Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 03, 2015 | Oct. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 3, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ZBRA | |
Entity Registrant Name | ZEBRA TECHNOLOGIES CORP | |
Entity Central Index Key | 877,212 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 52,100,278 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 258,022 | $ 393,950 |
Investments and marketable securities | 0 | 24,385 |
Accounts receivable, net | 625,777 | 670,402 |
Inventories, net | 408,158 | 394,176 |
Deferred income taxes | 103,442 | 122,772 |
Income tax receivable | 10,760 | 12,988 |
Prepaid expenses and other current assets | 83,096 | 53,377 |
Total Current assets | 1,489,255 | 1,672,050 |
Property and equipment at cost, less accumulated depreciation and amortization | 291,754 | 255,092 |
Goodwill | 2,488,501 | 2,489,510 |
Other intangibles, net | 816,933 | 1,029,293 |
Other long-term assets | 92,547 | 93,121 |
Total Assets | 5,178,990 | 5,539,066 |
Current liabilities: | ||
Accounts payable | 314,279 | 326,524 |
Accrued liabilities | 379,261 | 421,070 |
Deferred revenue | 203,792 | 196,213 |
Current portion of long-term debt | 0 | 4,209 |
Income taxes payable | 1,592 | 4,518 |
Total Current liabilities | 898,924 | 952,534 |
Long-term debt | 3,043,225 | 3,156,490 |
Long-term deferred tax liability | 128,033 | 199,853 |
Long-term deferred revenue | 109,203 | 115,847 |
Other long-term liabilities | 85,577 | 74,434 |
Total Liabilities | 4,264,962 | 4,499,158 |
Stockholders' Equity: | ||
Preferred stock, $.01 par value; authorized 10,000 shares; none issued | 0 | 0 |
Additional paid-in capital | 187,091 | 147,090 |
Treasury stock at cost, 20,039 and 20,498 shares at October 3, 2015 and December 31, 2014, respectively | (632,231) | (634,664) |
Retained earnings | 1,404,802 | 1,535,307 |
Accumulated other comprehensive loss | (46,356) | (8,547) |
Total Stockholders' Equity | 914,028 | 1,039,908 |
Total Liabilities and Stockholders' Equity | 5,178,990 | 5,539,066 |
Class A Common Stock [Member] | ||
Stockholders' Equity: | ||
Class A common stock, $.01 par value; authorized 150,000 shares; issued 72,152 shares | $ 722 | $ 722 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 03, 2015 | Dec. 31, 2014 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares | 20,039,000 | 20,498,000 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 72,152,000 | 72,152,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Net sales: | ||||
Net sales of tangible products | $ 787,441 | $ 282,643 | $ 2,304,698 | $ 814,584 |
Revenue from services and software | 128,832 | 20,629 | 394,533 | 65,377 |
Total Net sales | 916,273 | 303,272 | 2,699,231 | 879,961 |
Cost of sales: | ||||
Cost of sales of tangible products | 403,520 | 141,842 | 1,195,902 | 409,253 |
Cost of services and software | 98,697 | 9,924 | 286,873 | 29,095 |
Total Cost of sales | 502,217 | 151,766 | 1,482,775 | 438,348 |
Gross profit | 414,056 | 151,506 | 1,216,456 | 441,613 |
Operating expenses: | ||||
Selling and marketing | 120,217 | 36,781 | 367,443 | 107,952 |
Research and development | 100,340 | 25,225 | 295,844 | 71,792 |
General and administrative | 67,235 | 24,741 | 203,030 | 79,453 |
Amortization of intangible assets | 58,499 | 2,597 | 189,788 | 7,936 |
Acquisition and integration costs | 37,010 | 35,326 | 94,507 | 60,617 |
Exit and restructuring costs | 5,734 | (120) | 34,852 | 434 |
Total Operating expenses | 389,035 | 124,550 | 1,185,464 | 328,184 |
Operating income | 25,021 | 26,956 | 30,992 | 113,429 |
Other (expense) income: | ||||
Foreign exchange loss | (5,255) | (83) | (21,194) | (332) |
Interest (expense)/income | (45,002) | 171 | (145,262) | (2,368) |
Other, net | (306) | (2,238) | (908) | (1,381) |
Total Other expenses | (50,563) | (2,150) | (167,364) | (4,081) |
(Loss) income before income taxes | (25,542) | 24,806 | (136,372) | 109,348 |
Income tax expense (benefit) | 3,408 | 9,861 | (5,867) | 25,240 |
Net (loss) income | $ (28,950) | $ 14,945 | $ (130,505) | $ 84,108 |
Basic (loss) earnings per share | $ (0.57) | $ 0.29 | $ (2.56) | $ 1.66 |
Diluted (loss) earnings per share | $ (0.57) | $ 0.29 | $ (2.56) | $ 1.64 |
Basic weighted average shares outstanding | 51,152 | 50,835 | 50,926 | 50,615 |
Diluted weighted average and equivalent shares outstanding | 51,152 | 51,461 | 50,926 | 51,251 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (28,950) | $ 14,945 | $ (130,505) | $ 84,108 |
Other comprehensive (loss) income, net of tax: | ||||
Unrealized (loss) gain on anticipated sales hedging transactions | (2,811) | 5,133 | (5,763) | 6,522 |
Unrealized (loss) on forward interest rate swaps hedging transactions | (6,560) | (781) | (10,447) | (781) |
Unrealized holding (loss) gain on investments | (256) | 240 | (272) | 736 |
Foreign currency translation adjustment | (11,083) | (191) | (21,327) | (387) |
Comprehensive (loss) income | $ (49,660) | $ 19,346 | $ (168,314) | $ 90,198 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (130,505) | $ 84,108 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 240,418 | 27,223 |
Amortization of debt issuance cost and discount | 12,526 | 0 |
Equity-based compensation | 25,270 | 10,304 |
Impairment of long-term investment | 0 | 2,333 |
Excess tax benefit from equity-based compensation | (11,463) | (5,779) |
Deferred income taxes | (37,662) | 4,509 |
Unrealized (gain) loss on forward interest rate swaps | (3,397) | 2,248 |
All other, net | 11,793 | 135 |
Changes in assets and liabilities, net of businesses acquired: | ||
Accounts receivable | 41,027 | (10,810) |
Inventories | (25,953) | (18,606) |
Other assets | (32,795) | (10,859) |
Accounts payable | 8,169 | 7,975 |
Accrued liabilities | 2,470 | 21,160 |
Deferred revenue | 7,495 | 2,667 |
Income taxes | 12,619 | 6,664 |
Other operating activities | (4,151) | 6,406 |
Net cash provided by operating activities | 115,861 | 129,678 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (87,371) | (20,023) |
Acquisition of businesses, net of cash acquired | (51,889) | 0 |
Proceeds from sale of long-term investments | 3,009 | 0 |
Purchases of long-term investments | (168) | (1,870) |
Purchases of investments and marketable securities | (726) | (384,134) |
Maturities of investments and marketable securities | 0 | 44,158 |
Proceeds from sales of investments and marketable securities | 24,852 | 211,975 |
Net cash used in investing activities | (112,293) | (149,894) |
Cash flows from financing activities: | ||
Payment of debt | (130,000) | 0 |
Proceeds from exercise of stock options and stock purchase plan purchases | 14,357 | 13,090 |
Taxes paid related to net share settlement of equity awards | (13,028) | (1,126) |
Excess tax benefit from equity-based compensation | 11,463 | 5,779 |
Net cash (used in) provided by financing activities | (117,208) | 17,743 |
Effect of exchange rate changes on cash | (22,288) | (140) |
Net decrease in cash and cash equivalents | (135,928) | (2,613) |
Cash and cash equivalents at beginning of period | 393,950 | 62,827 |
Cash and cash equivalents at end of period | 258,022 | 60,214 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid, net | 31,593 | 12,656 |
Interest paid | $ 118,151 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 03, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation Management prepared these unaudited interim consolidated financial statements for Zebra Technologies Corporation and subsidiaries (the “Company”) according to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. These financial statements do not include all of the information and notes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements, although management believes that the disclosures are adequate to make the information presented not misleading. Therefore, these consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2014. In the opinion of the Company, these interim financial statements include all adjustments (of a normal, recurring nature) necessary to present fairly its consolidated balance sheet as of October 3, 2015, the consolidated statements of operations and consolidated statements of comprehensive (loss) income for the three and nine months ended October 3, 2015 and September 27, 2014, and the consolidated statements of cash flows for the nine months ended October 3, 2015 and September 27, 2014. These results, however, are not necessarily indicative of the results expected for the full year. Reclassifications: |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Oct. 03, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Note 2 – Recently Issued Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-03 “ Interest—Imputation of Interest Simplifying the Presentation of Debt Issuance Costs In August 2015, the FASB issued ASU 2015-15 “ Interest—Imputation of Interest Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update).” In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers Revenue from Contracts with Customers: Deferral of the Effective Date In April 2015, the FASB issued ASU 2015-05, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory, |
Business Combinations
Business Combinations | 9 Months Ended |
Oct. 03, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Note 3 – Business Combinations On October 27, 2014, the Company completed its acquisition of the Enterprise Business (“Enterprise”) from Motorola Solutions Inc. (“MSI”) for a purchase price of $3.45 billion (the “Acquisition”). This transaction positions the Company as a leading technology innovator, with the accelerating convergence of mobility, data analytics and cloud computing. It will enable the Company to further sharpen its strategic focus on providing mission-critical solutions for its customers. Certain assets and liabilities historically associated with the Enterprise business were retained by MSI, including MSI’s iDEN infrastructure business. The Acquisition was pursuant to the Master Acquisition Agreement dated April 14, 2014, as amended (the “Master Acquisition Agreement”) and was structured as a combination of stock and asset acquisitions and a merger of certain US entities, resulting in 100% ownership of Enterprise. The Company financed the Acquisition through a combination of cash on hand and borrowings of $3.25 billion (the “Indebtedness”), including the sale of 7.25% senior notes due 2022 with an aggregate principal amount of $1.05 billion (the “Senior Notes”) and a credit agreement with various lenders that provided a term loan of $2.2 billion (the “Term Loan”) due 2021. See Note 13 Long-Term Debt. Consideration was paid in the form of cash to MSI in the amount of $3.45 billion. During the nine months ended October 3, 2015, the Company paid additional consideration of $50.9 million to MSI in relation to the opening cash balance and settlement of working capital. Acquired goodwill represents the consideration paid in excess of the fair value of the net tangible and intangible assets acquired. The Company paid this premium for a number of reasons, including acquiring an experienced workforce and enhanced technology capabilities as further described above. Currently, goodwill is assigned to the Enterprise segment. The final valuation of deferred income taxes as well as the assignment of goodwill to reporting units has not been completed as of the date these financial statements are issued. The purchase price was allocated to identifiable tangible and intangible assets acquired and liabilities assumed based on their estimated fair values resulting in goodwill of $2.335 billion. See Note 7 Goodwill and Other Intangibles. During 2015, the Company adjusted certain preliminary values. The fair value adjustments resulted in a decrease of $14.0 million in assets, a decrease of $6.4 million in liabilities and a corresponding increase to goodwill of $7.6 million. Certain intangible assets including goodwill are denominated in foreign currency and, as such, include the effects of foreign currency translation. The following table summarizes the preliminary estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition (in thousands): Cash and cash equivalents $ 100,338 Accounts receivable, net (1) 439,821 Inventories, net 263,526 Deferred income taxes 117,147 Other current assets 21,905 Property and equipment 123,365 Other intangibles, net 994,421 Other long-term assets 49,593 Deferred revenue (172,135 ) Tax liabilities (9,410 ) Other current liabilities (2) (369,777 ) Long-term deferred revenue (102,633 ) Unrecognized tax benefits (9,526 ) Other long-term liabilities (24,884 ) Long-term deferred income taxes (211,851 ) Total identifiable net assets $ 1,209,900 (1) Based on the purchase price allocations, accounts receivable estimated fair value is $439.8 million and gross contractual value is $460.6 million. The difference represents the Company’s best estimate of the contractual cash flows that will not be collected. (2) Other current liabilities include accounts payable, customer reserves, and employee compensation and related benefits. ASU 2015-16 “Business Combinations (Topic 805):Simplifying the Accounting for Measurement-Period Adjustments” During September 2015, the Company received a revised valuation report from a third party valuation firm. After reviewing the results of the valuation reports, the Company reduced the value of intangible assets $20.0 million, property and equipment $2.8 million and deferred revenue $0.4 million and increased inventory $1.5 million with a corresponding $21.7 million increase to goodwill. As discussed in Note 2 Recently Issued Accounting Pronouncements, the Company has adopted ASU 2015-16 “ Business Combinations (Topic 805):Simplifying the Accounting for Measurement-Period Adjustments The following table summarizes the fair value balance sheet adjustments recorded during the third quarter of 2015 as well as the amount of adjustments to the current period income statement line items relating to the income effects that would have been recognized in previous periods if the adjustments to provisional amounts were recognized as of the acquisition date (in thousands): Increase/ Effect on Income Before Income Taxes for the Three Months Ended Balance Sheets Statements of Operations December 31, 2014 April 4, 2015 July 4, 2015 Total Other intangibles $ (20,000 ) Amortization of intangibles $ 764 $ 1,146 $ 1,146 $ 3,056 Inventories 1,515 Cost of sales (1,386 ) (129 ) — (1,515 ) Property and equipment (2,801 ) General and administrative 39 59 59 157 Deferred revenue (372 ) Net sales 39 36 28 103 Total $ (21,658 ) Total $ (544 ) $ 1,112 $ 1,233 $ 1,801 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 03, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4 – 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 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. Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. In addition, the Company considers counterparty credit risk in the assessment of fair value. Financial assets and liabilities carried at fair value as of October 3, 2015, are classified below (in thousands): Level 1 Level 2 Level 3 Total Assets: Forward contracts (1) $ 2,024 $ 1,807 $ 0 $ 3,831 Money market investments related to the deferred compensation plan 8,065 0 0 8,065 Total Assets at fair value $ 10,089 $ 1,807 $ 0 $ 11,896 Liabilities: Forward interest rate swap (2) $ 0 $ 31,901 $ 0 $ 31,901 Liabilities related to the deferred compensation plan 8,065 0 0 8,065 Total Liabilities at fair value $ 8,065 $ 31,901 $ 0 $ 39,966 Financial assets and liabilities carried at fair value as of December 31, 2014, are classified below (in thousands): Level 1 Level 2 Level 3 Total Assets: U.S. government and agency securities $ 10,720 $ 0 $ 0 $ 10,720 Obligations of government-sponsored enterprises (3) 0 705 0 705 State and municipal bonds 0 5,179 0 5,179 Corporate securities 0 7,781 0 7,781 Investments subtotal 10,720 13,665 0 24,385 Forward contracts (1) 2,039 7,279 0 9,318 Money market investments related to the deferred compensation plan 6,008 0 0 6,008 Total Assets at fair value $ 18,767 $ 20,944 $ 0 $ 39,711 Liabilities: Forward interest rate swap (2) $ 0 $ 16,718 $ 0 $ 16,718 Liabilities related to the deferred compensation plan 6,008 0 0 6,008 Total Liabilities at fair value $ 6,008 $ 16,718 $ 0 $ 22,726 (1) The fair value of forward 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. If this is the case, the fair value is calculated at the rate at which the hedge is being settled. (2) The fair value of forward interest rate swap is based upon a valuation model that uses relevant observable market inputs at the quoted intervals, such as forward yield curves, and is adjusted for the Company’s own credit risk and the interest rate swap terms. (3) Includes investments in notes issued by the Federal Home Loan Mortgage Corporation and the Federal Home Loan Bank. The following is a summary of investments (in thousands): As of December 31, 2014 Amortized Gross Gross Estimated U.S. government and agency securities $ 10,720 $ 0 $ 0 $ 10,720 Obligations of government-sponsored enterprises 705 0 0 705 State and municipal bonds 5,156 27 (4 ) 5,179 Corporate securities 7,779 12 (10 ) 7,781 Total investments $ 24,360 $ 39 $ (14 ) $ 24,385 The carrying value for the Company’s financial instruments are classified as current assets (other than short-term investments) and current liabilities’ approximate fair value due to their short maturities. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Oct. 03, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | Note 5 – Accounts Receivable The components of accounts receivable, net are as follows (in thousands): As of October 3, 2015 December 31, 2014 Accounts receivable, gross $ 631,756 $ 671,471 Accounts receivable reserves (5,979 ) (1,069 ) Accounts receivable, net $ 625,777 $ 670,402 |
Inventories
Inventories | 9 Months Ended |
Oct. 03, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 6 – Inventories The components of inventories, net are as follows (in thousands): As of October 3, 2015 December 31, 2014 Raw material $ 183,395 $ 139,647 Work in process 437 476 Finished goods 256,448 259,872 Inventories, gross 440,280 399,995 Inventory reserves (32,122 ) (5,819 ) Inventories, net $ 408,158 $ 394,176 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Oct. 03, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Note 7 – Goodwill and Other Intangibles In 2014, the Company acquired intangible assets in the amount of $994.4 million for developed technology, customer relationships and trade names associated with the Acquisition. These intangible assets have an estimated useful lives ranging from one to eight years. See Note 3 Business Combinations for specific information regarding the Acquisition. Other intangibles, net, are as follows (in thousands): As of October 3, 2015 December 31,2014 Current technology $ 22,521 $ 23,201 Trade names 40,300 40,300 Unpatented technology 270,000 280,000 Patents and patent rights 247,335 244,569 Customer relationships 517,933 532,591 Accumulated amortization (281,156 ) (91,368 ) Other intangibles, net $ 816,933 $ 1,029,293 Amortization of intangible assets was $189.8 million and $7.9 million for the nine months ended October 3, 2015 and September 27, 2014, respectively. Certain intangible assets including goodwill are denominated in foreign currency and, as such, include the effects of foreign currency translation. In 2014, the Company acquired goodwill in the amount of $2.335 billion. See Note 3 Business Combinations for specific information regarding the Acquisition. In the fourth quarter of 2013, the Company acquired all of the outstanding membership interests in Hart Systems, LLC (“Hart”). Hart which is a component within our Retail Solutions Group reporting unit, with total goodwill of $58.6 million as of October 3, 2015, performs its annual impairment test as of the first day of our fourth quarter. During the third quarter of 2015, management identified an indicator of impairment within the Retail Solutions Group reporting unit based on a change in forecasted revenue and earnings results. Based on this event, management performed “step one” of the goodwill impairment test in accordance with ASC 350, Intangibles – Goodwill and Other, on the Retail Solutions Group as of October 3, 2015. Based on this analysis, management determined that the fair value was less than the carrying value of the net assets for this reporting unit. The Company has not yet completed “step two” of the impairment test, and, as of the filing date of this Form 10-Q, impairment is possible but is not reasonably estimable. |
Other Long-Term Assets
Other Long-Term Assets | 9 Months Ended |
Oct. 03, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Long-Term Assets | Note 8 – Other Long-Term Assets Other long-term assets consist of the following (in thousands): As of October 3, 2015 December 31,2014 Investments related to the deferred compensation plan $ 8,065 $ 6,008 Long-term investments 30,180 31,759 Other long-term assets 25,561 22,652 Long-term trade receivable 12,752 16,985 Long-term notes receivable 14,231 14,231 Deposits 1,758 1,486 Total other long-term assets $ 92,547 $ 93,121 The long-term investments are primarily in venture-capital backed technology companies, and the Company’s ownership interest is between 1.9% to 17.4%. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Oct. 03, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Note 9 –Accrued Liabilities The components of accrued liabilities are as follows (in thousands): As of October 3, 2015 December 31,2014 Accrued payroll $ 69,781 $ 73,582 Accrued warranty 23,991 24,666 Accrued taxes 8,336 11,446 Interest payable 53,376 34,727 Amount owed to seller- MSI 0 48,806 Restructuring liability 11,777 6,830 Customer reserves 33,429 39,201 Accrued other expenses 178,571 181,812 Total accrued liabilities $ 379,261 $ 421,070 |
Costs Associated with Exit and
Costs Associated with Exit and Restructuring Activities | 9 Months Ended |
Oct. 03, 2015 | |
Restructuring and Related Activities [Abstract] | |
Costs Associated with Exit and Restructuring Activities | Note 10 – Costs Associated with Exit and Restructuring Activities Total exit and restructuring charges of $40.4 million life to date specific to the Acquisition have been recorded through October 3, 2015: $8.0 million in the Legacy Zebra segment and $32.4 million in the Enterprise segment related to organizational design changes. See Note 3 Business Combinations for specific information regarding the Acquisition. During the first nine months of 2015, the Company incurred exit and restructuring costs specific to the Acquisition as follows (in thousands): Type of Cost Cost incurred Costs incurred for Total costs Severance, stay bonuses, and other employee-related expenses $ 5,557 $ 27,703 $ 33,260 Obligations for future lease payments 0 6,900 6,900 Professional services 16 249 265 Total $ 5,573 $ 34,852 $ 40,425 Exit and restructuring charges for the three and nine month periods ended October 3, 2015 were $1.1 million and $8.0 million for the Legacy Zebra segment and $4.6 million and $26.9 million for the Enterprise segment, respectively. The Company expects additional charges related to the Acquisition through the end of 2016. As of December 31, 2014, the Company incurred the following exit and restructuring costs related to 2014 organization design changes, Location Solutions business management structure and manufacturing operations relocation and restructuring, which included the Acquisition (in thousands): Type of Cost Cost incurred Costs incurred for Total costs Severance, stay bonuses, and other employee-related expenses $ 6,650 $ 5,991 $ 12,641 Professional services 180 16 196 Relocation and transition costs 20 0 20 Total $ 6,850 $ 6,007 $ 12,857 A rollforward of the exit and restructuring accruals is as follows (in thousands): Three Months October 3, 2015 Three Months September 27, 2014 Nine Months October 3, 2015 Nine Months September 27, 2014 Balance at the beginning of period $ 17,694 $ 502 $ 6,830 $ 1,252 Charged to earnings 5,734 (120 ) 34,852 434 Cash paid (7,072 ) 29 (25,326 ) (1,275 ) Balance at the end of period $ 16,356 $ 411 $ 16,356 $ 411 Liabilities related to exit and restructuring activities are included in accrued liabilities and other long-term liabilities. Payments of the related, long-term liabilities will be completed by October 2024. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Oct. 03, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 11 – Derivative Instruments The Company conducts business on a multinational basis in a wide variety of foreign currencies; as such, the Company manages these risks using derivative financial instruments. The exposure to market risk for changes in foreign currency exchange rates arises from cross-border financing activities between subsidiaries and foreign currency denominated monetary assets and liabilities. The objective is to preserve the economic value of non-functional currency denominated cash flows. Therefore, the goal is to hedge transaction exposures with natural offsets to the fullest extent possible and, once these opportunities have been exhausted, through foreign exchange forward and option contracts with third parties. The Company entered into a credit agreement which provides for a term loan of $2.2 billion (“Term Loan”) and a revolving credit facility of $250.0 million (“Revolving Credit Facility”). See Note 13 Long-Term Debt. As such, the Company has exposure to market risk for changes in interest expense calculated off of variable interest rates on the term facility that was used to fund the Acquisition. The Company entered into forward interest rate swaps to hedge a portion of the interest rate risk associated with the Term Loan. The fair value of the forward starting interest rate swap contracts is estimated using market quoted forward interest rates for the London Interbank Offered Rate (“LIBOR”) at the balance sheet date and the application of such rates subject to the interest rate swap terms. In accordance with ASC 815, “ Derivative and Hedging Credit and Market Risk Financial instruments, including derivatives, expose the Company to counterparty credit risk for nonperformance and to market risk related to interest and currency exchange rates. The Company manages its exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. Its counterparties in derivative transactions are commercial banks with significant experience using derivative instruments. The Company monitors the impact of market risk on the fair value and cash flows of its derivative and other financial instruments considering reasonably possible changes in interest rates and currency exchange rates and restricts the use of derivative financial instruments to hedging activities. The Company continually monitors the creditworthiness of its 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. Fair Value of Derivative Instruments The Company has determined that derivative instruments for hedges that have traded but have not settled are considered Level 1 in the fair value hierarchy, and hedges that have not traded are considered Level 2 in the fair value hierarchy. Derivative instruments are used to manage risk and are not used for trading or other speculative purposes, nor does the Company use leveraged derivative financial instruments. The foreign currency exchange contracts are valued using broker quotations or market transactions, in either the listed or over-the-counter markets. Hedging of Net Assets The Company uses forward contracts to manage exposure related to its British Pound, Canadian Dollar, Czech Koruna, Brazilian Real, Malaysian Ringgit and Euro denominated net assets. Forward contracts typically mature within three months after execution of the contracts. The Company records monetary gains and losses on these contracts and options in income each quarter along with the transaction gains and losses related to its net asset positions, which would ordinarily offset each other. Summary financial information related to these activities included in the Company’s consolidated statements of operations as other (expense) income is as follows (in thousands): Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Realized gain (loss) from foreign exchange derivatives $ 2,863 $ 3,211 $ 6,233 $ 3,752 (Loss) gain on net foreign currency assets (8,118 ) (3,294 ) (27,427 ) (4,084 ) Foreign exchange (loss) gain $ (5,255 ) $ (83 ) $ (21,194 ) $ (332 ) As of October 3, 2015 December 31, 2014 Notional balance of outstanding contracts (in thousands): British Pound/US dollar £ 14,733 £ 4,574 Euro/US dollar € 124,802 € 40,218 British Pound/Euro £ 863 £ 0 Canadian Dollar/US dollar $ 3,434 $ 0 Czech Koruna /US dollar Kč 316,521 Kč 0 Brazilian Real /US dollar R$ 19,462 R$ 0 Malaysian Ringgit /US dollar RM 14,714 R$ 0 Net fair value of outstanding contracts $ 633 $ 250 Hedging of Anticipated Sales The Company manages the exchange rate risk of anticipated Euro denominated sales using put options, forward contracts, and participating forwards. The Company designates these contracts as cash flow hedges which mature within twelve months after the execution of the contracts. Gains and losses on these contracts are deferred in other comprehensive income until the contracts are settled and the hedged sales are realized. The deferred gain or loss will then be reported as an increase or decrease to sales. Summary financial information related to the cash flow hedges within comprehensive income is as follows (in thousands): Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Change in unrealized (loss) gain on anticipated sales hedging: Gross $ (3,514 ) $ 6,417 $ (7,204 ) $ 8,196 Income tax (benefit) expense (703 ) 1,284 (1,441 ) 1,674 Net $ (2,811 ) $ 5,133 $ (5,763 ) $ 6,522 Summary financial information related to the cash flow hedges of future revenues is as follows (in thousands, except percentages): As of October 3, 2015 December 31, 2014 Notional balance of outstanding contracts versus the dollar € 104,727 € 88,969 Hedge effectiveness 100 % 100 % Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Net gain (loss) included in revenue $ 2,040 $ 421 $ 13,308 $ (1,507 ) Forward Contracts The Company records its forward contracts at fair value on its consolidated balance sheets as a current asset or liability, depending upon the fair value calculation as detailed in Note 4 Fair Value Measurements. The amounts recorded on the consolidated balance sheets are as follows (in thousands): As of October 3, 2015 December 31, 2014 Assets: Prepaid expenses and other current assets $ 3,831 $ 9,318 Total $ 3,831 $ 9,318 Forward Interest Rate Swaps The forward interest rate swaps hedge the interest rate risk associated with the variable interest payments on the Company’s Term Loan that was used to fund the Acquisition. In June 2014, the Company entered into a commitment letter for a new variable rate credit facility to fund the Acquisition and also entered into two tranches of floating-to-fixed forward interest rate swaps (“Original Swaps”). These Original Swaps were used to economically hedge interest rate risk associated with the variable rate commitment until July 30, 2014, and as such, changes in their fair value were recognized in earnings in other (expense) income. Effective July 30, 2014, the Original Swaps were designated as cash flow hedges of interest rate exposure associated with variability in future cash flows on the variable rate commitment. On October 27, 2014, the variable rate commitment was funded and the Company entered into a Term Loan that accrues interest at a variable rate of LIBOR (subject to a floor of 0.75% per annum) plus a margin of 4.0%. On October 30, 2014, the Company discontinued hedge accounting for the Original Swaps due to the syndication of the Original Swaps to a group of commercial banks (“Syndicated Swaps”), which resulted in their termination. The changes in fair value of the Original Swaps between July 30, 2014 and their termination were included in other comprehensive (loss) income and any ineffectiveness was insignificant. The amounts included in other comprehensive (loss) income will be amortized to earnings in other (expense) income as the interest payments under the Term Loan affect earnings. The Syndicated Swaps were not designated as hedges and the changes in fair value are recognized in earnings in other (expense) income. On November 20, 2014, the Company entered into additional floating-to-fixed forward starting interest rate swaps (“New Swaps”) and designated these as cash flow hedges of interest rate exposure associated with variability in future cash flows on its Term Loan. To offset the impact to earnings of the changes in fair value of the Syndicated Swaps, the Company also entered into fixed-to-floating forward starting interest rate swaps (“Offsetting Swaps”), which were not designated in a hedging relationship and the changes in the fair value are recognized in earnings in other income (expense). Changes in fair value of the New Swaps that are designated as cash flow hedges and are effective at offsetting variability in the future cash flows on the Company’s Term Loan are recognized in other comprehensive (loss) income. Ineffectiveness is immediately recognized in earnings. The balance sheet position of the forward interest rate swaps designated in a hedge relationship is as follows (in thousands): As of October 3, 2015 December 31, 2014 Accrued liabilities $ 633 $ 0 Other long-term liabilities 20,098 2,170 Hedge effectiveness 100 % 100 % The forward interest rate swaps not designated in a hedging relationship are recorded in a net liability position of $11.2 million as of October 3, 2015 and $14.5 million December 31, 2014 in the Consolidated Balance Sheets. The gross and net amounts offset at October 3, 2015 were as follows (in thousands): Gross Fair Counterparty Net Fair Counterparty A $ 14,950 $ 8,416 $ 6,534 Counterparty B 5,209 2,013 3,196 Counterparty C 5,213 2,021 3,192 Counterparty D 10,498 4,244 6,254 Counterparty E 5,169 2,002 3,167 Counterparty F 5,213 2,035 3,178 Counterparty G 6,380 0 6,380 Total $ 52,632 $ 20,731 $ 31,901 The volume of the New Swaps designated in a hedge relationship is as follows (in thousands): As of October 3, 2015 December 31, 2014 Notional balance of outstanding contracts $ 3,339,000 $ 3,339,000 The New Swaps, each with a term of one year, are designated as cash flow hedges of interest rate exposure associated with variability in future cash flows on the Term Loan. The notional amount of the designated New 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 New Swaps have the following notional amounts per year (in thousands): Year 2015 $ 1,010,000 Year 2016 697,000 Year 2017 544,000 Year 2018 544,000 Year 2019 272,000 Year 2020 272,000 Notional balance of outstanding contracts $ 3,339,000 The gain (loss) recognized on the forward interest rate swaps not designated in a hedge relationship is as follows (in thousands): Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Interest income/(expense) on forward interest-rate swaps $ 3,361 $ 185 $ 3,397 $ (2,248 ) The loss recognized in other comprehensive unrealized loss on the forward interest rate swaps designated in a hedging relationship is as follows (in thousands): Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Change in unrealized (losses) gains on forward interest rate swap hedging: Gross $ (10,754 ) $ (1,224 ) $ (17,373 ) $ (1,224 ) Income tax (benefit) expense (4,194 ) (443 ) (6,926 ) (443 ) Net $ (6,560 ) $ (781 ) $ (10,447 ) $ (781 ) No significant (loss) gain was reclassified from accumulated other comprehensive (loss) income into interest expense on the forward interest rate swaps designated in a hedging relationship during the three and nine month periods ended October 3, 2015 and September 27, 2014. At October 3, 2015, the Company expects that approximately $10.5 million in losses on the forward interest rate swaps designated in a hedging relationship will be reclassified from accumulated other comprehensive loss into earnings during the next four quarters. |
Warranty
Warranty | 9 Months Ended |
Oct. 03, 2015 | |
Guarantees [Abstract] | |
Warranty | Note 12 – Warranty In general, the Company provides warranty coverage of one year on Enterprise’s mobile computers and WLAN products. Advanced data capture products are warranted from one to five years, depending on the product. Printers are warranted for one year against defects in material and workmanship. Thermal printheads are warranted for six months and batteries are warranted for one year. Battery-based products, such as location tags, are covered by a ninety-day warranty. A provision for warranty expense is recorded at the time of sale and is adjusted quarterly based on historical warranty experience. The following table is a summary of the Company’s accrued warranty obligation (in thousands): Nine Months Ended October 3, 2015 September 27, 2014 Balance at the beginning of period $ 24,666 $ 4,125 Warranty expense 22,832 5,798 Warranty payments (23,507 ) (5,498 ) Balance at the end of period $ 23,991 $ 4,425 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Oct. 03, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 13 – Long-Term Debt Private Offering On October 15, 2014, the Company completed a private offering of $1.05 billion aggregate principal of 7.25% Senior Notes due October 15, 2022. The Senior Notes yielded an effective interest rate of 7.61% at issuance. The Senior Notes are governed by the terms of an indenture, dated as of October 15, 2014, by and among the Company and U.S. Bank National Association, as Trustee. Interest on the Senior Notes is payable in cash on April 15 and October 15 of each year. The Indenture covering the Senior Notes contains certain various restrictive and affirmative covenants. In addition, the Senior Notes are guaranteed jointly and severally, on a senior and unsecured basis by the Company’s direct and indirect wholly-owned existing and future domestic restricted subsidiaries, subject to certain exceptions. Credit Facilities Borrowings under the Term Loan bear interest at a variable rate plus an applicable margin, subject to an all-in floor of 4.75%. As of October 3, 2015, the Term Loan interest rate was 4.75%. Interest payments are payable quarterly. The Company has entered into interest rate swaps to manage interest rate risk on its long-term debt. See Note 11 Derivative Instruments. The credit agreement requires the Company to prepay the Term Loan and Revolving Credit Facility, under certain circumstances or transactions defined in the credit agreement. Also, the Company may make optional prepayments of the Term Loans, in whole or in part, without premium or penalty. The Company made such optional principal prepayments of $130.0 million during the nine months ended October 3, 2015. On November 3, 2015, the Company made an additional optional principal prepayment of $20.0 million. Unless satisfied by further optional prepayments, the Company is required to make a scheduled principal payment of $2.05 billion due on October 27, 2021. The Revolving Credit Facility is available for working capital and other general corporate purposes including letters of credit. The amount (including letters of credit) shall not exceed $250.0 million. As of October 3, 2015, the Company had established letters of credit amounting to $3.2 million, which reduced funds available for other borrowings under the agreement to $246.8 million. The Revolving Credit Facility will mature and the commitments thereunder will terminate on October 27, 2019. Borrowings under the Revolving Credit Facility bear interest at a variable rate plus an applicable margin. As of October 3, 2015, the Revolving Credit Facility interest rate was 3.25%. Interest payments are payable quarterly. As of October 3, 2015 and December 31 2014, the Company did not have any borrowings against the Revolving Credit Facility. The Credit Facilities contains various restrictive and affirmative covenants and are collateralized by a security interest in substantially all of the Company’s assets as defined in the security agreement and guaranteed by its direct and indirect wholly-owned existing and future domestic restricted subsidiaries, subject to certain exceptions. The following table summarizes the carrying value of the Company’s debt (in thousands): As of October 3, 2015 December 31, 2014 Senior Notes $ 1,050,000 $ 1,050,000 Term Loan 2,070,000 2,200,000 Less debt issuance costs (27,196 ) (29,785 ) Less unamortized discounts (49,579 ) (59,516 ) Total outstanding debt 3,043,225 3,160,699 Current maturities of long-term debt 0 16,500 Less: current portion of unamortized discounts 0 (8,978 ) Less: current portion of debt issuance costs 0 (3,313 ) Total short-term debt 0 4,209 Long-term debt, less current maturities $ 3,043,225 $ 3,156,490 The estimated fair value of the Company’s long-term debt approximated $3.2 billion at October 3, 2015 and $3.3 billion at December 31, 2014. 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. |
Contingencies
Contingencies | 9 Months Ended |
Oct. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 14 – 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 re Symbol Technologies, Inc. Securities Litigation In connection with the Acquisition, the Company acquired Symbol Technologies, Inc., a subsidiary of Motorola Solutions. A putative federal class action lawsuit, Waring v. Symbol Technologies, Inc., et al. Waring |
Earnings per Share
Earnings per Share | 9 Months Ended |
Oct. 03, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 15 – Earnings per Share Earnings per share were computed as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Weighted average shares: Basic weighted average shares outstanding 51,152 50,835 50,926 50,615 Effect of dilutive securities outstanding 0 626 0 636 Diluted weighted average and equivalent shares outstanding 51,152 51,461 50,926 51,251 Net (loss) income $ (28,950 ) $ 14,945 $ (130,505 ) $ 84,108 Basic per share amounts: Basic weighted average shares outstanding 51,152 50,835 50,926 50,615 Per share amount $ (0.57 ) $ 0.29 $ (2.56 ) $ 1.66 Diluted per share amounts: Diluted weighted average and equivalent shares outstanding 51,152 51,461 50,926 51,251 Per share amount $ (0.57 ) $ 0.29 $ (2.56 ) $ 1.64 Anti-dilutive securities consist primarily of stock appreciation rights (SARs) with an exercise price greater than the average market closing price of the Class A common stock. Due to a net loss for the third quarter and the first nine months of 2015, options, awards and warrants were anti-dilutive and therefore excluded from the earnings per share calculation. These excluded outstanding options, awards and warrants are as follows: Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Potentially dilutive shares 1,435,155 0 1,492,882 179,760 |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Oct. 03, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation | Note 16 – Share-Based Compensation The Company has share-based compensation and employee stock purchase plans under which shares of the Company’s common stock are available for future grants and sales. The Company recognizes compensation costs using the straight-line method over the vesting period upon grant of up to five years. Pre-tax share-based compensation expense recognized in the statements of operations was $26.4 million and $10.3 million for the nine-month periods ended October 3, 2015 and September 27, 2014, respectively. Tax related benefits of $8.9 million and $3.5 million were also recognized for the nine-month periods ended October 3, 2015 and September 27, 2014, respectively. The Company issued 458,823 and 564,815 shares in connection with share-based compensation and employee stock purchase programs during the nine months ended October 3, 2015 and September 27, 2014 respectively. 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 prices over its entire stock history. Stock option grants in the table below include both stock options, all of which were non-qualified, and stock appreciation rights (SARs) that will be settled in the Company stock or cash. Restricted stock grants are valued at the market closing price on the grant date. 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: Nine Months Ended October 3, 2015 September 27, 2014 Expected dividend yield 0 % 0 % Forfeiture rate 10.24 % 10.32 % Volatility 33.98 % 34.92 % Risk free interest rate 1.53 % 1.73 % Range of interest rates 0.02% - 2.14 % 0.02% - 2.61 % Expected weighted-average life 5.32 years 5.36 years Fair value of SARs granted $ 11,509,000 $ 4,600,000 Weighted-average grant date fair value of SARs granted (per underlying share) $ 35.25 $ 25.00 Stock option activity was as follows: Nine Months Ended October 3, 2015 Options Shares Weighted-Average Weighted-Average Aggregate Intrinsic Value Outstanding at beginning of year 415,960 $ 40.19 Exercised (185,770 ) 43.32 Expired (1,550 ) 51.62 Outstanding at end of period 228,640 37.56 2.2 Years $ 13.0 million Exercisable at end of period 228,640 37.56 2.2 Years $ 13.0 million Intrinsic value of exercised options $ 9,020,000 SAR activity was as follows: Nine Months Ended October 3, 2015 SARs Shares Weighted-Average Weighted-Average Aggregate Intrinsic Value Outstanding at beginning of year 1,292,142 $ 42.20 Granted 330,144 107.74 Exercised (160,450 ) 40.86 Forfeited (25,694 ) 71.72 Outstanding at end of period 1,436,142 56.89 7.0 years $ 58.5 million Exercisable at end of period 756,193 36.00 5.6 years $ 44.3 million Intrinsic value of exercised SARs $ 9,947,000 Restricted stock award activity was as follows: Nine Months Ended October 3, 2015 Restricted Stock Awards Shares Weighted-Average Outstanding at beginning of year 691,621 $ 60.06 Granted 183,345 107.84 Released (246,673 ) 51.69 Forfeited (41,136 ) 72.98 Outstanding at end of period 587,157 77.63 Performance share award activity was as follows: Nine Months Ended October 3, 2015 Performance Share Awards Shares Weighted-Average Outstanding at beginning of year 374,180 $ 61.33 Granted 109,848 75.97 Released (120,000 ) 38.67 Forfeited (22,595 ) 73.29 Outstanding at end of period 341,433 73.48 Restricted stock unit activity was as follows: Nine Months Ended October 3, 2015 Restricted Stock Units Shares Outstanding at beginning of year 41,964 Granted 11,623 Released (8,653 ) Forfeited (5,480 ) Outstanding at end of period 39,454 Performance stock unit activity was as follows: Nine Months Ended October 3, 2015 Performance Stock Units Shares Outstanding at beginning of year 10,345 Forfeited (1,272 ) Outstanding at end of period 9,073 As of October 3, 2015 total unearned compensation costs related to the Company’s share-based compensation plans was $56.0 million which will be amortized over the weighted average remaining service period of 2.7 years. The fair value of the purchase rights issued to the Company’s employees under the stock purchase plan is estimated using the following weighted-average assumptions for purchase rights granted. Expected lives of three months to one year have been used along with these assumptions. Nine Months Ended October 3, 2015 September 27, 2014 Fair market value $ 80.43 $ 63.42 Option price $ 76.41 $ 60.25 Expected dividend yield 0 % 0 % Expected volatility 41 % 31 % Risk free interest rate 0.03 % 0.06 % |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 03, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 17 – Income Taxes The Company recognized a tax benefit of $5.9 million for the nine-months ended October 3, 2015 compared to a tax expense of $25.2 million for the corresponding period in the prior year. The Company’s effective tax rates were 4.3% and 23.1% as of October 3, 2015 and September 27, 2014, respectively. The Company’s effective tax rate was lower than the federal statutory rate of 35% primarily due to pre-tax losses in the United States and corporate structure alignment initiatives in various non-US jurisdictions. Since the date of the Enterprise acquisition, as part of its corporate initiatives of integrating the Enterprise business, the Company has been executing its integration plan for the Enterprise business (the “Integration Plan”). The Company anticipates completing the Integration Plan as soon as practicable and expects that the Integration Plan will allow the combined businesses to achieve further synergies and cost savings associated with the acquisition. As part of the Integration Plan, the Company began realigning certain acquired assets of the Enterprise business with and into the Company’s corporate structure and business model. |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 9 Months Ended |
Oct. 03, 2015 | |
Equity [Abstract] | |
Other Comprehensive (Loss) Income | Note 18 – Other Comprehensive (Loss) Income Stockholders’ equity includes certain items classified as accumulated other comprehensive (loss) income (AOCI), including: • Unrealized gain (loss) on anticipated sales hedging transactions • Unrealized gain (loss) on forward interest rate swaps hedging transactions • Unrealized gain (loss) on investments • Foreign currency translation adjustment The components of accumulated other comprehensive (loss) income (AOCI) for the nine months ended October 3, 2015 and September 27, 2014 are as follows (in thousands): Unrealized gain Unrealized Unrealized Cumulative Total Balance at December 31, 2013 (1,864 ) 0 (78 ) (7,839 ) (9,781 ) Other comprehensive income/(loss) before reclassifications 6,500 (1,224 ) 1,570 (380 ) 6,466 Amounts reclassified from AOCI 1,696 0 (517 ) (7 ) 1,172 Tax (expense) benefit (1,674 ) 443 (317 ) 0 (1,548 ) Other comprehensive income/(loss) 6,522 (781 ) 736 (387 ) 6,090 Balance at September 27, 2014 4,658 (781 ) 658 (8,226 ) (3,691 ) Balance at December 31, 2014 5,326 (7,699 ) 347 (6,521 ) (8,547 ) Other comprehensive income/(loss) before reclassifications 6,331 (18,089 ) (2 ) (7,855 ) (19,615 ) Amounts reclassified from AOCI (13,535 ) 716 (25 ) (13,472 ) (26,316 ) Tax benefit (expense) 1,441 6,926 (245 ) 0 8,122 Other comprehensive (loss)/income (5,763 ) (10,447 ) (272 ) (21,327 ) (37,809 ) Balance at October 3, 2015 (437 ) (18,146 ) 75 (27,848 ) (46,356 ) Reclassification out of AOCI to earnings during the three and nine months ended October 3, 2015 and September 27, 2014 were as follows (in thousands): Three Months Ended Nine Months Ended Comprehensive Income Components Financial Statement Line Item October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Unrealized (gain) loss on sales hedging: Total before tax Net sales of tangible products (2,267 ) (113 ) (13,535 ) 1,696 Tax expense (benefit) 459 24 2,741 (365 ) Net of taxes (1,808 ) (89 ) (10,794 ) 1,331 Unrealized (gain)/loss on forward interest rate swaps: Total before tax Interest expense/(income) 716 0 716 0 Tax expense (benefit) (275 ) 0 (275 ) 0 Net of taxes 441 0 441 0 Unrealized (gain) loss on investments Total before tax Other (expense) income – Other, net 0 (443 ) (25 ) (517 ) Tax expense (benefit) 0 158 9 178 Net of taxes 0 (285 ) (16 ) (339 ) Cumulative Foreign Currency Translation Foreign exchange income (loss) 936 0 (13,472 ) (7 ) Total amounts reclassified from AOCI (431 ) (374 ) (23,841 ) 985 |
Segment Information
Segment Information | 9 Months Ended |
Oct. 03, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Note 19 – Segment Information Subsequent to the Acquisition, the Company has two reportable segments: Legacy Zebra (“Z”) and Enterprise (“E”). Segment assets are not reviewed by the Company’s chief operating decision maker and therefore are not disclosed below: Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Net Sales: Z – Net sales $ 313,967 $ 303,272 $ 966,427 $ 879,961 E – Net sales 605,099 0 1,745,666 0 Total segment net sales 919,066 303,272 2,712,093 879,961 Corporate, eliminations (1) (2,793 ) 0 (12,862 ) 0 Total $ 916,273 $ 303,272 $ 2,699,231 $ 879,961 Operating income (loss): Z – Operating income $ 66,282 64,845 $ 205,744 $ 182,551 E – Operating income 64,187 0 160,931 0 Total segment operating income 130,469 64,845 366,675 182,551 Corporate, eliminations (2) (105,448 ) (37,889 ) (335,683 ) (69,122 ) Total $ 25,021 $ 26,956 $ 30,992 $ 113,429 (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 expense, acquisition / integration expense and exit and restructuring costs. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 03, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 20 – Subsequent Events On November 3, 2015, the Company made principal payments of $20.0 million under its Term Loan. See Note 13 Long-Term Debt. |
Recently Issued Accounting Pr27
Recently Issued Accounting Pronouncements (Policies) | 9 Months Ended |
Oct. 03, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-03 “ Interest—Imputation of Interest Simplifying the Presentation of Debt Issuance Costs In August 2015, the FASB issued ASU 2015-15 “ Interest—Imputation of Interest Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update).” In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers Revenue from Contracts with Customers: Deferral of the Effective Date In April 2015, the FASB issued ASU 2015-05, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory, |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Business Combinations [Abstract] | |
Summary of Fair Value of Assets and Liabilities | The following table summarizes the preliminary estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition (in thousands): Cash and cash equivalents $ 100,338 Accounts receivable, net (1) 439,821 Inventories, net 263,526 Deferred income taxes 117,147 Other current assets 21,905 Property and equipment 123,365 Other intangibles, net 994,421 Other long-term assets 49,593 Deferred revenue (172,135 ) Tax liabilities (9,410 ) Other current liabilities (2) (369,777 ) Long-term deferred revenue (102,633 ) Unrecognized tax benefits (9,526 ) Other long-term liabilities (24,884 ) Long-term deferred income taxes (211,851 ) Total identifiable net assets $ 1,209,900 (1) Based on the purchase price allocations, accounts receivable estimated fair value is $439.8 million and gross contractual value is $460.6 million. The difference represents the Company’s best estimate of the contractual cash flows that will not be collected. (2) Other current liabilities include accounts payable, customer reserves, and employee compensation and related benefits. |
Summary of Balance Sheet Adjustment and Effect on Income if Provisional Amounts Were Recognized at Acquisition Date | The following table summarizes the fair value balance sheet adjustments recorded during the third quarter of 2015 as well as the amount of adjustments to the current period income statement line items relating to the income effects that would have been recognized in previous periods if the adjustments to provisional amounts were recognized as of the acquisition date (in thousands): Increase/ Effect on Income Before Income Taxes for the Three Months Ended Balance Sheets Statements of Operations December 31, 2014 April 4, 2015 July 4, 2015 Total Other intangibles $ (20,000 ) Amortization of intangibles $ 764 $ 1,146 $ 1,146 $ 3,056 Inventories 1,515 Cost of sales (1,386 ) (129 ) — (1,515 ) Property and equipment (2,801 ) General and administrative 39 59 59 157 Deferred revenue (372 ) Net sales 39 36 28 103 Total $ (21,658 ) Total $ (544 ) $ 1,112 $ 1,233 $ 1,801 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Carried at Fair Value | Financial assets and liabilities carried at fair value as of October 3, 2015, are classified below (in thousands): Level 1 Level 2 Level 3 Total Assets: Forward contracts (1) $ 2,024 $ 1,807 $ 0 $ 3,831 Money market investments related to the deferred compensation plan 8,065 0 0 8,065 Total Assets at fair value $ 10,089 $ 1,807 $ 0 $ 11,896 Liabilities: Forward interest rate swap (2) $ 0 $ 31,901 $ 0 $ 31,901 Liabilities related to the deferred compensation plan 8,065 0 0 8,065 Total Liabilities at fair value $ 8,065 $ 31,901 $ 0 $ 39,966 Financial assets and liabilities carried at fair value as of December 31, 2014, are classified below (in thousands): Level 1 Level 2 Level 3 Total Assets: U.S. government and agency securities $ 10,720 $ 0 $ 0 $ 10,720 Obligations of government-sponsored enterprises (3) 0 705 0 705 State and municipal bonds 0 5,179 0 5,179 Corporate securities 0 7,781 0 7,781 Investments subtotal 10,720 13,665 0 24,385 Forward contracts (1) 2,039 7,279 0 9,318 Money market investments related to the deferred compensation plan 6,008 0 0 6,008 Total Assets at fair value $ 18,767 $ 20,944 $ 0 $ 39,711 Liabilities: Forward interest rate swap (2) $ 0 $ 16,718 $ 0 $ 16,718 Liabilities related to the deferred compensation plan 6,008 0 0 6,008 Total Liabilities at fair value $ 6,008 $ 16,718 $ 0 $ 22,726 (1) The fair value of forward 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. If this is the case, the fair value is calculated at the rate at which the hedge is being settled. (2) The fair value of forward interest rate swap is based upon a valuation model that uses relevant observable market inputs at the quoted intervals, such as forward yield curves, and is adjusted for the Company’s own credit risk and the interest rate swap terms. (3) Includes investments in notes issued by the Federal Home Loan Mortgage Corporation and the Federal Home Loan Bank. |
Summary of Investments | The following is a summary of investments (in thousands): As of December 31, 2014 Amortized Gross Gross Estimated U.S. government and agency securities $ 10,720 $ 0 $ 0 $ 10,720 Obligations of government-sponsored enterprises 705 0 0 705 State and municipal bonds 5,156 27 (4 ) 5,179 Corporate securities 7,779 12 (10 ) 7,781 Total investments $ 24,360 $ 39 $ (14 ) $ 24,385 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Receivables [Abstract] | |
Components of Accounts Receivable, Net | The components of accounts receivable, net are as follows (in thousands): As of October 3, 2015 December 31, 2014 Accounts receivable, gross $ 631,756 $ 671,471 Accounts receivable reserves (5,979 ) (1,069 ) Accounts receivable, net $ 625,777 $ 670,402 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventories, Net | The components of inventories, net are as follows (in thousands): As of October 3, 2015 December 31, 2014 Raw material $ 183,395 $ 139,647 Work in process 437 476 Finished goods 256,448 259,872 Inventories, gross 440,280 399,995 Inventory reserves (32,122 ) (5,819 ) Inventories, net $ 408,158 $ 394,176 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Other Intangibles Assets | Other intangibles, net, are as follows (in thousands): As of October 3, 2015 December 31,2014 Current technology $ 22,521 $ 23,201 Trade names 40,300 40,300 Unpatented technology 270,000 280,000 Patents and patent rights 247,335 244,569 Customer relationships 517,933 532,591 Accumulated amortization (281,156 ) (91,368 ) Other intangibles, net $ 816,933 $ 1,029,293 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Other Long-Term Assets | Other long-term assets consist of the following (in thousands): As of October 3, 2015 December 31,2014 Investments related to the deferred compensation plan $ 8,065 $ 6,008 Long-term investments 30,180 31,759 Other long-term assets 25,561 22,652 Long-term trade receivable 12,752 16,985 Long-term notes receivable 14,231 14,231 Deposits 1,758 1,486 Total other long-term assets $ 92,547 $ 93,121 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Payables and Accruals [Abstract] | |
Components of Accrued Liabilities | The components of accrued liabilities are as follows (in thousands): As of October 3, 2015 December 31,2014 Accrued payroll $ 69,781 $ 73,582 Accrued warranty 23,991 24,666 Accrued taxes 8,336 11,446 Interest payable 53,376 34,727 Amount owed to seller- MSI 0 48,806 Restructuring liability 11,777 6,830 Customer reserves 33,429 39,201 Accrued other expenses 178,571 181,812 Total accrued liabilities $ 379,261 $ 421,070 |
Costs Associated with Exit an35
Costs Associated with Exit and Restructuring Activities (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Restructuring and Related Activities [Abstract] | |
Summary of Exit and Restructuring Costs Incurred | During the first nine months of 2015, the Company incurred exit and restructuring costs specific to the Acquisition as follows (in thousands): Type of Cost Cost incurred Costs incurred for Total costs Severance, stay bonuses, and other employee-related expenses $ 5,557 $ 27,703 $ 33,260 Obligations for future lease payments 0 6,900 6,900 Professional services 16 249 265 Total $ 5,573 $ 34,852 $ 40,425 As of December 31, 2014, the Company incurred the following exit and restructuring costs related to 2014 organization design changes, Location Solutions business management structure and manufacturing operations relocation and restructuring, which included the Acquisition (in thousands): Type of Cost Cost incurred Costs incurred for Total costs Severance, stay bonuses, and other employee-related expenses $ 6,650 $ 5,991 $ 12,641 Professional services 180 16 196 Relocation and transition costs 20 0 20 Total $ 6,850 $ 6,007 $ 12,85 |
Rollforward of Exit and Restructuring Accruals | A rollforward of the exit and restructuring accruals is as follows (in thousands): Three Months October 3, 2015 Three Months September 27, 2014 Nine Months October 3, 2015 Nine Months September 27, 2014 Balance at the beginning of period $ 17,694 $ 502 $ 6,830 $ 1,252 Charged to earnings 5,734 (120 ) 34,852 434 Cash paid (7,072 ) 29 (25,326 ) (1,275 ) Balance at the end of period $ 16,356 $ 411 $ 16,356 $ 411 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Financial Information Related to Hedging of Net Assets Included in Consolidated Statements of Operations | Summary financial information related to these activities included in the Company’s consolidated statements of operations as other (expense) income is as follows (in thousands): Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Realized gain (loss) from foreign exchange derivatives $ 2,863 $ 3,211 $ 6,233 $ 3,752 (Loss) gain on net foreign currency assets (8,118 ) (3,294 ) (27,427 ) (4,084 ) Foreign exchange (loss) gain $ (5,255 ) $ (83 ) $ (21,194 ) $ (332 ) As of October 3, 2015 December 31, 2014 Notional balance of outstanding contracts (in thousands): British Pound/US dollar £ 14,733 £ 4,574 Euro/US dollar € 124,802 € 40,218 British Pound/Euro £ 863 £ 0 Canadian Dollar/US dollar $ 3,434 $ 0 Czech Koruna /US dollar Kč 316,521 Kč 0 Brazilian Real /US dollar R$ 19,462 R$ 0 Malaysian Ringgit /US dollar RM 14,714 R$ 0 Net fair value of outstanding contracts $ 633 $ 250 |
Financial Information Related to Cash Flow Hedges | Summary financial information related to the cash flow hedges within comprehensive income is as follows (in thousands): Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Change in unrealized (loss) gain on anticipated sales hedging: Gross $ (3,514 ) $ 6,417 $ (7,204 ) $ 8,196 Income tax (benefit) expense (703 ) 1,284 (1,441 ) 1,674 Net $ (2,811 ) $ 5,133 $ (5,763 ) $ 6,522 |
Financial Information Related to Cash Flow Hedges of Future Revenues | Summary financial information related to the cash flow hedges of future revenues is as follows (in thousands, except percentages): As of October 3, 2015 December 31, 2014 Notional balance of outstanding contracts versus the dollar € 104,727 € 88,969 Hedge effectiveness 100 % 100 % Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Net gain (loss) included in revenue $ 2,040 $ 421 $ 13,308 $ (1,507 ) |
Forward Contract Amounts Recorded in Consolidated Balance Sheet | The amounts recorded on the consolidated balance sheets are as follows (in thousands): As of October 3, 2015 December 31, 2014 Assets: Prepaid expenses and other current assets $ 3,831 $ 9,318 Total $ 3,831 $ 9,318 |
Schedule of Gross and Net Amount Offset | The gross and net amounts offset at October 3, 2015 were as follows (in thousands): Gross Fair Counterparty Net Fair Counterparty A $ 14,950 $ 8,416 $ 6,534 Counterparty B 5,209 2,013 3,196 Counterparty C 5,213 2,021 3,192 Counterparty D 10,498 4,244 6,254 Counterparty E 5,169 2,002 3,167 Counterparty F 5,213 2,035 3,178 Counterparty G 6,380 0 6,380 Total $ 52,632 $ 20,731 $ 31,901 |
Schedule of Series of Forward Starting Swaps Each with a Term of One Year | The New Swaps have the following notional amounts per year (in thousands): Year 2015 $ 1,010,000 Year 2016 697,000 Year 2017 544,000 Year 2018 544,000 Year 2019 272,000 Year 2020 272,000 Notional balance of outstanding contracts $ 3,339,000 |
Forward Interest Rate Swap [Member] | |
Forward Contract Amounts Recorded in Consolidated Balance Sheet | The balance sheet position of the forward interest rate swaps designated in a hedge relationship is as follows (in thousands): As of October 3, 2015 December 31, 2014 Accrued liabilities $ 633 $ 0 Other long-term liabilities 20,098 2,170 Hedge effectiveness 100 % 100 % |
Schedule of Volume of New Swaps Designated in Hedge Relationship | The volume of the New Swaps designated in a hedge relationship is as follows (in thousands): As of October 3, 2015 December 31, 2014 Notional balance of outstanding contracts $ 3,339,000 $ 3,339,000 |
Schedule of Gain (Loss) Recognized on Forward Interest Rate Swaps Not Designated in Hedge Relationship | The gain (loss) recognized on the forward interest rate swaps not designated in a hedge relationship is as follows (in thousands): Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Interest income/(expense) on forward interest-rate swaps $ 3,361 $ 185 $ 3,397 $ (2,248 ) |
Schedule of Loss Recognized in Other Comprehensive Unrealized Loss on Forward Interest Rate Swaps Designated in Hedging Relationship | The loss recognized in other comprehensive unrealized loss on the forward interest rate swaps designated in a hedging relationship is as follows (in thousands): Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Change in unrealized (losses) gains on forward interest rate swap hedging: Gross $ (10,754 ) $ (1,224 ) $ (17,373 ) $ (1,224 ) Income tax (benefit) expense (4,194 ) (443 ) (6,926 ) (443 ) Net $ (6,560 ) $ (781 ) $ (10,447 ) $ (781 ) |
Warranty (Tables)
Warranty (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Guarantees [Abstract] | |
Summary of Accrued Warranty Obligation | The following table is a summary of the Company’s accrued warranty obligation (in thousands): Nine Months Ended October 3, 2015 September 27, 2014 Balance at the beginning of period $ 24,666 $ 4,125 Warranty expense 22,832 5,798 Warranty payments (23,507 ) (5,498 ) Balance at the end of period $ 23,991 $ 4,425 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Value of Debt | The following table summarizes the carrying value of the Company’s debt (in thousands): As of October 3, 2015 December 31, 2014 Senior Notes $ 1,050,000 $ 1,050,000 Term Loan 2,070,000 2,200,000 Less debt issuance costs (27,196 ) (29,785 ) Less unamortized discounts (49,579 ) (59,516 ) Total outstanding debt 3,043,225 3,160,699 Current maturities of long-term debt 0 16,500 Less: current portion of unamortized discounts 0 (8,978 ) Less: current portion of debt issuance costs 0 (3,313 ) Total short-term debt 0 4,209 Long-term debt, less current maturities $ 3,043,225 $ 3,156,490 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | Earnings per share were computed as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Weighted average shares: Basic weighted average shares outstanding 51,152 50,835 50,926 50,615 Effect of dilutive securities outstanding 0 626 0 636 Diluted weighted average and equivalent shares outstanding 51,152 51,461 50,926 51,251 Net (loss) income $ (28,950 ) $ 14,945 $ (130,505 ) $ 84,108 Basic per share amounts: Basic weighted average shares outstanding 51,152 50,835 50,926 50,615 Per share amount $ (0.57 ) $ 0.29 $ (2.56 ) $ 1.66 Diluted per share amounts: Diluted weighted average and equivalent shares outstanding 51,152 51,461 50,926 51,251 Per share amount $ (0.57 ) $ 0.29 $ (2.56 ) $ 1.64 |
Potentially Dilutive Securities Excluded from Earnings Per Share Calculation | Potentially dilutive securities consist primarily of stock appreciation rights (SARs) with an exercise price greater than the average market closing price of the Class A common stock. Due to a net loss for the third quarter and the first nine months of 2015, options, awards and warrants were anti-dilutive and therefore excluded from the earnings per share calculation. These excluded outstanding options, awards and warrants are as follows: Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Potentially dilutive shares 1,435,155 0 1,492,882 179,760 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Weighted-Average Assumptions Used for Grants of Stock Options and 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: Nine Months Ended October 3, 2015 September 27, 2014 Expected dividend yield 0 % 0 % Forfeiture rate 10.24 % 10.32 % Volatility 33.98 % 34.92 % Risk free interest rate 1.53 % 1.73 % Range of interest rates 0.02% - 2.14 % 0.02% - 2.61 % Expected weighted-average life 5.32 years 5.36 years Fair value of SARs granted $ 11,509,000 $ 4,600,000 Weighted-average grant date fair value of SARs granted (per underlying share) $ 35.25 $ 25.00 |
Summary of Stock Option Activity | Stock option activity was as follows: Nine Months Ended October 3, 2015 Options Shares Weighted-Average Weighted-Average Aggregate Intrinsic Value Outstanding at beginning of year 415,960 $ 40.19 Exercised (185,770 ) 43.32 Expired (1,550 ) 51.62 Outstanding at end of period 228,640 37.56 2.2 Years $ 13.0 million Exercisable at end of period 228,640 37.56 2.2 Years $ 13.0 million Intrinsic value of exercised options $ 9,020,000 |
Summary of SARs Activity | SAR activity was as follows: Nine Months Ended October 3, 2015 SARs Shares Weighted-Average Weighted-Average Aggregate Intrinsic Value Outstanding at beginning of year 1,292,142 $ 42.20 Granted 330,144 107.74 Exercised (160,450 ) 40.86 Forfeited (25,694 ) 71.72 Outstanding at end of period 1,436,142 56.89 7.0 years $ 58.5 million Exercisable at end of period 756,193 36.00 5.6 years $ 44.3 million Intrinsic value of exercised SARs $ 9,947,000 |
Summary of Restricted Stock Award Activity | Restricted stock award activity was as follows: Nine Months Ended October 3, 2015 Restricted Stock Awards Shares Weighted-Average Outstanding at beginning of year 691,621 $ 60.06 Granted 183,345 107.84 Released (246,673 ) 51.69 Forfeited (41,136 ) 72.98 Outstanding at end of period 587,157 77.63 |
Summary of Performance Share Award Activity | Performance share award activity was as follows: Nine Months Ended October 3, 2015 Performance Share Awards Shares Weighted-Average Outstanding at beginning of year 374,180 $ 61.33 Granted 109,848 75.97 Released (120,000 ) 38.67 Forfeited (22,595 ) 73.29 Outstanding at end of period 341,433 73.48 |
Summary of Restricted Stock Unit Activity | Restricted stock unit activity was as follows: Nine Months Ended October 3, 2015 Restricted Stock Units Shares Outstanding at beginning of year 41,964 Granted 11,623 Released (8,653 ) Forfeited (5,480 ) Outstanding at end of period 39,454 |
Weighted-Average Assumptions Used for Employee Purchase Rights Granted Under Stock Purchase Plan | The fair value of the purchase rights issued to the Company’s employees under the stock purchase plan is estimated using the following weighted-average assumptions for purchase rights granted. Expected lives of three months to one year have been used along with these assumptions. Nine Months Ended October 3, 2015 September 27, 2014 Fair market value $ 80.43 $ 63.42 Option price $ 76.41 $ 60.25 Expected dividend yield 0 % 0 % Expected volatility 41 % 31 % Risk free interest rate 0.03 % 0.06 % |
Performance Stock Units [Member] | |
Summary of Performance Share Award Activity | Performance stock unit activity was as follows: Nine Months Ended October 3, 2015 Performance Stock Units Shares Outstanding at beginning of year 10,345 Forfeited (1,272 ) Outstanding at end of period 9,073 |
Other Comprehensive (Loss) In41
Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive (Loss) Income (AOCI) | The components of accumulated other comprehensive (loss) income (AOCI) for the nine months ended October 3, 2015 and September 27, 2014 are as follows (in thousands): Unrealized gain Unrealized Unrealized Cumulative Total Balance at December 31, 2013 (1,864 ) 0 (78 ) (7,839 ) (9,781 ) Other comprehensive income/(loss) before reclassifications 6,500 (1,224 ) 1,570 (380 ) 6,466 Amounts reclassified from AOCI 1,696 0 (517 ) (7 ) 1,172 Tax (expense) benefit (1,674 ) 443 (317 ) 0 (1,548 ) Other comprehensive income/(loss) 6,522 (781 ) 736 (387 ) 6,090 Balance at September 27, 2014 4,658 (781 ) 658 (8,226 ) (3,691 ) Balance at December 31, 2014 5,326 (7,699 ) 347 (6,521 ) (8,547 ) Other comprehensive income/(loss) before reclassifications 6,331 (18,089 ) (2 ) (7,855 ) (19,615 ) Amounts reclassified from AOCI (13,535 ) 716 (25 ) (13,472 ) (26,316 ) Tax benefit (expense) 1,441 6,926 (245 ) 0 8,122 Other comprehensive (loss)/income (5,763 ) (10,447 ) (272 ) (21,327 ) (37,809 ) Balance at October 3, 2015 (437 ) (18,146 ) 75 (27,848 ) (46,356 ) |
Reclassification Out of AOCI to Earnings | Reclassification out of AOCI to earnings during the three and nine months ended October 3, 2015 and September 27, 2014 were as follows (in thousands): Three Months Ended Nine Months Ended Comprehensive Income Components Financial Statement Line Item October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Unrealized (gain) loss on sales hedging: Total before tax Net sales of tangible products (2,267 ) (113 ) (13,535 ) 1,696 Tax expense (benefit) 459 24 2,741 (365 ) Net of taxes (1,808 ) (89 ) (10,794 ) 1,331 Unrealized (gain)/loss on forward interest rate swaps: Total before tax Interest expense/(income) 716 0 716 0 Tax expense (benefit) (275 ) 0 (275 ) 0 Net of taxes 441 0 441 0 Unrealized (gain) loss on investments Total before tax Other (expense) income – Other, net 0 (443 ) (25 ) (517 ) Tax expense (benefit) 0 158 9 178 Net of taxes 0 (285 ) (16 ) (339 ) Cumulative Foreign Currency Translation Foreign exchange income (loss) 936 0 (13,472 ) (7 ) Total amounts reclassified from AOCI (431 ) (374 ) (23,841 ) 985 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Segment Reporting [Abstract] | |
Segment Information by Reportable Segments | Subsequent to the Acquisition, the Company has two reportable segments: Legacy Zebra (“Z”) and Enterprise (“E”). Segment assets are not reviewed by the Company’s chief operating decision maker and therefore are not disclosed below: Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Net Sales: Z – Net sales $ 313,967 $ 303,272 $ 966,427 $ 879,961 E – Net sales 605,099 0 1,745,666 0 Total segment net sales 919,066 303,272 2,712,093 879,961 Corporate, eliminations (1) (2,793 ) 0 (12,862 ) 0 Total $ 916,273 $ 303,272 $ 2,699,231 $ 879,961 Operating income (loss): Z – Operating income $ 66,282 64,845 $ 205,744 $ 182,551 E – Operating income 64,187 0 160,931 0 Total segment operating income 130,469 64,845 366,675 182,551 Corporate, eliminations (2) (105,448 ) (37,889 ) (335,683 ) (69,122 ) Total $ 25,021 $ 26,956 $ 30,992 $ 113,429 (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 expense, acquisition / integration expense and exit and restructuring costs. |
Recently Issued Accounting Pr43
Recently Issued Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions | Oct. 03, 2015 | Dec. 31, 2014 |
Long-Term Assets and Long-Term Debt [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Impact of accounting standard update in financial positions | $ 27.2 | |
Long-Term Assets [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Impact of accounting standard update in financial positions | $ 29.8 | |
Short Term Debt [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Impact of accounting standard update in financial positions | 3.3 | |
Long-Term Debt [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Impact of accounting standard update in financial positions | $ 26.5 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 27, 2014 | Sep. 30, 2015 | Oct. 03, 2015 | Oct. 03, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Decrease in assets | $ (14,000) | ||||
Decrease in liabilities | (6,400) | ||||
Increase in goodwill | 7,600 | ||||
Term Loan [Member] | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, carrying amount | $ 2,070,000 | 2,070,000 | $ 2,200,000 | ||
Enterprise Business [Member] | |||||
Business Acquisition [Line Items] | |||||
Preliminary purchase price | $ 3,450,000 | ||||
Ownership percentage of the Enterprise Business | 100.00% | ||||
Debt instrument, carrying amount | 3,250,000 | ||||
Business acquisition, consideration paid | 3,450,000 | ||||
Additional consideration paid | $ 50,900 | ||||
Business acquisition goodwill amount | $ 2,335,000 | ||||
Change in fair value, Other intangibles | $ (20,000) | (20,000) | |||
Change in fair value, Property and equipment | (2,801) | (2,801) | |||
Change in fair value, Deferred revenue | (400) | 372 | |||
Change in fair value, Inventories | 1,500 | $ 1,515 | |||
Change in fair value, Goodwill | $ 21,700 | ||||
Enterprise Business [Member] | Term Loan [Member] | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, carrying amount | 2,200,000 | ||||
Senior notes, maturity year | 2,021 | ||||
Enterprise Business [Member] | Senior Notes due 2022 [Member] | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, carrying amount | $ 1,050,000 | ||||
Senior notes, maturity year | 2,022 | ||||
Senior notes, stated interest percentage | 7.25% | 7.25% |
Business Combinations - Summary
Business Combinations - Summary of Fair Value of Assets and Liabilities (Detail) - Enterprise Business [Member] $ in Thousands | Oct. 27, 2014USD ($) |
Business Acquisition [Line Items] | |
Cash and cash equivalents | $ 100,338 |
Accounts receivable, net | 439,821 |
Inventories, net | 263,526 |
Deferred income taxes | 117,147 |
Other current assets | 21,905 |
Property and equipment | 123,365 |
Other intangibles, net | 994,421 |
Other long-term assets | 49,593 |
Deferred revenue | (172,135) |
Tax liabilities | (9,410) |
Other current liabilities | (369,777) |
Long-term deferred revenue | (102,633) |
Unrecognized tax benefits | (9,526) |
Other long-term liabilities | (24,884) |
Long-term deferred income taxes | (211,851) |
Total identifiable net assets | $ 1,209,900 |
Business Combinations - Summa46
Business Combinations - Summary of Fair Value of Assets and Liabilities (Parenthetical) (Detail) $ in Millions | Oct. 27, 2014USD ($) |
Business Combinations [Abstract] | |
Accounts receivable estimated fair value | $ 439.8 |
Gross contractual value | $ 460.6 |
Business Combinations - Summa47
Business Combinations - Summary of Balance Sheet Adjustment and Effect on Income if Provisional Amounts Were Recognized at Acquisition Date (Detail) - Enterprise Business [Member] - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2014 | Jul. 04, 2015 | |
Business Acquisition [Line Items] | ||||||
Increase (decrease) in fair value, Other intangibles | $ (20,000) | $ (20,000) | ||||
Increase (decrease) in fair value, Inventories | 1,500 | 1,515 | ||||
Increase (decrease) in fair value, Property and equipment | (2,801) | (2,801) | ||||
Increase (decrease) in fair value, Deferred revenue | $ 400 | (372) | ||||
Increase (decrease) in fair value, Total | $ (21,658) | |||||
Effect on income before income taxes, Amortization of intangibles | $ 1,146 | $ 1,146 | $ 764 | $ 3,056 | ||
Effect on income before income taxes, Cost of sales | (129) | (1,386) | (1,515) | |||
Effect on income before income taxes, General and administrative | 59 | 59 | 39 | 57 | ||
Effect on income before income taxes, Net sales | 28 | 36 | 39 | 103 | ||
Effect on income before income taxes, Total | $ 1,233 | $ 1,112 | $ (544) | $ 1,801 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Carried at Fair Value (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | $ 11,896 | $ 39,711 |
Total Liabilities at fair value | 39,966 | 22,726 |
Investments subtotal | 24,385 | |
U.S. Government and Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 10,720 | |
Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 3,831 | 9,318 |
Forward Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 31,901 | 16,718 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 10,089 | 18,767 |
Total Liabilities at fair value | 8,065 | 6,008 |
Investments subtotal | 10,720 | |
Level 1 [Member] | U.S. Government and Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 10,720 | |
Level 1 [Member] | Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 2,024 | 2,039 |
Level 1 [Member] | Forward Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 1,807 | 20,944 |
Total Liabilities at fair value | 31,901 | 16,718 |
Investments subtotal | 13,665 | |
Level 2 [Member] | U.S. Government and Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 0 | |
Level 2 [Member] | Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 1,807 | 7,279 |
Level 2 [Member] | Forward Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 31,901 | 16,718 |
Level 3 [Member] | ||
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 |
Investments subtotal | 0 | |
Level 3 [Member] | U.S. Government and Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 0 | |
Level 3 [Member] | Forward Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 0 | 0 |
Level 3 [Member] | Forward Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 0 | 0 |
Obligations of Government-Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 705 | |
Obligations of Government-Sponsored Enterprises [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 0 | |
Obligations of Government-Sponsored Enterprises [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 705 | |
Obligations of Government-Sponsored Enterprises [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 0 | |
State and Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 5,179 | |
State and Municipal Bonds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 0 | |
State and Municipal Bonds [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 5,179 | |
State and Municipal Bonds [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 0 | |
Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 7,781 | |
Corporate Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 0 | |
Corporate Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 7,781 | |
Corporate Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments subtotal | 0 | |
Money Market Investments Related to the Deferred Compensation Plan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 8,065 | 6,008 |
Money Market Investments Related to the Deferred Compensation Plan [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets at fair value | 8,065 | 6,008 |
Money Market Investments Related to the Deferred Compensation Plan [Member] | Level 2 [Member] | ||
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 [Member] | Level 3 [Member] | ||
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 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 8,065 | 6,008 |
Liabilities Related to the Deferred Compensation Plan [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | 8,065 | 6,008 |
Liabilities Related to the Deferred Compensation Plan [Member] | Level 2 [Member] | ||
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 [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Liabilities at fair value | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Investments (Detail) $ in Thousands | Dec. 31, 2014USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Amortized Cost | $ 24,360 |
Gross Unrealized Gains | 39 |
Gross Unrealized Losses | (14) |
Estimated Fair Value | 24,385 |
U.S. Government and Agency Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Amortized Cost | 10,720 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | 0 |
Estimated Fair Value | 10,720 |
Obligations of Government-Sponsored Enterprises [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Amortized Cost | 705 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | 0 |
Estimated Fair Value | 705 |
State and Municipal Bonds [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Amortized Cost | 5,156 |
Gross Unrealized Gains | 27 |
Gross Unrealized Losses | (4) |
Estimated Fair Value | 5,179 |
Corporate Securities [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Amortized Cost | 7,779 |
Gross Unrealized Gains | 12 |
Gross Unrealized Losses | (10) |
Estimated Fair Value | $ 7,781 |
Accounts Receivable - Component
Accounts Receivable - Components of Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 631,756 | $ 671,471 |
Accounts receivable reserves | (5,979) | (1,069) |
Accounts receivable, net | $ 625,777 | $ 670,402 |
Inventories - Components of Inv
Inventories - Components of Inventories, Net (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 183,395 | $ 139,647 |
Work in process | 437 | 476 |
Finished goods | 256,448 | 259,872 |
Inventories, gross | 440,280 | 399,995 |
Inventory reserves | (32,122) | (5,819) |
Inventories, net | $ 408,158 | $ 394,176 |
Goodwill and Other Intangible52
Goodwill and Other Intangibles - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | Dec. 31, 2014 | |
Goodwill [Line Items] | |||||
Amortization of intangible assets | $ 58,499 | $ 2,597 | $ 189,788 | $ 7,936 | |
Goodwill acquired | $ 2,335,000 | ||||
Goodwill | 2,488,501 | 2,488,501 | $ 2,489,510 | ||
Hart Systems, LLC | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 58,600 | $ 58,600 | |||
Minimum [Member] | |||||
Goodwill [Line Items] | |||||
Estimated useful life of Intangible Assets | 1 year | ||||
Maximum [Member] | |||||
Goodwill [Line Items] | |||||
Estimated useful life of Intangible Assets | 8 years | ||||
Patents and Other Intellectual Property [Member] | |||||
Goodwill [Line Items] | |||||
Acquired intangible assets | $ 994,400 |
Goodwill and Other Intangible53
Goodwill and Other Intangibles - Summary of Other Intangibles Assets (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (281,156) | $ (91,368) |
Other intangibles, net | 816,933 | 1,029,293 |
Current Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 22,521 | 23,201 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 40,300 | 40,300 |
Unpatented Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 270,000 | 280,000 |
Patent and Patent Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 247,335 | 244,569 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | $ 517,933 | $ 532,591 |
Other Long-Term Assets - Compon
Other Long-Term Assets - Components of Other Long-Term Assets (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Investments related to the deferred compensation plan | $ 8,065 | $ 6,008 |
Long-term investments | 30,180 | 31,759 |
Other long-term assets | 25,561 | 22,652 |
Long-term trade receivable | 12,752 | 16,985 |
Long-term notes receivable | 14,231 | 14,231 |
Deposits | 1,758 | 1,486 |
Total | $ 92,547 | $ 93,121 |
Other Long-Term Assets - Additi
Other Long-Term Assets - Additional Information (Detail) - Enterprise Business [Member] | 9 Months Ended |
Oct. 03, 2015 | |
Minimum [Member] | |
Other Assets Non Current [Line Items] | |
Percentage of interest acquired | 1.90% |
Maximum [Member] | |
Other Assets Non Current [Line Items] | |
Percentage of interest acquired | 17.40% |
Accrued Liabilities - Component
Accrued Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued payroll | $ 69,781 | $ 73,582 |
Accrued warranty | 23,991 | 24,666 |
Accrued taxes | 8,336 | 11,446 |
Interest payable | 53,376 | 34,727 |
Amount owed to seller- MSI | 0 | 48,806 |
Restructuring liability | 11,777 | 6,830 |
Customer reserves | 33,429 | 39,201 |
Accrued other expenses | 178,571 | 181,812 |
Total accrued liabilities | $ 379,261 | $ 421,070 |
Costs Associated with Exit an57
Costs Associated with Exit and Restructuring Activities - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 03, 2015USD ($) | Oct. 03, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Exit and restructuring charges, incurred life to date | $ 40.4 | $ 40.4 |
Zebra Legacy [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Exit and restructuring charges, incurred life to date | 8 | 8 |
Exit and restructuring charges | 1.1 | 8 |
Enterprise Solutions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Exit and restructuring charges, incurred life to date | 32.4 | 32.4 |
Exit and restructuring charges | $ 4.6 | $ 26.9 |
Costs Associated with Exit an58
Costs Associated with Exit and Restructuring Activities - Summary of Exit and Restructuring Costs Incurred (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | 21 Months Ended | 24 Months Ended | |
Oct. 03, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 03, 2015 | Dec. 31, 2014 | |
The Acquisition | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance, stay bonuses, and other employee-related expenses | $ 27,703 | $ 5,557 | $ 33,260 | ||
Obligations for future lease payments | 6,900 | 0 | 6,900 | ||
Professional services | 249 | 16 | 265 | ||
Total | $ 34,852 | 5,573 | $ 40,425 | ||
Organizational Design Changes | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance, stay bonuses, and other employee-related expenses | 5,991 | $ 6,650 | $ 12,641 | ||
Professional services | 16 | 180 | 196 | ||
Relocation and transition costs | 0 | 20 | 20 | ||
Total | $ 6,007 | $ 6,850 | $ 12,857 |
Costs Associated with Exit an59
Costs Associated with Exit and Restructuring Activities - Rollforward of Exit and Restructuring Accruals (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Restructuring and Related Activities [Abstract] | ||||
Balance at the beginning of period | $ 17,694 | $ 502 | $ 6,830 | $ 1,252 |
Charged to earnings | 5,734 | (120) | 34,852 | 434 |
Cash paid | (7,072) | 29 | (25,326) | (1,275) |
Balance at the end of period | $ 16,356 | $ 411 | $ 16,356 | $ 411 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | Oct. 27, 2014 | Jun. 30, 2014Tranches | Oct. 03, 2015USD ($) | Sep. 27, 2014USD ($) | Oct. 03, 2015USD ($) | Sep. 27, 2014USD ($) | Dec. 31, 2014USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Number of tranches | Tranches | 2 | ||||||
Net liability position of derivatives | $ 11,200,000 | $ 11,200,000 | $ 14,500,000 | ||||
(Loss) gain on accumulated other comprehensive income | 0 | $ 0 | 0 | $ 0 | |||
Losses on the forward interest rate swaps designated in a hedging relationship expected to be reclassified from accumulated other comprehensive loss into earnings during the next 12 months. | 10,500,000 | 10,500,000 | |||||
Term Loan [Member] | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Debt instrument, carrying amount | 2,070,000,000 | $ 2,070,000,000 | $ 2,200,000,000 | ||||
Interest rate description | Term Loan that accrues interest at a variable rate of LIBOR (subject to a floor of 0.75% per annum) plus a margin of 4.0%. | ||||||
Interest rate variable | 4.75% | ||||||
Floor Rate [Member] | Term Loan [Member] | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Interest rate variable | 0.75% | ||||||
Margin Rate [Member] | Term Loan [Member] | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Interest rate variable | 4.00% | ||||||
Revolving Credit Facility [Member] | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Revolving credit facility maximum borrowing capacity | $ 250,000,000 | $ 250,000,000 |
Derivative Instruments - Financ
Derivative Instruments - Financial Information Related to Hedging of Net Assets Included in Consolidated Statements of Operations (Detail) | 3 Months Ended | 9 Months Ended | |||||||||||||
Oct. 03, 2015USD ($) | Sep. 27, 2014USD ($) | Oct. 03, 2015USD ($) | Sep. 27, 2014USD ($) | Oct. 03, 2015GBP (£) | Oct. 03, 2015EUR (€) | Oct. 03, 2015CZK | Oct. 03, 2015BRL | Oct. 03, 2015MYR | Dec. 31, 2014USD ($) | Dec. 31, 2014GBP (£) | Dec. 31, 2014EUR (€) | Dec. 31, 2014CZK | Dec. 31, 2014BRL | Dec. 31, 2014MYR | |
Derivative [Line Items] | |||||||||||||||
Realized gain (loss) from foreign exchange derivatives | $ 2,863,000 | $ 3,211,000 | $ 6,233,000 | $ 3,752,000 | |||||||||||
(Loss) gain on net foreign currency assets | (8,118,000) | (3,294,000) | (27,427,000) | (4,084,000) | |||||||||||
Foreign exchange (loss) gain | (5,255,000) | $ (83,000) | (21,194,000) | $ (332,000) | |||||||||||
Net fair value of outstanding contracts | 633,000 | 633,000 | $ 250,000 | ||||||||||||
Foreign Exchange Forward [Member] | Malaysian Ringgit /US Dollar [Member] | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional balance of outstanding contracts versus the dollar | MYR | MYR 14,714,000 | MYR 0 | |||||||||||||
Foreign Exchange Forward [Member] | Brazilian Real /US Dollar [Member] | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional balance of outstanding contracts versus the dollar | BRL | BRL 19,462,000 | BRL 0 | |||||||||||||
Foreign Exchange Forward [Member] | Czech Koruna /US Dollar [Member] | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional balance of outstanding contracts versus the dollar | CZK | CZK 316,521,000 | CZK 0 | |||||||||||||
Foreign Exchange Forward [Member] | Canadian Dollar /US Dollar [Member] | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional balance of outstanding contracts versus the dollar | $ 3,434,000 | $ 3,434,000 | $ 0 | ||||||||||||
Foreign Exchange Forward [Member] | British Pound/Euro [Member] | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional balance of outstanding contracts versus the dollar | £ | £ 863,000 | £ 0 | |||||||||||||
Foreign Exchange Forward [Member] | Euro/US Dollar [Member] | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional balance of outstanding contracts versus the dollar | € | € 124,802,000 | € 40,218,000 | |||||||||||||
Foreign Exchange Forward [Member] | British Pound/US Dollar [Member] | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional balance of outstanding contracts versus the dollar | £ | £ 14,733,000 | £ 4,574,000 |
Derivative Instruments - Fina62
Derivative Instruments - Financial Information Related to Cash Flow Hedges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Derivative [Line Items] | ||||
Change in unrealized (loss) gain on anticipated sales hedging, Net | $ (2,811) | $ 5,133 | $ (5,763) | $ 6,522 |
Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Change in unrealized (loss) gain on anticipated sales hedging, Gross | (3,514) | 6,417 | (7,204) | 8,196 |
Change in unrealized (loss) gain on anticipated sales hedging, Income tax (benefit) expense | (703) | 1,284 | (1,441) | 1,674 |
Change in unrealized (loss) gain on anticipated sales hedging, Net | $ (2,811) | $ 5,133 | $ (5,763) | $ 6,522 |
Derivative Instruments - Fina63
Derivative Instruments - Financial Information Related to Cash Flow Hedges of Future Revenues (Detail) - Cash Flow Hedging [Member] $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 03, 2015USD ($) | Sep. 27, 2014USD ($) | Oct. 03, 2015USD ($) | Sep. 27, 2014USD ($) | Oct. 03, 2015EUR (€) | Dec. 31, 2014EUR (€) | |
Derivative [Line Items] | ||||||
Hedge effectiveness | 100.00% | 100.00% | ||||
Net gain (loss) included in revenue | $ | $ 2,040 | $ 421 | $ 13,308 | $ (1,507) | ||
Foreign Exchange Forward [Member] | ||||||
Derivative [Line Items] | ||||||
Notional balance of outstanding contracts versus the dollar | € 104,727,000 | € 88,969,000 |
Derivative Instruments - Forwar
Derivative Instruments - Forward Contract Amounts Recorded in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Total Assets | $ 3,831 | $ 9,318 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Assets | $ 3,831 | $ 9,318 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Balance Sheet Position of Forward Interest Rate Swaps Designated in Hedge Relationship (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Accrued liabilities | $ 379,261 | $ 421,070 |
Other long-term liabilities | 85,577 | 74,434 |
Forward Interest Rate Swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Accrued liabilities | 633 | 0 |
Other long-term liabilities | $ 20,098 | $ 2,170 |
Hedge effectiveness | 100.00% | 100.00% |
Derivative Instruments - Sche66
Derivative Instruments - Schedule of Gross and Net Amount Offset (Detail) - Balance Sheet Offsetting [Member] $ in Thousands | Oct. 03, 2015USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Gross Fair Value | $ 52,632 |
Counterparty Offsetting | 20,731 |
Net Fair Value in the Consolidated Balance Sheets | 31,901 |
Counterparty A [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Gross Fair Value | 14,950 |
Counterparty Offsetting | 8,416 |
Net Fair Value in the Consolidated Balance Sheets | 6,534 |
Counterparty B [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Gross Fair Value | 5,209 |
Counterparty Offsetting | 2,013 |
Net Fair Value in the Consolidated Balance Sheets | 3,196 |
Counterparty C [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Gross Fair Value | 5,213 |
Counterparty Offsetting | 2,021 |
Net Fair Value in the Consolidated Balance Sheets | 3,192 |
Counterparty D [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Gross Fair Value | 10,498 |
Counterparty Offsetting | 4,244 |
Net Fair Value in the Consolidated Balance Sheets | 6,254 |
Counterparty E [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Gross Fair Value | 5,169 |
Counterparty Offsetting | 2,002 |
Net Fair Value in the Consolidated Balance Sheets | 3,167 |
Counterparty F [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Gross Fair Value | 5,213 |
Counterparty Offsetting | 2,035 |
Net Fair Value in the Consolidated Balance Sheets | 3,178 |
Counterparty G [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Gross Fair Value | 6,380 |
Counterparty Offsetting | 0 |
Net Fair Value in the Consolidated Balance Sheets | $ 6,380 |
Derivative Instruments - Sche67
Derivative Instruments - Schedule of Volume of New Swaps Designated in Hedge Relationship (Detail) - USD ($) | Oct. 03, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional balance of outstanding contracts | $ 3,339,000,000 | |
Forward Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional balance of outstanding contracts | $ 3,339,000,000 | $ 3,339,000,000 |
Derivative Instruments - Sche68
Derivative Instruments - Schedule of Series of Forward Starting Swaps Each with a Term of One Year (Detail) | Oct. 03, 2015USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional balance of outstanding contracts | $ 3,339,000,000 |
Year 2015 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional balance of outstanding contracts | 1,010,000,000 |
Year 2016 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional balance of outstanding contracts | 697,000,000 |
Year 2017 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional balance of outstanding contracts | 544,000,000 |
Year 2018 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional balance of outstanding contracts | 544,000,000 |
Year 2019 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional balance of outstanding contracts | 272,000,000 |
Year 2020 [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional balance of outstanding contracts | $ 272,000,000 |
Derivative Instruments - Sche69
Derivative Instruments - Schedule of (Loss) Gain Recognized on Forward Interest Rate Swaps Not Designated in Hedge Relationship (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest income/(expense) on forward interest-rate swaps | $ 3,397 | $ (2,248) | ||
Forward Interest Rate Swap [Member] | Interest (Expense)/Income [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest income/(expense) on forward interest-rate swaps | $ 3,361 | $ 185 | $ 3,397 | $ (2,248) |
Derivative Instruments - Sche70
Derivative Instruments - Schedule of Loss Recognized in Other Comprehensive Unrealized Loss on Forward Interest Rate Swaps Designated in Hedging Relationship (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Change in unrealized (losses) gains on forward interest rate swap hedging, Net | $ (6,560) | $ (781) | $ (10,447) | $ (781) |
Forward Interest Rate Swap [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Change in unrealized (losses) gains on forward interest rate swap hedging, Gross | (10,754) | (1,224) | (17,373) | (1,224) |
Change in unrealized (losses) gains on forward interest rate swap hedging, Income tax (benefit) expense | (4,194) | (443) | (6,926) | (443) |
Change in unrealized (losses) gains on forward interest rate swap hedging, Net | $ (6,560) | $ (781) | $ (10,447) | $ (781) |
Warranty - Additional Informati
Warranty - Additional Information (Detail) | 9 Months Ended |
Oct. 03, 2015 | |
Mobile Products [Member] | Enterprise Solutions [Member] | |
Product Warranty Liability [Line Items] | |
Product warranty period | 1 year |
WLAN Products [Member] | Enterprise Solutions [Member] | |
Product Warranty Liability [Line Items] | |
Product warranty period | 1 year |
Printers [Member] | |
Product Warranty Liability [Line Items] | |
Product warranty period | 1 year |
Thermal Printheads [Member] | |
Product Warranty Liability [Line Items] | |
Product warranty period | 6 months |
Batteries [Member] | |
Product Warranty Liability [Line Items] | |
Product warranty period | 1 year |
Battery Based Products [Member] | |
Product Warranty Liability [Line Items] | |
Product warranty period | 90 days |
Minimum [Member] | Advanced Data Capture Products [Member] | |
Product Warranty Liability [Line Items] | |
Product warranty period | 1 year |
Maximum [Member] | Advanced Data Capture Products [Member] | |
Product Warranty Liability [Line Items] | |
Product warranty period | 5 years |
Warranty - Summary of Accrued W
Warranty - Summary of Accrued Warranty Obligation (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Product Warranties Disclosures [Abstract] | ||
Balance at the beginning of period | $ 24,666 | $ 4,125 |
Warranty expense | 22,832 | 5,798 |
Warranty payments | (23,507) | (5,498) |
Balance at the end of period | $ 23,991 | $ 4,425 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Nov. 03, 2015 | Oct. 27, 2014 | Oct. 15, 2014 | Oct. 03, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||||
Fair value of our long-term debt | $ 3,200,000,000 | $ 3,300,000,000 | |||
7.25 % Senior Notes Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Private offering aggregate principal amount | $ 1,050,000,000 | ||||
Interest rate on senior notes | 7.25% | ||||
Effective interest rate of Senior Notes yielded | 7.61% | ||||
Interest on the Senior Notes is payable description | Interest on the Senior Notes is payable in cash on April 15 and October 15 of each year. | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 250,000,000 | ||||
Letters of credit | 3,200,000 | ||||
Funds available for other borrowings | $ 246,800,000 | ||||
Revolving credit facility, maturity date | Oct. 27, 2019 | ||||
Borrowings under revolving credit facility | $ 0 | $ 0 | |||
Revolving credit facility interest rate | 3.25% | ||||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate variable | 4.75% | ||||
Term loan interest rate | 4.75% | ||||
Line of credit facility, principal prepayment | $ 130,000,000 | ||||
Principal payment made at maturity | $ 2,050,000,000 | ||||
Debt instrument maturity date | Oct. 27, 2021 | ||||
Subsequent Event [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, principal prepayment | $ 20,000,000 |
Long-Term Debt - Summary of Car
Long-Term Debt - Summary of Carrying Value of Debt (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Less debt issuance costs | $ (27,196) | $ (29,785) |
Less unamortized discounts | (49,579) | (59,516) |
Total outstanding debt | 3,043,225 | 3,160,699 |
Current maturities of long-term debt | 0 | 16,500 |
Less: current portion of unamortized discounts | 0 | (8,978) |
Less: current portion of debt issuance costs | 0 | (3,313) |
Total short-term debt | 0 | 4,209 |
Long-term debt, less current maturities | 3,043,225 | 3,156,490 |
Total outstanding debt | 3,043,225 | 3,160,699 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, carrying amount | 2,070,000 | 2,200,000 |
7.25 % Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, carrying amount | $ 1,050,000 | $ 1,050,000 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Weighted average shares: | ||||
Basic weighted average shares outstanding | 51,152 | 50,835 | 50,926 | 50,615 |
Effect of dilutive securities outstanding | 0 | 626 | 0 | 636 |
Diluted weighted average and equivalent shares outstanding | 51,152 | 51,461 | 50,926 | 51,251 |
Net (loss) income | $ (28,950) | $ 14,945 | $ (130,505) | $ 84,108 |
Basic per share amounts: | ||||
Basic weighted average shares outstanding | 51,152 | 50,835 | 50,926 | 50,615 |
Per share amount | $ (0.57) | $ 0.29 | $ (2.56) | $ 1.66 |
Diluted per share amounts: | ||||
Diluted weighted average and equivalent shares outstanding | 51,152 | 51,461 | 50,926 | 51,251 |
Per share amount | $ (0.57) | $ 0.29 | $ (2.56) | $ 1.64 |
Earnings Per Share - Potentiall
Earnings Per Share - Potentially Dilutive Securities Excluded from Earnings Per Share Calculation (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Earnings Per Share [Abstract] | ||||
Potentially dilutive shares | 1,435,155 | 0 | 1,492,882 | 179,760 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax share-based compensation expense recognized | $ 26.4 | $ 10.3 |
Tax related benefits recognized | $ 8.9 | $ 3.5 |
Stock issued during period, Shares, Share-based compensation | 458,823 | 564,815 |
Total unearned compensation costs related to performance share awards | $ 56 | |
Total unearned compensation costs amortization period | 2 years 8 months 12 days | |
Expected weighted-average life | 5 years 3 months 26 days | 5 years 4 months 10 days |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 5 years | |
Stock Purchase Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected weighted-average life | 3 months | |
Stock Purchase Plan [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected weighted-average life | 1 year |
Equity-Based Compensation - Wei
Equity-Based Compensation - Weighted-Average Assumptions Used for Grants of Stock Options and SARs (Detail) - USD ($) | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Forfeiture rate | 10.24% | 10.32% |
Risk free interest rate, minimum | 0.02% | 0.02% |
Risk free interest rate, maximum | 2.14% | 2.61% |
Expected weighted-average life | 5 years 3 months 26 days | 5 years 4 months 10 days |
Fair value of SARs granted | $ 11,509,000 | $ 4,600,000 |
Weighted-average grant date fair value of SARs granted (per underlying share) | $ 35.25 | $ 25 |
Stock Option and Stock Appreciation Rights (SARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 33.98% | 34.92% |
Risk free interest rate | 1.53% | 1.73% |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Stock Option Activity (Detail) - Stock Option [Member] | 9 Months Ended |
Oct. 03, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding at beginning of year | 415,960 |
Shares, Exercised | (185,770) |
Shares, Expired | (1,550) |
Shares, Outstanding at end of period | 228,640 |
Shares, Exercisable at end of period | 228,640 |
Weighted-Average Exercise Price, Outstanding at beginning of year | $ / shares | $ 40.19 |
Weighted-Average Exercise Price, Exercised | $ / shares | 43.32 |
Weighted-Average Exercise Price, Expired | $ / shares | 51.62 |
Weighted-Average Exercise Price, Outstanding at end of period | $ / shares | 37.56 |
Weighted-Average Exercise Price, Exercisable at end of period | $ / shares | $ 37.56 |
Intrinsic value of exercised options | $ | $ 9,020,000 |
Weighted-average remaining contractual term, Outstanding | 2 years 2 months 12 days |
Weighted-average remaining contractual term, Exercisable | 2 years 2 months 12 days |
Aggregate intrinsic value, Outstanding | $ | $ 13,000,000 |
Aggregate intrinsic value, Exercisable | $ | $ 13,000,000 |
Equity-Based Compensation - S80
Equity-Based Compensation - Summary of SARs Activity (Detail) - Stock Appreciation Rights (SARs) [Member] | 9 Months Ended |
Oct. 03, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding at beginning of year | 1,292,142 |
Shares, Granted | 330,144 |
Shares, Exercised | (160,450) |
Shares, Forfeited | (25,694) |
Shares, Outstanding at end of period | 1,436,142 |
Shares, Exercisable at end of period | 756,193 |
Weighted-Average Exercise Price, Outstanding at beginning of year | $ / shares | $ 42.20 |
Weighted-Average Exercise Price, Granted | $ / shares | 107.74 |
Weighted-Average Exercise Price, Exercised | $ / shares | 40.86 |
Weighted-Average Exercise Price, Forfeited | $ / shares | 71.72 |
Weighted-Average Exercise Price, Outstanding at end of period | $ / shares | 56.89 |
Weighted-Average Exercise Price, Exercisable at end of period | $ / shares | $ 36 |
Intrinsic value of exercised SARs | $ | $ 9,947,000 |
Weighted-average remaining contractual term, Outstanding | 7 years |
Weighted-average remaining contractual term, Exercisable | 5 years 7 months 6 days |
Aggregate intrinsic value, Outstanding | $ | $ 58,500,000 |
Aggregate intrinsic value, Exercisable | $ | $ 44,300,000 |
Equity-Based Compensation - S81
Equity-Based Compensation - Summary of Restricted Stock Award Activity (Detail) - Restricted Stock Awards [Member] | 9 Months Ended |
Oct. 03, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding at beginning of year | 691,621 |
Shares, Granted | 183,345 |
Shares, Released | (246,673) |
Shares, Forfeited | (41,136) |
Shares, Outstanding at end of period | 587,157 |
Weighted-Average Grant Date Fair Value, Outstanding at beginning of year | $ / shares | $ 60.06 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 107.84 |
Weighted-Average Grant Date Fair Value, Released | $ / shares | 51.69 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 72.98 |
Weighted-Average Grant Date Fair Value, Outstanding at end of period | $ / shares | $ 77.63 |
Equity-Based Compensation - S82
Equity-Based Compensation - Summary of Performance Share Award Activity (Detail) - Performance Share Awards [Member] | 9 Months Ended |
Oct. 03, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding at beginning of year | 374,180 |
Shares, Granted | 109,848 |
Shares, Released | (120,000) |
Shares, Forfeited | (22,595) |
Shares, Outstanding at end of period | 341,433 |
Weighted-Average Grant Date Fair Value, Outstanding at beginning of year | $ / shares | $ 61.33 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 75.97 |
Weighted-Average Grant Date Fair Value, Released | $ / shares | 38.67 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 73.29 |
Weighted-Average Grant Date Fair Value, Outstanding at end of period | $ / shares | $ 73.48 |
Equity-Based Compensation - S83
Equity-Based Compensation - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] | 9 Months Ended |
Oct. 03, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding at beginning of year | 41,964 |
Shares, Granted | 11,623 |
Shares, Released | (8,653) |
Shares, Forfeited | (5,480) |
Shares, Outstanding at end of period | 39,454 |
Equity-Based Compensation - S84
Equity-Based Compensation - Summary of Performance Stock Unit Activity (Detail) - Performance Stock Units [Member] | 9 Months Ended |
Oct. 03, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding at beginning of year | 10,345 |
Shares, Forfeited | (1,272) |
Shares, Outstanding at end of period | 9,073 |
Equity-Based Compensation - W85
Equity-Based Compensation - Weighted-Average Assumptions Used for Employee Purchase Rights Granted Under Stock Purchase Plan (Detail) - $ / shares | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair market value | $ 80.43 | $ 63.42 |
Option price | $ 76.41 | $ 60.25 |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 41.00% | 31.00% |
Risk free interest rate | 0.03% | 0.06% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 4.30% | 23.10% | ||
Income tax expense (benefit) | $ 3,408 | $ 9,861 | $ (5,867) | $ 25,240 |
Statutory tax rate | 35.00% |
Other Comprehensive (Loss) In87
Other Comprehensive (Loss) Income - Components of Accumulated Other Comprehensive (Loss) Income (AOCI) (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ (8,547) | $ (9,781) |
Other comprehensive income/(loss) before reclassifications | (19,615) | 6,466 |
Amounts reclassified from AOCI | (26,316) | 1,172 |
Tax (expense) benefit | 8,122 | (1,548) |
Other comprehensive income/(loss) | (37,809) | 6,090 |
Ending Balance | (46,356) | (3,691) |
Unrealized Gain (Losses) on Sales Hedging [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 5,326 | (1,864) |
Other comprehensive income/(loss) before reclassifications | 6,331 | 6,500 |
Amounts reclassified from AOCI | (13,535) | 1,696 |
Tax (expense) benefit | 1,441 | (1,674) |
Other comprehensive income/(loss) | (5,763) | 6,522 |
Ending Balance | (437) | 4,658 |
Unrealized Losses/Gains on Forward Interest Rate Swaps [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (7,699) | 0 |
Other comprehensive income/(loss) before reclassifications | (18,089) | (1,224) |
Amounts reclassified from AOCI | 716 | 0 |
Tax (expense) benefit | 6,926 | 443 |
Other comprehensive income/(loss) | (10,447) | (781) |
Ending Balance | (18,146) | (781) |
Unrealized Gains (Losses) on Investments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 347 | (78) |
Other comprehensive income/(loss) before reclassifications | (2) | 1,570 |
Amounts reclassified from AOCI | (25) | (517) |
Tax (expense) benefit | (245) | (317) |
Other comprehensive income/(loss) | (272) | 736 |
Ending Balance | 75 | 658 |
Cumulative Foreign Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (6,521) | (7,839) |
Other comprehensive income/(loss) before reclassifications | (7,855) | (380) |
Amounts reclassified from AOCI | (13,472) | (7) |
Tax (expense) benefit | 0 | 0 |
Other comprehensive income/(loss) | (21,327) | (387) |
Ending Balance | $ (27,848) | $ (8,226) |
Other Comprehensive (Loss) In88
Other Comprehensive (Loss) Income - Reclassification Out of AOCI to Earnings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net of taxes | $ 2,811 | $ (5,133) | $ 5,763 | $ (6,522) |
Net of taxes | 6,560 | 781 | 10,447 | 781 |
Net of taxes | 256 | (240) | 272 | (736) |
Cumulative Foreign Currency Translation | 11,083 | 191 | 21,327 | 387 |
Total amounts reclassified from AOCI | 26,316 | (1,172) | ||
Unrealized Gain (Losses) on Sales Hedging [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total amounts reclassified from AOCI | 13,535 | (1,696) | ||
Unrealized Losses/Gains on Forward Interest Rate Swaps [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total amounts reclassified from AOCI | (716) | 0 | ||
Unrealized Gains (Losses) on Investments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total amounts reclassified from AOCI | 25 | 517 | ||
Cumulative Foreign Currency Translation [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total amounts reclassified from AOCI | 13,472 | 7 | ||
Reclassification Out of AOCI to Earnings [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total amounts reclassified from AOCI | (431) | (374) | (23,841) | 985 |
Reclassification Out of AOCI to Earnings [Member] | Unrealized Gain (Losses) on Sales Hedging [Member] | Net Sales of Tangible Products [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | (2,267) | (113) | (13,535) | 1,696 |
Tax expense (benefit) | 459 | 24 | 2,741 | (365) |
Net of taxes | (1,808) | (89) | (10,794) | 1,331 |
Reclassification Out of AOCI to Earnings [Member] | Unrealized Losses/Gains on Forward Interest Rate Swaps [Member] | Interest (Expense)/Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 716 | 0 | 716 | 0 |
Tax expense (benefit) | (275) | 0 | (275) | 0 |
Net of taxes | 441 | 0 | 441 | 0 |
Reclassification Out of AOCI to Earnings [Member] | Unrealized Gains (Losses) on Investments [Member] | Other, net [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 0 | (443) | (25) | (517) |
Tax expense (benefit) | 0 | 158 | 9 | 178 |
Net of taxes | 0 | (285) | (16) | (339) |
Reclassification Out of AOCI to Earnings [Member] | Cumulative Foreign Currency Translation [Member] | Foreign Exchange Income (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cumulative Foreign Currency Translation | $ 936 | $ 0 | $ (13,472) | $ (7) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Oct. 03, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Segment I
Segment Information - Segment Information by Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Net sales: | ||||
Net sales | $ 916,273 | $ 303,272 | $ 2,699,231 | $ 879,961 |
Operating income (loss): | ||||
Operating income loss | 25,021 | 26,956 | 30,992 | 113,429 |
Operating Segments [Member] | ||||
Net sales: | ||||
Net sales | 919,066 | 303,272 | 2,712,093 | 879,961 |
Operating income (loss): | ||||
Operating income loss | 130,469 | 64,845 | 366,675 | 182,551 |
Intersegment Eliminations [Member] | ||||
Net sales: | ||||
Net sales | (2,793) | 0 | (12,862) | 0 |
Operating income (loss): | ||||
Operating income loss | (105,448) | (37,889) | (335,683) | (69,122) |
Zebra Legacy [Member] | Operating Segments [Member] | ||||
Net sales: | ||||
Net sales | 313,967 | 303,272 | 966,427 | 879,961 |
Operating income (loss): | ||||
Operating income loss | 66,282 | 64,845 | 205,744 | 182,551 |
Enterprise Solutions [Member] | Operating Segments [Member] | ||||
Net sales: | ||||
Net sales | 605,099 | 0 | 1,745,666 | 0 |
Operating income (loss): | ||||
Operating income loss | $ 64,187 | $ 0 | $ 160,931 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional information (Detail) - Term Loan [Member] - USD ($) $ in Millions | Nov. 03, 2015 | Oct. 03, 2015 |
Subsequent Event [Line Items] | ||
Line of credit facility, principal prepayment | $ 130 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Line of credit facility, principal prepayment | $ 20 |