-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Dud7QsYafp4Yp80VIj2U2gaOj8cvSlWBIqh9/BMosHi1eYgusGRX83V9r3pUoXgL V6tgan5CF6JcOIsTYsfS1A== 0001047469-98-026870.txt : 19980714 0001047469-98-026870.hdr.sgml : 19980714 ACCESSION NUMBER: 0001047469-98-026870 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980710 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ZEBRA TECHNOLOGIES CORP/DE CENTRAL INDEX KEY: 0000877212 STANDARD INDUSTRIAL CLASSIFICATION: GENERAL INDUSTRIAL MACHINERY & EQUIPMENT [3560] IRS NUMBER: 366966580 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 000-19406 FILM NUMBER: 98664083 BUSINESS ADDRESS: STREET 1: 333 CORPORATE WOODS PKWY CITY: VERNON HILLS STATE: IL ZIP: 60061 BUSINESS PHONE: 7086346700 11-K 1 11-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 11-K [ X ] Annual Report Pursuant to Section 15(d) of the Securities Exchange Act of 1934 For the year ended December 31, 1997 Commission File Number: Zebra Technologies Corporation (Exact name of registrant as specified in its charter) Delaware 36-2675536 ------------------------------ ------------------ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 333 Corporate Woods Parkway, Vernon Hills, IL 60061 ------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (847) 634-6700 -------------------------------------------------- (Registrant's telephone number, including area code) Zebra Technologies Corporation 333 Corporate Woods Parkway, Vernon Hills, IL 60061 This document consists of 13 pages. 1 INDEPENDENT AUDITORS' REPORT The Plan's Trustees Zebra Technologies Corporation Profit Sharing and Savings Plan: We have audited the accompanying statements of net assets available for benefits of the Zebra Technologies Corporation Profit Sharing and Savings Plan (the Plan) as of December 31, 1996 and 1997, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 1996 and 1997, and the changes in net assets available for benefits for the years then ended in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information included in schedules 1 and 2 is presented for the purpose of additional analysis and is not required as part of the basic financial statements, but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The Fund Information in the statements of net assets available for benefits and note 5 is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. The supplemental schedules and Fund Information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/KPMG Peat Marwick LLP June 23, 1998 2 ZEBRA TECHNOLOGIES CORPORATION PROFIT SHARING AND SAVINGS PLAN Statements of Net Assets Available for Benefits December 31, 1996 and 1997
____________________________________________________________________________________ 1996 1997 ____________________________________________________________________________________ Assets: Investments, at fair value: Strong Government Securities Fund $ 1,609,089 1,777,461 Alex Brown Money Market Fund 593,914 708,282 AIM Constellation Fund 2,372,191 - AIM Value Fund 1,833,144 2,443,910 AIM Balanced Fund - 511,035 Fidelity Low Priced Fund - 330,408 Putnam New Opportunities Fund - 3,123,772 GAM International Fund 1,512,365 2,250,121 MAS Value Fund 3,175,161 4,540,910 Zebra Technologies Corporation Common Stock Fund 165,191 255,969 Participant loans receivable 502,854 749,393 _______________________________________________________________________________ Total investments 11,763,909 16,691,261 Receivables: Employer contributions 499,448 671,697 Participant contributions 82,664 10,823 _______________________________________________________________________________ Total receivables 582,112 682,520 Cash and cash equivalents 32,266 17,978 _______________________________________________________________________________ Net assets available for benefits $12,378,287 17,391,759 _______________________________________________________________________________ _______________________________________________________________________________
See accompanying notes to financial statements. 3 ZEBRA TECHNOLOGIES CORPORATION PROFIT SHARING AND SAVINGS PLAN Statements of Changes in Net Assets Available for Benefits Years ended December 31, 1996 and 1997
_______________________________________________________________________________ 1996 1997 _______________________________________________________________________________ Additions to net assets attributed to: Investment income: Interest $ 68,082 77,114 Dividends 472,709 1,069,531 Realized gain on investments 17,914 406,604 Unrealized appreciation of investments 809,115 1,093,556 _______________________________________________________________________________ 1,367,820 2,646,805 Participant contributions (including rollovers) 1,261,952 1,606,500 Employer 401(k) contributions 427,927 537,506 Employer profit sharing contributions 499,448 671,697 _______________________________________________________________________________ Total additions 3,557,147 5,462,508 Deductions from net assets attributed to - benefits paid to participants 570,918 449,036 _______________________________________________________________________________ Total deductions 570,918 449,036 _______________________________________________________________________________ Net increase 2,986,229 5,013,472 Net assets available for benefits: Beginning of year 9,392,058 12,378,287 _______________________________________________________________________________ End of year $12,378,287 17,391,759 _______________________________________________________________________________ _______________________________________________________________________________
See accompanying notes to financial statements. 4 ZEBRA TECHNOLOGIES CORPORATION PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements December 31, 1996 and 1997 _______________________________________________________________________________ (1) DESCRIPTION OF PLAN The following description of the Zebra Technologies Corporation Profit Sharing and Savings Plan (the Plan) provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. GENERAL The Plan is a defined contribution plan covering eligible employees of Zebra Technologies Corporation (the Company) subject to certain service requirements. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). CONTRIBUTIONS Participants may contribute 1% to 15% of eligible compensation on a pretax basis within certain specified limitations. The Plan permits discretionary contributions by the Company. During 1996 and 1997, the Company contributed approximately $499,000 and $672,000, respectively, to the profit sharing portion of the Plan and approximately $428,000 and $538,000, respectively, to the savings portion (401(k)) of the Plan. As of January 1, 1997, participants were able to allocate their funds among any combination of the following: - AIM Constellation Fund - AIM Value Fund - Alex Brown Money Market Fund - GAM International Fund - MAS Value Fund - Strong Government Securities Fund - Zebra Technologies Corporation Common Stock Fund (limited to 10% of contributions) During 1997, the AIM Constellation Fund was removed as a participant selection. Also, during 1997, the following three funds were added as participant selections: - AIM Balanced Fund - Fidelity Low Priced Fund - Putnam New Opportunities Fund 5 (Continued) ZEBRA TECHNOLOGIES CORPORATION PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements
____________________________________________________________________________________ During 1996 and 1997, participant and employer contributions by fund were as follows: ____________________________________________________________________________________ 1996 1997 ____________________________________________________________________________________ Participant directed: Strong Government Securities Fund $ 232,895 257,170 Alex Brown Money Market Fund 84,238 127,036 AIM Constellation Fund 406,551 15,892 AIM Value Fund 319,418 362,370 AIM Balanced Fund - 66,090 Fidelity Low Priced Fund - 100,561 Putnam New Opportunities Fund - 435,379 GAM International Fund 205,920 280,746 MAS Value Fund 309,415 425,527 Zebra Technologies Corporation Common Stock Fund 48,778 62,412 Profit sharing contribution receivable 499,448 671,697 Due from participants 82,664 10,823 ____________________________________________________________________________________ Total participant and employer contributions $2,189,327 2,815,703 ____________________________________________________________________________________ ____________________________________________________________________________________
NUMBER OF PARTICIPANTS As of December 31, 1997 there were a total of 679 participants in the Plan. The number of participants under each investment program were as follows: _______________________________________________________________________________
Strong Government Securities Fund 318 Alex Brown Money Market Fund 222 AIM Value Fund 439 AIM Balanced Fund 131 Fidelity Low Priced Fund 159 Putnam New Opportunities Fund 459 GAM International Fund 383 MAS Value Fund 428 Zebra Technologies Corporation Common Stock Fund 226 _______________________________________________________________________________
6 (Continued) ZEBRA TECHNOLOGIES CORPORATION PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements _______________________________________________________________________________ VESTING Participant contributions (plus actual earnings thereon) vest immediately. Employer contributions vest as follows: _______________________________________________________________________________
Completed years of service Vested percentage ____________________________________________________________________________________ 1 20% 2 40 3 60 4 80 5 or more (6 or more prior to January 1, 1997) 100 ____________________________________________________________________________________
PAYMENT OF BENEFITS Payment of benefits shall, in every case, be in the form of a lump sum. HARDSHIP/WITHDRAWALS Participants may withdraw funds from their savings contribution account after meeting certain criteria as defined in the Plan. The minimum hardship distribution is $1,000. LOANS TO PARTICIPANTS Loans are available to plan participants at the prime interest rate (as published by American National Bank of Chicago), under limited circumstances as described in the Plan. Loans to plan participants are secured by their vested balance in the Plan and may not exceed the lesser of 50% of their vested balance or $50,000. TERMINATION OF THE PLAN Although the Company has not expressed any intent to terminate the Plan, it may do so at any time, subject to the provisions of ERISA. (2)SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The accompanying financial statements have been prepared on the accrual basis of accounting and present the net assets available for plan benefits and the changes in those net assets. INVESTMENTS Investments are maintained in independent funds which are managed by the respective funds' money managers and overseen by the Plan's trustees. Investments are carried at fair value plus accrued interest/dividends. Purchases and sales of securities are recorded on a trade-date basis. 7 (Continued) ZEBRA TECHNOLOGIES CORPORATION PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements _______________________________________________________________________________ CONTRIBUTIONS Participants' contributions are recognized by the Plan when withheld from the participants by the Company. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions and deductions from net assets during the reporting period. Actual results could differ from those estimates. (3)FEDERAL INCOME TAXES The Plan has received a favorable determination letter from the Internal Revenue Service, dated August 17, 1993, indicating that it is qualified under Section 401(a) of the Internal Revenue Code and therefore, the related trust is exempt from tax under Section 501(a) of the Internal Revenue Code. The Plan's trustees are not aware of any activity or transactions that may adversely affect the qualified status of the Plan. (4)ADMINISTRATIVE EXPENSES Amounts forfeited by participants are used to offset administrative expenses of the Plan. To the extent administrative expenses exceed forfeitures, administrative expenses are paid by the Company. (5)NET ASSETS OF INACTIVE PARTICIPANTS At December 31, 1997, net assets available for benefits included $4,650 of 100% vested account balances of inactive participants who have terminated or retired and who have requested distribution, but have not yet been paid. 8 (Continued) ZEBRA TECHNOLOGIES CORPORATION PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements
__________________________________________________________________________________________________________________________________ (5) FUND INFORMATION Separate fund information for the years ended December 31, 1996 and 1997 is shown below: __________________________________________________________________________________________________________________________________ Net realized and unrealized Loans, Net assets appreciation transfers, Net assets at Contri- Benefits Investment (depreciation) and at Jan.1,1997 butions paid income in fair value miscellaneous Dec.31,1997 __________________________________________________________________________________________________________________________ Strong Government Securities Fund $ 1,437,869 232,895 - 78,611 (41,388) (98,898) 1,609,089 Alex Brown Money Market Fund 714,044 84,238 (4,874) 36,547 (48) (235,993) 593,914 AIM Constellation Fund 1,562,080 406,551 - 75,306 228,736 99,518 2,372,191 AIM Value Fund 1,260,095 319,418 - 87,985 138,084 27,562 1,833,144 GAM International Fund 1,143,326 205,920 - 5,720 111,812 45,587 1,512,365 MAS Value Fund 2,181,704 309,415 - 221,322 448,127 14,593 3,175,161 Zebra Technologies Corporation Common Stock Fund 161,602 48,778 - - (58,294) 13,105 165,191 Participant loans 389,695 - (48,700) 33,344 - 128,515 502,854 _________________________________________________________________________________________________________________________ Total investment funds 8,850,415 1,607,215 (53,574) 538,835 827,029 (6,011) 11,763,909 _________________________________________________________________________________________________________________________ Profit sharing contribution receivable 452,782 499,448 - - - (452,782) 499,448 Due from participants 18,114 82,664 - - - (18,114) 82,664 Miscellaneous receivables 2,119 - - - - (2,119) - Cash and cash equivalents 68,628 - (517,344) 1,956 - 479,026 32,266 _________________________________________________________________________________________________________________________ Total assets available for benefits $ 9,392,058 2,189,327 (570,918) 540,791 827,029 - 12,378,287 _________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________
9 (Continued) ZEBRA TECHNOLOGIES CORPORATION PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements
__________________________________________________________________________________________________________________________________ Net realized and unrealized Loans, Net assets appreciation transfers, Net assets at Contri- Benefits Investment (depreciation) and at Jan.1,1997 butions paid income in fair value miscellaneous Dec.31,1997 __________________________________________________________________________________________________________________________ Strong Government Securities Fund $ 1,609,089 257,170 210 101,329 40,482 (230,819) 1,777,461 Alex Brown Money Market Fund 593,914 127,036 (1,722) 36,764 (2,725) (44,985) 708,282 AIM Constellation Fund 2,372,191 15,892 - - 79,385 (2,467,468) - AIM Value Fund 1,833,144 362,370 176 248,991 204,814 (205,585) 2,443,910 AIM Balanced Fund - 66,090 177 24,403 54,305 366,060 511,035 Fidelity Low Priced Fund - 100,561 120 21,104 26,191 182,432 330,408 Putnam New Opportunities Fund - 435,379 120 70,915 371,315 2,246,043 3,123,772 GAM International Fund 1,512,365 280,746 116 101,915 363,110 (8,131) 2,250,121 MAS Value Fund 3,175,161 425,527 173 492,241 310,485 137,323 4,540,910 Zebra Technologies Corporation Common Stock Fund 165,191 62,412 - - 52,798 (24,432) 255,969 Participant loans 502,854 - (9,323) 48,216 - 207,646 749,393 _________________________________________________________________________________________________________________________ Total investment funds 11,763,909 2,133,183 (9,953) 1,145,878 1,500,160 158,084 16,691,261 _________________________________________________________________________________________________________________________ Profit sharing contribution receivable 499,448 671,697 - - - (499,448) 671,697 Due from participants 82,664 10,823 - - - (82,664) 10,823 Cash and cash equivalents 32,266 - (439,083) 767 - 424,028 17,978 _________________________________________________________________________________________________________________________ Total assets available for benefits $ 12,378,287 2,815,703 (499,036) 1,146,645 1,500,160 - 17,391,759 _________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________
10 (Continued) ZEBRA TECHNOLOGIES CORPORATION SCHEDULE 1 PROFIT SHARING AND SAVINGS PLAN Item 27a - Schedule of Assets Held for Investment Purposes December 31, 1997
_______________________________________________________________________________ Fair Description Cost value _______________________________________________________________________________ Strong Government Securities Fund $ 1,763,918 1,777,461 Alex Brown Money Market Fund 708,417 708,282 AIM Value Fund 2,238,033 2,443,910 AIM Balanced Fund 460,362 511,035 Fidelity Low Priced Fund 308,950 330,408 Putnam New Opportunities Fund 2,763,596 3,123,772 GAM International Fund 1,819,566 2,250,121 MAS Value Fund 4,027,505 4,540,910 Zebra Technologies Corporation Common Stock Fund 233,917 255,969 Participant loans (interest rates ranging from 5% to 12%) 749,393 749,393 _______________________________________________________________________________ Total assets held for investment purposes $ 15,073,657 16,691,261 _______________________________________________________________________________ _______________________________________________________________________________
See accompanying independent auditors' report. 11 ZEBRA TECHNOLOGIES CORPORATION SCHEDULE 2 PROFIT SHARING AND SAVINGS PLAN Schedule of Reportable Transactions Year ended December 31, 1997
_______________________________________________________________________________________________________________________________ Current value of Expenses incurred with trades asset on Purchase Selling ______________________________ Cost of transaction Net gain Description of security price price Purchases Sales Total security date (loss) _______________________________________________________________________________________________________________________________ Strong Government Securities Fund: 166 purchases $ 457,924 - 457,924 457,924 - 98 sales - 430,948 442,034 430,948 (11,086) Alex Brown Money Market Fund: 121 purchases 496,513 - 496,513 496,513 - 97 sales - 417,429 417,430 417,429 (1) AIM Constellation Fund: 19 purchases 64,979 - 64,979 64,979 - 31 sales - 2,516,398 2,308,417 2,516,398 207,981 AIM Value Fund: 186 purchases 690,364 - 690,364 690,364 - 92 sales - 610,638 555,250 610,638 55,388 AIM Balanced Fund: 185 purchases 559,621 - 559,621 559,621 - 40 sales - 115,063 114,076 115,063 987 Putnam New Opportunities Fund: 167 purchases 2,898,710 - 2,898,710 2,898,710 - 101 sales - 333,053 330,477 333,053 2,576 GAM International Fund: 207 purchases 578,488 - 578,488 578,488 - 111 sales - 348,332 289,282 348,332 59,050 MAS Value Fund: 243 purchases 1,015,330 - 1,015,330 1,015,330 - 100 sales - 418,924 362,112 418,924 56,812 Zebra Common Stock: 69 purchases 208,718 - 208,718 208,718 - 49 sales - 107,792 104,441 107,792 3,351 American National Bank Money Fund: 119 purchases 1,050,842 - 1,050,842 1,050,842 - 111 sales - 1,029,773 1,017,558 1,029,773 12,215 _______________________________________________________________________________________________________________________________
See accompanying independent auditors' report. 12 SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan's has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized. Zebra Technologies Corporation Profit Sharing and Savings Plan Date: July 9, 1998 By: /s/Edward L. Kaplan --------------------- Edward L. Kaplan Plan Trustee 13 EX-23.1 2 EX-23.1 CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS The Board of Directors Zebra Technologies Corporation: We consent to incorporation by reference in the registration statements on Form S-8 of Zebra Technologies Corporation of our report dated June 23, 1998, relating to the statements of net assets available for benefits of the Zebra Technologies Corporation Profit Sharing and Savings Plan as of December 31, 1996 and 1997, and the related statements of changes in net assets available for benefits for the years then ended, which report appears in the December 31, 1997 report on Form 11-K of the Zebra Technologies Corporation Profit Sharing and Savings Plan. /s/KPMG Peat Marwick LLP Chicago, Illinois July 9, 1998 -----END PRIVACY-ENHANCED MESSAGE-----