Discontinued Operations

3 Months Ended

Mar. 31, 2012

Discontinued Operations [Abstract]

Discontinued Operations

Note 17 Discontinued Operations

Sale of Navis, LLC - On March 18, 2011, we sold our Navis marine terminal solutions business and the related WhereNet marine terminal solutions product line of our Zebra Enterprise Solutions ("ZES") business segment for approximately $188,588,000 in cash to Cargotec Corporation. During the quarter, we received $13,790,000 of the previously escrowed funds and at March 31, 2012, Zebra has a remaining short term receivable from the buyer in the amount of $13,790,000 which represents the remaining funds held in escrow that are subject to adjustment according to terms of the agreement.

Sale of proveo AG - On August 3, 2011, we entered into a Share Purchase Agreement with F Two NV (a Belgium company) to sell all of our interest in Zebra Enterprise Solutions GmbH (formerly proveo AG) business. The loss recorded upon divestiture was $1,248,000. As part of the sale, Zebra agreed with the buyer to provide a revolving loan of up to €1,000,000 which is due one year from the sale date and bears interest at 6.5%. Zebra realized tax benefits in the amount of $13,308,000 with the divestiture of proveo AG. These tax benefits are primarily related to the difference in book basis versus tax basis.

Beginning in the first quarter of 2011, Zebra reported the results of these businesses as discontinued operations. The amounts presented below for discontinued operations include the operating results of Navis and proveo for the three months ended April 2, 2011. With the Navis sale, Zebra consolidated the former ZES Location Solutions product line.

Summary results for discontinued operations in our unaudited consolidated statement of earnings are as follows (in thousands):

	Three Months Ended April 2, 2011
Net sales	$	12,633
Loss from discontinued operations	$	(11,627	)
Income tax benefit		1,001
Gain on sale of discontinued operations		67,213
Income tax expense on sale		(25,081	)
Income from discontinued operations	$	31,506

The components of cash flows of discontinued operations in our unaudited consolidated statement of cash flows are as follows (in thousands):

	Three Months Ended April 2, 2011
Cash flows from discontinued operations:
Net cash used by operating activities	$	(995	)
Net cash provided by (used in) investing activities		0
Net cash provided by (used in) financing activities		0
Effect of exchange rate changes on cash		(24	)
Net decrease in cash and cash equivalents		(1,019	)
Cash and cash equivalents at beginning of period		1,301
Cash and cash equivalents at end of period	$	282