Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 15, 2018 | Jul. 01, 2017 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ZBRA | ||
Entity Registrant Name | ZEBRA TECHNOLOGIES CORP | ||
Entity Central Index Key | 877,212 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 53,250,033 | ||
Entity Public Float | $ 5,260,632,176 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 62 | $ 156 |
Accounts receivable, net | 479 | 625 |
Inventories, net | 458 | 345 |
Income tax receivable | 40 | 32 |
Prepaid expenses and other current assets | 24 | 64 |
Total Current assets | 1,063 | 1,222 |
Property, plant and equipment, net | 264 | 292 |
Goodwill | 2,465 | 2,458 |
Other intangibles, net | 299 | 480 |
Long-term deferred income taxes | 119 | 113 |
Other long-term assets | 65 | 67 |
Total Assets | 4,275 | 4,632 |
Current liabilities: | ||
Current portion of long-term debt | 51 | 0 |
Accounts payable | 383 | 413 |
Accrued liabilities | 337 | 323 |
Deferred revenue | 186 | 191 |
Income taxes payable | 43 | 22 |
Total Current liabilities | 1,000 | 949 |
Long-term debt | 2,176 | 2,648 |
Long-term deferred income taxes | 0 | 3 |
Long-term deferred revenue | 148 | 124 |
Other long-term liabilities | 117 | 116 |
Total Liabilities | 3,441 | 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 150,000,0000 shares; issued 72,151,857 shares | 1 | 1 |
Additional paid-in capital | 257 | 210 |
Treasury stock at cost, 18,915,762 and 19,267,269 shares at December 31, 2017 and December 31, 2016, respectively | (620) | (614) |
Retained earnings | 1,248 | 1,240 |
Accumulated other comprehensive loss | (52) | (45) |
Total Stockholders’ Equity | 834 | 792 |
Total Liabilities and Stockholders’ Equity | $ 4,275 | $ 4,632 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares Issued | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 72,151,857 | 72,151,857 |
Treasury stock, shares | 18,915,762 | 19,267,269 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales | |||
Net sales of tangible products | $ 3,223 | $ 3,056 | $ 3,131 |
Revenue from services and software | 499 | 518 | 519 |
Total Net sales | 3,722 | 3,574 | 3,650 |
Cost of sales: | |||
Cost of sales of tangible products | 1,677 | 1,593 | 1,629 |
Cost of services and software | 335 | 339 | 377 |
Total Cost of sales | 2,012 | 1,932 | 2,006 |
Gross profit | 1,710 | 1,642 | 1,644 |
Operating expenses: | |||
Selling and marketing | 448 | 444 | 494 |
Research and development | 389 | 376 | 394 |
General and administrative | 301 | 307 | 283 |
Amortization of intangible assets | 184 | 229 | 251 |
Acquisition and integration costs | 50 | 125 | 145 |
Impairment of goodwill and other intangibles | 0 | 62 | 0 |
Exit and restructuring costs | 16 | 19 | 40 |
Total Operating expenses | 1,388 | 1,562 | 1,607 |
Operating income | 322 | 80 | 37 |
Other expenses: | |||
Foreign exchange loss | (1) | (5) | (23) |
Interest expense, net | (227) | (193) | (193) |
Other, net | (6) | (11) | (1) |
Total Other expenses | (234) | (209) | (217) |
Income (loss) before income taxes | 88 | (129) | (180) |
Income tax expense (benefit) | 71 | 8 | (22) |
Net income (loss) | $ 17 | $ (137) | $ (158) |
Basic earnings (loss) per share (in USD per share) | $ 0.33 | $ (2.65) | $ (3.10) |
Diluted earnings (loss) per share (in USD per share) | $ 0.32 | $ (2.65) | $ (3.10) |
Basic weighted average shares outstanding (in shares) | 53,021,761 | 51,579,112 | 50,996,297 |
Diluted weighted average and equivalent shares outstanding (in shares) | 53,688,832 | 51,579,112 | 50,996,297 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 17 | $ (137) | $ (158) |
Other comprehensive income (loss), net of tax: | |||
Unrealized (loss) gain on anticipated sales hedging transactions | (15) | 7 | (6) |
Unrealized gain (loss) on forward interest rate swaps hedging transactions | 6 | 0 | (7) |
Foreign currency translation adjustment | 2 | (4) | (26) |
Comprehensive income (loss) | $ 10 | $ (134) | $ (197) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Class A Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Retained EarningsNew Accounting Pronouncement, Early Adoption, Effect | Accumulated Other Comprehensive Loss |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance, Shares | 51,654,337 | ||||||
Beginning Balance at Dec. 31, 2014 | $ 1,040 | $ 1 | $ 147 | $ (634) | $ 1,535 | $ (9) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance, Shares | 52,161,851 | ||||||
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards, shares | 646,395 | ||||||
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards net of cancellations | 17 | 1 | 16 | ||||
Shares withheld related to net share settlement (in shares) | (138,881) | ||||||
Shares withheld related to net share settlement (in shares) | (13) | (13) | |||||
Issuance of warrants exercisable for 250,000 shares, exercise price $89.34, expiration April 5, 2017 | 4 | 4 | |||||
Additional tax benefit resulting from exercise of options | 11 | 11 | |||||
Share-based compensation | 31 | 31 | |||||
Net income (loss) | (158) | (158) | |||||
Unrealized loss on anticipated sales hedging transactions (net of income taxes) | (6) | (6) | |||||
Unrealized gain on forward interest rate swaps hedging transactions (net of income taxes) | (7) | (7) | |||||
Foreign currency translation adjustment | (26) | (26) | |||||
Ending Balance at Dec. 31, 2015 | 893 | $ 1 | 194 | (631) | 1,377 | (48) | |
Ending Balance, Shares at Dec. 31, 2015 | 52,161,851 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance, Shares | 52,161,851 | ||||||
Beginning Balance, Shares | 52,884,588 | ||||||
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards, shares | 817,943 | ||||||
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards net of cancellations | 11 | (14) | 25 | ||||
Shares withheld related to net share settlement (in shares) | (95,206) | ||||||
Shares withheld related to net share settlement (in shares) | (8) | (8) | |||||
Additional tax benefit resulting from exercise of options | 3 | 3 | |||||
Share-based compensation | 27 | 27 | |||||
Net income (loss) | (137) | (137) | |||||
Unrealized loss on anticipated sales hedging transactions (net of income taxes) | 7 | 7 | |||||
Unrealized gain on forward interest rate swaps hedging transactions (net of income taxes) | 0 | 0 | |||||
Foreign currency translation adjustment | (4) | (4) | |||||
Ending Balance at Dec. 31, 2016 | 792 | $ 1 | 210 | (614) | 1,240 | (45) | |
Ending Balance, Shares at Dec. 31, 2016 | 52,884,588 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance, Shares | 52,884,588 | ||||||
Beginning Balance, Shares | 53,236,095 | ||||||
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards, shares | 410,239 | ||||||
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards net of cancellations | 12 | 12 | 0 | ||||
Shares withheld related to net share settlement (in shares) | (58,732) | ||||||
Shares withheld related to net share settlement (in shares) | (6) | (6) | |||||
Share-based compensation | 35 | 35 | |||||
Net income (loss) | 17 | 17 | |||||
Unrealized loss on anticipated sales hedging transactions (net of income taxes) | (15) | (15) | |||||
Unrealized gain on forward interest rate swaps hedging transactions (net of income taxes) | 6 | 6 | |||||
Foreign currency translation adjustment | 2 | 2 | |||||
Ending Balance at Dec. 31, 2017 | 834 | $ 1 | $ 257 | $ (620) | $ 1,248 | $ (52) | |
Ending Balance, Shares at Dec. 31, 2017 | 53,236,095 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning Balance, Shares | 53,236,095 | ||||||
Cumulative effect of change in accounting principle | $ 9 | ||||||
Cumulative effect of change in accounting principle | ASU 2016-16 | $ 9 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Statement of Stockholders' Equity [Abstract] | |
Repurchase of warrants number | shares | 250,000 |
Repurchase of warrants , exercise price | $ / shares | $ 89.34 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 17 | $ (137) | $ (158) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 263 | 304 | 320 |
Impairment of goodwill, intangibles and other assets | 1 | 69 | 0 |
Amortization of debt issuance costs and discounts | 38 | 23 | 16 |
Share-based compensation | 35 | 27 | 31 |
Debt extinguishment costs | 65 | 0 | 0 |
Deferred Income Taxes and Tax Credits | (9) | (44) | (142) |
Unrealized gain on forward interest rate swaps | (2) | 0 | (4) |
Other, net | 4 | 3 | 14 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 161 | 34 | 2 |
Inventories, net | (110) | 34 | (13) |
Other assets | 16 | 7 | (7) |
Accounts payable | (40) | 125 | (21) |
Accrued liabilities | 4 | (29) | (5) |
Deferred revenue | 17 | 7 | 16 |
Income taxes | 26 | (41) | 47 |
Other operating activities | (8) | (2) | 26 |
Net cash provided by operating activities | 478 | 380 | 122 |
Cash flows from investing activities: | |||
Acquisition of businesses, net of cash acquired | 0 | 0 | (52) |
Purchases of property, plant and equipment | (50) | (77) | (122) |
Proceeds from the sale of a business | 0 | 39 | 0 |
Proceeds from the sale of long-term investments | 0 | 0 | 3 |
Purchases of long-term investments | (1) | (1) | (1) |
Purchases of investments and marketable securities | 0 | 0 | (1) |
Proceeds from sales of investments and marketable securities | 0 | 0 | 25 |
Net cash used in investing activities | (51) | (39) | (148) |
Cash flows from financing activities: | |||
Payments of debt issuance costs and discounts | (5) | (5) | 0 |
Proceeds from issuance of long-term debt | 1,371 | 102 | 0 |
Payments of long term-debt | (1,825) | (484) | (165) |
Payments of debt extinguishment costs | (65) | 0 | 0 |
Proceeds from exercise of stock options and stock purchase plan purchases | 12 | 11 | 17 |
Taxes paid related to net share settlement of equity awards | (5) | (8) | (13) |
Net cash used in financing activities | (517) | (384) | (161) |
Effect of exchange rate changes on cash | (4) | 7 | (15) |
Net decrease in cash and cash equivalents | (94) | (36) | (202) |
Cash and cash equivalents at beginning of year | 156 | 192 | 394 |
Cash and cash equivalents at end of year | 62 | 156 | 192 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 65 | 81 | 38 |
Interest paid | $ 195 | $ 180 | $ 183 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Zebra Technologies Corporation and its wholly-owned subsidiaries (“Zebra” or the “Company”) is a global leader providing innovative Enterprise Asset Intelligence (“EAI”) solutions in the automatic identification and data capture solutions industry. We design, manufacture, and sell a broad range of products that capture and move data. We also provide a full range of services, including maintenance, technical support, repair, and managed services, including cloud-based subscriptions. End-users of our products and services include those in retail and e-commerce, transportation and logistics, manufacturing, healthcare, hospitality, warehouse and distribution, energy and utilities, and education industries around the world. We provide our products and services globally through a direct sales force and an extensive network of channel partners. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation. These accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States and include the accounts of Zebra and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Fiscal Calendar. Zebra operates on a 4 week/4 week/5 week fiscal quarter, and each fiscal quarter ends on a Saturday. The fiscal year always begins on January 1 and ends on December 31. This fiscal calendar results in some fiscal quarters being either greater than or less than 13 weeks, depending on the days of the week on which those dates fall. During the 2017 fiscal year, our quarter end dates were April 1, July 1, September 30, and December 31. Use of Estimates. These consolidated financial statements were prepared using estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of estimates include: cash flow projections and other assumptions included in our annual goodwill impairment test; loss contingencies; product warranties; useful lives of our tangible and intangible assets; allowances for doubtful accounts; the recognition and measurement of income tax assets and liabilities; and share-based compensation forfeiture rates. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. Cash and Cash Equivalents. Cash consists primarily of deposits with banks. In addition, the Company considers highly liquid short-term investments with original maturities of less than three months to be cash equivalents. These highly liquid short-term investments are readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of a change in value because of changes in interest rates. Included in the Company’s Cash and cash equivalents are amounts held by foreign subsidiaries. The Company had $54 million and $98 million of foreign cash and cash equivalents included in the Company’s total cash positions of $62 million and $156 million as of December 31, 2017 and 2016 , respectively. Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable consist primarily of amounts due to us from our customers in the course of normal business activities. Collateral on trade accounts receivable is generally not required. The Company maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on our assessment of known delinquent accounts. Accounts are written off against the allowance account when they are determined to be no longer collectible. During 2017, the Company initiated a receivables financing facility of up to $180 million . See Note 8, Long-Term Debt for further information. Inventories. Inventories are stated at the lower of a moving-average cost (which approximates cost on a first-in, first-out basis) and net realizable value. Manufactured inventory cost includes materials, labor, and manufacturing overhead. Purchased inventory cost also includes internal purchasing overhead costs. Provisions are made to reduce excess and obsolete inventories to their estimated net realizable values. Inventory provisions are based on forecasted demand, experience with specific customers, the age and nature of the inventory, and the ability to redistribute inventory to other programs or to rework into other consumable inventory. The components of Inventories, net are as follows (in millions): December 31, 2017 2016 Raw material $ 116 $ 111 Work in process 1 1 Finished goods 341 233 Inventories, net $ 458 $ 345 Property, Plant and Equipment. Property, plant and equipment is stated at cost. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the various classes of property, plant and equipment, which are 30 years for buildings and range from 3 to 10 years for all other asset categories. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. Property, plant and equipment, net is comprised of the following (in millions): December 31, 2017 2016 Buildings $ 54 $ 51 Land 8 10 Machinery and equipment 233 226 Furniture and office equipment 19 15 Software and computer equipment 235 197 Leasehold improvements 69 64 Projects in progress 23 35 641 598 Less accumulated depreciation (377 ) (306 ) Property, plant and equipment, net $ 264 $ 292 Depreciation expense was $79 million , $75 million and $69 million for the periods ended December 31, 2017 , 2016 and 2015 , respectively. Income Taxes. The Company accounts for income taxes under the liability method in accordance with Accounting Standards Codification (“ASC”) 740, Income Taxes . Accordingly, deferred income taxes are provided for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities are measured using tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the benefit of tax positions when it is more likely than not to be sustained on its technical merits. The Company recognizes interest and penalties related to income tax matters as part of income tax expense. The Company has elected consolidated tax filings in certain of its jurisdictions which may allow the group to offset one member’s income with losses of other members in the current period and on a carryover basis. The Company classifies its balance sheet tax accounts adopting a jurisdictional netting principle for those countries where a consolidated tax return election is in place. The Tax Cut and Jobs Act (“TCJA” or “the Act”) enacted on December 22, 2017 contains provisions related to the taxation of certain foreign earnings under the Global Intangible Low-Taxed Income (“GILTI”) regime which is effective for tax years beginning on or after January 1, 2018. Under guidance issued by the Financial Accounting Standards Board on January 10, 2018, companies must account for the impact of the GILTI tax as either a temporary difference in the book and tax basis of assets giving rise to the GILTI income, net of a foreign tax credit, or as a charge to tax expense in the year GILTI income is included in the U.S. tax return. The Company has elected to treat its GILTI inclusions as a charge to tax expense in the year included in its U.S. tax return. The effects of changes in tax rates and laws on deferred tax balances are recorded as a component of tax expense related to continuing operations for the period in which the law was enacted, even if the assets and liabilities related to items of accumulated other comprehensive income (“AOCI”). In other words, backward tracing of the income tax effects of items originally recognized through AOCI is prohibited. On February 7, 2018, the Financial Accounting Standards Board issued guidance requiring the reclassification to retained earnings of tax effects stranded in accumulated AOCI due to tax reform. The guidance requires that these changes be effective with fiscal years beginning on or after December 15, 2018 but allows companies to early adopt the provision. The Company plans to adopt this provision with its fiscal year beginning January 1, 2018. Goodwill. Goodwill is not amortized but is evaluated for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. If a quantitative assessment is completed as part of our impairment analysis for a reporting unit, we may engage a third-party appraisal firm to assist in the determination of estimated fair value for each reporting unit. This determination includes estimating the fair value using both the income and market approaches. The income approach requires management to estimate a number of factors for each reporting unit, including projected future operating results, economic projections, anticipated future cash flows and discount rates. The market approach estimates fair value using comparable marketplace fair value data from within a comparable industry grouping. The fair value of the reporting unit is compared to the carrying amount of the reporting unit. If a reporting unit is considered impaired, the impairment is recognized in the amount by which the carrying amount exceeds the fair value of the reporting unit. The determination of the fair value of the reporting units and the allocation of that value to individual assets and liabilities within those reporting units requires us to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the selection of appropriate peer group companies; control premiums appropriate for acquisitions in the industries in which we compete; the discount rates; terminal growth rates; and forecasts of revenue, operating income, depreciation and amortization and capital expenditures. The allocation requires several analyses to determine the fair value of assets and liabilities including, among other things, customer relationships and trade names. Although we believe our estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting units, the amount of any goodwill impairment charge, or both. We also compare the sum of the estimated fair values of the reporting units to the Company’s total value as implied by the market value of the Company’s securities. This comparison indicated that, in total, our assumptions and estimates were reasonable. However, future declines in the overall market value of the Company’s securities may indicate that the fair value of one or more reporting units has declined below its carrying value. One measure of the sensitivity of the amount of goodwill impairment charges to key assumptions is the amount by which each reporting unit “passed” (fair value exceeds the carrying amount) or “failed” (the carrying amount exceeds fair value) the first step of the goodwill impairment test. See Note 4, Goodwill and Other Intangibles, net , for additional information. Other Intangibles. Other intangible assets capitalized consist primarily of current technology, customer relationships, trade names, unpatented technology, and patents and patent rights. These assets are recorded at cost and amortized on a straight-line basis over the asset’s useful life which range from 3 years to 15 years . Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of. The Company accounts for long-lived assets in accordance with the provisions of ASC 360, Property, Plant and Equipment. The statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposition of the asset. If such assets are impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Cost Method Investments. The Company’s long-term investments are accounted for using the cost method. These investments are primarily in venture capital backed technology companies, where the Company's ownership interest is less than 20% of each investee. Under the cost method of accounting, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions and additional investments. The Company held cost method investments in the amount of $25 million as of December 31, 2017 and 2016 . These investments are included in Other long-term assets on the Consolidated Balance Sheets. The Company recognized impairments of $1 million during fiscal 2017 which were recorded within Other expenses in the Consolidated Statements of Operations. There were $7 million of impairments to cost method investments in fiscal 2016 and no impairments in fiscal 2015 . Revenue Recognition. Revenue includes sales of hardware, supplies and services (including repair services and product maintenance service contracts, which typically occur over time, and professional services, which typically occur in the early stages of a project). We enter into revenue arrangements that may consist of multiple deliverables of our hardware products and services due to the needs of our customers. For these type of revenue arrangements, we apply the guidance in ASC 605, Revenue Recognition to identify the separate units of accounting by determining whether the delivered items have value to the customer on a standalone basis. Generally, there is no right of return for the hardware we sell. Allocation of arrangement consideration to repair services, product maintenance services, and extended warranty is equal to the stated contractual rate for such services, in accordance with the guidance in ASC 605-20. We also follow the accounting principles that establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“BESP”). Generally, our agreements contain termination provisions whereby we are entitled to payment for delivered equipment and services rendered through the date of the termination. Some of our agreements may also contain cancellation provisions that in certain cases result in customer penalties. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title has passed to the customer, which typically happens at the point of shipment provided that no significant obligations remain, the price is fixed and determinable and collectability of the sales price is reasonably assured. For hardware sales, in addition to the criteria discussed above, revenue recognition incorporates allowances for discounts, price protection, returns and customer incentives that can be reasonably estimated. In addition to cooperative marketing and other incentive programs, the Company has arrangements with some distributors, which allow for price protection and limited rights of return, generally through stock rotation programs. Under the price protection programs, the Company gives distributors credits for the difference between the original price paid and the Company’s then current price. Under the stock rotation programs, distributors are able to exchange certain products based on the number of qualified purchases made during the period. We monitor and track these programs and record a provision for future payments or credits granted as reductions of revenue based on historical experience. Recorded revenues are reduced by these allowances. The Company enters into product maintenance and support agreements; revenues are deferred and then recognized ratably over the service period and the cost of providing these services is expensed as incurred. The Company includes shipping and handling charges billed to customers as revenue when the product ships; any costs incurred related to these services are included in cost of sales. Taxing authorities may assess tax on the Company based on the gross receipts from customers, referred to as indirect taxes. The Company’s policy is to record indirect taxes as a short-term liability and not as a component of gross revenue. Research and Development Costs. Research and development costs (“R&D”) are expensed as incurred. These costs include: • Salaries, benefits, and other R&D personnel related costs, • Consulting and other outside services used in the R&D process, • Engineering supplies, • Engineering related information systems costs, and • Allocation of building and related costs. Advertising. Advertising is expensed as incurred. Advertising costs totaled $18 million , $18 million and $22 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Warranty. The Company generally provides warranty coverage of 1 year on mobile computers, printers and batteries. Advanced data capture products are warrantied from 1 to 5 years, depending on the product. Thermal printheads are warrantied for 6 months and battery-based products, such as location tags, are covered by a 90 -day warranty. A provision for warranty expense is adjusted quarterly based on historical warranty experience. The following table is a summary of the Company’s accrued warranty obligation (in millions): Year Ended December 31, Warranty reserve 2017 2016 2015 Balance at the beginning of the year $ 21 $ 22 $ 25 Warranty expense 28 31 30 Warranty payments (31 ) (32 ) (33 ) Balance at the end of the year $ 18 $ 21 $ 22 Fair Value of Financial Instruments. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Our financial assets and liabilities that require recognition under the accounting guidance generally include our available-for-sale investments, employee deferred compensation plan investments, foreign currency derivatives, and interest rate swaps. In accordance with ASC 815, Derivatives and Hedging, we recognize derivative instruments and hedging activities as either assets or liabilities on the Consolidated Balance Sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. See Note 7, Derivative Instruments for additional information on our derivatives and hedging activities. The Company has foreign currency forwards to hedge certain foreign currency exposures and interest rate swaps to hedge a portion of the variability in future cash flows on debt. We use broker quotations or market transactions, in either the listed or over-the-counter markets to value our foreign currency exchange contracts and relevant observable market inputs at quoted intervals, such as forward yield curves and the Company’s own credit risk to value our interest rate swaps. The Company’s investments in marketable debt securities are classified as available-for-sale except for securities held in the Company’s deferred compensation plans, which are considered to be trading securities. In general, we use quoted prices in active markets for identical assets to determine fair value. If active markets for identical assets are not available to determine fair value, then we use quoted prices for similar assets or inputs that are observable either directly or indirectly. The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these financial instruments. See Note 6, Fair Value Measurements for financial assets and liabilities carried at fair value. Share-Based Compensation. At December 31, 2017 , the Company had a share-based compensation plan and an employee stock purchase plan under which shares of our common stock were available for future grants and sales, and which are described more fully in Note 11, Share-Based Compensation . We account for these plans in accordance with ASC 505, Equity and ASC 718, Compensation - Stock Compensation . The Company recognizes compensation costs using the straight-line method over the vesting period upon grant of up to 4 years, net of estimated forfeitures. The compensation expense and the related income tax benefit for share-based compensation were included in the Consolidated Statements of Operations as follows (in millions): Year Ended December 31, Compensation costs and related income tax benefit 2017 2016 2015 Cost of sales $ 3 $ 2 $ 3 Selling and marketing 8 6 8 Research and development 11 9 8 General and administration 16 11 14 Total compensation expense $ 38 $ 28 $ 33 Income tax benefit $ 11 $ 9 $ 11 Foreign Currency Translation. The balance sheet accounts of the Company’s non-U.S. subsidiaries, those not designated as U.S. dollar functional currency, are translated into U.S. dollars using the year-end exchange rate, and statement of earnings items are translated using the average exchange rate for the year. The resulting translation gains or losses are recorded in Stockholders’ equity as a cumulative translation adjustment, which is a component of Accumulated other comprehensive income loss within the Consolidated Balance Sheets. Acquisitions. We account for acquired businesses using the acquisition method of accounting. This method requires that the purchase price be allocated to the identifiable assets acquired and liabilities assumed at their estimated fair values. The excess of the purchase price over the identifiable assets acquired and liabilities assumed is recorded as goodwill. The estimates used to determine the fair value of long-lived assets, such as intangible assets, can be complex and require significant judgments. We use information available to us to make fair value determinations and engage independent valuation specialists, when necessary, to assist in the fair value determination of significant acquired long-lived assets. While we use our best estimates and assumptions as a part of the purchase price allocation process, our estimates are inherently uncertain and subject to refinement. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from customer relationships, customer attrition rates, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but due to the inherent uncertainty during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Recently 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 of this ASU are effective for annual or any interim goodwill impairment tests beginning after December 15, 2019, and early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The amendments in this ASU simplify goodwill impairment testing by eliminating the Step 2 procedure to determine the implied fair value of goodwill of a reporting unit which fails the Step 1 procedure. 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 impact on its consolidated financial statements or existing accounting policies. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805)- Clarifying the Definition of a Business ,” 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 effective date of this ASU is for fiscal years and interim periods beginning after December 15, 2017. This ASU should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company adopted this ASU on January 1, 2017, on a prospective basis, and there was no impact on the Company’s 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 .” This 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 adopted this ASU on 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 the first quarter of 2017, the Company also recorded a $12 million benefit related to an intercompany transfer of intellectual property as a result of newly adopted accounting standards. The Company recognized no additional tax benefit in the fiscal year ended December 31, 2017 . In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments .” This ASU 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 Company has retrospectively adopted this ASU during the third quarter 2017. The Company has recognized $4 million in the current year as financing activities and reclassified $5 million in the prior year of cash paid for debt issuance costs and discounts on the Consolidated Statements of Cash Flows from operating activities to financing activities. There was no impact to the Consolidated Statements of Cash Flow in 2015. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This 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 Consolidated Statements 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 in the Consolidated Statements of Cash Flows effective January 1, 2017 on a retrospective basis. The Company recognized $7 million as operating activities in the current year and reclassified excess tax benefits of $3 million , and $12 million on the Consolidated Statements of Cash Flows from financing activities to operating activities for the years ended December 31, 2016 and 2015, respectively. The Company has reflected a tax benefit of $7 million for the year ending December 31, 2017 , as a discrete item within the Consolidated Statements of Operations under the new ASU. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory ,” which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value for entities that measure inventory using first-in, first-out (FIFO) or average cost. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. 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) .” Several ASUs have been issued since the issuance of ASU 2014-09 which modify certain sections of ASU 2014-09, and are intended to promote a more consistent interpretation and application of the principles outlined in the new standard. The core principle of the new standard 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. The new standard also requires that certain costs to obtain a contract, which have generally been expensed as incurred under the current guidance, will now be capitalized and amortized in a pattern consistent with the transfer to the customer of the goods or services to which the asset relates. We completed the assessment and implementation phases of the process to adopt ASU 2014-09. We also completed updating our accounting policy around revenue recognition and evaluating new disclosure requirements. We will continue to implement and enhance appropriate changes to our business processes, systems, and controls, as necessary, to support recognition and disclosure under the new standard. The new disclosure requirements will change the content and presentation of the financial statement footnotes. As a result of applying the provisions of the new standard, certain of our agreements will have different timing of revenue recognition as compared to ASC 605, Revenue Recognition. We will adopt this new ASU on January 1, 2018 using the modified retrospective approach. The Company expects to record an increase to retained earnings on its Consolidated Balance Sheets of approximately $17 million to $20 million in the first quarter of 2018 due to the cumulative impact of adopting ASU 2014-09. The increase to retained earnings will result from the initial capitalization of previously expensed services sales commissions, the impact of revenue recognized for open service contracts sold with other products, and the impact of different revenue recognition timing patterns for open customer contract arrangements initiated before January 1, 2018. Additionally, new disclosures of disaggregated revenue information by reportable segment, as well as new disclosures of remaining performance obligations will be included in the Company’s filings beginning with the first quarter of fiscal 2018. 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 |
Business Combinations and Dives
Business Combinations and Divestitures | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations and Divestitures | Business Combinations and Divestitures Acquisitions On October 27, 2014, the Company completed the Acquisition from Motorola Solutions Inc. (“MSI”) for a purchase price of $3.45 billion . During the year ended December 31, 2015, the Company paid additional consideration of $52 million to MSI, which included a $2 million opening cash adjustment and settlement of working capital adjustments. The Acquisition enables the Company to further sharpen its strategic focus on providing mission critical Enterprise Asset Intelligence solutions for its customers. Divestitures On September 13, 2016, the Company entered into an Asset Purchase Agreement with Extreme Networks, Inc. to dispose of the Company’s wireless LAN (“WLAN”) business (“Divestiture Group”) for a gross purchase price of $55 million . On October 29, 2016, the Company completed the disposition of the Divestiture Group and recorded net proceeds of $39 million . In 2017, the Company and Extreme Networks, Inc. finalized the net working capital amounts for the Divestiture Group. The finalized amount did not differ materially from the original estimate. The Company incurred a non-cash pre-tax charge related to the disposal group during the third quarter of 2016. This charge, which totaled $62 million , consisted of impairments of goodwill for $32 million and other intangibles for $30 million and is shown separately on the Consolidated Statements of Operations for the year ended December 31, 2016. WLAN operating results are reported in the EVM segment through the closing date of the WLAN divestiture of October 28, 2016. Within the fiscal year ended December 31, 2016 Consolidated Statement of Operations, the Company generated revenue and gross profit from these assets of $106 million and $47 million , respectively. |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, net | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles, net | Goodwill and Other Intangibles, net The balances and changes in Other Intangibles, net are as follows (in millions): December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets Current technology $ 24 $ (23 ) $ 1 Trade names 41 (41 ) — Unpatented technology 242 (205 ) 37 Patents and patent rights 235 (215 ) 20 Customer relationships 481 (240 ) 241 Total $ 1,023 $ (724 ) $ 299 Amortization expense for the year ended December 31, 2017 $ 184 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets Current technology $ 24 $ (21 ) $ 3 Trade names 40 (40 ) — Unpatented technology 241 (146 ) 95 Patent and patent rights 238 (161 ) 77 Customer relationships 478 (173 ) 305 Total $ 1,021 $ (541 ) $ 480 Amortization expense for the year ended December 31, 2016 $ 229 Estimated amortization expense for future periods is as follows (in millions): Amount For the year ended December 31, 2018 $ 96 For the year ended December 31, 2019 83 For the year ended December 31, 2020 39 For the year ended December 31, 2021 37 For the year ended December 31, 2022 31 Thereafter 13 Total $ 299 There was no impairment of Other Intangible assets recorded during fiscal 2017. Impairment of Other Intangible assets of $30 million was recorded during fiscal 2016 related to the wireless LAN business divestiture which is reflected within the EVM segment. Changes in the net carrying value amount of goodwill were as follows (in millions): Total Goodwill as of December 31, 2015 $ 2,490 Impairment charge – wireless LAN divestiture (32 ) Goodwill as of December 31, 2016 2,458 Foreign exchange impact 7 Goodwill as of December 31, 2017 $ 2,465 As of December 31, 2017 , goodwill totaled $2.3 billion for the EVM reportable segment and $154 million for the AIT reportable segment. There was no goodwill impairment recorded in fiscal 2017. Goodwill impairment of $32 million was recorded during fiscal 2016 related to the wireless LAN business divestiture which is reflected within the EVM segment. The Company completed its annual goodwill impairment testing during the fourth quarter 2017. For all of the Company’s reporting units, the estimated fair values exceeded the carrying values ranging from approximately 20% to 90% . |
Costs Associated with Exit and
Costs Associated with Exit and Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Costs Associated with Exit and Restructuring | Costs Associated with Exit and Restructuring 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, (the “Acquisition Plan”). Actions under the Productivity Plan include organizational design changes, process improvements and automation. Implementation of actions identified through the Productivity Plan is expected to be substantially complete by December 2018. Exit and restructuring costs are not included in the operating results of our segments as they are not deemed to impact the specific segment measures as reviewed by our Chief Operating Decision Maker and therefore are reported as a component of Corporate, eliminations. See Note 15, Segment Information and Geographic Data . Total exit and restructuring charges of $12 million life-to-date and year-to-date specific to the Productivity Plan have been recorded through December 31, 2017 and relate to severance and related benefits, lease exit costs and other expenses. Total remaining charges associated with this plan are expected to be in the range of $8 million to $12 million with activities expected to be substantially complete by the end of fiscal 2018. Total exit and restructuring charges of $69 million life-to-date specific to the Acquisition Plan have been recorded through December 31, 2017 and include severance and related benefits, lease exit costs and other expenses. Charges related to the Acquisition Plan for the twelve-month period ended December 31, 2017 and 2016, were $4 million and $19 million , respectively. The Company has substantially completed the activities associated with the Acquisition Plan. The Company incurred total exit and restructuring costs as follows (in millions): Type of Cost Cumulative costs incurred through December 31, 2017 Costs incurred for the year ended December 31, 2017 Cumulative costs incurred through December 31, 2016 Severance, stay bonuses, and other employee-related expenses $ 69 $ 15 $ 54 Obligations for future lease payments 12 1 11 Total $ 81 $ 16 $ 65 A rollforward of the exit and restructuring accruals is as follows (in millions): Year Ended December 31, 2017 2016 Balance at beginning of year $ 10 $ 15 Charged to earnings 16 19 Cash paid (18 ) (22 ) WLAN Divestiture — (2 ) Balance at the end of year $ 8 $ 10 Liabilities related to exit and restructuring activities are included in the following reported financial statement line items in the Company’s Consolidated Balance Sheets (in millions): Year Ended December 31, 2017 2016 Accrued liabilities $ 6 $ 7 Other long-term liabilities 2 3 Total liabilities related to exit and restructuring activities $ 8 $ 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 | 12 Months Ended |
Dec. 31, 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 and money market funds). Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. In addition, the Company considers counterparty credit risk in the assessment of fair value. The Company’s financial assets and liabilities carried at fair value as of December 31, 2017 , are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Money market investments related to the deferred compensation plan $ 15 $ — $ — $ 15 Total Assets at fair value $ 15 $ — $ — $ 15 Liabilities: Forward interest rate swap contracts (2) $ — $ 18 $ — $ 18 Foreign exchange contracts (1) 2 9 — 11 Liabilities related to the deferred compensation plan 15 — — 15 Total Liabilities at fair value $ 17 $ 27 $ — $ 44 The Company’s 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 foreign exchange contracts is calculated as follows: a. Fair value of a collar or put option contract associated with forecasted sales hedges is calculated using bid and ask rates for similar contracts. b. Fair value of regular forward contracts associated with forecasted sales hedges is calculated using the period-end exchange rate adjusted for current forward points. c. Fair value of hedges against net assets is calculated at the period end exchange rate adjusted for current forward points unless the hedge has been traded but not settled at period end (Level 2). If this is the case, the fair value is calculated at the rate at which the hedge is being settled (Level 1). As a result, transfers from Level 2 to Level 1 of the fair value hierarchy totaled $2 million and $11 million as of December 31, 2017 and 2016 , respectively. (2) The fair value of forward interest rate swap contracts is based upon a valuation model that uses relevant observable market inputs at the quoted intervals, such as forward yield curves, and may be adjusted for the Company’s own credit risk and the interest rate swap terms. See gross balance reporting in Note 7, Derivative Instruments . |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 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 the hedge transactions. The Company does not hold or issue derivatives for trading or speculative purposes. In accordance with ASC 815, Derivative and Hedging , the Company recognizes derivative instruments as either assets or liabilities on the Consolidated Balance Sheets and measures them at fair value. The following table presents the fair value of its derivative instruments (in millions): Asset (Liability) Derivatives Consolidated Balance Sheets Classification Fair Value December 31 2017 2016 Derivative instruments designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ — $ 12 Foreign exchange contracts Accrued liabilities (9 ) — Forward interest rate swaps Accrued liabilities (2 ) (3 ) Forward interest rate swaps Other long-term liabilities (8 ) (13 ) Total derivative instruments designated as hedges $ (19 ) $ (4 ) Derivative instruments not designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ — $ 11 Foreign exchange contracts Accrued liabilities (2 ) — Forward interest rate swaps Accrued liabilities (1 ) (1 ) Forward interest rate swaps Other long-term liabilities (7 ) (10 ) Total derivative instruments not designated as hedges (10 ) — Total Net Derivative Liability $ (29 ) $ (4 ) The following table presents the net (losses) gains from changes in fair values of derivatives that are not designated as hedges (in millions): Net (Loss) Gain Recognized in Income Year Ended December 31, Consolidated Statements of Operations Classification 2017 2016 2015 Derivative instruments not designated as hedges: Foreign exchange contracts Foreign exchange (loss) gain $ (24 ) $ 5 $ 11 Forward interest rate swaps Interest expense and other, net 2 — 4 Total net (loss) gain from derivative instruments not designated as hedges $ (22 ) $ 5 $ 15 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 by 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. Unrealized gains and losses on these contracts are deferred in Accumulated other comprehensive loss on the Consolidated Balance Sheets until the contract is settled and the hedged sale is realized. The realized gain or loss is then recorded as an adjustment to Net sales on the Consolidated Statement of Operations. Realized (losses) or gains were $(8) million , $(7) million , and $14 million for the periods ending December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 and 2016 , the notional amounts of the Company’s foreign exchange cash flow hedges were €389 million and €341 million , respectively. The Company has reviewed its 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, Australian dollar, Swedish krona, Japanese yen and Singapore dollars denominated net assets. These forward contracts typically mature within three months after execution. Monetary gains and losses on these forward contracts are recorded in income each quarter and are generally offset by the foreign exchange gains and losses related to their net asset positions. The notional values of these outstanding contracts are as follows: December 31, 2017 2016 Notional balance of outstanding contracts (in millions): British Pound/US dollar £ 13 £ 3 Euro/US dollar € 108 € 148 British Pound/Euro £ 5 £ 8 Canadian Dollar/US dollar $ 12 $ 13 Czech Koruna/US dollar Kč 361 Kč 147 Brazilian Real/US dollar R$ 34 R$ 56 Malaysian Ringgit/US dollar RM — RM 16 Australian Dollar/US dollar $ 55 $ 50 Swedish Krona/US dollar kr 13 kr 7 Japanese Yen/US dollar ¥ 151 ¥ 48 Singapore Dollar/US dollar S$ 4 S$ 15 Net fair value (liability) asset of outstanding contracts (in millions) $ (2 ) $ 11 Interest Rate Risk Management On July 26, 2017, the Company entered into an Amended and Restated Credit Agreement (the “A&R Credit Agreement”), which amended, modified and added provisions to the Company’s previous credit agreement, provided for an additional term loan of $687.5 million (“Term Loan A”) and increased the existing revolving credit facility (“Revolving Credit Facility”) from $250 million to $500 million . See Note 8, Long-Term Debt . Borrowings under the existing term loan (“Term Loan B”), the new Term Loan A, the Revolving Credit Facility and the receivables financing facility 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 both term loans. The Company manages its exposure to changes in interest rates by utilizing interest rate swaps to hedge this exposure and to achieve a desired proportion of fixed versus floating-rate debt, based on current and projected market conditions. The Company does not enter into derivative instruments for trading or speculative purposes. In December 2017, the Company entered into an $800 million forward long-term interest rate swap agreement to lock into a fixed LIBOR interest rate base for debt facilities subject to monthly interest payments, including Term Loan A, the Revolving Credit Facility and receivables financing facility. Under the terms of the agreement, $800 million in variable-rate debt will be swapped for a fixed interest rate with net settlement terms due effective in December 2018. The changes in fair value of these swaps are not designated as hedges and are recognized immediately as Interest expense, net on the Consolidated Statement of Operations. The Company has a floating-to-fixed interest rate swap, which was designated as a cash flow hedge. This swap was terminated and the hedge accounting treatment was discontinued in 2014. This swap has $4 million to be amortized through Accumulated other comprehensive loss on the Consolidated Balance Sheets and into Interest expense, net on the Consolidated Statements of Operations through June 2021, of which $2 million will be amortized during 2018. The Company has three interest rate swaps previously entered into with the purpose of converting floating-to-fixed rate debt. The first swap was entered into with a syndicated group of commercial banks for the purpose of moving from floating-to-fixed rate debt. The second swap largely offsets the first swap, moving from fixed-to-floating rate debt. Both of these instruments are not designated as hedges and the changes in fair value are recognized in Interest expense, net on the Consolidated Statements of Operations. The third swap entered into was an interest rate swap converting floating-to-fixed rate debt which was designated as a cash flow hedge and receives hedge accounting treatment. All three swaps have a termination date in June 2021. The changes in fair value of the active swap designated as a cash flow hedge are recognized in Accumulated other comprehensive loss on the Consolidated Balance Sheets, with any ineffectiveness immediately recognized in earnings. At December 31, 2017 , the Company estimated that approximately $4 million in losses on the forward interest rate swap designated as a cash flow hedge will be reclassified from Accumulated other comprehensive loss on the Consolidated Balance Sheets 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 for interest rates swaps at December 31, 2017 (in millions): Gross Fair Offsetting Counterparty Fair Value Net Fair Counterparty A $ 8 $ 4 $ 4 Counterparty B 3 1 2 Counterparty C 3 1 2 Counterparty D 5 3 2 Counterparty E 3 1 2 Counterparty F 3 1 2 Counterparty G 4 — 4 Total $ 29 $ 11 $ 18 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 its interest rate swap hedges for effectiveness and determined they are all 100% effective. The interest rate swaps have the following notional amounts per year (in millions): Year 2018 $ 544 Year 2019 1,344 Year 2020 1,072 Year 2021 1,072 Remainder 800 Notional balance of outstanding contracts $ 4,832 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following table shows the carrying value of the Company’s debt (in millions): December 31, 2017 2016 Senior Notes $ — $ 1,050 Term Loan B 1,160 1,653 Term Loan A 679 — Revolving Credit Facility 275 — Receivables Financing Facility 135 — Total debt 2,249 2,703 Less: Debt issuance costs (7 ) (22 ) Less: Unamortized discounts (15 ) (33 ) Less: Current portion of long-term debt (51 ) — Total long-term debt $ 2,176 $ 2,648 At December 31, 2017 , the future maturities of long-term debt, excluding debt discounts and issuance costs, consisted of the following (in millions): 2018 $ 51 2019 174 2020 56 2021 1,968 2022 — Thereafter — Total future maturities of long-term debt $ 2,249 The estimated fair value of our long-term debt approximated $1.8 billion at December 31, 2017 and $2.8 billion at December 31, 2016 . These fair value amounts exclude the Revolving Credit Facility and receivables financing facility as these facilities are stated at fair value. 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 July 26, 2017, the Company entered into the A&R Credit Agreement, which amended, modified and added provisions to the Company’s previous credit agreement. The A&R Credit Agreement provides for a Term Loan A of $688 million and increased the existing Revolving Credit Facility from $250 million to $500 million . The Company incurred and capitalized debt issuance costs of $5 million related to Term Loan A and the increased Revolving Credit Facility under the A&R Credit Agreement. In addition, as part of the A&R Credit Agreement, the Company partially paid down and repriced its Term Loan B. The A&R Credit Agreement also lowered the index rate spread for LIBOR loan from LIBOR + 250 bp to LIBOR + 200 bp for its Term Loan B. In accounting for the early termination and repricing of Term Loan B, the Company applied the provisions of ASC 470-50, Modifications and Extinguishments (“ASC 470-50”). The evaluation of the accounting under ASC 470-50 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. The Company determined that the terms of the debt were not substantially different for approximately 80.4% of the lenders, and applied modification accounting. For the remaining 19.6% of the lenders, extinguishment accounting was applied. Certain lenders elected not to participate in the debt repricing, which resulted in a debt principal prepayment of $75 million of the Company’s outstanding debt balance. The debt repricing transaction also resulted in one-time pre-tax charges including third-party fees for arranger, legal and other services and accelerated discount and amortization of debt issuance costs on the debt principal prepayment of approximately $6 million . These costs are reflected as non-operating expenses in Other, net on the Company’s Consolidated Statements of Operations. As of December 31, 2017 , the Term Loan A interest rate was 3.35% , and the Term Loan B interest rate was 3.37% . Borrowings under the Term Loan B, as amended, bear interest at a variable rate subject to a floor of 2.75% . The facility allows for interest payments payable monthly or quarterly on Term Loan A and quarterly on Term Loan B. The Company has entered into interest rate swaps to manage interest rate risk on its long-term debt on Term Loan B. See Note 7, Derivative Instruments . The A&R Credit Agreement also requires the Company to prepay certain amounts in the event of certain circumstances or transactions, as defined in the A&R Credit Agreement. The Company may make prepayments against the Term Loans, in whole or in part, without premium or penalty. Under Term Loan A, the Company made debt principal prepayments of $9 million during the year ended December 31, 2017 . Under Term Loan B, the Company made debt principal prepayments of $493 million during the year ended December 31, 2017 . The Term Loan A, unless amended, modified, or extended, will mature on July 27, 2021 (the “Term Loan A Maturity Date”). The Term Loan B, unless amended, modified, or extended, will mature on October 27, 2021 (the “Term Loan B Maturity Date”). To the extent not previously paid, the Term Loans are due and payable on, respectively, the Term Loan A Maturity Date and Term Loan B 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 A&R Credit Agreement. Assuming the Company makes no further optional debt principal prepayments on Term Loan A, the outstanding principal as of the Term Loan A Maturity Date will be approximately $498 million . Assuming the Company makes no further optional debt principal prepayments on the Term Loan B, the outstanding principal as of the Term Loan B Maturity Date will be approximately $1.2 billion . 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 $500 million . As of December 31, 2017 , the Company had letters of credit totaling $5 million , which reduced funds available for other borrowings under the Revolving Credit Facility to $495 million . The Revolving Credit Facility will mature and the related commitments will terminate on July 27, 2021. Borrowings under the Revolving Credit Facility bear interest at a variable rate plus an applicable margin. As of December 31, 2017 , the Revolving Credit Facility had an average interest rate of 3.39% . The facility allows for interest payments payable monthly or quarterly. As of December 31, 2017 , the Company had borrowings of $275 million against the Revolving Credit Facility. There were no borrowings against the Revolving Credit Facility in the prior year comparable period. Senior Notes During fiscal 2017, the Company used proceeds from Term Loan A, the Revolving Credit Facility and the receivables financing facility to redeem $1.1 billion in outstanding principal of the 7.25% Senior Notes (the “Senior Notes”), maturing October 2022. In accounting for the early termination of Senior Notes, the Company applied the provisions of ASC 470-50, Modifications and Extinguishments (“ASC 470-50”). Based on the terms of the debt, the Company concluded extinguishment accounting was appropriate to apply. The Company recognized a $65 million make whole premium, which was recorded as Interest expense, net on the Company’s Consolidated Statements of Operations. The Company also recognized accelerated debt issuance costs of $16 million which were recorded as Interest expense, net on the Company’s Consolidated Statements of Operations. Receivables Financing Facility On December 1, 2017, a wholly-owned, bankruptcy-remote, special-purpose entity (“SPE”) of the Company entered into the Receivables Purchase Agreement, which provides for a receivables financing facility of up to $180 million . The SPE utilizes the receivables financing facility in the normal course of business as part of its management of cash flows. Under its committed receivables financing facility, a subsidiary of the Company sells its domestically originated accounts receivables at fair value, on a revolving basis, to the SPE which was formed for the sole purpose of buying the receivables. The SPE, in turn, pledges a valid and perfected first-priority security interest in the pool of purchased receivables to a financial institution for borrowing purposes. The subsidiary retains an ownership interest in the pool of receivables that are sold to the SPE and services those receivables. Accordingly, the Company has determined that these transactions do not qualify for sale accounting under ASC 860, Transfers and Servicing of Financial Assets , and has, therefore, accounted for the transactions as secured borrowings. At December 31, 2017 , the Company’s Consolidated Balance Sheets included $421 million of receivables that were pledged and $135 million of associated liabilities. The SPE borrowed $145 million on the receivables financing facility and repaid $10 million in 2017. In 2017, the Company recorded expenses related to its receivables financing facility of $1 million as Interest expense, net on the Company’s Consolidated Statements of Operations. The receivables financing facility will mature on November 29, 2019. Borrowings under the receivables financing facility bear interest at a variable rate plus an applicable margin. As of December 31, 2017 , the receivables financing facility had an average interest rate of 2.35% and requires monthly interest payments. Both the Revolving Credit Facility and receivables financing facility include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. Summary of fiscal 2017 actions The actions taken during fiscal 2017 resulted in net repayments of $454 million and included the following: • Term Loan A borrowings of $688 million , • Term Loan A debt principal payments of $9 million , • Revolving Credit Facility borrowings of $275 million , • Senior Note debt principal prepayments of $1.1 billion , • Term Loan B debt principal prepayments of $493 million , • Receivables financing facility borrowings of $145 million , and • Receivables financing facility payments of $10 million . The Company was in compliance with all covenants as of December 31, 2017 and is currently not aware of any events that would cause non-compliance with any covenants in the future. From January 1, 2018 through February 22, 2018, the Company made principal debt repayments of $63 million . Certain domestic subsidiaries of the Company (the “Guarantor Subsidiaries”) guarantee the Term Loans and the Revolving Credit Facility on a senior basis: For the period ended December 31, 2017 , the non-Guarantor Subsidiaries would have (a) accounted for 57.3% of our total revenue and (b) held 86.9% or $4.3 billion of our total assets and approximately 87.6% or $3.0 billion of our total liabilities including trade payables but excluding intercompany liabilities. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Commitments | Lease Commitments The Company leases certain manufacturing facilities, distribution centers, and sales offices under non-cancellable operating leases. Rent expense under these leases was $34 million , $39 million and $45 million at December 31, 2017, 2016 and 2015, respectively. Lease terms range from 1 to 15 years with break periods specified in the lease agreements. The Company’s minimum future lease obligations under all non-cancellable operating leases as of December 31, 2017 are as follows (in millions): Future Minimum Payments 2018 $ 32 2019 27 2020 20 2021 13 2022 10 2023 and thereafter 36 Total minimum future lease obligations $ 138 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is subject to a variety of investigations, claims, suits, and other legal proceedings that arise from time to time in the ordinary course of business, including but not limited to, intellectual property, employment, tort, and breach of contract matters. The Company currently believes that the outcomes of such proceedings, individually and in the aggregate, will not have a material adverse impact on its business, cash flows, financial position, or results of operations. Any legal proceedings are subject to inherent uncertainties, and the Company’s view of these matters and its potential effects may change in the future. In connection with the acquisition of the Enterprise business from Motorola Solutions, Inc., the Company acquired Symbol Technologies, Inc., a subsidiary of Motorola Solutions (“Symbol”). A putative federal class action lawsuit, Waring v. Symbol Technologies, Inc., et al., was filed on August 16, 2005 against Symbol Technologies, Inc. and two of its former officers in the United States District Court for the Eastern District of New York by Robert Waring. After the filing of the Waring action, several additional purported class actions were filed against Symbol and the same former officers making substantially similar allegations (collectively, the New Class Actions”). The Waring action and the New Class Actions were consolidated for all purposes and on April 26, 2006, the Court appointed the Iron Workers Local # 580 Pension Fund as lead plaintiff and approved its retention of lead counsel on behalf of the putative class. On August 30, 2006, the lead plaintiff filed a Consolidated Amended Class Action Complaint (the “Amended Complaint”), and named additional former officers and directors of Symbol as defendants. The lead plaintiff alleges that the defendants misrepresented the effectiveness of Symbol’s internal controls and forecasting processes, and that, as a result, all of the defendants violated Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and the individual defendants violated Section 20(a) of the Exchange Act. The lead plaintiff alleges that it was damaged by the decline in the price of Symbol’s stock following certain purported corrective disclosures and seeks unspecified damages. The court has certified a class of investors that includes those that purchased Symbol common stock between March 12, 2004 and August 1, 2005. The parties have completed fact and expert discovery and they have agreed to a schedule for the filing of dispositive motions, which is subject to the Court’s approval. Although the Court has entered a scheduling order that currently requires the filing of a proposed joint pre-trial order by February 28, 2018, the parties are in the process of negotiating a proposed amendment to that order. The parties have scheduled a mediation for March 15, 2018. The current lead Directors and Officers (“D&O”) insurer previously maintained a position of not agreeing to reimburse defense costs incurred by the Company in connection with this matter. The current D&O insurer is now required to advance defense costs incurred by the Company in connection with this matter. 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. Unclaimed Property Voluntary Disclosure Agreement (“VDA”) and Audits: The Company is currently under audit by several states related to its reporting of unclaimed property liabilities. Additionally, in December 2017, the Company entered into a VDA with the State of Delaware. The Company has engaged an outside consultant to facilitate the assessment of the estimated liability that may result from these activities, but has not progressed sufficiently in its assessment to quantify and record a contingency reserve for any unreported unclaimed property liabilities. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Zebra Technologies Corporation Long-Term Incentive Plan (“2015 Plan”), provides for incentive compensation to the Company’s non-employee directors, officers and employees. The awards available under the 2015 Plan include Stock Appreciation Rights (“SARs”), Restricted Stock Awards (“RSAs”), Performance Share Awards (“PSAs”), Cash-settled Stock Appreciation Rights (“CSRs”), Restricted Stock Units (“RSUs”), and Performance Stock Units (“PSUs”). Non-qualified stock options were available under the 2006 Long-Term Incentive Plan (“2006 Plan”). Non-qualified stock options are no longer granted under the 2015 Plan. A total of 4.0 million shares became available for delivery under the 2015 Plan. A summary of the equity awards authorized and available for future grants under the 2015 Plan is as follows: Available for future grants at December 31, 2016 2,164,297 Newly authorized options — Granted (726,862 ) Cancellation and forfeitures — Plan termination — Available for future grants at December 31, 2017 1,437,435 Pre-tax share-based compensation expense recognized in the Consolidated Statements of Operations was $ 38 million , $ 28 million and $ 33 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Tax related benefits of $ 11 million , $ 9 million and $ 11 million were also recognized for the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , total unearned compensation costs related to the Company’s share-based compensation plans was $50 million , which will be amortized over the weighted average remaining service period of 2.2 years . Stock Appreciation Rights (“SARs”) A summary of the Company’s SARs outstanding under the 2015 Plan is as follows: 2017 2016 2015 SARs Shares Weighted- Shares Weighted- Shares Weighted- Outstanding at beginning of year 1,740,786 $ 56.15 1,397,611 $ 56.78 1,292,142 $ 42.20 Granted 402,029 98.87 627,971 52.13 332,159 107.31 Exercised (250,326 ) 48.66 (160,946 ) 35.37 (179,702 ) 40.71 Forfeited (66,550 ) 75.38 (115,215 ) 65.74 (45,441 ) 75.26 Expired (7,948 ) 108.20 (8,635 ) 88.65 (1,547 ) 47.11 Outstanding at end of year 1,817,991 $ 65.73 1,740,786 $ 56.15 1,397,611 $ 56.78 Exercisable at end of year 874,942 $ 50.86 828,754 $ 45.14 736,075 $ 35.90 The fair value of share-based compensation is estimated on the date of grant using a binomial model. Volatility is based on an average of the implied volatility in the open market and the annualized volatility of the Company’s stock price over its entire stock history. Grants in the table below include SARs that will be settled in the Class A common stock or cash. The following table shows the weighted-average assumptions used for grants of SARs, as well as the fair value of the grants based on those assumptions: 2017 2016 2015 Expected dividend yield 0% 0% 0% Forfeiture rate 9.37% 9.01% 10.24% Volatility 35.49% 43.14% 33.98% Risk free interest rate 1.77% 1.29% 1.53% Range of interest rates 0.71%-2.41% 0.25%-1.75% 0.02% - 2.14% Expected weighted-average life (in years) 4.13 5.33 5.32 Fair value of SARs granted $12.01 $12.65 $11.63 Weighted-average grant date fair value of SARs granted $29.86 $20.18 $35.00 The following table summarizes information about SARs outstanding at December 31, 2017 : Outstanding Exercisable Aggregate intrinsic value (in millions) $ 70 $ 47 Weighted-average remaining contractual term (in years) 6.1 4.7 The intrinsic value for SARs exercised in fiscal 2017 , 2016 and 2015 was $14 million , $6 million and $11 million , respectively. The total fair value of SARs vested in fiscal 2017 , 2016 and 2015 was $8 million , $3 million and $8 million , respectively. Cash received from the exercise of SARs in fiscal 2017 was $12 million compared to $6 million in the prior year. The related tax benefit realized was $3 million in fiscal 2017 compared to $1 million in the prior year. The Company’s SARs are expensed over the vesting period of the related award, which is typically 4 years. Restricted Stock Awards (“RSAs”) and Performance Share Awards (“PSAs”) The Company’s restricted stock grants consist of time-vested restricted stock awards (“RSAs”) and performance vested restricted stock awards (“PSAs”). The RSAs and PSAs hold voting rights and therefore are considered participating securities. The outstanding RSAs and PSAs are included as part of the Company’s Class A Common Stock outstanding. The RSAs and PSAs vest at each vesting date subject to restrictions such as continuous employment except in certain cases as set forth in each stock agreement. The Company’s restricted stock awards are expensed over the vesting period of the related award, which is typically 3 years . Some awards, including those granted annually to non-employee directors as an equity retainer fee, were vested upon grant. PSAs targets are set based on certain Company-wide financial metrics. Compensation cost is calculated as the market date fair value on grant date multiplied by the number of shares granted. The Company also issues stock awards to nonemployee directors. Each director receives an equity grant of shares every year during the month of May. The number of shares granted to each director is determined by dividing the value of the annual grant by the price of a share of common stock. In fiscal 2017 , there were 12,488 shares granted to nonemployee directors compared to 25,088 shares and 9,194 shares in fiscal 2016 and 2015 , respectively. New directors in any fiscal year earned a prorated amount. The shares vest immediately upon the grant date. A summary of information relative to the Company’s restricted stock awards is as follows: 2017 2016 2015 Restricted Stock Awards Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of year 622,814 $ 70.19 566,447 $ 77.68 691,621 $ 60.06 Granted 199,629 98.90 389,193 51.93 185,782 107.17 Released (165,846 ) 75.90 (275,229 ) 59.39 (253,801 ) 51.95 Forfeited (27,955 ) 72.81 (57,597 ) 70.50 (57,155 ) 75.11 Outstanding at end of year 628,642 $ 77.70 622,814 $ 70.19 566,447 $ 77.68 The fair value of each performance award granted includes assumptions around the Company’s performance goals. A summary of information relative to the Company’s performance awards is as follows: 2017 2016 2015 Performance Share Awards Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of year 379,226 $ 70.14 332,630 $ 73.40 374,180 $ 61.53 Granted 79,423 98.97 172,024 51.01 106,411 75.77 Released (2,029 ) 62.70 (111,325 ) 46.58 (120,000 ) 38.67 Forfeited (190,873 ) 73.09 (14,103 ) 75.73 (27,961 ) 73.45 Outstanding at end of year 265,747 $ 77.04 379,226 $ 70.14 332,630 $ 73.40 Other Award Types The Company also has cash-settled compensation awards including cash-settled Stock Appreciation Rights (“CSRs”), Restricted Stock Units (“RSUs”), and Performance Stock Units (“PSUs”) (the “Awards”) that are expensed over the vesting period of the related award, which is not more than 4 years. Compensation cost is calculated at the market date fair value on grant date multiplied by the number of share-equivalents granted and the fair value is remeasured at the end of each reporting period. Share-based liabilities paid for these awards was $1.5 million in 2017 compared to $0.8 million in 2016 . Share-equivalents issued under these programs totaled 45,781 , 95,210 and 11,618 in fiscal 2017 , 2016 and 2015 , respectively. Non-qualified Stock Options A summary of the Company’s options outstanding under the 2006 Plan is as follows: 2017 2016 2015 Non-qualified Options Shares Weighted- Shares Weighted- Shares Weighted- Outstanding at beginning of year 154,551 $ 35.96 204,434 $ 36.66 415,960 $ 40.19 Granted — — — — — — Exercised (132,905 ) 36.86 (47,393 ) 38.60 (209,976 ) 43.53 Forfeited — — — — — — Expired (5,941 ) 41.25 (2,490 ) 43.35 (1,550 ) 51.62 Outstanding at end of year 15,705 $ 26.34 154,551 $ 35.96 204,434 $ 36.66 Exercisable at end of year 15,705 $ 26.34 154,551 $ 35.96 204,434 $ 36.66 The following table summarizes information about non-qualified stock options outstanding at December 31, 2017 : Outstanding Exercisable Aggregate intrinsic value (in millions) $ 1 $ 1 Weighted-average remaining contractual term (in years) 0.70 0.70 There were no non-qualified stock options issued during the twelve months ended December 31, 2017 . The intrinsic value for non-qualified options exercised in fiscal 2017 , 2016 and 2015 was $8 million , $2 million and $10 million , respectively. There were no non-qualified options vested in fiscal 2017 , 2016 and 2015 . Cash received from the exercise of non-qualified options in fiscal 2017 was $5 million compared to $2 million in the prior year. The related tax benefit realized was less than $2 million in fiscal 2017 compared to $1 million in the prior year. Employee Stock Purchase Plan The Zebra Technologies Corporation 2011 Employee Stock Purchase Plan (“2011 Plan”), which became effective in fiscal 2011, permits eligible employees to purchase common stock at 95% of the fair market value at the date of purchase. Employees may make purchases by cash or payroll deductions up to certain limits. The aggregate number of shares that may be purchased under this plan is 1,500,000 shares. At December 31, 2017 , 922,972 shares were available for future purchase. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The geographical sources of income (loss) before income taxes were as follows (in millions): Year Ended December 31, 2017 2016 2015 United States $ (152 ) $ (120 ) $ (288 ) Outside United States 240 (9 ) 108 Total $ 88 $ (129 ) $ (180 ) Income tax expense (benefit) consisted of the following (in millions): Year Ended December 31, 2017 2016 2015 Current: Federal $ 10 $ 14 $ 84 State 8 6 4 Foreign 62 31 32 Total current 80 51 120 Deferred: Federal 20 (31 ) (117 ) State (10 ) (6 ) (24 ) Foreign (19 ) (6 ) (1 ) Total deferred (9 ) (43 ) (142 ) Total expense (benefit) $ 71 $ 8 $ (22 ) The Company recognized tax expense of $71 million and $8 million for the years ended December 31, 2017 and 2016, respectively. The Company’s effective tax rates were 80.7% and (6.2)% as of December 31, 2017 and 2016 , respectively. The Company’s effective tax rate was higher than the federal statutory rate of 35% primarily due to deferred income taxed on the outbound transfer of U.S. assets, an increase in uncertain tax benefits, increased valuation allowance for its foreign deferred tax assets, foreign non-deductible expenses, the one-time transition tax and remeasurement of its net U.S. deferred tax assets under U.S. tax reform. These increases were partially offset by the benefit of lower tax rates in foreign jurisdictions, recognition of deferred tax assets on intercompany asset transfers, the generation of tax credits in the current year, and deductions from vesting of equity compensation. A reconciliation between the Provision computed at the statutory rate and the Provision for income taxes is provided below: Year Ended December 31, 2017 2016 2015 Provision computed at statutory rate 35.0 % 35.0 % 35.0 % U.S. Tax Reform - One-time transaction tax 41.8 0.0 0.0 Remeasurement of Deferred Taxes (56.0 ) 0.0 0.0 Change in valuation allowance 96.4 (1.0 ) (8.3 ) US impact of Enterprise acquisition 12.9 (14.1 ) (26.7 ) Change in contingent income tax reserves 14.0 (1.6 ) (3.3 ) Foreign earnings subject to U.S. taxation 2.0 (6.6 ) (3.9 ) Foreign rate differential (29.1 ) (16.0 ) 13.9 Intra-entity transactions (18.8 ) 0.0 0.0 State income tax, net of federal tax benefit (5.3 ) (1.0 ) 1.1 Tax credits (5.7 ) 9.5 6.1 Equity compensation deductions (5.6 ) (0.4 ) 0.0 Return to provision and other true ups (3.2 ) (3.7 ) 0.0 Other 2.3 (6.3 ) (1.7 ) Provision for income taxes 80.7 % (6.2 )% 12.2 % The Company earns a significant amount of our operating income outside of the U.S., primarily in the United Kingdom, Singapore, and Luxembourg, with statutory rates of 19% , 17% , and 27% , respectively. During 2017, the Company affirmed an incentivized tax rate of 10% with the Singapore Economic Development Board with the Company’s commitment to make increased investments in Singapore; this tax rate will expire on December 31, 2018, unless the Company applies for and is granted an extension. The Company has recognized $12 million of deferred tax benefit related to the impact of a sale of intangible assets within the consolidated group where the tax basis of assets was stepped up to fair market value. With the Company’s adoption of ASU 2016-16, the tax impact of non-inventory intra-entity transfers of assets are recognized in the period in which the transfer occurs. See Note 2, Summary of Significant Accounting Policies for further explanation. Tax effects of temporary differences that resulted in deferred tax assets and liabilities are as follows (in millions): December 31, 2017 2016 Deferred tax assets: Capitalized research expenditures $ 32 $ 58 Deferred revenue 21 57 Tax credits 31 33 Net operating loss carryforwards 338 35 Other accruals 20 31 Inventory items 20 27 Capitalized software costs 14 25 Sales return/rebate reserve 33 27 Share-based compensation expense 12 15 Accrued bonus 1 11 Unrealized gains and losses on securities and investments 8 4 Valuation allowance (134 ) (47 ) Total deferred tax assets 396 276 Deferred tax liabilities: Depreciation and amortization 275 165 Undistributed earnings 2 1 Total deferred tax liabilities $ 277 $ 166 Net deferred tax assets $ 119 $ 110 At December 31, 2017 , the Company has approximately $338 million (tax effected) of net operating losses (“NOLs”) and approximately $30 million of credit carryforwards. Approximately $45 million of NOLs will expire beginning in 2033 thru 2037, and $24 million of credits will expire beginning in 2023 thru 2032. $293 million of NOLs and $6 million of credits have no expiration date. The Company elected a fiscal unity regime for its Luxembourg group which allows the Company to offset losses against other group member income. As a result of this election, the Company has remeasured the value of its deferred tax assets and liabilities in Luxembourg at the statutory rate of 27% , giving rise to an increase of $290 million in its net operating loss carryforwards, an increase of $66 million in valuation allowances, and an increase of $224 million in its depreciation and amortization deferred tax liability. Impact of U.S. Tax Reform TCJA was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. At December 31, 2017, we have not completed our accounting for the tax effects of enactment of the Act; however, in certain cases, as described below, we have made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax. In other cases, we have not been able to make a reasonable estimate and continue to account for those items based on our existing accounting under ASC 740, Income Taxes, and the provisions of the tax laws that were in effect immediately prior to enactment. For the items for which we were able to determine a reasonable estimate, we recognized a provisional amount of $ 72 million , which is included as a component of income tax expense. Provisional amounts Deferred tax assets and liabilities: We remeasured U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21% . However, we are still analyzing certain aspects of the Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded related to the remeasurement of our deferred tax balance was $35 million . Foreign Tax Effects The one-time transition tax is based on our total post-1986 earnings and profits (“E&P”) that we previously deferred from U.S. income taxes. We recorded a provisional amount for our one-time transition tax liability, resulting in an increase in income tax expense of $37 million . We have not yet completed our calculation of the total post-1986 E&P for these foreign subsidiaries. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when we finalize the calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation and finalize the amounts held in cash or other specified assets. We have reduced our deferred tax asset for income tax credits by $10 million which is available to offset the one-time transition tax, resulting in an estimated cash tax liability of $26 million which is to be remitted over the next eight years as follows: One-Time Transition Tax - Payments Due for Calendar Year Tax Returns 2017 2018 2019 2020 2021 2022 2023 2024 Unremitted Earnings Payments $ 2 $ 2 $ 2 $ 2 $ 2 $ 4 $ 5 $ 7 The Company earns a significant amount of our operating income outside of the U.S. As of year-ended December 31, 2017, the Company is indefinitely reinvested with respect to its U.S. directly-owned subsidiary earnings and therefore has not accrued any withholding taxes on those earnings. However, certain foreign affiliate parent companies are not indefinitely reinvested and the Company has recorded a deferred tax liability of $2 million for foreign withholding taxes on those earnings. The Company’s policy considers its U.S. investment in directly-owned foreign affiliates to be indefinitely reinvested. Under the Act, future unremitted foreign earnings will no longer be subject to tax when repatriated to its U.S. parent, but may be subject to withholding taxes of the payor affiliate country. Additionally, gains and losses on taxable dispositions of U.S.-owned foreign affiliates continue to be subject to U.S. tax. For the years ended December 31, 2017 and 2016, the Company has not recognized deferred tax liabilities in the U.S. with respect to foreign withholding taxes or its outside basis differences in its directly-owned foreign affiliates and quantification of the unrecognized deferred tax liability is not practical. Performance-Based Executive Compensation The Act amends the rules related to the exclusion of performance-based compensation under Internal Revenue Code 162(m). The Company will no longer be able to claim a deduction for compensation accrued after January 1, 2018 for a covered employee which exceeds $1 million , unless the compensation is earned in respect of a binding contract in existence on November 2, 2017 (“Grandfathered Contracts”). The Company has estimated the remeasurement of the Section 162(m) grandfathered deferred tax assets at 21% for its covered employees for equity award agreements issued and executed prior to November 2, 2017, assuming that its benefit plan documents will fall within the grandfathered contract rules; should guidance to the contrary be issued by U.S. Treasury, the Company would have to remeasure its grandfathered deferred tax assets at $0 . Additionally, the Company has determined that its short-term bonus plan will not qualify for the grandfathered contract provisions, thus any deferred short-term bonus to be paid to covered employees in 2018 has been remeasured at a 0% rate. The Company has not recorded an adjustment to its state and local current or deferred income tax provision as a result of the Act. Guidance from state tax authorities which do not fully conform with the U.S. Internal Revenue Code is not available to allow the Company to estimate the financial statement impact at this time. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Year ended December 31, 2017 2016 Balance at beginning of year $ 42 $ 40 Additions for tax positions related to the current year — 2 Additions for tax positions related to prior years 11 2 Reductions for tax positions related to prior years (1 ) (2 ) Settlements for tax positions (1 ) — Balance at end of year $ 51 $ 42 At December 31, 2017 and December 31, 2016 , there are $47 million and $40 million of unrecognized tax benefits that if recognized would affect the annual effective tax rate. The Company continues to believe its positions are supportable, however, the Company anticipates that $20 million of uncertain tax benefits may be paid within the next twelve months and, as such, is reflected as a current liability within the Company’s Consolidated Balance Sheets. 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 Her Majesty’s Revenue and Customs (“HMRC”) 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. The Company recognized $2 million of interest and/or penalties related to income tax matters as part of income tax expense for the year ended December 31, 2017 . The Company accrued $6 million and $4 million of interest and penalties accrued in the Consolidated Balance Sheets as of December 31, 2017 and 2016 . |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) 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 in periods of income, reflects the additional shares that would be outstanding if dilutive stock options were exercised for common shares during the period. Earnings (loss) per share were computed as follows (dollars in millions, except share data): Year Ended December 31, 2017 2016 2015 Basic: Net income (loss) $ 17 $ (137 ) $ (158 ) Weighted-average shares outstanding (1) 53,021,761 51,579,112 50,996,297 Basic earnings (loss) per share $ 0.33 $ (2.65 ) $ (3.10 ) Diluted: Net income (loss) $ 17 $ (137 ) $ (158 ) Weighted-average shares outstanding (1) 53,021,761 51,579,112 50,996,297 Dilutive shares (2) 667,071 — — Diluted weighted-average shares outstanding 53,688,832 51,579,112 50,996,297 Diluted earnings (loss) per share $ 0.32 $ (2.65 ) $ (3.10 ) (1) In periods of net loss, restricted stock awards that are classified as participating securities are excluded from the weighted-average shares outstanding computation. (2) In periods of net loss, options are anti-dilutive and therefore excluded from the earnings (loss) per share calculation. There were 259,142 outstanding options to purchase common shares that were anti-dilutive and excluded from the earnings per share calculation as of December 31, 2017 compared to 1,391,567 and 1,421,506 excluded for the periods ended December 31, 2016 and 2015 , respectively. 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Stockholders’ equity includes certain items classified as other comprehensive income (loss), including: • Unrealized (loss) gain on anticipated sales hedging transactions relate to derivative instruments used to hedge the exposure related to currency exchange rates for forecasted Euro sales. These hedges are designated as cash flow hedges, and the Company defers income statement recognition of gains and losses until the hedged transaction occurs. See Note 7, Derivative Instruments for more details . • Unrealized (loss) gain on forward interest rate swaps hedging transactions refer to the hedging of the interest rate risk exposure associated with the variable rate commitment entered into for the Acquisition. See Note 7, Derivative Instruments for more details. • Foreign currency translation adjustment relates to the Company’s non-U.S. subsidiary companies that have been designated a functional currency other than the U.S. dollar. The Company is required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive income (loss). The components of Accumulated other comprehensive income (loss) (“AOCI”) for each of the three years ended December 31 are as follows (in millions): Unrealized (loss) gain on sales hedging Unrealized (loss) gain on forward interest rate swaps Currency translation adjustments Total Balance at December 31, 2014 $ 5 $ (8 ) $ (6 ) $ (9 ) Other comprehensive income (loss) before reclassifications 7 (12 ) (11 ) (16 ) Amounts reclassified from AOCI (1) (15 ) 1 (15 ) (29 ) Tax benefit 2 4 — 6 Other comprehensive loss (6 ) (7 ) (26 ) (39 ) Balance at December 31, 2015 (1 ) (15 ) (32 ) (48 ) Other comprehensive income (loss) before reclassifications 1 (1 ) (4 ) (4 ) Amounts reclassified from AOCI (1) 7 2 — 9 Tax expense (1 ) (1 ) — (2 ) Other comprehensive income (loss) 7 — (4 ) 3 Balance at December 31, 2016 6 (15 ) (36 ) (45 ) Other comprehensive income (loss) before reclassifications (26 ) 1 2 (23 ) Amounts reclassified from AOCI (1) 8 8 — 16 Tax benefit (expense) 3 (3 ) — — Other comprehensive (loss) income (15 ) 6 2 (7 ) Balance at December 31, 2017 $ (9 ) $ (9 ) $ (34 ) $ (52 ) (1) See Note 7, Derivative Instruments regarding timing of reclassifications on forward interest rate swaps. |
Segment Information and Geograp
Segment Information and Geographic Data | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Data | Segment Information & Geographic Data The segment information reflects the operating results of the Company’s business segments. In January 2018, The Company changed the names of the reportable segments to better reflect business operations. The Company has two reportable segments; Asset Intelligence & Tracking (“AIT”), formerly Legacy Zebra and Enterprise Visibility & Mobility (“EVM”), formerly Enterprise. • The AIT segment consists of barcode and card printing, location solutions, supplies, and services • The EVM segment consists of mobile computing, data capture, and RFID The operating segments have been identified based on the financial data utilized by the Company’s Chief Executive Officer (the chief operating decision maker) to assess segment performance and allocate resources between the Company’s segments. The chief operating decision maker uses adjusted operating income to evaluate segment profitability. The accounting policies of the segments are in accordance with Note 2, Summary of Significant Accounting Policies . The chief operating decision maker does not use total assets by segment to make decisions regarding resources, therefore the total asset disclosure by segment has not been included. Financial information by segment is presented as follows (in millions): Year Ended December 31, 2017 2016 2015 Net sales: AIT $ 1,311 $ 1,247 $ 1,286 EVM 2,414 2,337 2,380 Total segment net sales 3,725 3,584 3,666 Corporate, eliminations (1) (3 ) (10 ) (16 ) Total net sales $ 3,722 $ 3,574 $ 3,650 Operating income: AIT $ 260 $ 240 $ 258 EVM 315 286 236 Total segment operating income 575 526 494 Corporate, eliminations (2) (253 ) (446 ) (457 ) Total operating income $ 322 $ 80 $ 37 (1) Amounts included in Corporate, eliminations consist of purchase accounting adjustments related to the Acquisition. (2) Amounts included in Corporate, eliminations consist of purchase accounting adjustments not reported in segments; amortization of intangible assets, acquisition/integration costs, impairment of goodwill and other intangibles, and exit and restructuring costs. Information regarding the Company’s operations by geographic area is contained in the following table. These amounts are reported in the geographic area of the destination of the final sale. We manage our business based on regions rather than by individual countries. Geographic data for net sales is as follows (in millions): Year Ended December 31, 2017 2016 2015 Europe, Middle East, and Africa $ 1,221 $ 1,138 $ 1,194 Latin America 235 214 219 Asia-Pacific 468 483 463 Total International 1,924 1,835 1,876 North America 1,798 1,739 1,774 Total net sales $ 3,722 $ 3,574 $ 3,650 Geographic data for long-lived assets, defined as property, plant and equipment is as follows (in millions): Year Ended December 31, 2017 2016 2015 Europe, Middle East, and Africa $ 14 $ 13 $ 10 Latin America 3 3 3 Asia-Pacific 9 9 10 Total International 26 25 23 North America 238 267 275 Total long-lived assets $ 264 $ 292 $ 298 Net sales by country that are greater than 10% of total net sales are as follows (in millions): Year Ended December 31, 2017 2016 2015 United States $ 1,984 $ 1,950 $ 2,045 United Kingdom 1,196 1,065 1,102 Singapore 454 362 175 Other 88 197 328 Total net sales $ 3,722 $ 3,574 $ 3,650 Net sales by country are determined by the country from where the products are invoiced when they leave the Company’s warehouses. Generally, our United States sales company serves North America and Latin America; United Kingdom sales company serves Europe, Middle East, and Africa; and our Singapore sales company serves Asia-Pacific. Our net sales to significant customers as a percentage of the total Company’s net sales by segment were as follows: Year Ended December 31, 2017 2016 2015 AIT EVM Total AIT EVM Total AIT EVM Total Customer A 6.3 % 15.0 % 21.3 % 5.9 % 14.2 % 20.1 % 5.5 % 13.9 % 19.4 % Customer B 5.3 % 8.9 % 14.2 % 5.0 % 8.2 % 13.2 % 4.6 % 8.1 % 12.7 % Customer C 6.2 % 7.0 % 13.2 % 5.3 % 7.1 % 12.4 % 5.2 % 6.4 % 11.6 % All three of the above customers are distributors and not end-users. No other customer accounted for 10% or more of total net sales during the years presented. There are three customers at December 31, 2017 and December 31, 2016 that each accounted for more than 10% of outstanding accounts receivable. In 2017 , the three largest customers accounted for 19.5% , 14.0% , and 11.7% , respectively of accounts receivable while in 2016 , the three largest customers accounted for 19.9% , 14.0% and 12.9% , respectively. |
Supplementary Financial Informa
Supplementary Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Financial Information | Supplementary Financial Information The components of Accounts receivable, net are as follows (in millions): December 31, 2017 2016 Accounts receivable $ 482 $ 628 Allowance for doubtful accounts (3 ) (3 ) Accounts receivable, net $ 479 $ 625 Prepaid expenses and other current assets consist of the following (in millions): December 31, 2017 2016 Foreign Exchange Contracts $ — $ 23 Other 24 41 Prepaid expenses and other current assets $ 24 $ 64 The components of Accrued liabilities are as follows (in millions): December 31, 2017 2016 Accrued incentive compensation $ 101 $ 52 Customer reserves 41 50 Accrued payroll 50 51 Interest payable 15 20 Accrued other expenses 130 150 Accrued liabilities $ 337 $ 323 Summary of Quarterly Results of Operations (unaudited) (In millions): 2017 First Second Third Fourth Total Year Total Net sales $ 865 $ 896 $ 935 $ 1,026 $ 3,722 Gross profit 401 411 429 469 1,710 Net income (loss) 8 17 (12 ) 4 17 Net earnings per common share: Basic earnings (loss) per share: $ 0.16 $ 0.33 $ (0.23 ) $ 0.07 $ 0.33 Diluted earnings (loss) per share: 0.16 0.32 (0.23 ) 0.07 0.32 2016 First Second Third Fourth Total Year Total Net sales $ 849 $ 879 $ 904 $ 942 $ 3,574 Gross profit 390 406 414 432 1,642 Net (loss) income (26 ) (45 ) (83 ) 17 (137 ) Net earnings per common share: Basic (loss) earnings per share: $ (0.50 ) $ (0.88 ) $ (1.61 ) $ 0.34 $ (2.65 ) Diluted (loss) earnings per share: (0.50 ) (0.88 ) (1.61 ) 0.34 (2.65 ) |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts (In millions) Description Balance at Beginning of Period Charged to Costs and Expenses Deductions Balance at End of Period Valuation account for accounts receivable: Year ended December 31, 2017 $ 3 $ 1 $ 1 $ 3 Year ended December 31, 2016 6 — 3 3 Year ended December 31, 2015 1 5 — 6 Valuation account for deferred tax assets: Year ended December 31, 2017 $ 47 $ 91 $ 4 $ 134 Year ended December 31, 2016 48 18 19 47 Year ended December 31, 2015 57 5 14 48 See accompanying report of independent registered public accounting firm. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation. These accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States and include the accounts of Zebra and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Calendar | Fiscal Calendar. Zebra operates on a 4 week/4 week/5 week fiscal quarter, and each fiscal quarter ends on a Saturday. The fiscal year always begins on January 1 and ends on December 31. This fiscal calendar results in some fiscal quarters being either greater than or less than 13 weeks, depending on the days of the week on which those dates fall. During the 2017 fiscal year, our quarter end dates were April 1, July 1, September 30, and December 31. |
Use of Estimates | Use of Estimates. These consolidated financial statements were prepared using estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of estimates include: cash flow projections and other assumptions included in our annual goodwill impairment test; loss contingencies; product warranties; useful lives of our tangible and intangible assets; allowances for doubtful accounts; the recognition and measurement of income tax assets and liabilities; and share-based compensation forfeiture rates. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash consists primarily of deposits with banks. In addition, the Company considers highly liquid short-term investments with original maturities of less than three months to be cash equivalents. These highly liquid short-term investments are readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of a change in value because of changes in interest rates. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable consist primarily of amounts due to us from our customers in the course of normal business activities. Collateral on trade accounts receivable is generally not required. The Company maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on our assessment of known delinquent accounts. Accounts are written off against the allowance account when they are determined to be no longer collectible. |
Inventories | Inventories. Inventories are stated at the lower of a moving-average cost (which approximates cost on a first-in, first-out basis) and net realizable value. Manufactured inventory cost includes materials, labor, and manufacturing overhead. Purchased inventory cost also includes internal purchasing overhead costs. |
Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment is stated at cost. Depreciation is computed primarily using the straight-line method over the estimated useful lives of the various classes of property, plant and equipment, which are 30 years for buildings and range from 3 to 10 years for all other asset categories. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. |
Income Taxes | Income Taxes. The Company accounts for income taxes under the liability method in accordance with Accounting Standards Codification (“ASC”) 740, Income Taxes . Accordingly, deferred income taxes are provided for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities are measured using tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the benefit of tax positions when it is more likely than not to be sustained on its technical merits. The Company recognizes interest and penalties related to income tax matters as part of income tax expense. The Company has elected consolidated tax filings in certain of its jurisdictions which may allow the group to offset one member’s income with losses of other members in the current period and on a carryover basis. The Company classifies its balance sheet tax accounts adopting a jurisdictional netting principle for those countries where a consolidated tax return election is in place. The Tax Cut and Jobs Act (“TCJA” or “the Act”) enacted on December 22, 2017 contains provisions related to the taxation of certain foreign earnings under the Global Intangible Low-Taxed Income (“GILTI”) regime which is effective for tax years beginning on or after January 1, 2018. Under guidance issued by the Financial Accounting Standards Board on January 10, 2018, companies must account for the impact of the GILTI tax as either a temporary difference in the book and tax basis of assets giving rise to the GILTI income, net of a foreign tax credit, or as a charge to tax expense in the year GILTI income is included in the U.S. tax return. The Company has elected to treat its GILTI inclusions as a charge to tax expense in the year included in its U.S. tax return. |
Goodwill | Goodwill. Goodwill is not amortized but is evaluated for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. If a quantitative assessment is completed as part of our impairment analysis for a reporting unit, we may engage a third-party appraisal firm to assist in the determination of estimated fair value for each reporting unit. This determination includes estimating the fair value using both the income and market approaches. The income approach requires management to estimate a number of factors for each reporting unit, including projected future operating results, economic projections, anticipated future cash flows and discount rates. The market approach estimates fair value using comparable marketplace fair value data from within a comparable industry grouping. The fair value of the reporting unit is compared to the carrying amount of the reporting unit. If a reporting unit is considered impaired, the impairment is recognized in the amount by which the carrying amount exceeds the fair value of the reporting unit. The determination of the fair value of the reporting units and the allocation of that value to individual assets and liabilities within those reporting units requires us to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the selection of appropriate peer group companies; control premiums appropriate for acquisitions in the industries in which we compete; the discount rates; terminal growth rates; and forecasts of revenue, operating income, depreciation and amortization and capital expenditures. The allocation requires several analyses to determine the fair value of assets and liabilities including, among other things, customer relationships and trade names. Although we believe our estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting units, the amount of any goodwill impairment charge, or both. We also compare the sum of the estimated fair values of the reporting units to the Company’s total value as implied by the market value of the Company’s securities. This comparison indicated that, in total, our assumptions and estimates were reasonable. However, future declines in the overall market value of the Company’s securities may indicate that the fair value of one or more reporting units has declined below its carrying value. One measure of the sensitivity of the amount of goodwill impairment charges to key assumptions is the amount by which each reporting unit “passed” (fair value exceeds the carrying amount) or “failed” (the carrying amount exceeds fair value) the first step of the goodwill impairment test. |
Other Intangibles | Other Intangibles. Other intangible assets capitalized consist primarily of current technology, customer relationships, trade names, unpatented technology, and patents and patent rights. These assets are recorded at cost and amortized on a straight-line basis over the asset’s useful life which range from 3 years to 15 years |
Impairment of Long-lived Assets and Long Lived Assets to be Disposed of | Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of. The Company accounts for long-lived assets in accordance with the provisions of ASC 360, Property, Plant and Equipment. The statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposition of the asset. If such assets are impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. |
Cost Method Investments | Cost Method Investments. The Company’s long-term investments are accounted for using the cost method. These investments are primarily in venture capital backed technology companies, where the Company's ownership interest is less than 20% of each investee. Under the cost method of accounting, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions and additional investments. The Company held cost method investments in the amount of $25 million as of December 31, 2017 and 2016 . These investments are included in Other long-term assets on the Consolidated Balance Sheets. The Company recognized impairments of $1 million during fiscal 2017 which were recorded within Other expenses in the Consolidated Statements of Operations. There were $7 million of impairments to cost method investments in fiscal 2016 and no impairments in fiscal 2015 . |
Revenue Recognition | Revenue Recognition. Revenue includes sales of hardware, supplies and services (including repair services and product maintenance service contracts, which typically occur over time, and professional services, which typically occur in the early stages of a project). We enter into revenue arrangements that may consist of multiple deliverables of our hardware products and services due to the needs of our customers. For these type of revenue arrangements, we apply the guidance in ASC 605, Revenue Recognition to identify the separate units of accounting by determining whether the delivered items have value to the customer on a standalone basis. Generally, there is no right of return for the hardware we sell. Allocation of arrangement consideration to repair services, product maintenance services, and extended warranty is equal to the stated contractual rate for such services, in accordance with the guidance in ASC 605-20. We also follow the accounting principles that establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“BESP”). Generally, our agreements contain termination provisions whereby we are entitled to payment for delivered equipment and services rendered through the date of the termination. Some of our agreements may also contain cancellation provisions that in certain cases result in customer penalties. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title has passed to the customer, which typically happens at the point of shipment provided that no significant obligations remain, the price is fixed and determinable and collectability of the sales price is reasonably assured. For hardware sales, in addition to the criteria discussed above, revenue recognition incorporates allowances for discounts, price protection, returns and customer incentives that can be reasonably estimated. In addition to cooperative marketing and other incentive programs, the Company has arrangements with some distributors, which allow for price protection and limited rights of return, generally through stock rotation programs. Under the price protection programs, the Company gives distributors credits for the difference between the original price paid and the Company’s then current price. Under the stock rotation programs, distributors are able to exchange certain products based on the number of qualified purchases made during the period. We monitor and track these programs and record a provision for future payments or credits granted as reductions of revenue based on historical experience. Recorded revenues are reduced by these allowances. The Company enters into product maintenance and support agreements; revenues are deferred and then recognized ratably over the service period and the cost of providing these services is expensed as incurred. The Company includes shipping and handling charges billed to customers as revenue when the product ships; any costs incurred related to these services are included in cost of sales. Taxing authorities may assess tax on the Company based on the gross receipts from customers, referred to as indirect taxes. The Company’s policy is to record indirect taxes as a short-term liability and not as a component of gross revenue. |
Research and Development Costs | Research and Development Costs. Research and development costs (“R&D”) are expensed as incurred. These costs include: • Salaries, benefits, and other R&D personnel related costs, • Consulting and other outside services used in the R&D process, • Engineering supplies, • Engineering related information systems costs, and • Allocation of building and related costs. |
Advertising | Advertising. Advertising is expensed as incurred. |
Warranty | Warranty. The Company generally provides warranty coverage of 1 year on mobile computers, printers and batteries. Advanced data capture products are warrantied from 1 to 5 years, depending on the product. Thermal printheads are warrantied for 6 months and battery-based products, such as location tags, are covered by a 90 -day warranty. A provision for warranty expense is adjusted quarterly based on historical warranty experience. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Our financial assets and liabilities that require recognition under the accounting guidance generally include our available-for-sale investments, employee deferred compensation plan investments, foreign currency derivatives, and interest rate swaps. In accordance with ASC 815, Derivatives and Hedging, we recognize derivative instruments and hedging activities as either assets or liabilities on the Consolidated Balance Sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. See Note 7, Derivative Instruments for additional information on our derivatives and hedging activities. The Company has foreign currency forwards to hedge certain foreign currency exposures and interest rate swaps to hedge a portion of the variability in future cash flows on debt. We use broker quotations or market transactions, in either the listed or over-the-counter markets to value our foreign currency exchange contracts and relevant observable market inputs at quoted intervals, such as forward yield curves and the Company’s own credit risk to value our interest rate swaps. The Company’s investments in marketable debt securities are classified as available-for-sale except for securities held in the Company’s deferred compensation plans, which are considered to be trading securities. In general, we use quoted prices in active markets for identical assets to determine fair value. If active markets for identical assets are not available to determine fair value, then we use quoted prices for similar assets or inputs that are observable either directly or indirectly. |
Share-Based Compensation | Share-Based Compensation. At December 31, 2017 , the Company had a share-based compensation plan and an employee stock purchase plan under which shares of our common stock were available for future grants and sales, and which are described more fully in Note 11, Share-Based Compensation . We account for these plans in accordance with ASC 505, Equity and ASC 718, Compensation - Stock Compensation . The Company recognizes compensation costs using the straight-line method over the vesting period upon grant of up to 4 years, net of estimated forfeitures. |
Foreign Currency Translation | Foreign Currency Translation. The balance sheet accounts of the Company’s non-U.S. subsidiaries, those not designated as U.S. dollar functional currency, are translated into U.S. dollars using the year-end exchange rate, and statement of earnings items are translated using the average exchange rate for the year. The resulting translation gains or losses are recorded in Stockholders’ equity as a cumulative translation adjustment, which is a component of Accumulated other comprehensive income loss within the Consolidated Balance Sheets. |
Acquisitions | Acquisitions. We account for acquired businesses using the acquisition method of accounting. This method requires that the purchase price be allocated to the identifiable assets acquired and liabilities assumed at their estimated fair values. The excess of the purchase price over the identifiable assets acquired and liabilities assumed is recorded as goodwill. The estimates used to determine the fair value of long-lived assets, such as intangible assets, can be complex and require significant judgments. We use information available to us to make fair value determinations and engage independent valuation specialists, when necessary, to assist in the fair value determination of significant acquired long-lived assets. While we use our best estimates and assumptions as a part of the purchase price allocation process, our estimates are inherently uncertain and subject to refinement. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from customer relationships, customer attrition rates, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but due to the inherent uncertainty during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. |
Recent Accounting Pronouncements | 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 of this ASU are effective for annual or any interim goodwill impairment tests beginning after December 15, 2019, and early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The amendments in this ASU simplify goodwill impairment testing by eliminating the Step 2 procedure to determine the implied fair value of goodwill of a reporting unit which fails the Step 1 procedure. 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 impact on its consolidated financial statements or existing accounting policies. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805)- Clarifying the Definition of a Business ,” 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 effective date of this ASU is for fiscal years and interim periods beginning after December 15, 2017. This ASU should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company adopted this ASU on January 1, 2017, on a prospective basis, and there was no impact on the Company’s 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 .” This 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 adopted this ASU on 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 the first quarter of 2017, the Company also recorded a $12 million benefit related to an intercompany transfer of intellectual property as a result of newly adopted accounting standards. The Company recognized no additional tax benefit in the fiscal year ended December 31, 2017 . In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments .” This ASU 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 Company has retrospectively adopted this ASU during the third quarter 2017. The Company has recognized $4 million in the current year as financing activities and reclassified $5 million in the prior year of cash paid for debt issuance costs and discounts on the Consolidated Statements of Cash Flows from operating activities to financing activities. There was no impact to the Consolidated Statements of Cash Flow in 2015. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This 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 Consolidated Statements 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 in the Consolidated Statements of Cash Flows effective January 1, 2017 on a retrospective basis. The Company recognized $7 million as operating activities in the current year and reclassified excess tax benefits of $3 million , and $12 million on the Consolidated Statements of Cash Flows from financing activities to operating activities for the years ended December 31, 2016 and 2015, respectively. The Company has reflected a tax benefit of $7 million for the year ending December 31, 2017 , as a discrete item within the Consolidated Statements of Operations under the new ASU. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory ,” which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value for entities that measure inventory using first-in, first-out (FIFO) or average cost. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. 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) .” Several ASUs have been issued since the issuance of ASU 2014-09 which modify certain sections of ASU 2014-09, and are intended to promote a more consistent interpretation and application of the principles outlined in the new standard. The core principle of the new standard 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. The new standard also requires that certain costs to obtain a contract, which have generally been expensed as incurred under the current guidance, will now be capitalized and amortized in a pattern consistent with the transfer to the customer of the goods or services to which the asset relates. We completed the assessment and implementation phases of the process to adopt ASU 2014-09. We also completed updating our accounting policy around revenue recognition and evaluating new disclosure requirements. We will continue to implement and enhance appropriate changes to our business processes, systems, and controls, as necessary, to support recognition and disclosure under the new standard. The new disclosure requirements will change the content and presentation of the financial statement footnotes. As a result of applying the provisions of the new standard, certain of our agreements will have different timing of revenue recognition as compared to ASC 605, Revenue Recognition. We will adopt this new ASU on January 1, 2018 using the modified retrospective approach. The Company expects to record an increase to retained earnings on its Consolidated Balance Sheets of approximately $17 million to $20 million in the first quarter of 2018 due to the cumulative impact of adopting ASU 2014-09. The increase to retained earnings will result from the initial capitalization of previously expensed services sales commissions, the impact of revenue recognized for open service contracts sold with other products, and the impact of different revenue recognition timing patterns for open customer contract arrangements initiated before January 1, 2018. Additionally, new disclosures of disaggregated revenue information by reportable segment, as well as new disclosures of remaining performance obligations will be included in the Company’s filings beginning with the first quarter of fiscal 2018. 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 the Company’s 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 Sheets 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 Sheets. 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. The impact of this ASU is non-cash in nature and will not affect the Company’s cash position. 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. This ASU requires updates to the presentation of other comprehensive income resulting from a change in instrument-specific credit risk. 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 Sheets 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. The impacts of adoption primarily relate to presentation, and there are no material impacts to the Company's consolidated financial statements or disclosures resulting from the adoption of this ASU. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Inventory | The components of Inventories, net are as follows (in millions): December 31, 2017 2016 Raw material $ 116 $ 111 Work in process 1 1 Finished goods 341 233 Inventories, net $ 458 $ 345 |
Property, Plant and Equipment | Property, plant and equipment, net is comprised of the following (in millions): December 31, 2017 2016 Buildings $ 54 $ 51 Land 8 10 Machinery and equipment 233 226 Furniture and office equipment 19 15 Software and computer equipment 235 197 Leasehold improvements 69 64 Projects in progress 23 35 641 598 Less accumulated depreciation (377 ) (306 ) Property, plant and equipment, net $ 264 $ 292 |
Summary of Accrued Warranty Obligation | The following table is a summary of the Company’s accrued warranty obligation (in millions): Year Ended December 31, Warranty reserve 2017 2016 2015 Balance at the beginning of the year $ 21 $ 22 $ 25 Warranty expense 28 31 30 Warranty payments (31 ) (32 ) (33 ) Balance at the end of the year $ 18 $ 21 $ 22 |
Compensation Expense and Related Tax Benefit for Share-based Compensation | The compensation expense and the related income tax benefit for share-based compensation were included in the Consolidated Statements of Operations as follows (in millions): Year Ended December 31, Compensation costs and related income tax benefit 2017 2016 2015 Cost of sales $ 3 $ 2 $ 3 Selling and marketing 8 6 8 Research and development 11 9 8 General and administration 16 11 14 Total compensation expense $ 38 $ 28 $ 33 Income tax benefit $ 11 $ 9 $ 11 |
Goodwill and Other Intangible28
Goodwill and Other Intangibles, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortized Intangible Assets | The balances and changes in Other Intangibles, net are as follows (in millions): December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets Current technology $ 24 $ (23 ) $ 1 Trade names 41 (41 ) — Unpatented technology 242 (205 ) 37 Patents and patent rights 235 (215 ) 20 Customer relationships 481 (240 ) 241 Total $ 1,023 $ (724 ) $ 299 Amortization expense for the year ended December 31, 2017 $ 184 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets Current technology $ 24 $ (21 ) $ 3 Trade names 40 (40 ) — Unpatented technology 241 (146 ) 95 Patent and patent rights 238 (161 ) 77 Customer relationships 478 (173 ) 305 Total $ 1,021 $ (541 ) $ 480 Amortization expense for the year ended December 31, 2016 $ 229 |
Schedule of Future Amortization Expense | Estimated amortization expense for future periods is as follows (in millions): Amount For the year ended December 31, 2018 $ 96 For the year ended December 31, 2019 83 For the year ended December 31, 2020 39 For the year ended December 31, 2021 37 For the year ended December 31, 2022 31 Thereafter 13 Total $ 299 |
Changes in Net Carrying Value of Goodwill | Changes in the net carrying value amount of goodwill were as follows (in millions): Total Goodwill as of December 31, 2015 $ 2,490 Impairment charge – wireless LAN divestiture (32 ) Goodwill as of December 31, 2016 2,458 Foreign exchange impact 7 Goodwill as of December 31, 2017 $ 2,465 |
Costs Associated with Exit an29
Costs Associated with Exit and Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Summary of Exit and Restructuring Costs Incurred | The Company incurred total exit and restructuring costs as follows (in millions): Type of Cost Cumulative costs incurred through December 31, 2017 Costs incurred for the year ended December 31, 2017 Cumulative costs incurred through December 31, 2016 Severance, stay bonuses, and other employee-related expenses $ 69 $ 15 $ 54 Obligations for future lease payments 12 1 11 Total $ 81 $ 16 $ 65 |
Rollforward of Exit and Restructuring Accruals | A rollforward of the exit and restructuring accruals is as follows (in millions): Year Ended December 31, 2017 2016 Balance at beginning of year $ 10 $ 15 Charged to earnings 16 19 Cash paid (18 ) (22 ) WLAN Divestiture — (2 ) Balance at the end of year $ 8 $ 10 |
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 reported financial statement line items in the Company’s Consolidated Balance Sheets (in millions): Year Ended December 31, 2017 2016 Accrued liabilities $ 6 $ 7 Other long-term liabilities 2 3 Total liabilities related to exit and restructuring activities $ 8 $ 10 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Carried at Fair Value | The Company’s financial assets and liabilities carried at fair value as of December 31, 2017 , are classified below (in millions): Level 1 Level 2 Level 3 Total Assets: Money market investments related to the deferred compensation plan $ 15 $ — $ — $ 15 Total Assets at fair value $ 15 $ — $ — $ 15 Liabilities: Forward interest rate swap contracts (2) $ — $ 18 $ — $ 18 Foreign exchange contracts (1) 2 9 — 11 Liabilities related to the deferred compensation plan 15 — — 15 Total Liabilities at fair value $ 17 $ 27 $ — $ 44 The Company’s 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 foreign exchange contracts is calculated as follows: a. Fair value of a collar or put option contract associated with forecasted sales hedges is calculated using bid and ask rates for similar contracts. b. Fair value of regular forward contracts associated with forecasted sales hedges is calculated using the period-end exchange rate adjusted for current forward points. c. Fair value of hedges against net assets is calculated at the period end exchange rate adjusted for current forward points unless the hedge has been traded but not settled at period end (Level 2). If this is the case, the fair value is calculated at the rate at which the hedge is being settled (Level 1). As a result, transfers from Level 2 to Level 1 of the fair value hierarchy totaled $2 million and $11 million as of December 31, 2017 and 2016 , respectively. (2) The fair value of forward interest rate swap contracts is based upon a valuation model that uses relevant observable market inputs at the quoted intervals, such as forward yield curves, and may be adjusted for the Company’s own credit risk and the interest rate swap terms. See gross balance reporting in Note 7, Derivative Instruments . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 Consolidated Balance Sheets Classification Fair Value December 31 2017 2016 Derivative instruments designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ — $ 12 Foreign exchange contracts Accrued liabilities (9 ) — Forward interest rate swaps Accrued liabilities (2 ) (3 ) Forward interest rate swaps Other long-term liabilities (8 ) (13 ) Total derivative instruments designated as hedges $ (19 ) $ (4 ) Derivative instruments not designated as hedges: Foreign exchange contracts Prepaid expenses and other current assets $ — $ 11 Foreign exchange contracts Accrued liabilities (2 ) — Forward interest rate swaps Accrued liabilities (1 ) (1 ) Forward interest rate swaps Other long-term liabilities (7 ) (10 ) Total derivative instruments not designated as hedges (10 ) — Total Net Derivative Liability $ (29 ) $ (4 ) |
Derivative Instruments, Gain (Loss) | The following table presents the net (losses) gains from changes in fair values of derivatives that are not designated as hedges (in millions): Net (Loss) Gain Recognized in Income Year Ended December 31, Consolidated Statements of Operations Classification 2017 2016 2015 Derivative instruments not designated as hedges: Foreign exchange contracts Foreign exchange (loss) gain $ (24 ) $ 5 $ 11 Forward interest rate swaps Interest expense and other, net 2 — 4 Total net (loss) gain from derivative instruments not designated as hedges $ (22 ) $ 5 $ 15 |
Financial Information Related to Hedging of Net Assets Included in Consolidated Statements of Operations | The notional values of these outstanding contracts are as follows: December 31, 2017 2016 Notional balance of outstanding contracts (in millions): British Pound/US dollar £ 13 £ 3 Euro/US dollar € 108 € 148 British Pound/Euro £ 5 £ 8 Canadian Dollar/US dollar $ 12 $ 13 Czech Koruna/US dollar Kč 361 Kč 147 Brazilian Real/US dollar R$ 34 R$ 56 Malaysian Ringgit/US dollar RM — RM 16 Australian Dollar/US dollar $ 55 $ 50 Swedish Krona/US dollar kr 13 kr 7 Japanese Yen/US dollar ¥ 151 ¥ 48 Singapore Dollar/US dollar S$ 4 S$ 15 Net fair value (liability) asset of outstanding contracts (in millions) $ (2 ) $ 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 for interest rates swaps at December 31, 2017 (in millions): Gross Fair Offsetting Counterparty Fair Value Net Fair Counterparty A $ 8 $ 4 $ 4 Counterparty B 3 1 2 Counterparty C 3 1 2 Counterparty D 5 3 2 Counterparty E 3 1 2 Counterparty F 3 1 2 Counterparty G 4 — 4 Total $ 29 $ 11 $ 18 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The interest rate swaps have the following notional amounts per year (in millions): Year 2018 $ 544 Year 2019 1,344 Year 2020 1,072 Year 2021 1,072 Remainder 800 Notional balance of outstanding contracts $ 4,832 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Value of Debt | The following table shows the carrying value of the Company’s debt (in millions): December 31, 2017 2016 Senior Notes $ — $ 1,050 Term Loan B 1,160 1,653 Term Loan A 679 — Revolving Credit Facility 275 — Receivables Financing Facility 135 — Total debt 2,249 2,703 Less: Debt issuance costs (7 ) (22 ) Less: Unamortized discounts (15 ) (33 ) Less: Current portion of long-term debt (51 ) — Total long-term debt $ 2,176 $ 2,648 |
Schedule of Maturities of Long-term Debt | At December 31, 2017 , the future maturities of long-term debt, excluding debt discounts and issuance costs, consisted of the following (in millions): 2018 $ 51 2019 174 2020 56 2021 1,968 2022 — Thereafter — Total future maturities of long-term debt $ 2,249 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The Company’s minimum future lease obligations under all non-cancellable operating leases as of December 31, 2017 are as follows (in millions): Future Minimum Payments 2018 $ 32 2019 27 2020 20 2021 13 2022 10 2023 and thereafter 36 Total minimum future lease obligations $ 138 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Equity Awards Activity | A summary of the equity awards authorized and available for future grants under the 2015 Plan is as follows: Available for future grants at December 31, 2016 2,164,297 Newly authorized options — Granted (726,862 ) Cancellation and forfeitures — Plan termination — Available for future grants at December 31, 2017 1,437,435 |
Summary of SARs Activity | A summary of the Company’s SARs outstanding under the 2015 Plan is as follows: 2017 2016 2015 SARs Shares Weighted- Shares Weighted- Shares Weighted- Outstanding at beginning of year 1,740,786 $ 56.15 1,397,611 $ 56.78 1,292,142 $ 42.20 Granted 402,029 98.87 627,971 52.13 332,159 107.31 Exercised (250,326 ) 48.66 (160,946 ) 35.37 (179,702 ) 40.71 Forfeited (66,550 ) 75.38 (115,215 ) 65.74 (45,441 ) 75.26 Expired (7,948 ) 108.20 (8,635 ) 88.65 (1,547 ) 47.11 Outstanding at end of year 1,817,991 $ 65.73 1,740,786 $ 56.15 1,397,611 $ 56.78 Exercisable at end of year 874,942 $ 50.86 828,754 $ 45.14 736,075 $ 35.90 |
Weighted-Average Assumptions Used for Grants of SARs | The following table shows the weighted-average assumptions used for grants of SARs, as well as the fair value of the grants based on those assumptions: 2017 2016 2015 Expected dividend yield 0% 0% 0% Forfeiture rate 9.37% 9.01% 10.24% Volatility 35.49% 43.14% 33.98% Risk free interest rate 1.77% 1.29% 1.53% Range of interest rates 0.71%-2.41% 0.25%-1.75% 0.02% - 2.14% Expected weighted-average life (in years) 4.13 5.33 5.32 Fair value of SARs granted $12.01 $12.65 $11.63 Weighted-average grant date fair value of SARs granted $29.86 $20.18 $35.00 |
Summary of Outstanding and Exercisable Options | The following table summarizes information about non-qualified stock options outstanding at December 31, 2017 : Outstanding Exercisable Aggregate intrinsic value (in millions) $ 1 $ 1 Weighted-average remaining contractual term (in years) 0.70 0.70 The following table summarizes information about SARs outstanding at December 31, 2017 : Outstanding Exercisable Aggregate intrinsic value (in millions) $ 70 $ 47 Weighted-average remaining contractual term (in years) 6.1 4.7 |
Summary of Restricted Stock Award Activity | A summary of information relative to the Company’s restricted stock awards is as follows: 2017 2016 2015 Restricted Stock Awards Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of year 622,814 $ 70.19 566,447 $ 77.68 691,621 $ 60.06 Granted 199,629 98.90 389,193 51.93 185,782 107.17 Released (165,846 ) 75.90 (275,229 ) 59.39 (253,801 ) 51.95 Forfeited (27,955 ) 72.81 (57,597 ) 70.50 (57,155 ) 75.11 Outstanding at end of year 628,642 $ 77.70 622,814 $ 70.19 566,447 $ 77.68 |
Summary of Performance Share Award Activity | A summary of information relative to the Company’s performance awards is as follows: 2017 2016 2015 Performance Share Awards Shares Weighted-Average Shares Weighted-Average Shares Weighted-Average Outstanding at beginning of year 379,226 $ 70.14 332,630 $ 73.40 374,180 $ 61.53 Granted 79,423 98.97 172,024 51.01 106,411 75.77 Released (2,029 ) 62.70 (111,325 ) 46.58 (120,000 ) 38.67 Forfeited (190,873 ) 73.09 (14,103 ) 75.73 (27,961 ) 73.45 Outstanding at end of year 265,747 $ 77.04 379,226 $ 70.14 332,630 $ 73.40 |
Summary of Non-qualified Option Activity | A summary of the Company’s options outstanding under the 2006 Plan is as follows: 2017 2016 2015 Non-qualified Options Shares Weighted- Shares Weighted- Shares Weighted- Outstanding at beginning of year 154,551 $ 35.96 204,434 $ 36.66 415,960 $ 40.19 Granted — — — — — — Exercised (132,905 ) 36.86 (47,393 ) 38.60 (209,976 ) 43.53 Forfeited — — — — — — Expired (5,941 ) 41.25 (2,490 ) 43.35 (1,550 ) 51.62 Outstanding at end of year 15,705 $ 26.34 154,551 $ 35.96 204,434 $ 36.66 Exercisable at end of year 15,705 $ 26.34 154,551 $ 35.96 204,434 $ 36.66 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Geographical Sources of (Loss) Income Before Income Taxes | The geographical sources of income (loss) before income taxes were as follows (in millions): Year Ended December 31, 2017 2016 2015 United States $ (152 ) $ (120 ) $ (288 ) Outside United States 240 (9 ) 108 Total $ 88 $ (129 ) $ (180 ) |
Components of Provision (Benefit) for Income Taxes | Income tax expense (benefit) consisted of the following (in millions): Year Ended December 31, 2017 2016 2015 Current: Federal $ 10 $ 14 $ 84 State 8 6 4 Foreign 62 31 32 Total current 80 51 120 Deferred: Federal 20 (31 ) (117 ) State (10 ) (6 ) (24 ) Foreign (19 ) (6 ) (1 ) Total deferred (9 ) (43 ) (142 ) Total expense (benefit) $ 71 $ 8 $ (22 ) |
Reconciliation of Provision for Income Taxes | A reconciliation between the Provision computed at the statutory rate and the Provision for income taxes is provided below: Year Ended December 31, 2017 2016 2015 Provision computed at statutory rate 35.0 % 35.0 % 35.0 % U.S. Tax Reform - One-time transaction tax 41.8 0.0 0.0 Remeasurement of Deferred Taxes (56.0 ) 0.0 0.0 Change in valuation allowance 96.4 (1.0 ) (8.3 ) US impact of Enterprise acquisition 12.9 (14.1 ) (26.7 ) Change in contingent income tax reserves 14.0 (1.6 ) (3.3 ) Foreign earnings subject to U.S. taxation 2.0 (6.6 ) (3.9 ) Foreign rate differential (29.1 ) (16.0 ) 13.9 Intra-entity transactions (18.8 ) 0.0 0.0 State income tax, net of federal tax benefit (5.3 ) (1.0 ) 1.1 Tax credits (5.7 ) 9.5 6.1 Equity compensation deductions (5.6 ) (0.4 ) 0.0 Return to provision and other true ups (3.2 ) (3.7 ) 0.0 Other 2.3 (6.3 ) (1.7 ) Provision for income taxes 80.7 % (6.2 )% 12.2 % |
Components of Deferred Tax Assets and Liabilities | Tax effects of temporary differences that resulted in deferred tax assets and liabilities are as follows (in millions): December 31, 2017 2016 Deferred tax assets: Capitalized research expenditures $ 32 $ 58 Deferred revenue 21 57 Tax credits 31 33 Net operating loss carryforwards 338 35 Other accruals 20 31 Inventory items 20 27 Capitalized software costs 14 25 Sales return/rebate reserve 33 27 Share-based compensation expense 12 15 Accrued bonus 1 11 Unrealized gains and losses on securities and investments 8 4 Valuation allowance (134 ) (47 ) Total deferred tax assets 396 276 Deferred tax liabilities: Depreciation and amortization 275 165 Undistributed earnings 2 1 Total deferred tax liabilities $ 277 $ 166 Net deferred tax assets $ 119 $ 110 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Year ended December 31, 2017 2016 Balance at beginning of year $ 42 $ 40 Additions for tax positions related to the current year — 2 Additions for tax positions related to prior years 11 2 Reductions for tax positions related to prior years (1 ) (2 ) Settlements for tax positions (1 ) — Balance at end of year $ 51 $ 42 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Earnings (Loss) Per Share | Earnings (loss) per share were computed as follows (dollars in millions, except share data): Year Ended December 31, 2017 2016 2015 Basic: Net income (loss) $ 17 $ (137 ) $ (158 ) Weighted-average shares outstanding (1) 53,021,761 51,579,112 50,996,297 Basic earnings (loss) per share $ 0.33 $ (2.65 ) $ (3.10 ) Diluted: Net income (loss) $ 17 $ (137 ) $ (158 ) Weighted-average shares outstanding (1) 53,021,761 51,579,112 50,996,297 Dilutive shares (2) 667,071 — — Diluted weighted-average shares outstanding 53,688,832 51,579,112 50,996,297 Diluted earnings (loss) per share $ 0.32 $ (2.65 ) $ (3.10 ) (1) In periods of net loss, restricted stock awards that are classified as participating securities are excluded from the weighted-average shares outstanding computation. (2) In periods of net loss, options are anti-dilutive and therefore excluded from the earnings (loss) per share calculation. |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) | The components of Accumulated other comprehensive income (loss) (“AOCI”) for each of the three years ended December 31 are as follows (in millions): Unrealized (loss) gain on sales hedging Unrealized (loss) gain on forward interest rate swaps Currency translation adjustments Total Balance at December 31, 2014 $ 5 $ (8 ) $ (6 ) $ (9 ) Other comprehensive income (loss) before reclassifications 7 (12 ) (11 ) (16 ) Amounts reclassified from AOCI (1) (15 ) 1 (15 ) (29 ) Tax benefit 2 4 — 6 Other comprehensive loss (6 ) (7 ) (26 ) (39 ) Balance at December 31, 2015 (1 ) (15 ) (32 ) (48 ) Other comprehensive income (loss) before reclassifications 1 (1 ) (4 ) (4 ) Amounts reclassified from AOCI (1) 7 2 — 9 Tax expense (1 ) (1 ) — (2 ) Other comprehensive income (loss) 7 — (4 ) 3 Balance at December 31, 2016 6 (15 ) (36 ) (45 ) Other comprehensive income (loss) before reclassifications (26 ) 1 2 (23 ) Amounts reclassified from AOCI (1) 8 8 — 16 Tax benefit (expense) 3 (3 ) — — Other comprehensive (loss) income (15 ) 6 2 (7 ) Balance at December 31, 2017 $ (9 ) $ (9 ) $ (34 ) $ (52 ) (1) See Note 7, Derivative Instruments regarding timing of reclassifications on forward interest rate swaps. |
Segment Information and Geogr38
Segment Information and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | Financial information by segment is presented as follows (in millions): Year Ended December 31, 2017 2016 2015 Net sales: AIT $ 1,311 $ 1,247 $ 1,286 EVM 2,414 2,337 2,380 Total segment net sales 3,725 3,584 3,666 Corporate, eliminations (1) (3 ) (10 ) (16 ) Total net sales $ 3,722 $ 3,574 $ 3,650 Operating income: AIT $ 260 $ 240 $ 258 EVM 315 286 236 Total segment operating income 575 526 494 Corporate, eliminations (2) (253 ) (446 ) (457 ) Total operating income $ 322 $ 80 $ 37 (1) Amounts included in Corporate, eliminations consist of purchase accounting adjustments related to the Acquisition. (2) Amounts included in Corporate, eliminations consist of purchase accounting adjustments not reported in segments; amortization of intangible assets, acquisition/integration costs, impairment of goodwill and other intangibles, and exit and restructuring costs. |
Information Regarding Operations by Geographic Area | Geographic data for net sales is as follows (in millions): Year Ended December 31, 2017 2016 2015 Europe, Middle East, and Africa $ 1,221 $ 1,138 $ 1,194 Latin America 235 214 219 Asia-Pacific 468 483 463 Total International 1,924 1,835 1,876 North America 1,798 1,739 1,774 Total net sales $ 3,722 $ 3,574 $ 3,650 Geographic data for long-lived assets, defined as property, plant and equipment is as follows (in millions): Year Ended December 31, 2017 2016 2015 Europe, Middle East, and Africa $ 14 $ 13 $ 10 Latin America 3 3 3 Asia-Pacific 9 9 10 Total International 26 25 23 North America 238 267 275 Total long-lived assets $ 264 $ 292 $ 298 |
Net Sales by Country | Net sales by country that are greater than 10% of total net sales are as follows (in millions): Year Ended December 31, 2017 2016 2015 United States $ 1,984 $ 1,950 $ 2,045 United Kingdom 1,196 1,065 1,102 Singapore 454 362 175 Other 88 197 328 Total net sales $ 3,722 $ 3,574 $ 3,650 |
Significant Customers as Percentage of Total Net Sales | Our net sales to significant customers as a percentage of the total Company’s net sales by segment were as follows: Year Ended December 31, 2017 2016 2015 AIT EVM Total AIT EVM Total AIT EVM Total Customer A 6.3 % 15.0 % 21.3 % 5.9 % 14.2 % 20.1 % 5.5 % 13.9 % 19.4 % Customer B 5.3 % 8.9 % 14.2 % 5.0 % 8.2 % 13.2 % 4.6 % 8.1 % 12.7 % Customer C 6.2 % 7.0 % 13.2 % 5.3 % 7.1 % 12.4 % 5.2 % 6.4 % 11.6 % |
Supplementary Financial Infor39
Supplementary Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The components of Accounts receivable, net are as follows (in millions): December 31, 2017 2016 Accounts receivable $ 482 $ 628 Allowance for doubtful accounts (3 ) (3 ) Accounts receivable, net $ 479 $ 625 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | Prepaid expenses and other current assets consist of the following (in millions): December 31, 2017 2016 Foreign Exchange Contracts $ — $ 23 Other 24 41 Prepaid expenses and other current assets $ 24 $ 64 |
Schedule of Accrued Liabilities | The components of Accrued liabilities are as follows (in millions): December 31, 2017 2016 Accrued incentive compensation $ 101 $ 52 Customer reserves 41 50 Accrued payroll 50 51 Interest payable 15 20 Accrued other expenses 130 150 Accrued liabilities $ 337 $ 323 |
Schedule of Quarterly Financial Information | Summary of Quarterly Results of Operations (unaudited) (In millions): 2017 First Second Third Fourth Total Year Total Net sales $ 865 $ 896 $ 935 $ 1,026 $ 3,722 Gross profit 401 411 429 469 1,710 Net income (loss) 8 17 (12 ) 4 17 Net earnings per common share: Basic earnings (loss) per share: $ 0.16 $ 0.33 $ (0.23 ) $ 0.07 $ 0.33 Diluted earnings (loss) per share: 0.16 0.32 (0.23 ) 0.07 0.32 2016 First Second Third Fourth Total Year Total Net sales $ 849 $ 879 $ 904 $ 942 $ 3,574 Gross profit 390 406 414 432 1,642 Net (loss) income (26 ) (45 ) (83 ) 17 (137 ) Net earnings per common share: Basic (loss) earnings per share: $ (0.50 ) $ (0.88 ) $ (1.61 ) $ 0.34 $ (2.65 ) Diluted (loss) earnings per share: (0.50 ) (0.88 ) (1.61 ) 0.34 (2.65 ) |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||||
Foreign cash and investments | $ 54 | $ 98 | ||
Cash and cash equivalents | 62 | 156 | $ 192 | $ 394 |
Cost method investments | 25 | |||
Cost-method investments, impairment | 1 | 7 | 0 | |
Advertising expenses | $ 18 | $ 18 | $ 22 | |
Unearned compensation cost, expected to be recognized over period (years) | 2 years 2 months 12 days |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Doubt (Details) | Dec. 31, 2017USD ($) |
Receivables Financing Facility | Secured Debt | |
Debt Instrument [Line Items] | |
Facility amount | $ 180,000,000 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Components of Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Raw material | $ 116 | $ 111 |
Work in process | 1 | 1 |
Finished goods | 341 | 233 |
Inventories, net | $ 458 | $ 345 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Property Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 641 | $ 598 | |
Less accumulated depreciation | (377) | (306) | |
Property, plant and equipment, net | 264 | 292 | |
Depreciation | $ 79 | 75 | $ 69 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, estimated useful lives | 30 years | ||
Property, plant and equipment, gross | $ 54 | 51 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 8 | 10 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 233 | 226 | |
Furniture and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 19 | 15 | |
Software and computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 235 | 197 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 69 | 64 | |
Projects in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 23 | $ 35 | |
Minimum | Property, plant and equipment, other | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, estimated useful lives | 3 years | ||
Maximum | Property, plant and equipment, other | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment, estimated useful lives | 10 years |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Other Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Capitalized intangible assets, useful life | 3 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Capitalized intangible assets, useful life | 15 years |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Warranty Coverage and Summary of Accrued Warranty Obligation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Warranty reserve | |||
Balance at the beginning of the year | $ 21 | $ 22 | $ 25 |
Warranty expense | 28 | 31 | 30 |
Warranty payments | (31) | (32) | (33) |
Balance at the end of the year | $ 18 | $ 21 | $ 22 |
Mobile computers printers and batteries | |||
Product Warranty Liability [Line Items] | |||
Product warranty term | 1 year | ||
Printheads | |||
Product Warranty Liability [Line Items] | |||
Product warranty term | 6 months | ||
Battery-based products | |||
Product Warranty Liability [Line Items] | |||
Product warranty term | 90 days | ||
Minimum | Advanced data capture products | |||
Product Warranty Liability [Line Items] | |||
Product warranty term | 1 year | ||
Maximum | Advanced data capture products | |||
Product Warranty Liability [Line Items] | |||
Product warranty term | 5 years |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Compensation Expense and Related Tax Benefit for Equity Based Payments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period for SARs (years) | 2 years 2 months 12 days | ||
Total compensation expense | $ 38 | $ 28 | $ 33 |
Income tax benefit | 11 | 9 | 11 |
Cost of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | 3 | 2 | 3 |
Selling and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | 8 | 6 | 8 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | 11 | 9 | 8 |
General and administration | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total compensation expense | $ 16 | $ 11 | $ 14 |
Maximum | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Vesting period for SARs (years) | 4 years |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Sep. 30, 2017 | Apr. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Income tax benefit | $ (71,000,000) | $ (8,000,000) | $ 22,000,000 | |||
Cash from (used in) financing activities | (517,000,000) | (384,000,000) | (161,000,000) | |||
Payments for debt issuance costs and discounts | (5,000,000) | (5,000,000) | 0 | |||
Net cash from operating activities | 478,000,000 | 380,000,000 | 122,000,000 | |||
Tax benefit related to the adoption of ASU 2016-09 | 7,000,000 | |||||
Accounting Standards Update 2016-09, Excess Tax Benefit Component | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Cash from (used in) financing activities | (7,000,000) | (3,000,000) | (12,000,000) | |||
Net cash from operating activities | 7,000,000 | $ 3,000,000 | $ 12,000,000 | |||
Accounting Standards Update 2014-09 | Scenario, Forecast | Minimum | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Reduction to retained earnings | $ 17,000,000 | |||||
Accounting Standards Update 2014-09 | Scenario, Forecast | Maximum | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Reduction to retained earnings | $ 20,000,000 | |||||
New Accounting Pronouncement, Early Adoption, Effect | ASU 2016-16 | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Reduction to retained earnings | 9,000,000 | |||||
Benefit related to intercompany transfer of intellectual property | $ 12,000,000 | 12,000,000 | ||||
Income tax benefit | $ 0 | |||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-15 | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Cash from (used in) financing activities | $ 4,000,000 | |||||
Payments for debt issuance costs and discounts | $ 5,000,000 |
Business Combinations and Div48
Business Combinations and Divestitures - Additional Information (Detail) - USD ($) $ in Millions | Oct. 27, 2014 | Oct. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 13, 2016 |
Business Acquisition [Line Items] | ||||||
Proceeds from divestiture of business | $ 0 | $ 39 | $ 0 | |||
EVM | ||||||
Business Acquisition [Line Items] | ||||||
Preliminary purchase price | $ 3,450 | |||||
Business acquisition, consideration paid | 52 | |||||
Business acquisition, adjustment | (2) | |||||
Wireless LAN (WLAN) | ||||||
Business Acquisition [Line Items] | ||||||
Impairment of other intangibles | 0 | |||||
Wireless LAN (WLAN) | Divestiture Group | ||||||
Business Acquisition [Line Items] | ||||||
Divestiture of business disposal price | $ 55 | |||||
Proceeds from divestiture of business | 39 | |||||
Non-cash pre-tax charge related to disposal group | $ 62 | |||||
Impairment charge – wireless LAN divestiture | (32) | $ 0 | (32) | |||
Revenue from sale of assets | 106 | |||||
Gross profit from sale of assets | $ 47 | |||||
Wireless LAN (WLAN) | Divestiture Group | Other Intangibles | ||||||
Business Acquisition [Line Items] | ||||||
Impairment of other intangibles | $ 30 |
Goodwill and Other Intangible49
Goodwill and Other Intangibles, net - Amortized Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,023 | $ 1,021 | |
Accumulated Amortization | (724) | (541) | |
Net Carrying Amount | 299 | 480 | |
Amortization expense | 184 | 229 | $ 251 |
Current technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 24 | 24 | |
Accumulated Amortization | (23) | (21) | |
Net Carrying Amount | 1 | 3 | |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 41 | 40 | |
Accumulated Amortization | (41) | (40) | |
Net Carrying Amount | 0 | 0 | |
Unpatented technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 242 | 241 | |
Accumulated Amortization | (205) | (146) | |
Net Carrying Amount | 37 | 95 | |
Patents and patent rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 235 | 238 | |
Accumulated Amortization | (215) | (161) | |
Net Carrying Amount | 20 | 77 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 481 | 478 | |
Accumulated Amortization | (240) | (173) | |
Net Carrying Amount | $ 241 | $ 305 |
Goodwill and Other Intangible50
Goodwill and Other Intangibles, net - Estimated Amortization Expense for Future Periods (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Estimated amortization expense for future periods is as follows (in millions): | |
For the year ended December 31, 2018 | $ 96 |
For the year ended December 31, 2019 | 83 |
For the year ended December 31, 2020 | 39 |
For the year ended December 31, 2021 | 37 |
For the year ended December 31, 2022 | 31 |
Thereafter | 13 |
Total | $ 299 |
Goodwill and Other Intangible51
Goodwill and Other Intangibles, net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Oct. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||||
Goodwill | $ 2,465 | $ 2,458 | $ 2,490 | |
EVM | ||||
Goodwill [Line Items] | ||||
Goodwill | 2,300 | |||
AIT | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 154 | |||
Minimum | ||||
Goodwill [Line Items] | ||||
Fair value exceeding carrying value | 20.00% | |||
Maximum | ||||
Goodwill [Line Items] | ||||
Fair value exceeding carrying value | 90.00% | |||
Wireless LAN (WLAN) | ||||
Goodwill [Line Items] | ||||
Impairment of other intangible assets | $ 0 | |||
Wireless LAN (WLAN) | EVM | ||||
Goodwill [Line Items] | ||||
Impairment of other intangible assets | 30 | |||
Wireless LAN (WLAN) | Disposal Group | ||||
Goodwill [Line Items] | ||||
Goodwill impairment charge-wireless LAN divestiture | $ 32 | $ 0 | $ 32 |
Goodwill and Other Intangible52
Goodwill and Other Intangibles, net - Changes in Net Carrying Value of Goodwill (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Oct. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 2,458 | $ 2,490 | |
Foreign exchange impact | 7 | ||
Ending balance | 2,465 | 2,458 | |
Disposal Group | Wireless LAN (WLAN) | |||
Goodwill [Roll Forward] | |||
Impairment charge – wireless LAN divestiture | $ (32) | $ 0 | $ (32) |
Costs Associated with Exit an53
Costs Associated with Exit and Restructuring - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Exit and restructuring charges incurred | $ 81 | $ 65 | |
Productivity Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit and restructuring charges incurred | 12 | ||
Acquisition Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Exit and restructuring charges incurred | 69 | ||
Restructuring charges | $ 4 | $ 19 | |
Scenario, Forecast | Acquisition Plan | Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected remaining charges related to exit and restructuring | $ 8 | ||
Scenario, Forecast | Acquisition Plan | Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected remaining charges related to exit and restructuring | $ 12 |
Costs Associated with Exit an54
Costs Associated with Exit and Restructuring - Summary of Exit and Restructuring Costs Incurred (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Cumulative costs incurred | $ 81 | $ 65 |
Cost incurred | 16 | |
Severance, stay bonuses, and other employee-related expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative costs incurred | 69 | 54 |
Cost incurred | 15 | |
Obligations for future lease payments | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative costs incurred | 12 | $ 11 |
Cost incurred | $ 1 |
Costs Associated with Exit an55
Costs Associated with Exit and Restructuring - Rollforward of Exit and Restructuring Accrual (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of year | $ 10 | $ 15 | |
Charged to earnings | 16 | 19 | $ 40 |
Cash paid | (18) | (22) | |
WLAN Divestiture | 0 | (2) | |
Balance at the end of year | $ 8 | $ 10 | $ 15 |
Costs Associated with Exit an56
Costs Associated with Exit and Restructuring - Liabilities Related to Exit and Restructuring Activities Included in the Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 8 | $ 10 | $ 15 |
Accrued liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 6 | 7 | |
Other long-term liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 2 | $ 3 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Carried at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | $ 15 | $ 34 |
Total Liabilities at fair value | 44 | 38 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 15 | 22 |
Total Liabilities at fair value | 17 | 11 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 0 | 12 |
Total Liabilities at fair value | 27 | 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 |
Forward interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 18 | 27 |
Forward interest rate swaps | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 0 | 0 |
Forward interest rate swaps | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 18 | 27 |
Forward interest rate swaps | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 0 | 0 |
Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 23 | |
Total Liabilities at fair value | 11 | |
Foreign exchange contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 11 | |
Total Liabilities at fair value | 2 | |
Foreign exchange contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 12 | |
Total Liabilities at fair value | 9 | |
Foreign exchange contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 0 | |
Total Liabilities at fair value | 0 | |
Money market investments related to the deferred compensation plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 15 | 11 |
Money market investments related to the deferred compensation plan | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 15 | 11 |
Money market investments related to the deferred compensation plan | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 0 | 0 |
Money market investments related to the deferred compensation plan | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 0 | 0 |
Liabilities related to the deferred compensation plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 15 | 11 |
Liabilities related to the deferred compensation plan | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 15 | 11 |
Liabilities related to the deferred compensation plan | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 0 | 0 |
Liabilities related to the deferred compensation plan | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Fair value assets, transfers from Level 2 to Level 1 | $ 2 | $ 11 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Total Net Derivative Liability | $ (29) | $ (4) |
Derivative instruments designated as hedges | ||
Derivative [Line Items] | ||
Total Net Derivative Liability | (19) | (4) |
Derivative instruments not designated as hedges | ||
Derivative [Line Items] | ||
Total Net Derivative Liability | (10) | 0 |
Prepaid expenses and other current assets | Foreign exchange contracts | Derivative instruments designated as hedges | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 0 | 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 | (9) | 0 |
Accrued liabilities | Foreign exchange contracts | Derivative instruments not designated as hedges | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (2) | 0 |
Accrued liabilities | Forward interest rate swaps | Derivative instruments designated as hedges | ||
Derivative [Line Items] | ||
Derivative liability, fair value | (2) | (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 | (8) | (13) |
Other long-term liabilities | Forward interest rate swaps | Derivative instruments not designated as hedges | ||
Derivative [Line Items] | ||
Derivative liability, fair value | $ (7) | $ (10) |
Derivative Instruments - Gain (
Derivative Instruments - Gain (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net (loss) gain from derivative instruments not designated as hedges | $ (8) | $ (7) | $ 14 |
Derivative instruments not designated as hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net (loss) gain from derivative instruments not designated as hedges | (22) | 5 | 15 |
Foreign exchange contracts | Foreign exchange (loss) gain | Derivative instruments not designated as hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net (loss) gain from derivative instruments not designated as hedges | (24) | 5 | 11 |
Forward interest rate swaps | Interest expense and other, net | Derivative instruments not designated as hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net (loss) gain from derivative instruments not designated as hedges | $ 2 | $ 0 | $ 4 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) € in Millions | 12 Months Ended | ||||||
Dec. 31, 2017USD ($)swap | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€)swap | Jul. 26, 2017USD ($) | Dec. 31, 2016EUR (€) | Oct. 27, 2014USD ($) | |
Change in unrealized gain (loss) on anticipated sales hedging: | |||||||
Gain or loss on contract | $ (8,000,000) | $ (7,000,000) | $ 14,000,000 | ||||
Foreign currency cash flow hedge derivative | € | € 389 | € 341 | |||||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ (4,000,000) | ||||||
Number of Interest rate swaps | swap | 3 | 3 | |||||
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 | $ 500,000,000 | $ 250,000,000 | |||||
Term Loan A | Loans Payable | |||||||
Change in unrealized gain (loss) on anticipated sales hedging: | |||||||
Revolving credit facility maximum borrowing capacity | $ 687,500,000 | ||||||
A&R Credit Agreement | Revolving Credit Facility | |||||||
Change in unrealized gain (loss) on anticipated sales hedging: | |||||||
Revolving credit facility maximum borrowing capacity | $ 500,000,000 | ||||||
Derivative instruments designated as hedges | |||||||
Change in unrealized gain (loss) on anticipated sales hedging: | |||||||
Derivative, term of contract | 12 years | ||||||
Derivative instruments not designated as hedges | |||||||
Change in unrealized gain (loss) on anticipated sales hedging: | |||||||
Gain or loss on contract | $ (22,000,000) | 5,000,000 | 15,000,000 | ||||
Forward interest rate swaps | Derivative instruments designated as hedges | |||||||
Change in unrealized gain (loss) on anticipated sales hedging: | |||||||
Derivative forward long-term interest rate swap | 800,000,000 | ||||||
Interest Expense | Forward interest rate swaps | Derivative instruments not designated as hedges | |||||||
Change in unrealized gain (loss) on anticipated sales hedging: | |||||||
Gain or loss on contract | 2,000,000 | $ 0 | $ 4,000,000 | ||||
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. | $ (2,000,000) |
Derivative Instruments - Financ
Derivative Instruments - Financial Information Related to Hedging of Net Assets Included in Consolidated Statements of Operations (Details) € in Millions, ¥ in Millions, £ in Millions, SGD in Millions, SEK in Millions, MYR in Millions, CZK in Millions, CAD in Millions, BRL in Millions, AUD in Millions, $ in Millions | Dec. 31, 2017SEK | Dec. 31, 2017USD ($) | Dec. 31, 2017CAD | Dec. 31, 2017BRL | Dec. 31, 2017AUD | Dec. 31, 2017JPY (¥) | Dec. 31, 2017GBP (£) | Dec. 31, 2017CZK | Dec. 31, 2017EUR (€) | Dec. 31, 2017SGD | Dec. 31, 2017MYR | Dec. 31, 2016SEK | Dec. 31, 2016USD ($) | Dec. 31, 2016CAD | Dec. 31, 2016BRL | Dec. 31, 2016AUD | Dec. 31, 2016JPY (¥) | Dec. 31, 2016GBP (£) | Dec. 31, 2016CZK | Dec. 31, 2016EUR (€) | Dec. 31, 2016SGD | Dec. 31, 2016MYR |
Derivative [Line Items] | ||||||||||||||||||||||
Net fair value (liability) asset of outstanding contracts (in millions) | $ | $ (2) | $ 11 | ||||||||||||||||||||
US dollar | Foreign Exchange Forward | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Notional balance of outstanding contracts (in millions): | SEK 13 | CAD 12 | BRL 34 | AUD 55 | ¥ 151 | £ 13 | CZK 361 | € 108 | SGD 4 | MYR 0 | SEK 7 | CAD 13 | BRL 56 | AUD 50 | ¥ 48 | £ 3 | CZK 147 | € 148 | SGD 15 | MYR 16 | ||
Euro | Foreign Exchange Forward | ||||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Notional balance of outstanding contracts (in millions): | £ | £ 5 | £ 8 |
Derivative Instruments - Sche63
Derivative Instruments - Schedule of Gross and Net Amount Offset (Details) - Balance Sheet Offsetting $ in Millions | Dec. 31, 2017USD ($) |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | $ 29 |
Offsetting Counterparty Fair Value | 11 |
Net Fair Value in the Consolidated Balance Sheets | 18 |
Counterparty A | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 8 |
Offsetting Counterparty Fair Value | 4 |
Net Fair Value in the Consolidated Balance Sheets | 4 |
Counterparty B | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 3 |
Offsetting Counterparty Fair Value | 1 |
Net Fair Value in the Consolidated Balance Sheets | 2 |
Counterparty C | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 3 |
Offsetting Counterparty Fair Value | 1 |
Net Fair Value in the Consolidated Balance Sheets | 2 |
Counterparty D | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 5 |
Offsetting Counterparty Fair Value | 3 |
Net Fair Value in the Consolidated Balance Sheets | 2 |
Counterparty E | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 3 |
Offsetting Counterparty Fair Value | 1 |
Net Fair Value in the Consolidated Balance Sheets | 2 |
Counterparty F | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 3 |
Offsetting Counterparty Fair Value | 1 |
Net Fair Value in the Consolidated Balance Sheets | 2 |
Counterparty G | |
Change in unrealized gain (loss) on anticipated sales hedging: | |
Gross Fair Value | 4 |
Offsetting Counterparty Fair Value | 0 |
Net Fair Value in the Consolidated Balance Sheets | $ 4 |
Derivative Instruments - Debt S
Derivative Instruments - Debt Swaps Notional Amounts (Details) $ in Millions | Dec. 31, 2017USD ($) |
Derivative [Line Items] | |
Notional balance of outstanding contracts | $ 4,832 |
2,018 | |
Derivative [Line Items] | |
Notional balance of outstanding contracts | 544 |
2,019 | |
Derivative [Line Items] | |
Notional balance of outstanding contracts | 1,344 |
2,020 | |
Derivative [Line Items] | |
Notional balance of outstanding contracts | 1,072 |
2,021 | |
Derivative [Line Items] | |
Notional balance of outstanding contracts | 1,072 |
Remainder | |
Derivative [Line Items] | |
Notional balance of outstanding contracts | $ 800 |
Long-Term Debt - Summary of Car
Long-Term Debt - Summary of Carrying Value of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,249 | $ 2,703 |
Less debt issuance costs | (7) | (22) |
Less unamortized discounts | (15) | (33) |
Less: Current portion of long-term debt | (51) | 0 |
Total outstanding debt | 2,176 | 2,648 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 275 | 0 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 1,050 |
Loans Payable | Term Loan B | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,160 | 1,653 |
Loans Payable | Term Loan A | ||
Debt Instrument [Line Items] | ||
Long-term debt | 679 | 0 |
Secured Debt | Receivables Financing Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 135 | $ 0 |
Total outstanding debt | $ 135 |
Long-Term Debt - Future Maturit
Long-Term Debt - Future Maturities of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 51 | |
2,019 | 174 | |
2,020 | 56 | |
2,021 | 1,968 | |
2,022 | 0 | |
Thereafter | 0 | |
Total future maturities of long-term debt | $ 2,249 | $ 2,703 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Fair value of long-term debt | $ 1,800 | $ 2,800 |
Related Party Transaction [Line Items] | ||
Total assets | 4,275 | 4,632 |
Total liabilities | $ 3,441 | $ 3,840 |
Sales Revenue, Net | Non-Guarantor Subsidiaries | ||
Related Party Transaction [Line Items] | ||
Concentration risk percentage | 57.30% | |
Assets | Non-Guarantor Subsidiaries | ||
Related Party Transaction [Line Items] | ||
Concentration risk percentage | 86.90% | |
Total assets | $ 4,300 | |
Liabilities | Non-Guarantor Subsidiaries | ||
Related Party Transaction [Line Items] | ||
Concentration risk percentage | 87.60% | |
Total liabilities | $ 3,000 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facility (Details) - USD ($) | Jul. 26, 2017 | Oct. 27, 2014 | Dec. 31, 2017 | Oct. 27, 2021 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | |||||
Debt issuance costs | $ 7,000,000 | $ 22,000,000 | |||
Outstanding principal | 2,176,000,000 | 2,648,000,000 | |||
Loans Payable | |||||
Line of Credit Facility [Line Items] | |||||
Principal repayment | $ 75,000,000 | ||||
Debt repricing costs | 6,000,000 | ||||
Revolving Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 250,000,000 | 500,000,000 | |||
Letters of credit | 5,000,000 | ||||
Funds available for other borrowings | $ 495,000,000 | ||||
Revolving credit facility interest rate | 3.39% | ||||
Borrowings under revolving credit facility | $ 275,000,000 | $ 0 | |||
Term Loan A | Loans Payable | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 687,500,000 | ||||
Percentage bearing variable interest, percentage rate | 3.35% | ||||
Principal prepayments during the period | $ 9,000,000 | ||||
Term Loan A | Loans Payable | Scenario, Forecast | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding principal | $ 498,000,000 | ||||
A&R Credit Agreement | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Index rate spread (as a percent) | 2.00% | 2.50% | |||
A&R Credit Agreement | Revolving Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 500,000,000 | ||||
Term Loan A and Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Debt issuance costs | $ 5,000,000 | ||||
Term Loan B | Loans Payable | |||||
Line of Credit Facility [Line Items] | |||||
Percentage of lenders which modification accounting was applied | 80.40% | ||||
Percentage of lenders which extinguishment accounting was applied | 19.60% | ||||
Percentage bearing variable interest, percentage rate | 3.37% | ||||
Prepayments of term loan | $ 493,000,000 | ||||
Term Loan B | Loans Payable | Scenario, Forecast | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding principal | $ 1,200,000,000 | ||||
Term Loan B | Loans Payable | Floor | |||||
Line of Credit Facility [Line Items] | |||||
Percentage bearing variable interest, percentage rate | 2.75% |
Long-Term Debt - Senior Notes (
Long-Term Debt - Senior Notes (Details) - USD ($) $ in Millions | Aug. 07, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||
Non-cash accelerated discount and debt issuance cost | $ 38 | $ 23 | $ 16 | |
Outstanding senior notes | 2,249 | 2,703 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Outstanding senior notes | 0 | $ 1,050 | ||
Senior Notes | 7.25% Senior Notes, Maturing October 2022 | ||||
Debt Instrument [Line Items] | ||||
Senior notes redeemed | 1,100 | |||
Interest rate on senior notes | 7.25% | |||
Early termination make whole premium | $ 65 | |||
Non-cash accelerated discount and debt issuance cost | $ 16 |
Long-Term Debt - Receivables Fi
Long-Term Debt - Receivables Financing Facility (Details) - USD ($) | 2 Months Ended | 12 Months Ended | |
Feb. 22, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Accounts receivable securitized | $ 421,000,000 | ||
Total outstanding debt | 2,176,000,000 | $ 2,648,000,000 | |
Secured Debt | Receivables Financing Facility | |||
Debt Instrument [Line Items] | |||
Facility amount | 180,000,000 | ||
Total outstanding debt | 135,000,000 | ||
Proceeds from Accounts Receivable Securitization | 145,000,000 | ||
Repayments of Accounts Receivable Securitization | 10,000,000 | ||
Receivable financing facility, interest expense | $ 1,000,000 | ||
Receivable financing facility, average interest rate | 2.35% | ||
Loans Payable | Term Loan B | |||
Debt Instrument [Line Items] | |||
Prepayments of term loan | $ 493,000,000 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Receivable financing facility, average interest rate | 3.39% | ||
Subsequent Event | Loans Payable | Term Loan B | |||
Debt Instrument [Line Items] | |||
Prepayments of term loan | $ 63,000,000 |
Long-Term Debt - Summary of Fis
Long-Term Debt - Summary of Fiscal 2017 Actions (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Jul. 26, 2017 | Dec. 31, 2016 | Oct. 27, 2014 | |
Debt Instrument [Line Items] | ||||
Payments of long term-debt | $ 454,000,000 | |||
Loans Payable | Term Loan A | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility maximum borrowing capacity | $ 687,500,000 | |||
Prepayments principal | 9,000,000 | |||
Loans Payable | Term Loan B | ||||
Debt Instrument [Line Items] | ||||
Term loan principal prepayments | 493,000,000 | |||
Senior Notes | 7.25% Senior Notes, Maturing October 2022 | ||||
Debt Instrument [Line Items] | ||||
Repayments of Senior Note | 1,100,000,000 | |||
Secured Debt | Receivables Financing Facility | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Accounts Receivable Securitization | 145,000,000 | |||
Receivable financing facility payments | 10,000,000 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility maximum borrowing capacity | 500,000,000 | $ 250,000,000 | ||
Borrowings under revolving credit facility | $ 275,000,000 | $ 0 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 34 | $ 39 | $ 45 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Lease terms | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Lease terms | 15 years |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Minimum Lease Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 32 |
2,019 | 27 |
2,020 | 20 |
2,021 | 13 |
2,022 | 10 |
2023 and thereafter | 36 |
Total minimum lease obligations | $ 138 |
Contingencies (Details)
Contingencies (Details) | Aug. 16, 2005officer |
Commitments and Contingencies Disclosure [Abstract] | |
Number of former officers being sued | 2 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Equity Awards Authorized and Available for Future Grant and Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |||
Newly authorized options (in shares) | 0 | ||
Cancellation and forfeitures (in shares) | 0 | ||
Plan termination (in shares) | 0 | ||
Total compensation expense | $ 38 | $ 28 | $ 33 |
Income tax benefit | 11 | $ 9 | $ 11 |
Unearned compensation costs related to awards granted | $ 50 | ||
Unearned compensation cost, expected to be recognized over period (years) | 2 years 2 months 12 days | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |||
Unearned compensation cost, expected to be recognized over period (years) | 4 years | ||
Two Thousand Fifteen Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |||
Available for future grants, beginning (in shares) | 2,164,297 | ||
Equity awards granted (in shares) | (726,862) | ||
Available for future grants, ending (in shares) | 1,437,435 | 2,164,297 | |
SARs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |||
Income tax benefit | $ 3 | $ 1 | |
RSA | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |||
Equity awards granted (in shares) | (12,488) | (25,088) | (9,194) |
Other Award Types | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares that became available under the Plan | 45,781 | 95,210 | 11,618 |
Date Of Grant | Two Thousand Fifteen Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares that became available under the Plan | 4,000,000 |
Share-Based Compensation - Su76
Share-Based Compensation - Summary of SAR's Outstanding (Detail) - SARs - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-qualified Options | |||
Shares, Outstanding at beginning of year | 1,740,786 | 1,397,611 | 1,292,142 |
Shares Granted | 402,029 | 627,971 | 332,159 |
Shares, Exercised | (250,326) | (160,946) | (179,702) |
Shares, Forfeited | (66,550) | (115,215) | (45,441) |
Shares, Expired | (7,948) | (8,635) | (1,547) |
Shares, Outstanding at end of year | 1,817,991 | 1,740,786 | 1,397,611 |
Shares, Exercisable at end of year | 874,942 | 828,754 | 736,075 |
Weighted- Average Exercise Price | |||
Outstanding at beginning of year (in USD per share) | $ 56.15 | $ 56.78 | $ 42.20 |
Granted (in USD per share) | 98.87 | 52.13 | 107.31 |
Exercised (in USD per share) | 48.66 | 35.37 | 40.71 |
Forfeited (in USD per share) | 75.38 | 65.74 | 75.26 |
Expired (in USD per share) | 108.20 | 88.65 | 47.11 |
Outstanding at end of year (in USD per share) | 65.73 | 56.15 | 56.78 |
Exercisable at end of year (in USD per share) | $ 50.86 | $ 45.14 | $ 35.90 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted-Average Assumptions Used for Grants of Stock Options and SARs (Detail) - SARs - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Forfeiture rate | 9.37% | 9.01% | 10.24% |
Volatility | 35.49% | 43.14% | 33.98% |
Risk free interest rate | 1.77% | 1.29% | 1.53% |
Range of interest rates, minimum | 0.71% | 0.25% | 0.02% |
Range of interest rates, maximum | 2.41% | 1.75% | 2.14% |
Expected weighted-average life | 4 years 1 month 17 days | 5 years 3 months 29 days | 5 years 3 months 25 days |
Fair value of SARs granted (in millions) | $ 12,010 | $ 12,650 | $ 11,630 |
Weighted-average grant date fair value of SARs granted (per underlying share) (in USD per share) | $ 29.86 | $ 20.18 | $ 35 |
Share-Based Compensation - Su78
Share-Based Compensation - Summary of Outstanding and Exercisable Options and SARs (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of SARs outstanding | |||
Fair value of SARs vested | $ 8,000,000 | $ 3,000,000 | $ 8,000,000 |
Income tax benefit | $ 11,000,000 | 9,000,000 | 11,000,000 |
Vesting period for SARs (years) | 2 years 2 months 12 days | ||
SARs | |||
Summary of SARs outstanding | |||
Aggregate intrinsic value, Outstanding | $ 70,000,000 | ||
Aggregate intrinsic value, Exercisable | $ 47,000,000 | ||
Weighted-average remaining contractual term, Outstanding | 6 years 1 month 6 days | ||
Weighted-average remaining contractual term, Exercisable | 4 years 8 months 12 days | ||
Intrinsic value of SARs exercised | $ 14,000,000 | 6,000,000 | $ 11,000,000 |
Cash received from the exercise of SARs | 12,000,000 | 6,000,000 | |
Income tax benefit | $ 3,000,000 | $ 1,000,000 | |
Maximum | |||
Summary of SARs outstanding | |||
Vesting period for SARs (years) | 4 years |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Awards and Performance Share Awards Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
RSA | |||
Restricted Stock Awards and Units | |||
Granted (in shares) | 12,488 | 25,088 | 9,194 |
Restricted Stock | |||
Restricted Stock Awards and Units | |||
Outstanding at beginning of year (in shares) | 622,814 | 566,447 | 691,621 |
Granted (in shares) | 199,629 | 389,193 | 185,782 |
Released (in shares) | (165,846) | (275,229) | (253,801) |
Forfeited (in shares) | (27,955) | (57,597) | (57,155) |
Outstanding at end of year (in shares) | 628,642 | 622,814 | 566,447 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at beginning of year (in USD per share) | $ 70.19 | $ 77.68 | $ 60.06 |
Granted (in USD per share) | 98.90 | 51.93 | 107.17 |
Released (in USD per share | 75.90 | 59.39 | 51.95 |
Forfeited (in USD per share) | 72.81 | 70.50 | 75.11 |
Outstanding at end of year (in USD per share) | $ 77.70 | $ 70.19 | $ 77.68 |
Performance Share Awards | |||
Restricted Stock Awards and Units | |||
Outstanding at beginning of year (in shares) | 379,226 | 332,630 | 374,180 |
Granted (in shares) | 79,423 | 172,024 | 106,411 |
Released (in shares) | (2,029) | (111,325) | (120,000) |
Forfeited (in shares) | (190,873) | (14,103) | (27,961) |
Outstanding at end of year (in shares) | 265,747 | 379,226 | 332,630 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at beginning of year (in USD per share) | $ 70.14 | $ 73.40 | $ 61.53 |
Granted (in USD per share) | 98.97 | 51.01 | 75.77 |
Released (in USD per share | 62.70 | 46.58 | 38.67 |
Forfeited (in USD per share) | 73.09 | 75.73 | 73.45 |
Outstanding at end of year (in USD per share) | $ 77.04 | $ 70.14 | $ 73.40 |
Maximum | RSA | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years |
Share-Based Compensation - Othe
Share-Based Compensation - Other Award Types (Details) - Other Award Types - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based liabilities paid | $ 1.5 | $ 0.8 | |
Number of shares that became available under the Plan | 45,781 | 95,210 | 11,618 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years |
Share-Based Compensation - Su81
Share-Based Compensation - Summary of Non-qualified Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted- Average Exercise Price | |||
Income tax benefit | $ 11 | $ 9 | $ 11 |
Non-qualified Options | |||
Non-qualified Options | |||
Shares, Outstanding at beginning of year | 154,551 | 204,434 | 415,960 |
Shares Granted | 0 | 0 | 0 |
Shares, Exercised | (132,905) | (47,393) | (209,976) |
Shares, Forfeited | 0 | 0 | 0 |
Shares, Expired | (5,941) | (2,490) | (1,550) |
Shares, Outstanding at end of year | 15,705 | 154,551 | 204,434 |
Shares, Exercisable at end of period | 15,705 | 154,551 | 204,434 |
Weighted- Average Exercise Price | |||
Outstanding at beginning of year (in USD per share) | $ 35.96 | $ 36.66 | $ 40.19 |
Granted (in USD per share) | 0 | 0 | 0 |
Exercised (in USD per share) | 36.86 | 38.60 | 43.53 |
Forfeited (in USD per share) | 0 | 0 | 0 |
Expired (in USD per share) | 41.25 | 43.35 | 51.62 |
Outstanding at end of year (in USD per share) | 26.34 | 35.96 | 36.66 |
Exercisable at end of year (in USD per share) | $ 26.34 | $ 35.96 | $ 36.66 |
Aggregate intrinsic value, Outstanding | $ 1 | ||
Aggregate intrinsic value, Exercisable | $ 1 | ||
Weighted-average remaining contractual term, Outstanding | 8 months 12 days | ||
Weighted-average remaining contractual term, Exercisable | 8 months 12 days | ||
Intrinsic value for options exercised | $ 8 | $ 2 | $ 10 |
Options vested in period | 0 | 0 | 0 |
Cash received from the exercise of options | $ 5 | $ 2 | |
Income tax benefit | $ 2 | $ 1 |
Share-Based Compensation - Empl
Share-Based Compensation - Employee Stock Purchase Plan (Details) - 2011 Employee Stock Purchase Plan - Employee Stock Option - Common Stock | 12 Months Ended |
Dec. 31, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant | 922,972 |
Date Of Purchase | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Purchase price equal to lesser of fair market value percentage | 95.00% |
Date Of Grant | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares that became available under the Plan | 1,500,000 |
Income Taxes - Geographical Sou
Income Taxes - Geographical Sources of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (152) | $ (120) | $ (288) |
Outside United States | 240 | (9) | 108 |
Income (loss) before income taxes | $ 88 | $ (129) | $ (180) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 10 | $ 14 | $ 84 |
State | 8 | 6 | 4 |
Foreign | 62 | 31 | 32 |
Total current | 80 | 51 | 120 |
Deferred: | |||
Federal | 20 | (31) | (117) |
State | (10) | (6) | (24) |
Foreign | (19) | (6) | (1) |
Total deferred | (9) | (43) | (142) |
(Benefit) provision for income taxes | $ 71 | $ 8 | $ (22) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Apr. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense | $ 71,000,000 | $ 8,000,000 | $ (22,000,000) | |
Effective income tax rate | 80.70% | (6.20%) | 12.20% | |
Federal statutory rate | 35.00% | 35.00% | 35.00% | |
Operating loss carryforwards | $ 338,000,000 | |||
Tax credits | 30,000,000 | |||
Increase in valuation allowance | 134,000,000 | $ 47,000,000 | ||
Increase in deferred liability related to depreciation and amortization | 275,000,000 | 165,000,000 | ||
Tax Cuts And Jobs Act Of 2017, incomplete accounting, provisional income tax expense | $ 72,000,000 | |||
Deferred tax assets and liabilities rate expected to reverse in the future (as percent) | 21.00% | |||
Tax Cuts and Jobs Act of 2017, incomplete accounting, change in tax rate, deferred tax liability, provisional income tax benefit | $ 35,000,000 | |||
Tax Cuts And Jobs Act Of 2017, incomplete accounting, transition tax for accumulated foreign earnings, provisional income tax expense | 37,000,000 | |||
Transition tax estimated cash liability | 26,000,000 | |||
Transition Tax Fiscal Year, Payments Due [Abstract] | ||||
2,017 | 2,000,000 | |||
2,018 | 2,000,000 | |||
2,019 | 2,000,000 | |||
2,020 | 2,000,000 | |||
2,021 | 2,000,000 | |||
2,022 | 4,000,000 | |||
2,023 | 5,000,000 | |||
2,024 | 7,000,000 | |||
Deferred income taxes undistributed foreign earnings | 2,000,000 | |||
Tax Cuts And Jobs Act OF 2017,incomplete accounting, change in tax rate, deferred tax assets | $ 0 | |||
Tax Cuts And Jobs Act OF 2017, nondeductible bonus compensation (as percent) | 0.00% | |||
Unrecognized tax benefits that would affect annual effective tax rate | $ 47,000,000 | 40,000,000 | ||
Unrecognized tax benefits that may reverse | 20,000,000 | |||
Interest and or penalties related to Income tax matters | 2,000,000 | |||
Penalties and interest accrued | 6,000,000 | $ 4,000,000 | ||
Year 2,035 | ||||
Income Tax Contingency [Line Items] | ||||
Tax credits | 24,000,000 | |||
Net operating loss carryforwards | 45,000,000 | |||
Year 2,021 | ||||
Income Tax Contingency [Line Items] | ||||
Tax credits | 6,000,000 | |||
Net operating loss carryforwards | $ 293,000,000 | |||
Her Majesty's Revenue and Customs (HMRC) | ||||
Income Tax Contingency [Line Items] | ||||
Federal statutory rate | 19.00% | |||
Inland Revenue, Singapore (IRAS) | ||||
Income Tax Contingency [Line Items] | ||||
Federal statutory rate | 17.00% | |||
Luxembourg Inland Revenue | ||||
Income Tax Contingency [Line Items] | ||||
Federal statutory rate | 27.00% | |||
Operating loss carryforwards | $ 290,000,000 | |||
Increase in valuation allowance | 66,000,000 | |||
Increase in deferred liability related to depreciation and amortization | $ 224,000,000 | |||
Singapore Economic Development Board | ||||
Income Tax Contingency [Line Items] | ||||
Federal statutory rate | 10.00% | |||
ASU 2016-16 | New Accounting Pronouncement, Early Adoption, Effect | ||||
Income Tax Contingency [Line Items] | ||||
Income tax expense | $ 0 | |||
Deferred tax benefit related to impact of sale of intangible assets | $ 12,000,000 | 12,000,000 | ||
Foreign Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Tax credits | $ 10,000,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Provision computed at statutory rate | 35.00% | 35.00% | 35.00% |
U.S. Tax Reform - One-time transaction tax | 41.80% | 0.00% | 0.00% |
Remeasurement of Deferred Taxes | (56.00%) | 0.00% | 0.00% |
Change in valuation allowance | 96.40% | (1.00%) | (8.30%) |
US impact of Enterprise acquisition and integration | 12.90% | (14.10%) | (26.70%) |
Change in contingent income tax reserves | 14.00% | (1.60%) | (3.30%) |
Foreign earnings subject to U.S. taxation | 2.00% | (6.60%) | (3.90%) |
Foreign rate differential | (29.10%) | (16.00%) | 13.90% |
Intra-entity transactions | (18.80%) | 0.00% | 0.00% |
State income tax, net of Federal tax benefit | (5.30%) | (1.00%) | 1.10% |
Tax credits | (5.70%) | 9.50% | 6.10% |
Equity compensation deductions | (5.60%) | (0.40%) | 0.00% |
Return to provision and other true ups | (3.20%) | (3.70%) | 0.00% |
Other | 2.30% | (6.30%) | (1.70%) |
(Benefit) provision for income taxes | 80.70% | (6.20%) | 12.20% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Capitalized research expenditures | $ 32 | $ 58 |
Deferred revenue | 21 | 57 |
Tax credits | 31 | 33 |
Net operating loss carryforwards | 338 | 35 |
Other accruals | 20 | 31 |
Inventory items | 20 | 27 |
Capitalized software costs | 14 | 25 |
Sales return/rebate reserve | 33 | 27 |
Share-based compensation expense | 12 | 15 |
Accrued bonus | 1 | 11 |
Unrealized gain and losses on securities and investments | 8 | 4 |
Valuation allowance | (134) | (47) |
Total deferred tax assets | 396 | 276 |
Deferred: | ||
Depreciation and amortization | 275 | 165 |
Undistributed earnings | 2 | 1 |
Total deferred tax liabilities | 277 | 166 |
Net deferred tax assets | $ 119 | $ 110 |
Income Taxes - Reconciliation88
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits | ||
Balance at beginning of year | $ 42 | $ 40 |
Additions for tax positions related to the current year | 0 | 2 |
Additions for tax positions related to prior years | 11 | 2 |
Settlements for tax positions | (1) | (2) |
Settlements for tax positions | (1) | 0 |
Balance at end of year | $ 51 | $ 42 |
Earnings (Loss) Per Share - Com
Earnings (Loss) Per Share - Computation (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic: | |||||||||||
Net income (loss) | $ 17 | $ (137) | $ (158) | ||||||||
Weighted-average shares outstanding | 53,021,761 | 51,579,112 | 50,996,297 | ||||||||
Basic earnings (loss) per share (in USD per share) | $ 0.07 | $ (0.23) | $ 0.33 | $ 0.16 | $ 0.34 | $ (1.61) | $ (0.88) | $ (0.50) | $ 0.33 | $ (2.65) | $ (3.10) |
Diluted: | |||||||||||
Net income (loss) | $ 17 | $ (137) | $ (158) | ||||||||
Weighted-average shares outstanding | 53,021,761 | 51,579,112 | 50,996,297 | ||||||||
Dilutive shares | 667,071 | 0 | 0 | ||||||||
Diluted weighted average shares outstanding (in shares) | 53,688,832 | 51,579,112 | 50,996,297 | ||||||||
Diluted earnings (loss) per share (in USD per share) | $ 0.07 | $ (0.23) | $ 0.32 | $ 0.16 | $ 0.34 | $ (1.61) | $ (0.88) | $ (0.50) | $ 0.32 | $ (2.65) | $ (3.10) |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive shares | 259,142 | 1,391,567 | 1,421,506 |
Accumulated Other Comprehensi91
Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications | $ (23) | $ (4) | $ (16) |
Amounts reclassified from AOCI | 16 | 9 | (29) |
Tax benefit (expense) | 0 | (2) | 6 |
Other comprehensive income (loss) | (7) | 3 | (39) |
Unrealized (loss) gain on sales hedging | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | 6 | (1) | 5 |
Other comprehensive income (loss) before reclassifications | (26) | 1 | 7 |
Amounts reclassified from AOCI | 8 | 7 | (15) |
Tax benefit (expense) | 3 | (1) | 2 |
Other comprehensive income (loss) | (15) | 7 | (6) |
Ending balance | (9) | 6 | (1) |
Unrealized (loss) gain on forward interest rate swaps | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (15) | (15) | (8) |
Other comprehensive income (loss) before reclassifications | 1 | (1) | (12) |
Amounts reclassified from AOCI | 8 | 2 | 1 |
Tax benefit (expense) | (3) | (1) | 4 |
Other comprehensive income (loss) | 6 | 0 | (7) |
Ending balance | (9) | (15) | (15) |
Currency translation adjustments | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (36) | (32) | (6) |
Other comprehensive income (loss) before reclassifications | 2 | (4) | (11) |
Amounts reclassified from AOCI | 0 | 0 | (15) |
Tax benefit (expense) | 0 | 0 | 0 |
Other comprehensive income (loss) | 2 | (4) | (26) |
Ending balance | (34) | (36) | (32) |
Total | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (45) | (48) | (9) |
Ending balance | $ (52) | $ (45) | $ (48) |
Segment Information and Geogr92
Segment Information and Geographic Data - Additional Information (Detail) - segment | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Reportable segments | 2 | |
Customer A | Customer Concentration Risk | Accounts Receivable | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk percentage | 19.50% | 19.90% |
Customer B | Customer Concentration Risk | Accounts Receivable | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk percentage | 14.00% | 14.00% |
Customer C | Customer Concentration Risk | Accounts Receivable | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk percentage | 11.70% | 12.90% |
Segment Information and Geogr93
Segment Information and Geographic Data - Financial Information by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales: | |||||||||||
Total Net sales | $ 1,026 | $ 935 | $ 896 | $ 865 | $ 942 | $ 904 | $ 879 | $ 849 | $ 3,722 | $ 3,574 | $ 3,650 |
Operating income: | |||||||||||
Total Operating income | 322 | 80 | 37 | ||||||||
Operating segments | |||||||||||
Net sales: | |||||||||||
Total Net sales | 3,725 | 3,584 | 3,666 | ||||||||
Operating income: | |||||||||||
Total Operating income | 575 | 526 | 494 | ||||||||
Corporate, eliminations | |||||||||||
Net sales: | |||||||||||
Total Net sales | (3) | (10) | (16) | ||||||||
Operating income: | |||||||||||
Total Operating income | (253) | (446) | (457) | ||||||||
AIT | |||||||||||
Net sales: | |||||||||||
Total Net sales | 1,311 | 1,247 | 1,286 | ||||||||
Operating income: | |||||||||||
Total Operating income | 260 | 240 | 258 | ||||||||
EVM | |||||||||||
Net sales: | |||||||||||
Total Net sales | 2,414 | 2,337 | 2,380 | ||||||||
Operating income: | |||||||||||
Total Operating income | $ 315 | $ 286 | $ 236 |
Segment Information and Geogr94
Segment Information and Geographic Data - Information Regarding Operations by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Net sales | $ 1,026 | $ 935 | $ 896 | $ 865 | $ 942 | $ 904 | $ 879 | $ 849 | $ 3,722 | $ 3,574 | $ 3,650 |
Long-lived assets | 264 | 292 | 264 | 292 | 298 | ||||||
Europe, Middle East & Africa | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Net sales | 1,221 | 1,138 | 1,194 | ||||||||
Long-lived assets | 14 | 13 | 14 | 13 | 10 | ||||||
Latin America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Net sales | 235 | 214 | 219 | ||||||||
Long-lived assets | 3 | 3 | 3 | 3 | 3 | ||||||
Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Net sales | 468 | 483 | 463 | ||||||||
Long-lived assets | 9 | 9 | 9 | 9 | 10 | ||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Net sales | 1,924 | 1,835 | 1,876 | ||||||||
Long-lived assets | 26 | 25 | 26 | 25 | 23 | ||||||
North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Net sales | 1,798 | 1,739 | 1,774 | ||||||||
Long-lived assets | $ 238 | $ 267 | $ 238 | $ 267 | $ 275 |
Segment Information and Geogr95
Segment Information and Geographic Data - Net Sales by Country (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | $ 1,026 | $ 935 | $ 896 | $ 865 | $ 942 | $ 904 | $ 879 | $ 849 | $ 3,722 | $ 3,574 | $ 3,650 |
United States | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 1,984 | 1,950 | 2,045 | ||||||||
United Kingdom | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 1,196 | 1,065 | 1,102 | ||||||||
Singapore | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | 454 | 362 | 175 | ||||||||
Other | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Total Net sales | $ 88 | $ 197 | $ 328 |
Segment Information and Geogr96
Segment Information and Geographic Data - Net Sales to Significant Customers as a Percent of Total Net Sales (Detail) - Sales Revenue, Net - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Customer A | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 21.30% | 20.10% | 19.40% |
Customer A | AIT | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 6.30% | 5.90% | 5.50% |
Customer A | EVM | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 15.00% | 14.20% | 13.90% |
Customer B | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 14.20% | 13.20% | 12.70% |
Customer B | AIT | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 5.30% | 5.00% | 4.60% |
Customer B | EVM | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 8.90% | 8.20% | 8.10% |
Customer C | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 13.20% | 12.40% | 11.60% |
Customer C | AIT | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 6.20% | 5.30% | 5.20% |
Customer C | EVM | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 7.00% | 7.10% | 6.40% |
Supplementary Financial Infor97
Supplementary Financial Information Supplemental Financial Information (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Quarterly Financial Information Disclosure [Abstract] | ||
Accounts receivable | $ 482 | $ 628 |
Allowance for doubtful accounts | (3) | (3) |
Accounts receivable, net | 479 | 625 |
Foreign Exchange Contracts | 0 | 23 |
Other | 24 | 41 |
Prepaid expenses and other current assets | 24 | 64 |
Accrued incentive compensation | 101 | 52 |
Customer reserves | 41 | 50 |
Accrued payroll | 50 | 51 |
Interest payable | 15 | 20 |
Accrued other expenses | 130 | 150 |
Accrued liabilities | $ 337 | $ 323 |
Supplementary Financial Infor98
Supplementary Financial Information - Summary of Quarterly Results of Operations (unaudited) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total Net sales | $ 1,026 | $ 935 | $ 896 | $ 865 | $ 942 | $ 904 | $ 879 | $ 849 | $ 3,722 | $ 3,574 | $ 3,650 |
Gross profit | 469 | 429 | 411 | 401 | 432 | 414 | 406 | 390 | 1,710 | 1,642 | $ 1,644 |
Net (loss) income | $ 4 | $ (12) | $ 17 | $ 8 | $ 17 | $ (83) | $ (45) | $ (26) | $ 17 | $ (137) | |
Net earnings per common share: | |||||||||||
Basic earnings (loss) per share (in USD per share) | $ 0.07 | $ (0.23) | $ 0.33 | $ 0.16 | $ 0.34 | $ (1.61) | $ (0.88) | $ (0.50) | $ 0.33 | $ (2.65) | $ (3.10) |
Diluted earnings (loss) per share (in USD per share) | $ 0.07 | $ (0.23) | $ 0.32 | $ 0.16 | $ 0.34 | $ (1.61) | $ (0.88) | $ (0.50) | $ 0.32 | $ (2.65) | $ (3.10) |
Valuation and Qualifying Acco99
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation account for accounts receivable: | |||
Valuation Account | |||
Balance at Beginning of Period | $ 3 | $ 6 | $ 1 |
Charged to Costs and Expenses | 1 | 0 | 5 |
Deductions | 1 | 3 | 0 |
Balance at End of Period | 3 | 3 | 6 |
Valuation account for deferred tax assets: | |||
Valuation Account | |||
Balance at Beginning of Period | 47 | 48 | 57 |
Charged to Costs and Expenses | 91 | 18 | 5 |
Deductions | 4 | 19 | 14 |
Balance at End of Period | $ 134 | $ 47 | $ 48 |