Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2017 | May 02, 2017 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 1, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ZBRA | |
Entity Registrant Name | ZEBRA TECHNOLOGIES CORP | |
Entity Central Index Key | 877,212 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 52,763,706 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 180 | $ 156 |
Accounts receivable, net of allowances for doubtful accounts of $4 | 550 | 625 |
Inventories, net | 376 | 345 |
Income tax receivable | 28 | 32 |
Prepaid expenses and other current assets | 35 | 64 |
Total Current assets | 1,169 | 1,222 |
Property, plant and equipment, net | 284 | 292 |
Goodwill | 2,460 | 2,458 |
Other intangibles, net | 430 | 480 |
Long-term deferred income taxes | 121 | 113 |
Other long-term assets | 67 | 67 |
Total Assets | 4,531 | 4,632 |
Current liabilities: | ||
Accounts payable | 365 | 413 |
Accrued liabilities | 324 | 323 |
Deferred revenue | 217 | 191 |
Income taxes payable | 15 | 22 |
Total Current liabilities | 921 | 949 |
Long-term debt | 2,573 | 2,648 |
Long-term deferred income taxes | 2 | 3 |
Long-term deferred revenue | 128 | 124 |
Other long-term liabilities | 112 | 116 |
Total Liabilities | 3,736 | 3,840 |
Stockholders’ Equity: | ||
Preferred stock, $.01 par value; authorized 10,000,000 shares; none issued | 0 | 0 |
Class A common stock, $.01 par value; authorized 150,000,000 shares; issued 72,151,857 shares | 1 | 1 |
Additional paid-in capital | 234 | 210 |
Treasury stock at cost, 19,397,578 and 19,267,269 shares at April 1, 2017 and December 31, 2016, respectively | (630) | (614) |
Retained earnings | 1,239 | 1,240 |
Accumulated other comprehensive loss | (49) | (45) |
Total Stockholders’ Equity | 795 | 792 |
Total Liabilities and Stockholders’ Equity | $ 4,531 | $ 4,632 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 4 | $ 4 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 72,151,857 | 72,151,857 |
Treasury stock, shares (in shares) | 19,397,578 | 19,267,269 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Net sales: | ||
Net sales of tangible products | $ 735 | $ 716 |
Revenue from services and software | 130 | 133 |
Total Net sales | 865 | 849 |
Cost of sales: | ||
Cost of sales of tangible products | 379 | 375 |
Cost of services and software | 85 | 84 |
Total Cost of sales | 464 | 459 |
Gross profit | 401 | 390 |
Operating expenses: | ||
Selling and marketing | 109 | 113 |
Research and development | 96 | 93 |
General and administrative | 75 | 74 |
Amortization of intangible assets | 50 | 59 |
Acquisition and integration costs | 27 | 36 |
Exit and restructuring costs | 4 | 5 |
Total Operating expenses | 361 | 380 |
Operating income | 40 | 10 |
Other (expenses) income: | ||
Foreign exchange (loss) gain | (1) | 2 |
Interest expense, net | (41) | (50) |
Other, net | 0 | (1) |
Total Other expenses | (42) | (49) |
Loss before income taxes | (2) | (39) |
Income tax benefit | (10) | (13) |
Net income (loss) | $ 8 | $ (26) |
Basic earnings (loss) per share (USD per share) | $ 0.16 | $ (0.50) |
Diluted earnings (loss) per share (USD per share) | $ 0.16 | $ (0.50) |
Basic weighted average shares outstanding (in shares) | 51,842,025 | 51,299,632 |
Diluted weighted average and equivalent shares outstanding (in shares) | 52,946,883 | 51,299,632 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 8 | $ (26) |
Other comprehensive income (loss), net of tax: | ||
Unrealized loss on anticipated sales hedging transactions | (6) | (15) |
Unrealized gain (loss) on forward interest rate swaps hedging transactions | 2 | (7) |
Foreign currency translation adjustment | 0 | 4 |
Comprehensive income (loss) | $ 4 | $ (44) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 8 | $ (26) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 69 | 77 |
Amortization of debt issuance costs and discount | 4 | 5 |
Share-based compensation | 7 | 9 |
Deferred income taxes | (9) | 3 |
Unrealized gain on forward interest rate swaps | 0 | (1) |
Other, net | 1 | 3 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 79 | 65 |
Inventories, net | (31) | 12 |
Other assets | 17 | 0 |
Accounts payable | (49) | 20 |
Accrued liabilities | (3) | (35) |
Deferred revenue | 30 | 4 |
Income taxes | (2) | (47) |
Other operating activities | (4) | 7 |
Net cash provided by operating activities | 117 | 96 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (13) | (19) |
Purchases of long-term investments | 0 | (1) |
Net cash used in investing activities | (13) | (20) |
Cash flows from financing activities: | ||
Payment of long-term debt | (80) | (80) |
Proceeds from exercise of stock options and stock purchase plan purchases | 4 | 3 |
Taxes paid related to net share settlement of equity awards | (2) | 0 |
Net cash used in financing activities | (78) | (77) |
Effect of exchange rate changes on cash | (2) | 3 |
Net increase in cash and cash equivalents | 24 | 2 |
Cash and cash equivalents at beginning of year | 156 | 192 |
Cash and cash equivalents at end of year | 180 | 194 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 5 | 29 |
Interest paid | $ 16 | $ 26 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Apr. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation 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. Management prepared these unaudited interim consolidated financial statements according to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information and notes. These consolidated financial statements do not include all of the information and notes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements, although management believes that the disclosures are adequate to make the information presented not misleading. Therefore, these consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2016. In the opinion of the Company, these interim financial statements include all adjustments (of a normal, recurring nature) necessary to present fairly its Consolidated Balance Sheet as of April 1, 2017 and the Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended April 1, 2017 and April 2, 2016, and the Consolidated Statements of Cash Flows for the three months ended April 1, 2017 and April 2, 2016. These results, however, are not necessarily indicative of the results expected for the full year. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Apr. 01, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Income Taxes The Company’s interim period tax provision is determined as follows: • At the end of each fiscal quarter, the Company estimates the income tax provision that will be provided for the fiscal year. • The forecasted annual effective tax rate is applied to the year-to-date ordinary income (loss) at the end of each quarter to compute the year-to-date tax applicable to ordinary income (loss). The term ordinary income (loss) refers to income (loss) from continuing operations, before income taxes, excluding significant, unusual, or infrequently occurring items. • The tax effects of significant, unusual, or infrequently occurring items are recognized as discrete items in the interim periods in which the events occur. The impact of changes in tax laws or rates on deferred tax amounts, the effects of changes in judgment about valuation allowances established in prior years, and changes in tax reserves resulting from the finalization of tax audits or reviews are examples of significant, unusual, or infrequently occurring items. The determination of the forecasted annual effective tax rate is based upon a number of significant estimates and judgments, including the forecasted annual income (loss) before income taxes of the Company in each tax jurisdiction in which it operates, the development of tax planning strategies during the year, and the need for a valuation allowance. In addition, the Company’s tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. Recently Adopted Accounting Pronouncement In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. The Company has adopted this ASU on a prospective basis effective as of January 1, 2017 and has concluded that this pronouncement has no material impact on its consolidated financial statements or existing accounting policies. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 850) ,” which clarifies the definition of a business when considering whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The clarified definition requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This definition reduces the number of transactions that need to be further evaluated as to be considered a business, an asset must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. The standard will be effective for public companies in the first calendar quarter of 2018, with early adoption permitted on a prospective basis. The Company has adopted this ASU effective as of January 1, 2017 on a prospective basis and has concluded that this pronouncement has no 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. The Company has adopted this ASU effective January 1, 2017. The Company recorded a reduction to retained earnings for the prior period catch-up of approximately $9 million for the unamortized prepaid tax on an intra-entity transfer of workforce in place. In March 2016, the FASB issued ASU 2016-09, “ Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting .” 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. The Company has adopted recognition of excess tax benefits and deficiencies within income tax expense effective January 1, 2017 on a prospective basis. The Company has adopted presentation of excess tax benefits and deficiencies within operating activities effective January 1, 2017 on a retrospective basis. There are no material impacts to the Company’s consolidated financial statements or disclosures as a result of the adoption of this ASU. “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. The Company has adopted this ASU effective January 1, 2017 on a prospective basis. There are no material impacts to the Company's consolidated financial statements or disclosures resulting from the adoption of this ASU. Recently Issued Accounting Pronouncements Not Yet Adopted 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 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 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 cost 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. |
Inventories
Inventories | 3 Months Ended |
Apr. 01, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, 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): April 1, December 31, Raw material $ 160 $ 172 Work in process 1 1 Finished goods 298 254 Inventories, gross 459 427 Inventory reserves (83 ) (82 ) Inventories, net $ 376 $ 345 |
Business Divestiture
Business Divestiture | 3 Months Ended |
Apr. 01, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Business Divestiture | Business Divestiture 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. WLAN operating results are reported in the Enterprise segment through the closing date of the WLAN divestiture of October 28, 2016. Within the quarter ended April 2, 2016 Consolidated Statement of Operations, the Company generated revenue and gross profit from these assets of $33 million and $14 million , respectively. On October 28, 2016, the Company completed the disposition of the Divestiture Group. There are no remaining held for sale assets or liabilities on the Company’s Consolidated Balance Sheet related to the Divestiture Group as of April 1, 2017. |
Costs Associated with Exit and
Costs Associated with Exit and Restructuring Activities | 3 Months Ended |
Apr. 01, 2017 | |
Restructuring and Related Activities [Abstract] | |
Costs Associated with Exit and Restructuring Activities | Costs Associated with Exit and Restructuring Activities In the first quarter 2017, the Company’s executive leadership approved an initiative to continue the company’s efforts to increase operational efficiency (the “Productivity Plan”). The Company expects the Productivity Plan to build upon the exit and restructuring initiatives specific to the Acquisition of the Enterprise business (“Enterprise”) from Motorola Solutions, Inc. in October 2014 and further defined in the Company’s Form 10-K, (the “Acquisition Plan”) that the Company previously announced and began implementing during the first quarter 2015. Expected actions under the Productivity Plan could impact either reportable segment and may include actions related to organizational design changes, process improvements, and automation. Implementation of actions identified through the Productivity Plan is expected to be substantially complete by the end of our 2018 fiscal year with the first full year of financial benefits realized in 2019. The Company has not finalized its estimate of one-time implementation costs, exit and restructuring charges, or expected benefits that may result from these efforts and will provide updates on these items in future periodic filings. Total exit and restructuring charges of $4 million life-to-date specific to the Productivity Plan have been recorded through April 1, 2017 : $3 million in the Legacy Zebra segment and $1 million in the Enterprise segment related to severance, related benefits, and other expenses. Total exit and restructuring charges of $65 million life-to-date specific to the Acquisition Plan, including the sale of the Company’s WLAN business, have been recorded through April 1, 2017 : $15 million in the Legacy Zebra segment and $50 million in the Enterprise segment related to severance, related benefits, and other expenses. There were no charges related to the Acquisition Plan for the quarter ended April 1, 2017 . The Company expects to complete the actions of the Acquisition Plan by December 31, 2017. Total remaining charges associated with this plan are expected to be in the range of $5 million to $7 million . During the period ended April 1, 2017, the Company incurred exit and restructuring costs as follows (in millions): Cumulative costs incurred through December 31, 2016 Costs incurred for the three months ended April 1, 2017 Cumulative costs incurred through April 1, 2017 Severance, related benefits and, other expenses $ 54 $ 4 $ 58 Obligations for future non-cancellable lease payments 11 — 11 Total $ 65 $ 4 $ 69 Total exit and restructuring charges for the quarter ended April 1, 2017 were $3 million and $1 million for the Legacy Zebra and Enterprise segments, respectively. A rollforward of the exit and restructuring accruals is as follows (in millions): Three Months Ended April 1, April 2, Balance at the beginning of the period $ 10 $ 15 Charged to earnings 4 5 Cash paid (3 ) (7 ) Balance at the end of the period $ 11 $ 13 Liabilities related to exit and restructuring activities are included in the following accounts in the consolidated balance sheets (in millions): April 1, December 31, Accrued liabilities $ 8 $ 7 Other long-term liabilities 3 3 Total liabilities related to exit and restructuring activities $ 11 $ 10 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. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 01, 2017 | |
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 & 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 April 1, 2017 , are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts (1) $ — $ 4 $ — $ 4 Money market investments related to the deferred compensation plan 12 — — 12 Total Assets at fair value $ 12 $ 4 $ — $ 16 Liabilities: Forward interest rate swap contracts (2) $ — $ 24 $ — $ 24 Foreign exchange contracts (1) 5 — — 5 Liabilities related to the deferred compensation plan 12 — — 12 Total Liabilities at fair value $ 17 $ 24 $ — $ 41 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 (1) The fair value of the derivative contracts is calculated as follows: a. Fair value of a 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 (Level 2). If the hedge has been traded but not settled at period-end, 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 $5 million and $11 million as of April 1, 2017 and December 31, 2016 , respectively. (2) The fair value of forward interest rate swaps 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 credit risk and the interest rate swap terms. See gross balance reporting in Note 7, Derivative Instruments . |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Apr. 01, 2017 | |
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 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 sheets 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 April 1, 2017 December 31, 2016 Derivative instruments designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ 4 $ 12 Foreign exchange contracts Accrued liabilities — — Forward interest rate swaps Accrued liabilities (1 ) (3 ) Forward interest rate swaps Other long-term liabilities (13 ) (13 ) Total derivative instruments designated as hedges $ (10 ) $ (4 ) Derivative instruments not designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ — $ 11 Foreign exchange contracts Accrued liabilities (5 ) — Forward interest rate swaps Accrued liabilities (1 ) (1 ) Forward interest rate swaps Other long-term liabilities (9 ) (10 ) Total derivative instruments not designated as hedges (15 ) — Total Net Derivative Liability $ (25 ) $ (4 ) See also Note 6, Fair Value Measurements . The following table presents the (losses) gains from changes in fair values of derivatives that are not designated as hedges (in millions): Gain (Loss) Recognized in Income Three Months Ended Statement of Operations Classification April 1, 2017 April 2, 2016 Derivative instruments not designated as hedges: Foreign exchange contracts Foreign exchange (loss) gain $ (5 ) $ (5 ) Forward interest rate swaps Interest expense, net 1 1 Total (loss) gain recognized in income $ (4 ) $ (4 ) 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 April 1, 2017 and December 31, 2016 , the notional amounts of the Company’s foreign exchange cash flow hedges were €321 million and €341 million , respectively. 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 transaction gains and losses related to their net asset positions. The notional values and the net fair value of these outstanding contracts are as follow (in millions): April 1, 2017 December 31, 2016 Notional balance of outstanding contracts: British Pound/U.S. dollar £ 11 £ 3 Euro/U.S. dollar € 138 € 148 British Pound/Euro £ 8 £ 8 Canadian Dollar/U.S. dollar $ 4 $ 13 Czech Koruna/U.S. dollar Kč 192 Kč 147 Brazilian Real/U.S. dollar R$ 72 R$ 56 Malaysian Ringgit/U.S. dollar RM 2 RM 16 Australian Dollar/U.S. dollar $ 5 $ 50 Swedish Krona/U.S. dollar kr 22 kr 7 Japanese yen/U.S. dollar ¥ 168 ¥ 48 Singapore dollar/U.S. dollar S$ 11 S$ 15 Net fair value asset (liability) of outstanding contracts $ (5 ) $ 11 Interest Rate Risk Management In October 2014, the Company entered into a credit agreement (the “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 8, 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 April 1, 2017 , the Company estimated that approximately $4 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 April 1, 2017 (in millions): Gross Fair Value Counterparty Offsetting Net Fair Value in the Consolidated Balance Sheets Counterparty A $ 11 $ 6 $ 5 Counterparty B 4 2 2 Counterparty C 4 2 2 Counterparty D 8 3 5 Counterparty E 3 1 2 Counterparty F 4 1 3 Counterparty G 5 — 5 Total $ 39 $ 15 $ 24 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 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Apr. 01, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following table summarizes the carrying value of the Company’s long-term debt (in millions): April 1, December 31, 2016 Senior Notes $ 1,050 $ 1,050 Term Loan 1,573 1,653 Less: Debt Issuance Costs (20 ) (22 ) Less: Unamortized Discounts (30 ) (33 ) Total outstanding debt $ 2,573 $ 2,648 At April 1, 2017 , the future maturities of long-term debt, excluding debt discounts and issuance costs, consisted of the following (in millions): 2017 $ — 2018 — 2019 — 2020 — 2021 1,573 Thereafter 1,050 Total maturities of long-term debt $ 2,623 The estimated fair value of our long-term debt approximated $2.7 billion at April 1, 2017 and $2.8 billion at December 31, 2016 . 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. Credit Facilities On October 27, 2014, the Company entered into a credit agreement (the “Credit Agreement”) which provided for a term loan of $2.2 billion (“Term Loan”) and a revolving credit facility of $250 million (“Revolving Credit Facility”). The Company entered into amendments to the Credit Agreement on June 2, 2016 and December 6, 2016 (the “2016 Amendments”), respectively, which lowered the index rate spread for LIBOR loans from LIBOR + 400 bps down to LIBOR + 250 bps. In accounting for the 2016 Amendments, 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 expenses in the fiscal year 2016, primarily related to costs incurred with third-parties for arranger, legal, and other services and the loss incurred on the extinguished debt totaling $4.4 million . These expenses are reflected as non-operating expenses on the year ended December 31, 2016 Consolidated Statement of Operations. As a result of the 2016 Amendments, 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 Term Loan, as amended, bear interest at a variable rate subject to a floor of 3.25% . As of April 1, 2017 , the Term Loan interest rate was 3.60% . 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 7, Derivative Instruments for further details. $80 million in the current quarter. In April 2017, the Company made total additional optional principal prepayments of $50 million . The Term Loan, unless amended, modified, or extended, will mature on October 27, 2021 (the “Term Loan Maturity Date”). To the extent not previously paid, the Term Loan (or Term Loans, as the case may be) are due and payable on the Term Loan Maturity Date. At such time, the Company will be required to repay all outstanding principal, accrued and unpaid interest and other charges in accordance with the Credit Agreement. Assuming the Company makes no further optional prepayments on the Term Loan, the outstanding principal as of the Term Loan Maturity Date will be approximately $1.6 billion . The Credit Agreement requires the Company to prepay the Revolving Credit Facility, under certain circumstances or transactions defined in the Credit Agreement. 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 April 1, 2017 , 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 April 1, 2017 , the Revolving Credit Facility interest rate was 3.65% . Interest payments are payable quarterly. As of April 1, 2017 and April 2, 2016 , the Company did not have any borrowings against the Revolving Credit Facility. On April 1, 2017 , the Company was in compliance with all covenants. Debt issuance costs have a remaining balance to be amortized of $20 million and are recorded within Long-term debt on the Consolidated Balance Sheet for the quarter ending April 1, 2017 ; $16 million relates to the Senior Notes, $1 million relates to the Term Loan, and $3 million relates to the Revolver. These costs are amortized over 8 , 7 and 5 years , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingencies Warranty In general, the Company provides warranty coverage of 1 year on mobile computers. Advanced data capture products are warrantied from 1 to 5 years, depending on the product. Printers are warrantied for 1 year against defects in material and workmanship. Thermal printheads are warrantied for 6 months and batteries are warrantied for 1 year. Battery-based products, such as location tags, are covered by a 90 -day warranty. The 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): Three Months Ended April 1, 2017 April 2, 2016 Balance at the beginning of the period $ 21 $ 22 Warranty expense 6 7 Warranty payments (7 ) (8 ) Balance at the end of the period $ 20 $ 21 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 is one ( 1 ) discovery motion 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 (loss) per Share
Earnings (loss) per Share | 3 Months Ended |
Apr. 01, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per Share | Earnings (loss) per Share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock method and reflects the additional shares that would be outstanding if dilutive stock options were exercised and restricted stock awards and warrants were settled for common shares during the period. Earnings per share (in millions, except per share data): Three Months Ended April 1, 2017 April 2, 2016 Basic: Net income (loss) attributable to the Company $ 8 $ (26 ) Weighted-average shares outstanding 51,842,025 51,299,632 Basic earnings (loss) per share $ 0.16 $ (0.50 ) Diluted: Net income (loss) attributable to the Company $ 8 $ (26 ) Weighted-average shares outstanding 51,842,025 51,299,632 Dilutive shares (1) 1,104,858 — Diluted weighted-average shares outstanding 52,946,883 51,299,632 Diluted earnings (loss) per share $ 0.16 $ (0.50 ) (1) Due to net losses in the first quarter of 2016, options, awards and warrants were anti-dilutive and therefore excluded from the earnings per share calculation. There were 532,353 outstanding options, awards, and warrants to purchase common shares that were anti-dilutive and excluded from the first quarter earnings per share calculation as of April 1, 2017 compared to 1,478,983 as of April 2, 2016. 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates for the three-month periods ended April 1, 2017 and April 2, 2016 were 500.0% and 33.3% , respectively. The current period variance from the federal statutory rate is attributable to unbenefited foreign losses, benefits of foreign rates, and credits against U.S. income tax offset by the impacts of the Enterprise acquisition and state income taxes. The discrete provision for income taxes recorded in the period results from benefits related to an intercompany sale of intellectual property, benefits from a rate decrease in Singapore, and windfall benefits related to stock compensation. The rate impacts of the intercompany sale, a $12 million benefit, is the result of newly adopted accounting standards. Impacts related to stock compensation newly adopted accounting standards are immaterial in the current period. The prior year variance from statutory rates is the result of foreign income mix and non-taxable interest income. 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 U.S. 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (loss) | 3 Months Ended |
Apr. 01, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (loss) | Accumulated Other Comprehensive Income (loss) Stockholders’ equity includes certain items classified as accumulated other comprehensive income (loss), including: • Unrealized (loss) gain on anticipated sales hedging transactions relates 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 7, Derivative Instruments for more details. • Unrealized (loss) gain on forward interest rate swaps hedging transactions refers to the hedging of the interest rate risk exposure associated with the variable rate commitment entered into for the Acquisition. See Note 7, Derivative Instruments for more details. • Foreign currency translation adjustment relates to the Company’s non-U.S. subsidiary companies that have designated a functional currency other than the U.S. dollar. The Company is required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of accumulated other comprehensive income. The components of accumulated other comprehensive income (loss) (“AOCI”) for the three months ended April 1, 2017 and April 2, 2016 are as follows (in millions): Unrealized (loss) gain on sales hedging Unrealized (loss)/ gain on forward interest rate swaps (1) Currency translation adjustments Total Balance at December 31, 2015 $ (1 ) $ (15 ) $ (32 ) $ (48 ) Other comprehensive (loss) income before reclassifications (20 ) (9 ) 4 (25 ) Amounts reclassified from AOCI 1 (1 ) — — Tax benefit 4 3 — 7 Other comprehensive (loss) income (15 ) (7 ) 4 (18 ) Balance at April 2, 2016 $ (16 ) $ (22 ) $ (28 ) $ (66 ) Balance at December 31, 2016 $ 6 $ (15 ) $ (36 ) $ (45 ) Other comprehensive (loss) income before reclassifications (6 ) 2 — (4 ) Amounts reclassified from AOCI (1 ) 1 — — Tax benefit (expense) 1 (1 ) — — Other comprehensive (loss) income (6 ) 2 — (4 ) Balance at April 1, 2017 $ — $ (13 ) $ (36 ) $ (49 ) (1) See Note 7, Derivative Instruments regarding timing of reclassifications. Reclassifications out of AOCI to earnings during the three months ended April 1, 2017 and April 2, 2016 were immaterial in the respective periods. |
Segment Information
Segment Information | 3 Months Ended |
Apr. 01, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has two reportable segments: Legacy Zebra and Enterprise. The operating segments have been identified based on the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker) to assess segment performance and allocate resources among the Company’s segments. The chief operating decision maker uses adjusted operating income to assess segment profitability. Adjusted operating income excludes purchase accounting adjustments, amortization, acquisition, integration and exit and restructuring costs. Segment assets are not reviewed by the Company’s chief operating decision maker and therefore are not disclosed below. Financial information by segment is presented as follows (in millions): Three Months Ended April 1, April 2, Net sales: Legacy Zebra $ 322 $ 314 Enterprise 544 538 Total segment 866 852 Corporate, eliminations (1) (1 ) (3 ) Total $ 865 $ 849 Operating income (loss): Legacy Zebra $ 67 $ 71 Enterprise 55 42 Total segment 122 113 Corporate, eliminations (2) (82 ) (103 ) Total $ 40 $ 10 (1) Amounts included in Corporate, eliminations consist of purchase accounting adjustments not reported in segments related to the Acquisition. (2) Amounts included in Corporate, eliminations consist of purchase accounting adjustments not reported in segments; amortization expense, acquisition and integration expenses, and exit and restructuring costs. |
Significant Accounting Polici20
Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 01, 2017 | |
Accounting Policies [Abstract] | |
Income Taxes | Income Taxes The Company’s interim period tax provision is determined as follows: • At the end of each fiscal quarter, the Company estimates the income tax provision that will be provided for the fiscal year. • The forecasted annual effective tax rate is applied to the year-to-date ordinary income (loss) at the end of each quarter to compute the year-to-date tax applicable to ordinary income (loss). The term ordinary income (loss) refers to income (loss) from continuing operations, before income taxes, excluding significant, unusual, or infrequently occurring items. • The tax effects of significant, unusual, or infrequently occurring items are recognized as discrete items in the interim periods in which the events occur. The impact of changes in tax laws or rates on deferred tax amounts, the effects of changes in judgment about valuation allowances established in prior years, and changes in tax reserves resulting from the finalization of tax audits or reviews are examples of significant, unusual, or infrequently occurring items. The determination of the forecasted annual effective tax rate is based upon a number of significant estimates and judgments, including the forecasted annual income (loss) before income taxes of the Company in each tax jurisdiction in which it operates, the development of tax planning strategies during the year, and the need for a valuation allowance. In addition, the Company’s tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. |
Recently Adopted Accounting Pronouncement and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncement In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. The Company has adopted this ASU on a prospective basis effective as of January 1, 2017 and has concluded that this pronouncement has no material impact on its consolidated financial statements or existing accounting policies. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 850) ,” which clarifies the definition of a business when considering whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The clarified definition requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This definition reduces the number of transactions that need to be further evaluated as to be considered a business, an asset must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. The standard will be effective for public companies in the first calendar quarter of 2018, with early adoption permitted on a prospective basis. The Company has adopted this ASU effective as of January 1, 2017 on a prospective basis and has concluded that this pronouncement has no 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. The Company has adopted this ASU effective January 1, 2017. The Company recorded a reduction to retained earnings for the prior period catch-up of approximately $9 million for the unamortized prepaid tax on an intra-entity transfer of workforce in place. In March 2016, the FASB issued ASU 2016-09, “ Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting .” 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. The Company has adopted recognition of excess tax benefits and deficiencies within income tax expense effective January 1, 2017 on a prospective basis. The Company has adopted presentation of excess tax benefits and deficiencies within operating activities effective January 1, 2017 on a retrospective basis. There are no material impacts to the Company’s consolidated financial statements or disclosures as a result of the adoption of this ASU. “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. The Company has adopted this ASU effective January 1, 2017 on a prospective basis. There are no material impacts to the Company's consolidated financial statements or disclosures resulting from the adoption of this ASU. Recently Issued Accounting Pronouncements Not Yet Adopted 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 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 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 cost 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. |
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 & 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. |
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 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 sheets and measures them at fair value. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventories, Net | The components of inventories, net are as follows (in millions): April 1, December 31, Raw material $ 160 $ 172 Work in process 1 1 Finished goods 298 254 Inventories, gross 459 427 Inventory reserves (83 ) (82 ) Inventories, net $ 376 $ 345 |
Costs Associated with Exit an22
Costs Associated with Exit and Restructuring Activities (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Restructuring and Related Activities [Abstract] | |
Summary of Exit and Restructuring Costs Incurred | During the period ended April 1, 2017, the Company incurred exit and restructuring costs as follows (in millions): Cumulative costs incurred through December 31, 2016 Costs incurred for the three months ended April 1, 2017 Cumulative costs incurred through April 1, 2017 Severance, related benefits and, other expenses $ 54 $ 4 $ 58 Obligations for future non-cancellable lease payments 11 — 11 Total $ 65 $ 4 $ 69 |
Rollforward of Exit and Restructuring Accruals | A rollforward of the exit and restructuring accruals is as follows (in millions): Three Months Ended April 1, April 2, Balance at the beginning of the period $ 10 $ 15 Charged to earnings 4 5 Cash paid (3 ) (7 ) Balance at the end of the period $ 11 $ 13 |
Schedule of Liabilities Related to Exit and Restructuring Activities Included in Consolidated Balance Sheets | Liabilities related to exit and restructuring activities are included in the following accounts in the consolidated balance sheets (in millions): April 1, December 31, Accrued liabilities $ 8 $ 7 Other long-term liabilities 3 3 Total liabilities related to exit and restructuring activities $ 11 $ 10 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Carried at Fair Value | Financial assets and liabilities carried at fair value as of April 1, 2017 , are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Foreign exchange contracts (1) $ — $ 4 $ — $ 4 Money market investments related to the deferred compensation plan 12 — — 12 Total Assets at fair value $ 12 $ 4 $ — $ 16 Liabilities: Forward interest rate swap contracts (2) $ — $ 24 $ — $ 24 Foreign exchange contracts (1) 5 — — 5 Liabilities related to the deferred compensation plan 12 — — 12 Total Liabilities at fair value $ 17 $ 24 $ — $ 41 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 (1) The fair value of the derivative contracts is calculated as follows: a. Fair value of a 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 (Level 2). If the hedge has been traded but not settled at period-end, 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 $5 million and $11 million as of April 1, 2017 and December 31, 2016 , respectively. (2) The fair value of forward interest rate swaps 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 credit risk and the interest rate swap terms. See gross balance reporting in Note 7, Derivative Instruments . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 December 31, 2016 Derivative instruments designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ 4 $ 12 Foreign exchange contracts Accrued liabilities — — Forward interest rate swaps Accrued liabilities (1 ) (3 ) Forward interest rate swaps Other long-term liabilities (13 ) (13 ) Total derivative instruments designated as hedges $ (10 ) $ (4 ) Derivative instruments not designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ — $ 11 Foreign exchange contracts Accrued liabilities (5 ) — Forward interest rate swaps Accrued liabilities (1 ) (1 ) Forward interest rate swaps Other long-term liabilities (9 ) (10 ) Total derivative instruments not designated as hedges (15 ) — Total Net Derivative Liability $ (25 ) $ (4 ) |
Derivative Instruments, Gain (Loss) | The following table presents the (losses) gains from changes in fair values of derivatives that are not designated as hedges (in millions): Gain (Loss) Recognized in Income Three Months Ended Statement of Operations Classification April 1, 2017 April 2, 2016 Derivative instruments not designated as hedges: Foreign exchange contracts Foreign exchange (loss) gain $ (5 ) $ (5 ) Forward interest rate swaps Interest expense, net 1 1 Total (loss) gain recognized in income $ (4 ) $ (4 ) |
Financial Information Related to Hedging of Net Assets Included in Consolidated Statements of Operations | The notional values and the net fair value of these outstanding contracts are as follow (in millions): April 1, 2017 December 31, 2016 Notional balance of outstanding contracts: British Pound/U.S. dollar £ 11 £ 3 Euro/U.S. dollar € 138 € 148 British Pound/Euro £ 8 £ 8 Canadian Dollar/U.S. dollar $ 4 $ 13 Czech Koruna/U.S. dollar Kč 192 Kč 147 Brazilian Real/U.S. dollar R$ 72 R$ 56 Malaysian Ringgit/U.S. dollar RM 2 RM 16 Australian Dollar/U.S. dollar $ 5 $ 50 Swedish Krona/U.S. dollar kr 22 kr 7 Japanese yen/U.S. dollar ¥ 168 ¥ 48 Singapore dollar/U.S. dollar S$ 11 S$ 15 Net fair value asset (liability) of outstanding contracts $ (5 ) $ 11 |
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 April 1, 2017 (in millions): Gross Fair Value Counterparty Offsetting Net Fair Value in the Consolidated Balance Sheets Counterparty A $ 11 $ 6 $ 5 Counterparty B 4 2 2 Counterparty C 4 2 2 Counterparty D 8 3 5 Counterparty E 3 1 2 Counterparty F 4 1 3 Counterparty G 5 — 5 Total $ 39 $ 15 $ 24 |
Schedule of Notional Amounts by Year | 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 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Value of Debt | The following table summarizes the carrying value of the Company’s long-term debt (in millions): April 1, December 31, 2016 Senior Notes $ 1,050 $ 1,050 Term Loan 1,573 1,653 Less: Debt Issuance Costs (20 ) (22 ) Less: Unamortized Discounts (30 ) (33 ) Total outstanding debt $ 2,573 $ 2,648 |
Schedule of Future Maturities of Long-term Debt | At April 1, 2017 , the future maturities of long-term debt, excluding debt discounts and issuance costs, consisted of the following (in millions): 2017 $ — 2018 — 2019 — 2020 — 2021 1,573 Thereafter 1,050 Total maturities of long-term debt $ 2,623 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Accrued Warranty Obligation | The following table is a summary of the Company’s accrued warranty obligation (in millions): Three Months Ended April 1, 2017 April 2, 2016 Balance at the beginning of the period $ 21 $ 22 Warranty expense 6 7 Warranty payments (7 ) (8 ) Balance at the end of the period $ 20 $ 21 |
Earnings (loss) per Share (Tabl
Earnings (loss) per Share (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | Earnings per share (in millions, except per share data): Three Months Ended April 1, 2017 April 2, 2016 Basic: Net income (loss) attributable to the Company $ 8 $ (26 ) Weighted-average shares outstanding 51,842,025 51,299,632 Basic earnings (loss) per share $ 0.16 $ (0.50 ) Diluted: Net income (loss) attributable to the Company $ 8 $ (26 ) Weighted-average shares outstanding 51,842,025 51,299,632 Dilutive shares (1) 1,104,858 — Diluted weighted-average shares outstanding 52,946,883 51,299,632 Diluted earnings (loss) per share $ 0.16 $ (0.50 ) (1) Due to net losses in the first quarter of 2016, options, awards and warrants were anti-dilutive and therefore excluded from the earnings per share calculation. |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (loss) (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) (AOCI) | The components of accumulated other comprehensive income (loss) (“AOCI”) for the three months ended April 1, 2017 and April 2, 2016 are as follows (in millions): Unrealized (loss) gain on sales hedging Unrealized (loss)/ gain on forward interest rate swaps (1) Currency translation adjustments Total Balance at December 31, 2015 $ (1 ) $ (15 ) $ (32 ) $ (48 ) Other comprehensive (loss) income before reclassifications (20 ) (9 ) 4 (25 ) Amounts reclassified from AOCI 1 (1 ) — — Tax benefit 4 3 — 7 Other comprehensive (loss) income (15 ) (7 ) 4 (18 ) Balance at April 2, 2016 $ (16 ) $ (22 ) $ (28 ) $ (66 ) Balance at December 31, 2016 $ 6 $ (15 ) $ (36 ) $ (45 ) Other comprehensive (loss) income before reclassifications (6 ) 2 — (4 ) Amounts reclassified from AOCI (1 ) 1 — — Tax benefit (expense) 1 (1 ) — — Other comprehensive (loss) income (6 ) 2 — (4 ) Balance at April 1, 2017 $ — $ (13 ) $ (36 ) $ (49 ) (1) See Note 7, Derivative Instruments regarding timing of reclassifications. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Segment Reporting [Abstract] | |
Segment Information by Reportable Segments | Financial information by segment is presented as follows (in millions): Three Months Ended April 1, April 2, Net sales: Legacy Zebra $ 322 $ 314 Enterprise 544 538 Total segment 866 852 Corporate, eliminations (1) (1 ) (3 ) Total $ 865 $ 849 Operating income (loss): Legacy Zebra $ 67 $ 71 Enterprise 55 42 Total segment 122 113 Corporate, eliminations (2) (82 ) (103 ) Total $ 40 $ 10 (1) Amounts included in Corporate, eliminations consist of purchase accounting adjustments not reported in segments related to the Acquisition. (2) Amounts included in Corporate, eliminations consist of purchase accounting adjustments not reported in segments; amortization expense, acquisition and integration expenses, and exit and restructuring costs. |
Significant Accounting Polici30
Significant Accounting Policies (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2017USD ($) | |
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-16 | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Reduction to retained earnings | $ 9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 160 | $ 172 |
Work in process | 1 | 1 |
Finished goods | 298 | 254 |
Inventories, gross | 459 | 427 |
Inventory reserves | (83) | (82) |
Inventories, net | $ 376 | $ 345 |
Business Divestiture (Details)
Business Divestiture (Details) - Wireless LAN (WLAN) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - USD ($) | 3 Months Ended | 12 Months Ended | ||
Apr. 02, 2016 | Dec. 31, 2016 | Apr. 01, 2017 | Sep. 13, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Divesture of business gross purchase price | $ 55,000,000 | |||
Proceeds from divestiture of businesses | $ 39,000,000 | |||
Revenue from sale of assets | $ 33,000,000 | |||
Gross profit from sale of assets | $ 14,000,000 | |||
Disposal group, including discontinued operation, assets | $ 0 | |||
Disposal group, including discontinued operation, liabilities | $ 0 |
Costs Associated with Exit an33
Costs Associated with Exit and Restructuring Activities - Additional Information (Detail) - USD ($) | 3 Months Ended | 26 Months Ended | 29 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 | Apr. 01, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Exit and restructuring costs | $ 4,000,000 | $ 5,000,000 | $ 65,000,000 | $ 69,000,000 |
Legacy Zebra | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Exit and restructuring costs | 3,000,000 | |||
Enterprise | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Exit and restructuring costs | 1,000,000 | |||
Productivity Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Exit and restructuring charges, incurred life to date | 4,000,000 | 4,000,000 | ||
Productivity Plan | Legacy Zebra | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Exit and restructuring charges, incurred life to date | 3,000,000 | 3,000,000 | ||
Productivity Plan | Enterprise | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Exit and restructuring charges, incurred life to date | 1,000,000 | 1,000,000 | ||
Acquisition Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Exit and restructuring charges, incurred life to date | 65,000,000 | 65,000,000 | ||
Exit and restructuring costs | 0 | |||
Acquisition Plan | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, range of expected cost remaining | 5,000,000 | 5,000,000 | ||
Acquisition Plan | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, range of expected cost remaining | 7,000,000 | 7,000,000 | ||
Acquisition Plan | Legacy Zebra | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Exit and restructuring charges, incurred life to date | 15,000,000 | 15,000,000 | ||
Acquisition Plan | Enterprise | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Exit and restructuring charges, incurred life to date | $ 50,000,000 | $ 50,000,000 |
Costs Associated with Exit an34
Costs Associated with Exit and Restructuring Activities - Summary of Exit and Restructuring Costs Incurred (Detail) - USD ($) $ in Millions | 3 Months Ended | 26 Months Ended | 29 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 | Apr. 01, 2017 | |
Restructuring and Related Activities [Abstract] | ||||
Severance, related benefits and, other expenses | $ 4 | $ 54 | $ 58 | |
Obligations for future non-cancellable lease payments | 0 | 11 | 11 | |
Total | $ 4 | $ 5 | $ 65 | $ 69 |
Costs Associated with Exit an35
Costs Associated with Exit and Restructuring Activities - Rollforward of Exit and Restructuring Accruals (Detail) - USD ($) $ in Millions | 3 Months Ended | 26 Months Ended | 29 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 | Apr. 01, 2017 | |
Restructuring Reserve [Roll Forward] | ||||
Balance at the beginning of the period | $ 10 | $ 15 | ||
Charged to earnings | 4 | 5 | $ 65 | $ 69 |
Cash paid | (3) | (7) | ||
Balance at the end of the period | $ 11 | $ 13 | $ 10 | $ 11 |
Costs Associated with Exit an36
Costs Associated with Exit and Restructuring Activities - Liabilities Included in the Balance Sheet (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 | Apr. 02, 2016 | Dec. 31, 2015 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 11 | $ 10 | $ 13 | $ 15 |
Accrued liabilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | 8 | 7 | ||
Other long-term liabilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 3 | $ 3 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | $ 16 | $ 34 |
Total Liabilities at fair value | 41 | 38 |
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 | 12 | 11 |
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 | 12 | 11 |
Foreign exchange contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 4 | 23 |
Total Liabilities at fair value | 5 | |
Forward interest rate swap contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 24 | 27 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 12 | 22 |
Total Liabilities at fair value | 17 | 11 |
Level 1 | 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 | 12 | 11 |
Level 1 | 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 | 12 | 11 |
Level 1 | Foreign exchange contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 0 | 11 |
Total Liabilities at fair value | 5 | |
Fair value, assets, level 2 to level 1 transfers, amount | 5 | 11 |
Level 1 | Forward interest rate swap contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 4 | 12 |
Total Liabilities at fair value | 24 | 27 |
Level 2 | 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 | 0 | 0 |
Level 2 | 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 | 0 | 0 |
Level 2 | Foreign exchange contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 4 | 12 |
Total Liabilities at fair value | 0 | |
Level 2 | Forward interest rate swap contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 24 | 27 |
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 |
Level 3 | 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 | 0 | 0 |
Level 3 | 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 | 0 | 0 |
Level 3 | Foreign exchange contract | ||
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 | |
Level 3 | Forward interest rate swap contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | $ 0 | $ 0 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Total Net Derivative Liability | $ (25) | $ (4) |
Derivative instruments designated as hedges | ||
Derivative [Line Items] | ||
Total Net Derivative Liability | (10) | (4) |
Derivative instruments not designated as hedges | ||
Derivative [Line Items] | ||
Total Net Derivative Liability | (15) | 0 |
Prepaid expenses and other current assets | Foreign exchange contracts | Derivative instruments designated as hedges | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 4 | 12 |
Prepaid expenses and other current assets | Foreign exchange contracts | Derivative instruments not designated as hedges | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 0 | 11 |
Accrued liabilities | Foreign exchange contracts | Derivative instruments designated as hedges | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 0 | 0 |
Accrued liabilities | Foreign exchange contracts | Derivative instruments not designated as hedges | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (5) | 0 |
Accrued liabilities | Forward interest rate swaps | Derivative instruments designated as hedges | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (1) | (3) |
Accrued liabilities | Forward interest rate swaps | Derivative instruments not designated as hedges | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (1) | (1) |
Other long-term liabilities | Forward interest rate swaps | Derivative instruments designated as hedges | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (13) | (13) |
Other long-term liabilities | Forward interest rate swaps | Derivative instruments not designated as hedges | ||
Derivative [Line Items] | ||
Derivative liability, fair value | $ (9) | $ (10) |
Derivative Instruments - Gain (
Derivative Instruments - Gain (Loss) (Details) - Derivative instruments not designated as hedges - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total (loss) gain recognized in income | $ (4) | $ (4) |
Foreign exchange contracts | Foreign exchange (loss) gain | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total (loss) gain recognized in income | (5) | (5) |
Forward interest rate swaps | Interest expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total (loss) gain recognized in income | $ 1 | $ 1 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) € in Millions | 3 Months Ended | ||||
Apr. 01, 2017USD ($) | Apr. 01, 2017EUR (€) | Dec. 31, 2016EUR (€) | Oct. 31, 2014USD ($) | Oct. 27, 2014USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Foreign currency cash flow hedge derivative | € | € 321 | € 341 | |||
Change in unrealized gain (loss) on anticipated sales hedging: | |||||
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. | $ 4,000,000 | ||||
Percentage of hedge effectiveness | 100.00% | 100.00% | |||
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 designated as hedges | |||||
Change in unrealized gain (loss) on anticipated sales hedging: | |||||
Maturity period | 12 months | ||||
Derivative instruments not designated as hedges | Foreign Exchange Forward | |||||
Change in unrealized gain (loss) on anticipated sales hedging: | |||||
Maturity period | 3 months |
Derivative Instruments - Financ
Derivative Instruments - Financial Information Related to Hedging of Net Assets Included in Consolidated Statements of Operations (Detail) € 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 | Apr. 01, 2017MYR | Apr. 01, 2017USD ($) | Apr. 01, 2017CAD | Apr. 01, 2017AUD | Apr. 01, 2017JPY (¥) | Apr. 01, 2017GBP (£) | Apr. 01, 2017CZK | Apr. 01, 2017SEK | Apr. 01, 2017EUR (€) | Apr. 01, 2017SGD | Apr. 01, 2017BRL | Dec. 31, 2016MYR | Dec. 31, 2016USD ($) | Dec. 31, 2016CAD | Dec. 31, 2016AUD | Dec. 31, 2016JPY (¥) | Dec. 31, 2016GBP (£) | Dec. 31, 2016CZK | Dec. 31, 2016SEK | Dec. 31, 2016EUR (€) | Dec. 31, 2016SGD | Dec. 31, 2016BRL |
Derivative [Line Items] | ||||||||||||||||||||||
Net fair value asset (liability) of outstanding contracts | $ | $ (5) | $ 11 | ||||||||||||||||||||
United States of America, Dollars | Foreign Exchange Forward | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Notional balance of outstanding contracts | MYR 2 | CAD 4 | AUD 5 | ¥ 168 | £ 11 | CZK 192 | SEK 22 | € 138 | SGD 11 | BRL 72 | MYR 16 | CAD 13 | AUD 50 | ¥ 48 | £ 3 | CZK 147 | SEK 7 | € 148 | SGD 15 | BRL 56 | ||
Euro Member Countries, Euro | Foreign Exchange Forward | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Notional balance of outstanding contracts | £ | £ 8 | £ 8 |
Derivative Instruments - Sche42
Derivative Instruments - Schedule of Gross and Net Amount Offset (Detail) - Foreign exchange contracts $ in Millions | Apr. 01, 2017USD ($) |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | $ 39 |
Counterparty Offsetting | 15 |
Net Fair Value in the Consolidated Balance Sheets | 24 |
Counterparty A | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 11 |
Counterparty Offsetting | 6 |
Net Fair Value in the Consolidated Balance Sheets | 5 |
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 | 2 |
Net Fair Value in the Consolidated Balance Sheets | 2 |
Counterparty D | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 8 |
Counterparty Offsetting | 3 |
Net Fair Value in the Consolidated Balance Sheets | 5 |
Counterparty E | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 3 |
Counterparty Offsetting | 1 |
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 | 1 |
Net Fair Value in the Consolidated Balance Sheets | 3 |
Counterparty G | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 5 |
Counterparty Offsetting | 0 |
Net Fair Value in the Consolidated Balance Sheets | $ 5 |
Derivative Instruments - Notion
Derivative Instruments - Notional Amounts of Outstanding Contracts(Details) $ in Millions | Apr. 01, 2017USD ($) |
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 |
Long-Term Debt - Summary of Car
Long-Term Debt - Summary of Carrying Value of Debt (Details) - USD ($) | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 27, 2014 |
Debt Instrument [Line Items] | |||
Debt instrument, carrying amount | $ 2,623,000,000 | ||
Less: debt issuance costs | (20,000,000) | $ (22,000,000) | |
Less: unamortized discounts | (30,000,000) | (33,000,000) | |
Long-term debt | 2,573,000,000 | 2,648,000,000 | |
Term Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument, carrying amount | 1,573,000,000 | 1,653,000,000 | |
Long-term debt | $ 2,200,000,000 | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, carrying amount | $ 1,050,000,000 | $ 1,050,000,000 |
Long-Term Debt - Future Maturit
Long-Term Debt - Future Maturities of Long-Term Debt (Details) $ in Millions | Apr. 01, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 1,573 |
Thereafter | 1,050 |
Total maturities of long-term debt | $ 2,623 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Dec. 06, 2016 | Jun. 02, 2016 | Apr. 30, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 27, 2021 | Apr. 02, 2016 | Oct. 27, 2014 |
Debt Instrument [Line Items] | ||||||||
Long-term debt, fair value | $ 2,700,000,000 | $ 2,800,000,000 | ||||||
Long-term debt | 2,573,000,000 | 2,648,000,000 | ||||||
Remaining balance of debt issuance costs | 20,000,000 | 22,000,000 | ||||||
Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Amortization of debt issuance costs | $ 1,000,000 | |||||||
Remaining discount amortization period | 7 years | |||||||
Revolving Credit Facility | ||||||||
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 | |||||||
Interest rate at period end | 3.65% | |||||||
Long-term line of credit | $ 0 | $ 0 | ||||||
Amortization of debt issuance costs | $ 3,000,000 | |||||||
Remaining discount amortization period | 5 years | |||||||
Revolving Credit Facility | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 4.00% | |||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Amortization of debt issuance costs | $ 16,000,000 | |||||||
Remaining discount amortization period | 8 years | |||||||
Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 2,200,000,000 | |||||||
Basis spread on variable rate | 3.25% | |||||||
Loss on extinguishment of debt | 4,400,000 | |||||||
Debt instrument, unamortized discount | $ 4,900,000 | |||||||
Percentage bearing variable interest, percentage rate | 3.60% | |||||||
Line of credit facility payment | $ 80,000,000 | |||||||
Term Loan | Scenario, Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 1,600,000,000 | |||||||
Term Loan | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility payment | $ 50,000,000 | |||||||
Term Loan | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.50% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | |
Apr. 01, 2017motion | Aug. 16, 2005officer | |
Product Warranty Liability [Line Items] | ||
Number of former officers being sued | officer | 2 | |
Discovery motion pending | motion | 1 | |
Mobile Computers | ||
Product Warranty Liability [Line Items] | ||
Product warranty period | 1 year | |
Printers | ||
Product Warranty Liability [Line Items] | ||
Product warranty period | 1 year | |
Thermal Printheads | ||
Product Warranty Liability [Line Items] | ||
Product warranty period | 6 months | |
Batteries | ||
Product Warranty Liability [Line Items] | ||
Product warranty period | 1 year | |
Battery-Based Products | ||
Product Warranty Liability [Line Items] | ||
Product warranty period | 90 days | |
Minimum | Advanced Data Capture Products | ||
Product Warranty Liability [Line Items] | ||
Product warranty period | 1 year | |
Maximum | Advanced Data Capture Products | ||
Product Warranty Liability [Line Items] | ||
Product warranty period | 5 years |
Commitments and Contingencies48
Commitments and Contingencies - Summary of Accrued Warranty Obligation (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at the beginning of the period | $ 21 | $ 22 |
Warranty expense | 6 | 7 |
Warranty payments | (7) | (8) |
Balance at the end of the period | $ 20 | $ 21 |
Earnings (loss) per Share - Com
Earnings (loss) per Share - Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Basic: | ||
Net income (loss) attributable to the Company | $ 8 | $ (26) |
Weighted-average shares outstanding (in shares) | 51,842,025 | 51,299,632 |
Basic earnings (loss) per share (USD per share) | $ 0.16 | $ (0.50) |
Diluted: | ||
Net income (loss) attributable to the Company | $ 8 | $ (26) |
Weighted-average shares outstanding (in shares) | 51,842,025 | 51,299,632 |
Diluted shares | 1,104,858 | 0 |
Diluted weighted-average shares outstanding | 52,946,883 | 51,299,632 |
Diluted earnings (loss) per share (USD per share) | $ 0.16 | $ (0.50) |
Earnings (loss) per Share - Add
Earnings (loss) per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Earnings Per Share [Abstract] | ||
Potentially dilutive shares (in shares) | 532,353 | 1,478,983 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 500.00% | 33.30% |
Accounting Standards Update 2016-16 | New Accounting Pronouncement, Early Adoption, Effect | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Income tax benefit, rate impact of intercompany sale | $ 12 |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Income (loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
AOCI Attributable to Parent, Net of Tax | ||
Beginning Balance | $ 792 | |
Other comprehensive (loss) income before reclassifications | (4) | $ (25) |
Amounts reclassified from AOCI | 0 | 0 |
Tax benefit (expense) | 0 | 7 |
Other comprehensive (loss) income | (4) | (18) |
Ending Balance | 795 | |
Unrealized (loss) gain on sales hedging | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning Balance | 6 | (1) |
Other comprehensive (loss) income before reclassifications | (6) | (20) |
Amounts reclassified from AOCI | (1) | 1 |
Tax benefit (expense) | 1 | 4 |
Other comprehensive (loss) income | (6) | (15) |
Ending Balance | 0 | (16) |
Unrealized (loss)/ gain on forward interest rate swaps | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning Balance | (15) | (15) |
Other comprehensive (loss) income before reclassifications | 2 | (9) |
Amounts reclassified from AOCI | 1 | (1) |
Tax benefit (expense) | (1) | 3 |
Other comprehensive (loss) income | 2 | (7) |
Ending Balance | (13) | (22) |
Currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning Balance | (36) | (32) |
Other comprehensive (loss) income before reclassifications | 0 | 4 |
Amounts reclassified from AOCI | 0 | 0 |
Tax benefit (expense) | 0 | 0 |
Other comprehensive (loss) income | 0 | 4 |
Ending Balance | (36) | (28) |
Total | ||
AOCI Attributable to Parent, Net of Tax | ||
Beginning Balance | (45) | (48) |
Ending Balance | $ (49) | $ (66) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Apr. 01, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Segment I
Segment Information - Segment Information by Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 865 | $ 849 |
Operating income (loss) | 40 | 10 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 866 | 852 |
Operating income (loss) | 122 | 113 |
Corporate, eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | (1) | (3) |
Operating income (loss) | (82) | (103) |
Legacy Zebra | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 322 | 314 |
Operating income (loss) | 67 | 71 |
Enterprise | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 544 | 538 |
Operating income (loss) | $ 55 | $ 42 |