Commitments And Contingencies

12 Months Ended

Dec. 31, 2011

Commitments And Contingencies [Abstract]

Commitments And Contingencies

Note 12 Commitments and Contingencies

Leases. Minimum future obligations under all non-cancelable operating leases as of December 31, 2011 are as follows (in thousands):

	Operating     Leases
2012	$	10,888
2013		10,033
2014		6,905
2015		3,951
2016		3,003
Thereafter		6,759
Total minimum lease payments	$	41,539

Rent expense for operating leases charged to operations was as follows (in thousands):

	Year Ended December 31,
		2011		2010		2009
Rent expense	$	13,907	$	11,469	$	11,725

The operating lease information includes a variety of properties around the world. These properties are used as manufacturing facilities, distribution centers and sales offices. Lease terms range from one year to 17 years with breaking periods specified in the lease agreements.

Letters of Credit. In connection with various customer contracts, Zebra has entered into four letters of credit agreements with a bank. The contingent liability of Zebra under these agreements as of December 31, 2011, is $1,468,000. See below for letters of credit related to our revolving credit agreement.

Revolving Credit Agreement. On August 14, 2008, Zebra entered into a revolving credit agreement for a five-year $100 million revolving credit facility. The funds under this credit facility are available for general corporate purposes of Zebra and its subsidiaries in the ordinary course of business and other purposes permitted by the agreement.

This credit agreement is guaranteed by certain of Zebra's domestic subsidiaries. Loans under the agreement bear interest at a rate equal to the prime rate or a spread over the applicable LIBOR rate, as selected by Zebra. This spread for LIBOR-based loans depends on our ratio of Total Debt to EBITDA, as defined in the agreement, and ranges from 0.50% to 1.25%. The spread in effect at closing for LIBOR-based loans was 0.50%.

The credit agreement includes customary representations, warranties, affirmative and negative covenants (including, among others, restrictions on the payment of cash dividends) and events of default (and related remedies, including acceleration and increased interest rates following an event of default). It also contains financial covenants tied to Zebra's leverage ratio and fixed charge coverage ratio. As of December 31, 2011, we had established letters of credit amounting to $3,500,000, which reduce the funds available for borrowing under the agreement. As of December 31, 2011 and 2010, no amounts were outstanding under the credit agreement.

Legal Proceedings. On April 9, 2008, a complaint was filed in the U.S. District Court for the Northern District of Illinois by Barcode Informatica, Ltd. ("Barcode"), a former Brazilian reseller, against Zebra. The complaint alleged that Zebra wrongfully terminated Barcode's reseller status and tortiously interfered with Barcode's alleged bid for the sale of printers to a Brazilian customer. On March 23, 2011, the district court dismissed Barcode's case and on October 14, 2011, Barcode re-filed its lawsuit in Brazil. In January of 2012, the Brazilian lawsuit was settled by the parties and the lawsuit dismissed. The amount of the settlement was not significant.

We are 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. We currently believe that the outcomes of such proceedings, individually and in the aggregate, will not have a material adverse impact on our business, cash flows, financial position, or results of operations. Any legal proceedings are subject to inherent uncertainties, and management's view of these matters and their potential effects may change in the future.