Total long-lived assets $ 292 $ 298 $ 255 Geographic data for sales is as follows (in millions): Year Ended December 31, 2016 2015 2014 (1) Europe, Middle East, and Africa $ 1,138 $ 1,194 $ 583 Latin America 214 219 135 Asia-Pacific 483 463 216 Total International 1,835 1,876 934 North America 1,739 1,774 737 Total Net sales $ 3,574 $ 3,650 $ 1,671 |
Net Sales by Country | Net sales by country that are greater than 10% of total net sales are as follows (in millions): Year Ended December 31, 2016 2015 2014 (1) United States $ 1,950 $ 2,045 $ 875 United Kingdom 1,065 1,102 558 Singapore 362 175 155 Other 197 328 83 Total $ 3,574 $ 3,650 $ 1,671 |
Net Sales by Major Product Category | Net sales by major product category are as follows (in millions): Year Ended December 31, 2016 2015 2014 (1) Hardware $ 2,778 $ 2,863 $ 1,234 Supplies 278 268 265 Services and Software 518 519 172 Total $ 3,574 $ 3,650 $ 1,671 |
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: Year Ended December 31, 2016 2015 2014 (1) Legacy Zebra Enterprise Total Legacy Zebra Enterprise Total Legacy Zebra Enterprise Total Customer A 5.9 % 14.2 % 20.1 % 5.5 % 13.9 % 19.4 % 11.5 % 6.4 % 17.9 % Customer B 5.0 % 8.2 % 13.2 % 4.6 % 8.1 % 12.7 % 9.4 % 4.2 % 13.6 % Customer C 5.3 % 7.1 % 12.4 % 5.2 % 6.4 % 11.6 % 8.7 % 2.9 % 11.6 % |
Major Customers (Tables)
Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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: Year Ended December 31, 2016 2015 2014 (1) Legacy Zebra Enterprise Total Legacy Zebra Enterprise Total Legacy Zebra Enterprise Total Customer A 5.9 % 14.2 % 20.1 % 5.5 % 13.9 % 19.4 % 11.5 % 6.4 % 17.9 % Customer B 5.0 % 8.2 % 13.2 % 4.6 % 8.1 % 12.7 % 9.4 % 4.2 % 13.6 % Customer C 5.3 % 7.1 % 12.4 % 5.2 % 6.4 % 11.6 % 8.7 % 2.9 % 11.6 % |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The components of accounts receivable, net are as follows (in millions): December 31, 2016 2015 Accounts receivable $ 628 $ 677 Allowance for doubtful accounts (3 ) (6 ) Accounts receivable, net $ 625 $ 671 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | Prepaid expenses and other current assets consist of the following (in millions): December 31, 2016 2015 Foreign Exchange Contracts $ 23 $ 7 Other 41 63 Prepaid expenses and other current assets $ 64 $ 70 |
Schedule of Accrued Liabilities | The components of accrued liabilities are as follows (in millions): December 31, 2016 2015 Accrued incentive compensation $ 52 $ 68 Customer reserves 50 38 Accrued payroll 51 49 Interest payable 20 36 Accrued other expenses 150 176 Total accrued liabilities $ 323 $ 367 |
Schedule of Quarterly Financial Information | (In millions): 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Total Year Total Net sales $ 849 $ 879 $ 904 $ 942 $ 3,574 Gross profit 390 406 414 432 1,642 Net (loss) income (26 ) (45 ) (83 ) 17 (137 ) Net earnings per common share: Basic $ (0.50 ) $ (0.88 ) $ (1.61 ) $ 0.34 $ (2.65 ) Diluted (0.50 ) (0.88 ) (1.61 ) 0.34 (2.65 ) 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total Year Total Net sales $ 893 $ 890 $ 916 $ 951 $ 3,650 Gross profit 409 393 414 428 1,644 Net loss (25 ) (76 ) (29 ) (28 ) (158 ) Net earnings per common share: Basic $ (0.50 ) $ (1.50 ) $ (0.57 ) $ (0.53 ) $ (3.10 ) Diluted (0.50 ) (1.50 ) (0.57 ) (0.53 ) (3.10 ) |
Description of Business - Addit
Description of Business - Additional Information (Detail) - USD ($) $ in Millions | Oct. 27, 2014 | Oct. 31, 2014 | Dec. 31, 2016 |
Enterprise Business | |||
Business Acquisition [Line Items] | |||
Cost of business acquisition | $ 3,450 | $ 3,450 | $ 3,450 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||||
Foreign cash and investments | $ 98 | $ 166 | ||
Cash and cash equivalents | 156 | 192 | $ 394 | $ 63 |
Advertising expenses | 18 | 22 | 13 | |
Cost method investments | 25 | 31 | ||
Cost-method investments, impairment | $ 7 | 0 | 2 | |
Unearned compensation cost, expected to be recognized over period (years) | 2 years 3 months 25 days | |||
Transaction expenses | $ 125 | $ 145 | $ 127 | |
Mobile Computers and WLAN Products | ||||
Property, Plant and Equipment [Line Items] | ||||
Product warranty Period | 1 year | |||
Printheads | ||||
Property, Plant and Equipment [Line Items] | ||||
Product warranty Period | 6 months | |||
Batteries | ||||
Property, Plant and Equipment [Line Items] | ||||
Product warranty Period | 1 year | |||
Battery Based Products | ||||
Property, Plant and Equipment [Line Items] | ||||
Product warranty Period | 90 days | |||
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Finite-lived intangible assets, useful life | 3 years | |||
Minimum | Advanced Data Capture Products | ||||
Property, Plant and Equipment [Line Items] | ||||
Product warranty Period | 1 year | |||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Finite-lived intangible assets, useful life | 15 years | |||
Unearned compensation cost, expected to be recognized over period (years) | 4 years | |||
Maximum | Advanced Data Capture Products | ||||
Property, Plant and Equipment [Line Items] | ||||
Product warranty Period | 5 years | |||
Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Property plant and equipment, estimated useful lives | 30 years | |||
Property, Plant and Equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property plant and equipment, estimated useful lives | 3 years | |||
Property, Plant and Equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property plant and equipment, estimated useful lives | 10 years |
Summary of Significant Accoun44
Summary of Significant Accounting Policies Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Raw material | $ 172 | $ 178 |
Work in process | 1 | 0 |
Finished goods | 254 | 274 |
Inventory, gross | 427 | 452 |
Inventory reserves | (82) | (55) |
Inventories, net | $ 345 | $ 397 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies Property Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Foreign cash and investments | $ 98 | $ 166 | |
Unearned compensation cost, expected to be recognized over period (years) | 2 years 3 months 25 days | ||
Property, plant and equipment, gross | $ 598 | 554 | |
Less accumulated depreciation | (306) | (256) | |
Property, plant and equipment, net | 292 | 298 | |
Depreciation | 75 | 69 | $ 27 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 51 | 50 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 10 | 10 | |
Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 226 | 195 | |
Furniture and Fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 15 | 20 | |
Computers And Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 197 | 180 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 64 | 63 | |
Construction in Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 35 | $ 36 | |
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Unearned compensation cost, expected to be recognized over period (years) | 4 years |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Summary of Accrued Warranty Obligation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Warranty reserve | |||
Balance at the beginning of the year | $ 22 | $ 25 | $ 4 |
Acquisition | 0 | 0 | 21 |
Warranty expense | 31 | 30 | 13 |
Warranty payments | (32) | (33) | (13) |
Balance at the end of the year | $ 21 | $ 22 | $ 25 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Compensation Expense and Related Tax Benefit for Equity Based Payments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | $ 28 | $ 33 | $ 20 |
Income tax benefit | 9 | 11 | 7 |
Cost of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | 2 | 3 | 1 |
Selling and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | 6 | 8 | 4 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | 9 | 8 | 3 |
General and administration | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | $ 11 | $ 14 | $ 12 |
Business Combinations and Div48
Business Combinations and Divestitures - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 27, 2014 | Oct. 31, 2014 | Oct. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 13, 2016 | Oct. 15, 2014 |
Business Acquisition [Line Items] | ||||||||
Proceeds from divestiture of business | $ 39,000 | $ 0 | $ 0 | |||||
Goodwill impairment charge-wireless LAN divestiture | (32,000) | |||||||
Term Loan | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, borrowings | $ 2,200,000 | |||||||
Senior Notes | ||||||||
Business Acquisition [Line Items] | ||||||||
Senior notes, stated interest percentage | 7.25% | |||||||
Enterprise Business | ||||||||
Business Acquisition [Line Items] | ||||||||
Preliminary purchase price | $ 3,450,000 | $ 3,450,000 | 3,450,000 | |||||
Ownership percentage of the Enterprise Business | 100.00% | |||||||
Business acquisition, borrowings | 3,250,000 | |||||||
Business acquisition, consideration paid | 52,000 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | $ (2,000) | |||||||
Business acquisition goodwill amount | $ 2,300,000 | |||||||
Enterprise Business | Term Loan | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, borrowings | $ 2,200,000 | |||||||
Senior notes, maturity year | 2,021 | |||||||
Senior Notes due 2022 | Enterprise Business | Senior Notes | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, borrowings | $ 1,050,000 | |||||||
Senior notes, stated interest percentage | 7.25% | |||||||
Senior notes, maturity year | 2,022 | |||||||
Wireless LAN (WLAN) | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue from sale of assets | $ 30,000 | |||||||
Wireless LAN (WLAN) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Business Acquisition [Line Items] | ||||||||
Divestiture of business disposal price | $ 55,000 | |||||||
Proceeds from divestiture of business | 39,000 | |||||||
Loss on write-down | $ 62,000 | |||||||
Goodwill impairment charge-wireless LAN divestiture | (32,000) | |||||||
Disposal Group, Including Discontinued Operation, Revenue | 78,000 | |||||||
Gross profit from sale of assets | 37,000 | |||||||
Disposal Group, Including Discontinued Operation, Assets | 0 | |||||||
Disposal Group, Including Discontinued Operation, Liabilities | $ 0 | |||||||
Wireless LAN (WLAN) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Other Intangible Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenue from sale of assets | $ 30,000 |
Costs Associated with Exit an49
Costs Associated with Exit and Restructuring Costs Associated with Exit and Restructuring - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | $ 65 | $ 65 | |||
Severance, stay bonuses, and other employee-related expenses | 17 | 54 | $ 37 | ||
Charged to earnings | 19 | $ 40 | $ 6 | 65 | $ 46 |
Enterprise Business | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | 50 | 50 | |||
Restructuring costs | 14 | ||||
Zebra Legacy | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | 15 | 15 | |||
Restructuring costs | 5 | ||||
Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected remaining charges related to exit and restructuring | 5 | 5 | |||
Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected remaining charges related to exit and restructuring | $ 7 | $ 7 |
Goodwill and Other Intangible50
Goodwill and Other Intangibles, net - Amortized Intangible Assets (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | $ 1,021,000,000 | $ 1,099,000,000 | |
Accumulated Amortization | (541,000,000) | (342,000,000) | |
Total | 480,000,000 | 757,000,000 | |
Amortization expense | 229,000,000 | 251,000,000 | $ 54,000,000 |
Foreign exchange impact | 1 | ||
Current technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 24,000,000 | 25,000,000 | |
Accumulated Amortization | (21,000,000) | (19,000,000) | |
Total | 3,000,000 | 6,000,000 | |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 40,000,000 | 40,000,000 | |
Accumulated Amortization | (40,000,000) | (24,000,000) | |
Total | 0 | 16,000,000 | |
Unpatented technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 241,000,000 | 270,000,000 | |
Accumulated Amortization | (146,000,000) | (87,000,000) | |
Total | 95,000,000 | 183,000,000 | |
Patents and patent rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 238,000,000 | 247,000,000 | |
Accumulated Amortization | (161,000,000) | (99,000,000) | |
Total | 77,000,000 | 148,000,000 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 478,000,000 | 517,000,000 | |
Accumulated Amortization | (173,000,000) | (113,000,000) | |
Total | 305,000,000 | $ 404,000,000 | |
Wireless LAN (WLAN) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 30,000,000 |
Costs Associated with Exit an51
Costs Associated with Exit and Restructuring - Summary of Exit and Restructuring Costs Incurred (Detail) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |||||
Severance, stay bonuses, and other employee-related expenses | $ 17 | $ 54 | $ 37 | ||
Obligations for future non-cancellable lease payments | 2 | 11 | 9 | ||
Total | $ 19 | $ 40 | $ 6 | $ 65 | $ 46 |
Goodwill and Other Intangible52
Goodwill and Other Intangibles, net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Oct. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||||
Amortization of intangible assets | $ 229 | $ 251 | $ 54 | |
Goodwill | 2,458 | $ 2,490 | $ 2,490 | |
Goodwill impairment charge-wireless LAN divestiture | 32 | |||
Enterprise Business | ||||
Goodwill [Line Items] | ||||
Goodwill | 2,300 | |||
Zebra Legacy | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 154 | |||
Minimum | ||||
Goodwill [Line Items] | ||||
Fair value exceeding carrying value | 20.00% | |||
Maximum | ||||
Goodwill [Line Items] | ||||
Fair value exceeding carrying value | 200.00% | |||
Wireless LAN (WLAN) | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Goodwill [Line Items] | ||||
Goodwill impairment charge-wireless LAN divestiture | $ 32 |
Costs Associated with Exit an53
Costs Associated with Exit and Restructuring - Liabilities and Expenses Related to Exit and Restructuring Activities (Detail) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | |||||
Balance at beginning of year | $ 15 | $ 7 | $ 7 | ||
Charged to earnings | 19 | 40 | $ 6 | 65 | $ 46 |
Cash paid | (22) | (32) | |||
WLAN divestiture | (2) | 0 | |||
Balance at the end of year | $ 10 | $ 15 | $ 7 | $ 10 | $ 15 |
Goodwill and Other Intangible54
Goodwill and Other Intangibles, net - Estimated Amortization Expense (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
For the year ended December 31, 2017 | $ 181 | |
For the year ended December 31, 2018 | 96 | |
For the year ended December 31, 2019 | 83 | |
For the year ended December 31, 2020 | 39 | |
For the year ended December 31, 2021 | 37 | |
Thereafter | 44 | |
Total | $ 480 | $ 757 |
Costs Associated with Exit an55
Costs Associated with Exit and Restructuring Costs Associated with Exit and Restructuring - Amounts in the Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 10 | $ 15 | $ 7 |
Accrued liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 7 | 10 | |
Other long-term liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 3 | $ 5 |
Goodwill and Other Intangible56
Goodwill and Other Intangibles, net - Changes in Net Carrying Value of Goodwill (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Oct. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 2,490,000,000 | $ 2,490,000,000 | |
Foreign exchange impact | 1 | ||
Goodwill impairment charge-wireless LAN divestiture | (32,000,000) | ||
Ending balance | 2,458,000,000 | 2,490,000,000 | |
Enterprise Business | |||
Goodwill [Roll Forward] | |||
Opening balance sheet adjustments | 8,000,000 | ||
Foreign exchange impact | $ (8,000,000) | ||
Ending balance | $ 2,300,000,000 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Wireless LAN (WLAN) | |||
Goodwill [Roll Forward] | |||
Goodwill impairment charge-wireless LAN divestiture | $ (32,000,000) |
Investments and Marketable Se57
Investments and Marketable Securities - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Investments and marketable securities | $ 0 | $ 0 | |
Available-for-sale Securities, Gross Unrealized Gain (Loss) | 0 | $ 0 | |
Proceeds from sales of investments and marketable securities | 0 | 25,000,000 | 644,000,000 |
Available-for-sale Securities, Gross Realized Gain (Loss) | $ 0 | $ 0 | $ 0 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Oct. 01, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Total Net Derivative Liability | $ (4) | $ (19) |
Derivative instruments designated as hedges: | ||
Derivative [Line Items] | ||
Total Net Derivative Liability | (4) | (13) |
Derivative instruments not designated as hedges: | ||
Derivative [Line Items] | ||
Total Net Derivative Liability | 0 | (6) |
Prepaid expenses and other current assets | Foreign exchange contracts | Derivative instruments designated as hedges: | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 12 | 2 |
Prepaid expenses and other current assets | Foreign exchange contracts | Derivative instruments not designated as hedges: | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 11 | 5 |
Accrued liabilities | Forward interest rate swap contracts | Derivative instruments designated as hedges: | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (3) | (1) |
Accrued liabilities | Forward interest rate swap contracts | Derivative instruments not designated as hedges: | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (1) | (2) |
Other long-term liabilities | Forward interest rate swap contracts | Derivative instruments designated as hedges: | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (13) | (14) |
Other long-term liabilities | Forward interest rate swap contracts | Derivative instruments not designated as hedges: | ||
Derivative [Line Items] | ||
Derivative liability, fair value | $ (10) | $ (9) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Carried at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | $ 34 | $ 16 |
Total Liabilities at fair value | 38 | 35 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 22 | 15 |
Total Liabilities at fair value | 11 | 9 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 12 | 1 |
Total Liabilities at fair value | 27 | 26 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 0 | 0 |
Total Liabilities at fair value | 0 | 0 |
Money market investments related to the deferred compensation plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 11 | 9 |
Money market investments related to the deferred compensation plan | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 11 | 9 |
Money market investments related to the deferred compensation plan | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 0 | 0 |
Money market investments related to the deferred compensation plan | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 0 | 0 |
Liabilities related to the deferred compensation plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 11 | 9 |
Liabilities related to the deferred compensation plan | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 11 | 9 |
Liabilities related to the deferred compensation plan | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 0 | 0 |
Liabilities related to the deferred compensation plan | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 0 | 0 |
Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 23 | 7 |
Foreign exchange contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 11 | 6 |
Foreign exchange contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 12 | 1 |
Foreign exchange contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 0 | 0 |
Forward interest rate swap contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 27 | 26 |
Forward interest rate swap contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 0 | 0 |
Forward interest rate swap contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 27 | 26 |
Forward interest rate swap contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | $ 0 | $ 0 |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments Gain (Loss) (Details) - Derivative instruments not designated as hedges: - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized in income | $ 5 | $ 15 | $ 1 |
Foreign exchange contracts | Foreign exchange (loss) gain | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized in income | 5 | 11 | 6 |
Forward interest rate swap contracts | Interest expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized in income | $ 0 | $ 4 | $ (5) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Fair value assets, transfers from Level 2 to Level 1 | $ 11 | $ 6 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) € in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Oct. 31, 2014USD ($) | Oct. 27, 2014USD ($) | |
Change in unrealized gain (loss) on anticipated sales hedging: | |||||
Derivative, term of contract | 12 years | ||||
Foreign currency cash flow hedge derivative | € | € 341 | € 193 | |||
Losses on the forward interest rate swaps designated in a hedging relationship expected to be reclassified from accumulated other comprehensive loss into earnings during the next 12 months. | $ 10,000,000 | ||||
Revolving Credit Facility | |||||
Change in unrealized gain (loss) on anticipated sales hedging: | |||||
Revolving credit facility maximum borrowing capacity | $ 250,000,000 | $ 250,000,000 | |||
Term Loan | Line of Credit | |||||
Change in unrealized gain (loss) on anticipated sales hedging: | |||||
Revolving credit facility maximum borrowing capacity | $ 2,200,000,000 | ||||
Line of Credit | Revolving Credit Facility | |||||
Change in unrealized gain (loss) on anticipated sales hedging: | |||||
Revolving credit facility maximum borrowing capacity | $ 250,000,000 |
Derivative Instruments - Financ
Derivative Instruments - Financial Information Related to Hedging of Net Assets Included in Consolidated Statements of Operations (Details) € in Millions, ¥ in Millions, £ in Millions, SGD in Millions, SEK in Millions, MYR in Millions, CZK in Millions, CAD in Millions, BRL in Millions, AUD in Millions, $ in Millions | Dec. 31, 2016SEK | Dec. 31, 2016USD ($) | Dec. 31, 2016MYR | Dec. 31, 2016CAD | Dec. 31, 2016AUD | Dec. 31, 2016JPY (¥) | Dec. 31, 2016GBP (£) | Dec. 31, 2016CZK | Dec. 31, 2016EUR (€) | Dec. 31, 2016SGD | Dec. 31, 2016BRL | Dec. 31, 2015SEK | Dec. 31, 2015USD ($) | Dec. 31, 2015MYR | Dec. 31, 2015CAD | Dec. 31, 2015AUD | Dec. 31, 2015JPY (¥) | Dec. 31, 2015GBP (£) | Dec. 31, 2015CZK | Dec. 31, 2015EUR (€) | Dec. 31, 2015SGD | Dec. 31, 2015BRL |
Derivative [Line Items] | ||||||||||||||||||||||
Net fair value of outstanding contracts (in millions) | $ | $ 11 | $ 1 | ||||||||||||||||||||
US Dollar | Foreign Exchange Forward | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Notional balance of outstanding contracts (in millions): | SEK 7 | MYR 16 | CAD 13 | AUD 50 | ¥ 48 | £ 3 | CZK 147 | € 148 | SGD 15 | BRL 56 | SEK 0 | MYR 13 | CAD 5 | AUD 0 | ¥ 0 | £ 5 | CZK 140 | € 133 | SGD 0 | BRL 28 | ||
Euro Member Countries, Euro | Foreign Exchange Forward | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Notional balance of outstanding contracts (in millions): | £ | £ 8 | £ 7 |
Derivative Instruments - Sche64
Derivative Instruments - Schedule of Gross and Net Amount Offset (Details) - Balance Sheet Offsetting $ in Millions | Dec. 31, 2016USD ($) |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | $ 43 |
Counterparty Offsetting | 16 |
Net Fair Value in the Consolidated Balance Sheets | 27 |
Counterparty A | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 12 |
Counterparty Offsetting | 6 |
Net Fair Value in the Consolidated Balance Sheets | 6 |
Counterparty B | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 4 |
Counterparty Offsetting | 2 |
Net Fair Value in the Consolidated Balance Sheets | 2 |
Counterparty C | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 4 |
Counterparty Offsetting | 1 |
Net Fair Value in the Consolidated Balance Sheets | 3 |
Counterparty D | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 9 |
Counterparty Offsetting | 3 |
Net Fair Value in the Consolidated Balance Sheets | 6 |
Counterparty E | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 4 |
Counterparty Offsetting | 2 |
Net Fair Value in the Consolidated Balance Sheets | 2 |
Counterparty F | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 4 |
Counterparty Offsetting | 2 |
Net Fair Value in the Consolidated Balance Sheets | 2 |
Counterparty G | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 6 |
Counterparty Offsetting | 0 |
Net Fair Value in the Consolidated Balance Sheets | $ 6 |
Derivative Instruments - Debt S
Derivative Instruments - Debt Swaps Notional Amounts (Details) $ in Millions | Dec. 31, 2016USD ($) |
Derivative [Line Items] | |
Notional balance of outstanding contracts | $ 2,329 |
Year 2,017 | |
Derivative [Line Items] | |
Notional balance of outstanding contracts | 697 |
Year 2,018 | |
Derivative [Line Items] | |
Notional balance of outstanding contracts | 544 |
Year 2,019 | |
Derivative [Line Items] | |
Notional balance of outstanding contracts | 544 |
Year 2,020 | |
Derivative [Line Items] | |
Notional balance of outstanding contracts | 272 |
Year 2,021 | |
Derivative [Line Items] | |
Notional balance of outstanding contracts | $ 272 |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Minimum Lease Payments (Details) $ in Millions | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 30 |
2,018 | 25 |
2,019 | 21 |
2,020 | 16 |
2,021 | 10 |
Thereafter | 38 |
Total minimum lease obligations | $ 140 |
Long-Term Debt - Summary of Car
Long-Term Debt - Summary of Carrying Value of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Carry Value of Debt | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 1,050 | $ 1,050 |
Term loan | 1,653 | 2,035 |
Less debt issuance costs | (22) | (26) |
Less unamortized discounts | (33) | (47) |
Total outstanding debt | 2,648 | $ 3,012 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Less debt issuance costs | $ (4) |
Lease Commitments - Schedule 68
Lease Commitments - Schedule of Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 39 | $ 45 | $ 21 |
Long-Term Debt Long-term debt f
Long-Term Debt Long-term debt future maturities (Details) $ in Millions | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,021 | $ 1,653 |
Thereafter | 1,050 |
Total maturities of long-term debt | $ 2,703 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2016 | |
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 | 15 years |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Dec. 07, 2016 | Dec. 06, 2016 | Jun. 02, 2016 | Jun. 01, 2016 | Oct. 15, 2014 | Feb. 28, 2017 | Jul. 02, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 27, 2014 |
Debt Instrument [Line Items] | ||||||||||
Fair value of long-term debt | $ 2,800,000,000 | $ 3,100,000,000 | ||||||||
Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate on senior notes | 4.00% | |||||||||
Gain (loss) on extinguishment of debt | $ 2,700,000 | $ 1,700,000 | ||||||||
Payments of debt restructuring costs | $ 4,900,000 | |||||||||
Term loan interest rate | 3.45% | |||||||||
Prepayments principal | $ 382,000,000 | |||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 1,700,000,000 | |||||||||
Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total outstanding debt | $ 2,200,000,000 | |||||||||
Debt issuance costs, net | $ 1,000,000 | |||||||||
Amortized period | 7 years | |||||||||
Revolving Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Revolving credit facility maximum borrowing capacity | $ 250,000,000 | $ 250,000,000 | ||||||||
Letters of credit | 4,000,000 | |||||||||
Funds available for other borrowings | $ 246,000,000 | |||||||||
Revolving credit facility interest rate | 3.50% | |||||||||
Borrowings under revolving credit facility | $ 0 | |||||||||
Commitment fee percentage, scenario one | 0.25% | |||||||||
Commitment fee percentage, scenario two | 0.375% | |||||||||
Commitment fee percentage, scenario three | 0.50% | |||||||||
Outstanding commitment fee rate | 20.00% | |||||||||
Debt issuance costs, net | $ 4,000,000 | |||||||||
Amortized period | 5 years | |||||||||
Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs, net | $ 17,000,000 | |||||||||
Amortized period | 8 years | |||||||||
Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Private offering aggregate principal amount | $ 1,050,000,000 | |||||||||
Interest rate on senior notes | 7.25% | |||||||||
Effective interest rate of Senior Notes yielded | 7.61% | |||||||||
Interest on the Senior Notes is payable description | Interest on the Senior Notes is payable in cash on April 15 and October 15 of each year. | |||||||||
Subsequent Event | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Prepayments principal | $ 20,000,000 | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 25000000.00% | 32500000.00% | ||||||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 325.00% | 400.00% |
Contingencies Contingencies (De
Contingencies Contingencies (Details) | Aug. 16, 2005officer |
Commitments and Contingencies Disclosure [Abstract] | |
Number of former officers being sued | 2 |
Earnings (Loss) Per Share - Com
Earnings (Loss) Per Share - Computation of Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted average shares: | |||||||||||
Basic weighted average shares outstanding (in shares) | 51,579,112 | 50,996,297 | 50,789,173 | ||||||||
Effect of dilutive securities outstanding (in shares) | 0 | 0 | 590,525 | ||||||||
Diluted weighted average shares outstanding (in shares) | 51,579,112 | 50,996,297 | 51,379,698 | ||||||||
Net (loss) income | $ (137) | $ (158) | $ 32 | ||||||||
Basic per share amounts: | |||||||||||
Basic loss per share (in USD per share) | $ 0.34 | $ (1.61) | $ (0.88) | $ (0.50) | $ (0.53) | $ (0.57) | $ (1.50) | $ (0.50) | $ (2.65) | $ (3.10) | $ 0.64 |
Diluted per share amounts: | |||||||||||
Diluted (loss) earnings per share (in USD per share) | $ 0.34 | $ (1.61) | $ (0.88) | $ (0.50) | $ (0.53) | $ (0.57) | $ (1.50) | $ (0.50) | $ (2.65) | $ (3.10) | $ 0.63 |
Earnings (Loss) Per Share - Pot
Earnings (Loss) Per Share - Potentially Dilutive Securities Excluded from Earnings (Loss) Per Share Calculation (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive shares | 1,391,567 | 1,421,506 | 175,902 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cancellations and forfeitures | 0 | ||
Total compensation expense | $ 28 | $ 33 | $ 20 |
Income tax benefit | 9 | $ 11 | $ 7 |
Unearned compensation costs related to awards granted | $ 47 | ||
Unearned compensation cost, expected to be recognized over period (years) | 2 years 3 months 25 days | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unearned compensation cost, expected to be recognized over period (years) | 4 years | ||
Two Thousand Fifteen Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity awards available for future grants | 2,226,493 | 3,430,707 | |
Equity awards granted | (1,204,214) | ||
Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit | $ 1 | $ 3 | |
RSA | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity awards granted | (25,088) | (9,194) | (12,953) |
Date Of Grant | Two Thousand Fifteen Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares that became available under the 2015 Plan | 4,000,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of SAR's Outstanding (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Shares Granted | 0 | 0 | 0 | |
Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding at beginning of year | 1,397,611 | 1,292,142 | 1,402,784 | |
Shares Granted | 627,971 | 332,159 | 195,560 | |
Shares, Exercised | (160,946) | (179,702) | (267,077) | |
Shares, Forfeited | (115,215) | (45,441) | (38,738) | |
Shares, Expired | (8,635) | (1,547) | (387) | |
Shares, Outstanding at end of period | 1,740,786 | 1,397,611 | 1,292,142 | |
Shares, Exercisable at end of period | 828,754 | 736,075 | 586,344 | |
Weighted-average grant date fair value at beginning of year (in USD per share) | $ 56.15 | $ 56.78 | $ 42.20 | $ 36.36 |
Weighted-average exercise price, Granted (in USD per share) | 52.13 | 107.31 | 74.59 | |
Weighted-average exercise price, Exercised (in USD per share) | 35.37 | 40.71 | 34.03 | |
Weighted-average exercise price, Forfeited (in USD per share) | 65.74 | 75.26 | 50.57 | |
Weighted-average exercise price, Expired (in USD per share) | 88.65 | 47.11 | 46.07 | |
Weighted-average exercise price, Exercisable at end of year (in USD per share) | $ 45.14 | $ 35.90 | $ 33.03 |
Share-Based Compensation - Weig
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of interest rates, minimum | 0.25% | 0.02% | 0.02% |
Range of interest rates, maximum | 1.75% | 2.14% | 2.61% |
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 | 9.01% | 10.24% | 10.32% |
Volatility | 43.14% | 33.98% | 34.92% |
Risk free interest rate | 1.29% | 1.53% | 1.73% |
Expected weighted-average life | 5 years 3 months 29 days | 5 years 3 months 25 days | 5 years 4 months 10 days |
Fair value of SARs granted (in millions) | $ 13 | $ 12 | $ 5 |
Weighted-average grant date fair value of SARs granted (per underlying share) (in USD per share) | $ 20.18 | $ 35 | $ 24.98 |
Share-Based Compensation - Su78
Share-Based Compensation - Summary of Outstanding and Exercisable Options and SARs (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of SARs outstanding | |||
Fair value of SARs vested | $ 3,000,000 | $ 8,000,000 | $ 9,000,000 |
Income tax benefit | $ 9,000,000 | 11,000,000 | 7,000,000 |
Vesting period for SARs (years) | 2 years 3 months 25 days | ||
Stock Option | |||
Summary of SARs outstanding | |||
Aggregate intrinsic value, Outstanding | 4,000,000 | ||
Aggregate intrinsic value, Exercisable | $ 4,000,000 | ||
Weighted-average remaining contractual term, Outstanding | 1 year 3 months 25 days | ||
Weighted-average remaining contractual term, Exercisable | 1 year 3 months 25 days | ||
Intrinsic value of SARs exercised | $ 2,000,000 | $ 10,000,000 | 15,000,000 |
Stock Appreciation Rights (SARs) | |||
Summary of SARs outstanding | |||
Aggregate intrinsic value, Outstanding | 28,000,000 | ||
Aggregate intrinsic value, Exercisable | $ 20,000,000 | ||
Weighted-average remaining contractual term, Outstanding | 7 years | ||
Weighted-average remaining contractual term, Exercisable | 5 years | ||
Intrinsic value of SARs exercised | $ 6,000,000 | 11,000,000 | $ 11,000,000 |
Cash received from the exercise of SARs | 6,000,000 | 7,000,000 | |
Income tax benefit | 1,000,000 | 3,000,000 | |
Employee Stock Option | |||
Summary of SARs outstanding | |||
Cash received from the exercise of SARs | 2,000,000 | 9,000,000 | |
Income tax benefit | $ 1,000,000 | $ 2,000,000 | |
Maximum | |||
Summary of SARs outstanding | |||
Vesting period for SARs (years) | 4 years |
Share-Based Compensation - Su79
Share-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Options Activity | ||||
Options issued | 0 | 0 | 0 | |
Options issued | $ 3 | $ 8 | $ 9 | |
Options vested in period | 0 | |||
Income tax benefit | $ 9 | 11 | $ 7 | |
Employee Stock Option | ||||
Options Activity | ||||
Cash received from the exercise of options | 2 | 9 | ||
Income tax benefit | $ 1 | $ 2 | ||
Stock Option | ||||
Options Activity | ||||
Outstanding at beginning of year | 204,434 | 415,960 | 956,502 | |
Options issued | 0 | 0 | 0 | |
Shares, Exercised | (47,393) | (209,976) | (540,542) | |
Shares, Forfeited | 0 | 0 | 0 | |
Shares, Expired | (2,490) | (1,550) | 0 | |
Shares, Outstanding at end of period | 154,551 | 204,434 | 415,960 | |
Shares, Exercisable at end of period | 154,551 | 204,434 | 415,960 | |
Weighted-average grant date fair value at beginning of year | $ 35.96 | $ 36.66 | $ 40.19 | $ 42.77 |
Weighted-Average Exercise Price, Granted | 0 | 0 | 0 | |
Weighted-average exercise price, Exercised (in USD per share) | 38.60 | 43.53 | 44.76 | |
Weighted-average exercise price, Forfeited (in USD per share) | 0 | 0 | 0 | |
Weighted-average exercise price, Expired (in USD per share) | 43.35 | 51.62 | 0 | |
Weighted-average grant date fair value at end of year | 35.96 | 36.66 | 40.19 | $ 42.77 |
Weighted-average exercise price, Exercisable at end of year (in USD per share) | $ 35.96 | $ 36.66 | $ 40.19 | |
Aggregate intrinsic value, Outstanding | $ 4 | |||
Aggregate intrinsic value, Exercisable | $ 4 | |||
Weighted-average remaining contractual term, Outstanding | 1 year 3 months 25 days | |||
Weighted-average remaining contractual term, Exercisable | 1 year 3 months 25 days | |||
Intrinsic value for options exercised | $ 2 | $ 10 | $ 15 |
Share-Based Compensation - Su80
Share-Based Compensation - Summary of Restricted Stock Award and Other Award Types Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Two Thousand And Eleven Zebra Technologies Corporation Incentive Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future purchase | 1,000,000 | ||
Two Thousand Fifteen Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future purchase | 2,226,493 | 3,430,707 | |
Restricted Stock Awards | |||
Granted | 1,204,214 | ||
Restricted Stock Awards | |||
Restricted Stock Awards | |||
Granted | 25,088 | 9,194 | 12,953 |
Other Award Types | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares that may be purchased under the 2015 Plan | 95,210 | 11,618 | 52,416 |
Restricted Stock Awards | |||
Share-based liabilities paid | $ 0.8 | $ 0.9 | |
Maximum | Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Maximum | Other Award Types | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Date Of Purchase | Two Thousand And Eleven Zebra Technologies Corporation Incentive Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Purchase Price Per Share Equal To Lesser Of Fair Market Value Percentage | 95.00% | ||
Date Of Grant | Two Thousand And Eleven Zebra Technologies Corporation Incentive Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares that may be purchased under the 2015 Plan | 1,500,000 | ||
Date Of Grant | Two Thousand Fifteen Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares that may be purchased under the 2015 Plan | 4,000,000 |
Share-Based Compensation - Su81
Share-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Awards and Units | |||
Outstanding at beginning of year | 566,447 | 691,621 | 435,377 |
Granted | 389,193 | 185,782 | 423,644 |
Released | (275,229) | (253,801) | (153,200) |
Forfeited | (57,597) | (57,155) | (14,200) |
Outstanding at end of year | 622,814 | 566,447 | 691,621 |
Weighted-Average Grant Date Fair Value, Outstanding at beginning of year | $ 77.68 | $ 60.06 | $ 40.92 |
Weighted-Average Grant Date Fair Value, Granted | 51.93 | 107.17 | 73.42 |
Weighted-Average Grant Date Fair Value, Released | 59.39 | 51.95 | 43.16 |
Weighted-Average Grant Date Fair Value, Forfeited | 70.50 | 75.11 | 54.08 |
Weighted-Average Grant Date Fair Value, Outstanding at end of year | $ 70.19 | $ 77.68 | $ 60.06 |
Share-Based Compensation - Su82
Share-Based Compensation - Summary of Performance Share Award Activity (Detail) - Performance Share Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Performance Share Awards | |||
Outstanding at beginning of year | 332,630 | 374,180 | 195,159 |
Granted | 172,024 | 106,411 | 233,111 |
Shares, Released | (111,325) | (120,000) | (33,535) |
Shares, Forfeited | (14,103) | (27,961) | (20,555) |
Outstanding at end of year | 379,226 | 332,630 | 374,180 |
Weighted-Average Grant Date Fair Value, Outstanding at beginning of year | $ 73.40 | $ 61.53 | $ 42.25 |
Weighted-Average Grant Date Fair Value, Granted | 51.01 | 75.77 | 73 |
Weighted-Average Grant Date Fair Value, Released | 46.58 | 38.67 | 41.45 |
Weighted-Average Grant Date Fair Value, Forfeited | 75.73 | 73.45 | 41.45 |
Weighted-Average Grant Date Fair Value, Outstanding at end of year | $ 70.14 | $ 73.40 | $ 61.53 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Oct. 03, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | $ (22) | $ 8 | $ (22) | $ (15) |
Income tax rate | (6.20%) | 12.20% | (88.60%) | |
Effective tax rate | 35.00% | 35.00% | 35.00% | |
Deferred Tax Liabilities Undistributed Earnings | $ 1 | $ 0 | ||
Deferred income taxes undistributed foreign earnings | 0.5 | |||
Net operating loss carryforwards | 35 | 65 | ||
Capitalized research expenditures | 58 | 46 | ||
Tax credits | 33 | |||
Operating loss carryforwards | 35 | |||
Unrecognized tax benefits that would affect annual effective tax rate | 40 | 36 | ||
Unrecognized tax benefits that may reverse | 18 | |||
Unremitted earnings of foreign subsidiaries | 797 | 720 | ||
Income Tax Examination, Penalties and Interest Expense | 1 | |||
Penalties and interest accrued | 4 | $ 3 | ||
Year 2,035 | ||||
Income Tax Contingency [Line Items] | ||||
Tax credits | 25 | |||
Net operating loss carryforwards | 29 | |||
Year 2,021 | ||||
Income Tax Contingency [Line Items] | ||||
Tax credits | 8 | |||
Net operating loss carryforwards | $ 6 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (120) | $ (288) | $ (122) |
Outside United States | (9) | 108 | 139 |
(Loss) income before income taxes | $ (129) | $ (180) | $ 17 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Oct. 03, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | ||||
Federal | $ 14 | $ 84 | $ 6 | |
State | 6 | 4 | 4 | |
Foreign | 31 | 32 | 19 | |
Total current | 51 | 120 | 29 | |
Deferred: | ||||
Federal | (31) | (117) | (38) | |
State | (6) | (24) | (5) | |
Foreign | (6) | (1) | (1) | |
Total deferred | (43) | (142) | (44) | |
(Benefit) provision for income taxes | $ (22) | $ 8 | $ (22) | $ (15) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
(Benefit) provision computed at statutory rate | 35.00% | 35.00% | 35.00% |
State income tax, net of Federal tax benefit | (1.00%) | 1.10% | (5.90%) |
Foreign rate differential | (16.00%) | 13.90% | (176.50%) |
Change in valuation allowance | (1.00%) | (8.30%) | 17.60% |
US impact of Enterprise acquisition and integration | (14.10%) | (26.70%) | 41.20% |
Return to provision and other true ups | (3.70%) | 0.00% | (17.60%) |
Tax credits | 9.50% | 6.10% | (17.60%) |
Foreign earnings subject to US taxation | (6.60%) | (3.90%) | 17.60% |
Effect of rate changes on deferred taxes | (1.60%) | (3.30%) | 17.60% |
Other | (6.70%) | (1.70%) | 0.00% |
(Benefit) provision for income taxes | (6.20%) | 12.20% | (88.60%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Capitalized research expenditures | $ 58 | $ 46 |
Deferred revenue | 57 | 59 |
Tax credits | 33 | 32 |
Net operating loss carryforwards | 35 | 65 |
Other accruals | 35 | 47 |
Inventory items | 27 | 27 |
Capitalized software costs | 25 | 43 |
Sales return/rebate reserve | 23 | 22 |
Share-based compensation expense | 15 | 15 |
Accrued bonus | 11 | 16 |
Unrealized gain and losses on securities and investments | 4 | 10 |
Valuation allowance | (47) | (48) |
Total deferred tax assets | 276 | 334 |
Deferred: | ||
Unrealized loss on other investments | 0 | 0 |
Depreciation and amortization | 165 | 265 |
Undistributed earnings | 1 | 0 |
Total deferred tax liabilities | $ 166 | $ 265 |
Income Taxes - Reconciliation88
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits | ||
Balance at beginning of year | $ 40 | $ 19 |
Additions for tax positions related to the current year | 2 | 6 |
Additions for tax positions related to prior years | 2 | 18 |
Settlements for tax positions | (2) | (2) |
Settlements for tax positions | (1) | |
Balance at end of year | $ 42 | $ 40 |
Income Taxes - Summary of Open
Income Taxes - Summary of Open Tax Years by Major Jurisdiction Outside of the United States (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Earliest Tax Year | China | |
Income Tax Contingency [Line Items] | |
Open tax years by major tax jurisdiction | 2,003 |
Earliest Tax Year | France | |
Income Tax Contingency [Line Items] | |
Open tax years by major tax jurisdiction | 2,011 |
Earliest Tax Year | Germany | |
Income Tax Contingency [Line Items] | |
Open tax years by major tax jurisdiction | 2,009 |
Earliest Tax Year | India | |
Income Tax Contingency [Line Items] | |
Open tax years by major tax jurisdiction | 1,998 |
Earliest Tax Year | Japan | |
Income Tax Contingency [Line Items] | |
Open tax years by major tax jurisdiction | 2,012 |
Earliest Tax Year | United Kingdom | |
Income Tax Contingency [Line Items] | |
Open tax years by major tax jurisdiction | 2,009 |
Latest Tax Year | China | |
Income Tax Contingency [Line Items] | |
Open tax years by major tax jurisdiction | 2,015 |
Latest Tax Year | France | |
Income Tax Contingency [Line Items] | |
Open tax years by major tax jurisdiction | 2,015 |
Latest Tax Year | Germany | |
Income Tax Contingency [Line Items] | |
Open tax years by major tax jurisdiction | 2,015 |
Latest Tax Year | India | |
Income Tax Contingency [Line Items] | |
Open tax years by major tax jurisdiction | 2,015 |
Latest Tax Year | Japan | |
Income Tax Contingency [Line Items] | |
Open tax years by major tax jurisdiction | 2,015 |
Latest Tax Year | United Kingdom | |
Income Tax Contingency [Line Items] | |
Open tax years by major tax jurisdiction | 2,015 |
Accumulated Other Comprehensi90
Accumulated Other Comprehensive (Loss) Income - Components of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unrealized gains (losses) on sales hedging | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | $ (1) | $ 5 | $ (2) |
Components of AOCI | |||
Other comprehensive (loss) income before reclassifications | 1 | 7 | 8 |
Reclassification from AOCI | 7 | (15) | 1 |
Tax benefit (expense) | (1) | 2 | (2) |
Other comprehensive (loss) income | 7 | (6) | 7 |
Ending balance | 6 | (1) | 5 |
Unrealized gains (losses) on forward interest rate swaps | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (15) | (8) | 0 |
Components of AOCI | |||
Other comprehensive (loss) income before reclassifications | (1) | (12) | (12) |
Reclassification from AOCI | 2 | 1 | 0 |
Tax benefit (expense) | (1) | 4 | 4 |
Other comprehensive (loss) income | 0 | (7) | (8) |
Ending balance | (15) | (15) | (8) |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (32) | (6) | (7) |
Components of AOCI | |||
Other comprehensive (loss) income before reclassifications | (4) | (11) | 1 |
Reclassification from AOCI | 0 | (15) | 0 |
Tax benefit (expense) | 0 | 0 | 0 |
Other comprehensive (loss) income | (4) | (26) | 1 |
Ending balance | (36) | (32) | (6) |
Accumulated Other Comprehensive (Loss) Income | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (48) | (9) | (9) |
Components of AOCI | |||
Other comprehensive (loss) income before reclassifications | (4) | (16) | (3) |
Reclassification from AOCI | 9 | (29) | 1 |
Tax benefit (expense) | (2) | 6 | 2 |
Other comprehensive (loss) income | 3 | (39) | 0 |
Ending balance | $ (45) | $ (48) | $ (9) |
Accumulated Other Comprehensi91
Accumulated Other Comprehensive (Loss) Income Accumulated Other Comprehensive (Loss) Income - Comprehensive Income Components (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Oct. 03, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net sales of tangible products | $ 3,056 | $ 3,131 | $ 1,499 | |
Unrealized (gain) loss on sales hedging: | ||||
Tax benefit (expense) | $ 22 | (8) | 22 | 15 |
Interest expense | 193 | 193 | 62 | |
Foreign Currency Transaction Gain (Loss), before Tax | (5) | (23) | (9) | |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Unrealized (gain) loss on sales hedging: | ||||
Foreign Currency Transaction Gain (Loss), before Tax | 0 | 15 | 0 | |
Total amounts reclassified from AOCI | (7) | 26 | (1) | |
Commodity contract | Unrealized gains (losses) on sales hedging | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net sales of tangible products | (7) | 15 | (1) | |
Unrealized (gain) loss on sales hedging: | ||||
Tax benefit (expense) | 1 | 3 | 0 | |
Income (loss) from continuing operations, net of tax, including portion attributable to noncontrolling interest | (6) | 12 | (1) | |
Interest rate contract | Accumulated unrealized gains losses net on interest rate swap | Reclassification out of Accumulated Other Comprehensive Income | ||||
Unrealized (gain) loss on sales hedging: | ||||
Tax benefit (expense) | 1 | 0 | 0 | |
Income (loss) from continuing operations, net of tax, including portion attributable to noncontrolling interest | (1) | (1) | 0 | |
Interest expense | $ (2) | $ (1) | $ 0 |
Segment Information and Geogr92
Segment Information and Geographic Data - Additional Information (Detail) - distributor | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, number of customers who are distributors and not end users | 3 | ||
Concentration risk, number of customers that Individually Accounted for More Than Ten Percent | 3 | ||
Sales Revenue, Net | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Geographic Concentration Risk | United States | Long Lived Assets | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 91.40% | 87.00% | 89.60% |
Customer Concentration Risk | Accounts Receivable | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer Concentration Risk | Sales Revenue, Net | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer A | Customer Concentration Risk | Accounts Receivable | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 20.00% | 19.00% | |
Customer A | Customer Concentration Risk | Sales Revenue, Net | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 20.10% | 19.40% | 17.90% |
Customer B | Customer Concentration Risk | Accounts Receivable | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 14.00% | 14.00% | |
Customer B | Customer Concentration Risk | Sales Revenue, Net | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 13.20% | 12.70% | 13.60% |
Customer C | Customer Concentration Risk | Accounts Receivable | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 13.00% | 11.00% | |
Customer C | Customer Concentration Risk | Sales Revenue, Net | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 12.40% | 11.60% | 11.60% |
Zebra Legacy | Customer A | Customer Concentration Risk | Sales Revenue, Net | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 5.90% | 5.50% | 11.50% |
Zebra Legacy | Customer B | Customer Concentration Risk | Sales Revenue, Net | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 5.00% | 4.60% | 9.40% |
Zebra Legacy | Customer C | Customer Concentration Risk | Sales Revenue, Net | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 5.30% | 5.20% | 8.70% |
Enterprise Solutions | Customer A | Customer Concentration Risk | Sales Revenue, Net | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 14.20% | 13.90% | 6.40% |
Enterprise Solutions | Customer B | Customer Concentration Risk | Sales Revenue, Net | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 8.20% | 8.10% | 4.20% |
Enterprise Solutions | Customer C | Customer Concentration Risk | Sales Revenue, Net | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk percentage | 7.10% | 6.40% | 2.90% |
Segment Information and Geogr93
Segment Information and Geographic Data - Segment Information by Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales: | |||||||||||
Net sales: | $ 942 | $ 904 | $ 879 | $ 849 | $ 951 | $ 916 | $ 890 | $ 893 | $ 3,574 | $ 3,650 | $ 1,671 |
Operating income (loss): | |||||||||||
Operating income: | 80 | 37 | 89 | ||||||||
Operating segments | |||||||||||
Net sales: | |||||||||||
Net sales: | 3,584 | 3,666 | 1,677 | ||||||||
Operating income (loss): | |||||||||||
Operating income: | 526 | 494 | 303 | ||||||||
Intersegment Eliminations | |||||||||||
Net sales: | |||||||||||
Net sales: | (10) | (16) | (6) | ||||||||
Operating income (loss): | |||||||||||
Operating income: | (446) | (457) | (214) | ||||||||
Zebra Legacy | |||||||||||
Net sales: | |||||||||||
Net sales: | 1,247 | 1,286 | 1,195 | ||||||||
Operating income (loss): | |||||||||||
Operating income: | 240 | 258 | 238 | ||||||||
Enterprise Solutions | |||||||||||
Net sales: | |||||||||||
Net sales: | 2,337 | 2,380 | 482 | ||||||||
Operating income (loss): | |||||||||||
Operating income: | $ 286 | $ 236 | $ 65 |
Segment Information and Geogr94
Segment Information and Geographic Data - Information Regarding Operations by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Net sales | $ 942 | $ 904 | $ 879 | $ 849 | $ 951 | $ 916 | $ 890 | $ 893 | $ 3,574 | $ 3,650 | $ 1,671 |
Long-lived assets | 292 | 298 | 292 | 298 | 255 | ||||||
Europe, Middle East & Africa | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Net sales | 1,138 | 1,194 | 583 | ||||||||
Long-lived assets | 13 | 10 | 13 | 10 | 10 | ||||||
Latin America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Net sales | 214 | 219 | 135 | ||||||||
Long-lived assets | 3 | 3 | 3 | 3 | 2 | ||||||
Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Net sales | 483 | 463 | 216 | ||||||||
Long-lived assets | 9 | 10 | 9 | 10 | 5 | ||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Net sales | 1,835 | 1,876 | 934 | ||||||||
Long-lived assets | 25 | 23 | 25 | 23 | 17 | ||||||
North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Net sales | 1,739 | 1,774 | 737 | ||||||||
Long-lived assets | $ 267 | $ 275 | $ 267 | $ 275 | $ 238 | ||||||
Sales Revenue, Net | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk percentage | 10.00% |
Segment Information and Geogr95
Segment Information and Geographic Data - Net Sales by Country (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | $ 942 | $ 904 | $ 879 | $ 849 | $ 951 | $ 916 | $ 890 | $ 893 | $ 3,574 | $ 3,650 | $ 1,671 |
United States | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 1,950 | 2,045 | 875 | ||||||||
United Kingdom | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 1,065 | 1,102 | 558 | ||||||||
Singapore | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 362 | 175 | 155 | ||||||||
Other | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | $ 197 | $ 328 | $ 83 |
Segment Information and Geogr96
Segment Information and Geographic Data - Net Sales by Major Product Category (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue from External Customer [Line Items] | |||||||||||
Total Net sales | $ 942 | $ 904 | $ 879 | $ 849 | $ 951 | $ 916 | $ 890 | $ 893 | $ 3,574 | $ 3,650 | $ 1,671 |
Hardware | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total Net sales | 2,778 | 2,863 | 1,234 | ||||||||
Supplies | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total Net sales | 278 | 268 | 265 | ||||||||
Services and Software | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total Net sales | $ 518 | $ 519 | $ 172 |
Major Customers - Significant C
Major Customers - Significant Customers as Percentage of Total Net Sales (Detail) - Sales Revenue, Net | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer Concentration Risk | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer Concentration Risk | Customer A | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 20.10% | 19.40% | 17.90% |
Customer Concentration Risk | Customer B | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 13.20% | 12.70% | 13.60% |
Customer Concentration Risk | Customer C | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 12.40% | 11.60% | 11.60% |
Enterprise Solutions | Customer Concentration Risk | Customer A | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 14.20% | 13.90% | 6.40% |
Enterprise Solutions | Customer Concentration Risk | Customer B | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 8.20% | 8.10% | 4.20% |
Enterprise Solutions | Customer Concentration Risk | Customer C | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 7.10% | 6.40% | 2.90% |
Zebra Legacy | Customer Concentration Risk | Customer A | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 5.90% | 5.50% | 11.50% |
Zebra Legacy | Customer Concentration Risk | Customer B | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 5.00% | 4.60% | 9.40% |
Zebra Legacy | Customer Concentration Risk | Customer C | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 5.30% | 5.20% | 8.70% |
Major Customers - Additional In
Major Customers - Additional Information (Detail) - distributor | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | |||
Number of customers | 3 | ||
Concentration risk, number of customers that Individually Accounted for More Than Ten Percent | 3 | ||
Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer Concentration Risk | Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer Concentration Risk | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer A | Customer Concentration Risk | Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 20.10% | 19.40% | 17.90% |
Customer A | Customer Concentration Risk | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 20.00% | 19.00% | |
Customer B | Customer Concentration Risk | Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 13.20% | 12.70% | 13.60% |
Customer B | Customer Concentration Risk | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 14.00% | 14.00% | |
Customer C | Customer Concentration Risk | Sales Revenue, Net | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 12.40% | 11.60% | 11.60% |
Customer C | Customer Concentration Risk | Accounts Receivable | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 13.00% | 11.00% |
Supplementary Financial Infor99
Supplementary Financial Information Supplemental Financial Information (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Quarterly Financial Information Disclosure [Abstract] | ||
Accounts receivable | $ 628 | $ 677 |
Allowance for doubtful accounts | (3) | (6) |
Accounts receivable, net | 625 | 671 |
Foreign Exchange Contracts | 23 | 7 |
Other | 41 | 63 |
Prepaid expenses and other current assets | 64 | 70 |
Accrued incentive compensation | 52 | 68 |
Customer reserves | 50 | 38 |
Accrued payroll | 51 | 49 |
Interest payable | 20 | 36 |
Accrued other expenses | 150 | 176 |
Total accrued liabilities | $ 323 | $ 367 |
Quarterly Results of Operati100
Quarterly Results of Operations (unaudited) - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Total Net sales | $ 942 | $ 904 | $ 879 | $ 849 | $ 951 | $ 916 | $ 890 | $ 893 | $ 3,574 | $ 3,650 | $ 1,671 |
Gross profit | 432 | 414 | 406 | 390 | 428 | 414 | 393 | 409 | 1,642 | 1,644 | $ 778 |
Net (loss) income | $ 17 | $ (83) | $ (45) | $ (26) | $ (28) | $ (29) | $ (76) | $ (25) | $ (137) | $ (158) | |
Basic earnings per share (in USD per share) | $ 0.34 | $ (1.61) | $ (0.88) | $ (0.50) | $ (0.53) | $ (0.57) | $ (1.50) | $ (0.50) | $ (2.65) | $ (3.10) | $ 0.64 |
Diluted earnings per share (in USD per share) | $ 0.34 | $ (1.61) | $ (0.88) | $ (0.50) | $ (0.53) | $ (0.57) | $ (1.50) | $ (0.50) | $ (2.65) | $ (3.10) | $ 0.63 |
Valuation and Qualifying Acc101
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation account for accounts receivable: | |||
Valuation Account for Accounts Receivable | |||
Balance at Beginning of Period | $ 6 | $ 1 | $ 0 |
Charged to Costs and Expenses | 0 | 5 | 1 |
Deductions | 3 | 0 | 0 |
Balance at End of Period | 3 | 6 | 1 |
Valuation account for inventories: | |||
Valuation Account for Accounts Receivable | |||
Balance at Beginning of Period | 55 | 6 | 13 |
Charged to Costs and Expenses | 32 | 53 | 6 |
Deductions | 5 | 4 | 13 |
Balance at End of Period | 82 | 55 | 6 |
Valuation account for deferred tax assets: | |||
Valuation Account for Accounts Receivable | |||
Balance at Beginning of Period | 48 | 57 | 0 |
Charged to Costs and Expenses | 18 | 5 | 57 |
Deductions | 19 | 14 | 0 |
Balance at End of Period | $ 47 | $ 48 | $ 57 |