10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-K

FOR ANNUAL AND TRANSITION REPORTS

PURSUANT TO SECTIONS 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                                         to                                          

COMMISSION FILE NUMBER 000-19406

Zebra Technologies Corporation

(Exact name of registrant as specified in its charter)

Delaware	36-2675536
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

475 Half Day Road, Suite 500, Lincolnshire, IL 60069

(Address of principal executive offices)            (Zip Code)

Registrant’s telephone number, including area code:    (847) 634-6700

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Exchange on which Registered
Class A Common Stock, par value $.01 per share	The NASDAQ Stock Market, LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer (as defined in Rule 405 of the Securities Act).   Yes X No         

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Securities Act. Yes          No X

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes X No         

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes X No         

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ X ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “accelerated filer,” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Securities Act) (Check one):

Large accelerated filer X	Accelerated filer
Non-accelerated filer            (Do not check if a smaller  reporting company)	Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Act). Yes          No X

As of June 30, 2012, the aggregate market value of each of the registrant’s Class A Common held by non-affiliates was approximately $1,775,843,000. The closing price of the Class A Common Stock on June 29, 2012, as reported on the Nasdaq Stock Market, was $34.36 per share.

As of February 8, 2013, 50,951,204 shares of Class A Common Stock, par value $.01 per share, were outstanding.

Documents Incorporated by Reference

Certain sections of the registrant’s Notice of Annual Meeting of Stockholders and Proxy Statement for its Annual Meeting of Stockholders to be held on May 16, 2013, are incorporated by reference into Part III of this report.

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ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

INDEX

		PAGE
PART I
Item 1.	Business	4
Item 1A.	Risk Factors	12
Item 1B.	Unresolved Staff Comments	16
Item 2.	Properties	17
Item 3.	Legal Proceedings	18
Item 4.	Mine Safety Disclosures	18
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	19
Item 6.	Selected Financial Data	20
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	39
Item 8.	Financial Statements and Supplementary Data	40
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosures	40
Item 9A.	Controls and Procedures	40
Item 9B.	Other Information	43
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	44
Item 11.	Executive Compensation	44
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	44
Item 13.	Certain Relationships and Related Transactions, and Director Independence	44
Item 14.	Principal Accounting Fees and Services	44
PART IV
Item 15.	Exhibits, Financial Statement Schedules	45
SIGNATURES
Signatures		46
CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE
Index to Consolidated Financial Statements and Schedule		F-1
EXHIBITS
Index to Exhibits

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PART I

References in this document to “Zebra,” “we,” “us,” or “our” refer to Zebra Technologies Corporation and its subsidiaries, unless the context specifically indicates otherwise.

Safe Harbor

Forward-looking statements contained in this filing are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995 and are highly dependent upon a variety of important factors which could cause actual results to differ materially from those expressed or implied in such forward looking statements. These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra’s industry, market conditions, general domestic and international economic conditions, and other factors. These factors include:

• Market acceptance of Zebra’s printer and software products and competitors’ product offerings and the potential effects of technological changes,

• The effect of global market conditions, including North America, Latin America, Asia Pacific, Europe, Middle East and Africa and other regions in which we do business,

• Our ability to control manufacturing and operating costs,

• The availability of credit and the volatility of capital markets, which may affect our suppliers and customers,

• Success of integrating acquisitions,

• Interest rate and financial market conditions because of our large investment portfolio,

• The effect of natural disasters on our business,

• Foreign exchange rates due to the large percentage of our international sales and operations, and

• The outcome of litigation in which Zebra is involved, particularly litigation or claims related to infringement of third-party intellectual property rights.

When used in this document and documents referenced, the words “anticipate,” “believe,” “estimate,” “will” and “expect” and similar expressions as they relate to Zebra or its management are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. We encourage readers of this report to review Item 1A, “Risk Factors,” in this report for further discussion of issues that could affect Zebra’s future results. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this report.

Item 1. Business

The Company

Zebra is a global leader respected for innovation and reliability which offers products and solutions that enable organizations to gain greater insight into their operations. Improved visibility allows our customers to create value by managing their assets, transactions and people better.

Zebra’s extensive portfolio of marking and printing technologies, which including barcode, RFID, GPS and sensoring, captures physical events in digital form to give operational events a virtual voice. This capture enables organizations to know in real-time the location, condition, timing and accuracy of events occurring throughout their value chain. Once the events are seen, organizations can create new value from what is already there.

We design, manufacture and sell specialty printing devices that print variable information on demand at the point of issuance. These devices are used worldwide by manufacturers, service and retail organizations and governments for automatic identification, data collection and personal identification in applications that improve productivity, deliver better customer service and provide more effective security. Our product range consists of direct thermal and thermal transfer label and receipt printers, passive radio frequency identification (RFID) printer/encoders and dye sublimation card printers. We also sell a comprehensive range of specialty supplies consisting of self-adhesive labels, thermal transfer ribbons, thermal printheads, batteries and other accessories, including software for label design, application development and printer network management.

Zebra also designs and sells solutions incorporating active RFID, telematics and ultra wideband radio (UWB) technologies. These solutions help businesses locate and or track assets and people in real time. They use battery-powered wireless tags, fixed-position antennae, transponder modules and application software. We also provide consulting services, maintenance contracts and software licenses related to these solutions.

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In July of 2012, Zebra acquired LaserBand LLC (a Missouri limited liability company). LaserBand is a leader in patient identification wristbands and related products. LaserBand strengthens Zebra’s product and patent portfolio and enables Zebra to offer a wider array of products to hospitals, other healthcare organizations and other customers that use wristbands in their operations.

In December of 2012, Zebra acquired StepOne Systems. StepOne is a mobility software company that empowers store associates by giving them access to product details as well as store and company inventories to better serve their customers. StepOne’s retail application platform is incorporated into Zebra’s fully integrated mobile point-of-sale (POS) offering, which retail customers use to create a more personal customer engagement and improve the overall shopping experience.

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 ZES business to Cargotec Corporation.

Sale of proveo AG - On August 3, 2011, we entered into a Share Purchase Agreement with F Two NV (a Belgium company) and sold all of our interest in Zebra Enterprise Solutions GmbH (formerly proveo AG) business.

Beginning in the first quarter of 2011, Zebra reported the results of these businesses as discontinued operations. The amounts presented in Zebra’s financial statements for discontinued operations include Navis and proveo assets and liabilities, and the operating results of these businesses for 2012, 2011 and 2010. With the sale of Navis, we integrated the remaining ZES business into our location solutions operations.

Continuing Operations

Zebra’s continuing operations include our printers, supplies and services business and our location solutions operations.

Zebra’s printer operations

We design our printer products to produce high-quality labels, wristbands, tickets, receipts, and plastic cards on demand. The exceptional diversity of applications using our printer products for barcoding and personal identification includes routing and tracking, patient safety, transaction processing, and identification and authentication. These applications require high levels of data accuracy, where speed, reliability and durability are critical. They also include specialty printing for receipts and tickets for improved customer service and productivity gains. Plastic cards are used for secure, reliable personal identification (state id cards and drivers licenses), access control and financial cards (credit, debit and ATM cards) by financial institutions.

Applications for our printing solutions span most industries and geographies. They include inventory control, small package delivery, baggage handling, automated warehousing, just-in-time (JIT) manufacturing, employee time and attendance records, file management systems, patient barcode wrist banding, medical specimen labeling, shop floor control, in-store product labeling, employee ID cards, driver’s licenses, and access control systems. As of December 31, 2012, management estimates that Zebra has sold more than 11,900,000 printers to customers around the world.

We believe competitive forces on businesses worldwide drive them to strengthen security, reduce costs, more effectively manage assets, improve quality, deliver better customer service, and increase productivity support the adoption of the printing and automatic identification applications Zebra provides. These solutions deliver significant and predictable economic benefits. Many of Zebra’s applications enhance the use of enterprise resource planning (ERP) and other process improvement systems in manufacturing and service organizations. Greater emphasis on supply chain management, the drive to reduce errors in healthcare, and heightened concern over safety and security are also increasing the use of automatic identification systems. Still other applications are taking advantage of recent advances in wireless and hand-held computing technologies.

Concern for safety and security and personal identification contribute to demand for our card printer products. This concern has heightened interest in systems that provide personal identification and access control, including secure ID systems for driver’s licenses, employee and visitor badges, national identification cards, event passes, club membership cards and keyless entry systems. Financial institutions utilize card printers for credit, debit and ATM cards.

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Our printers are used to print barcode labels, receipts, plastic identification cards, wristbands, and tags and to encode passive RFID “smart” labels and cards. We also sell related specialty labeling materials, thermal ink ribbons, and barcode label design and network management software. These products are used to support barcode labeling, personal identification, and specialty printing solutions principally in the manufacturing supply chain, retail, healthcare and government sectors of the economy.

We work closely with distributors, value-added resellers, kiosk manufacturers and end users of our products to design and implement printing solutions that meet their technical demands. To achieve this flexibility, we provide our customers with a broad selection of printer models, each of which can be configured for specific applications. Additionally, we will select and, if necessary, create appropriate labeling stock, ink ribbons and adhesives to suit a particular application. In-house engineering personnel in software, mechanical, electronic and chemical engineering participate in the creation and development of printing solutions for particular applications.

We produce the industry’s broadest range of rugged, on-demand thermal transfer and direct thermal printers. Our printing systems include hundreds of optional configurations that can be selected to meet particular customer needs. We believe this breadth of product offering is a unique and significant competitive strength.

Of the major printing technologies, which include ink jet, laser and impact dot matrix, we believe that direct thermal and thermal transfer technologies are best suited for most barcode labeling and other on-demand printing applications. Thermal transfer printing produces durable dark, solid blacks and sharply defined lines that are important for printing readily scannable barcodes. These images can be printed on a wide variety of labeling materials, which enable users to affix barcode labels to virtually any object. This capability is very important in the industrial and service sectors Zebra serves. Direct thermal printing is best suited where ease of use, smaller size and cost are important factors in the application. Accordingly, this technology is found principally in Zebra’s mobile and desktop units.

As of December 31, 2012, we offered 54 thermal printer models with numerous variations, in seven categories as follows:

• Tabletop printers for applications requiring continuous operation in high output, mission-critical and industrial settings as well as demanding commercial applications.

• Desktop printers to deliver value and performance in applications with lower volume or space restrictions.

• Mobile printers to meet the printing needs of mobile workers in a broad range of industries.

• Print engines, which are sold to manufacturers and integrators of high-speed automatic label applicator systems and are available with or without RFID smart label capabilities.

• Kiosk and ticket printers for use in kiosks and other unattended printing applications.

• Card printers, which print and encode national identity cards, driver’s licenses, employee identification badges, gift cards, personalized cards and financial cards (credit, debit and ATM cards).

• RFID printer/encoders for passive high frequency and ultra-high frequency radio frequency identification in the retail supply chain, for defense logistics, and other applications. These units are used to print and encode “smart labels” in a single pass. Smart labels are printable labels embedded with an ultra-thin radio frequency transponder. Information encoded in these transponders can then be read and modified by a radio frequency reader.

In addition to their use in on-demand automatic identification applications, our thermal printers can also be used for on-site batch production of custom barcode labels and other graphics. This capability results in shorter lead times, reduced inventory, and more flexibility than can be provided with traditional off-site printing.

Zebra’s location solutions

Zebra offers a range of solutions and services that enable businesses to have visibility into the location and movement of its personnel and assets with real-time locating systems.

Zebra’s location solutions incorporate active RFID technology. Our software and hardware locate, track, manage, and maximize the utilization of high-value assets, equipment, and people. Whether tracking pallets through a supply chain, the flow of work in process, optimizing product fulfillment, or providing wide-area asset traceability, our real-time location solutions provide constant visibility and accurate location.

Zebra provides asset tags, call tags, sensors, exciters and application software. Each tag contains a unique ID that users can associate to a specific asset, part, workstation or person. The complementary technologies in our location solutions work seamlessly together to provide customers with asset visibility and tracking.

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Applications for our location solutions span a broad array of industries where tracking assets, transactions and people are critical. Our location solutions are deployed primarily in industrial manufacturing, process industries, aerospace, transportation and logistics and healthcare environments.

Printer supplies

Supplies products consist of stock and customized thermal labels, wristbands, plastic cards, card laminates and thermal transfer ribbons. Zebra promotes the use of genuine Zebra brand supplies with its printing equipment.

We fully support our printers, resellers and end users with an extensive line of superior quality, high-performance supplies optimized to a particular user’s needs. Supplies are chosen in consultation with the reseller and end user based on the specific application, printer and environment in which the labeling system must perform. These printing solutions frequently include proprietary ribbon and label formulations that are designed to optimize image resolution and printer performance while meeting the most demanding end user application performance criteria. Factors such as adhesion, resistance to scratches, smudges and abrasion, and chemical and environmental exposures are all taken into account when selecting the type of ribbon and labeling materials. The use of supplies that are not carefully matched to specific printers can degrade image quality, and decrease the life of key printer components such as printheads.

Zebra also provides a family of self-laminating wristbands for use in laser printers. These wristbands are marketed under the LaserBand name.

Printer related software

Our goal is to provide solutions that enable high levels of functionality to all major computer network and software systems. Zebra has specialized printer management, label design, printer drivers and application development solutions to help unlock the full potential of Zebra printers. Our Link-OS™ suite of networking, software, device operating system offerings, makes Zebra’s printers easy to use and integrate into small, medium and enterprise-wide environments. Zebra connectivity solutions include support for Ethernet, 802.11a/b/g/n, and Bluetooth^®. Integration with multiple device operating systems, such as Microsoft^® Windows^® , Android™, iOS, UNIX and Linux, are supported.

We also offer design and integration software specifically designed to optimize the performance of Zebra label and card printers. Our suite of tools includes CardStudio™, ZebraDesigner™, ZebraDesigner™ Pro, ZebraDesigner™ for XML, and ZebraDesigner™ Label Design Software for use with mySAP™ Business Suite. Zebra’s Enterprise Connector Solution for Oracle^® Business Intelligence Publisher™, delivers seamless integration between Oracle and Zebra printers, creating a versatile, easily managed, cost-effective printing platform.

Printer maintenance and services

Zebra provides depot maintenance and repair services at repair centers in Vernon Hills, Illinois, United States; Etobicoke, Ontario, Canada; Mexico City, Mexico; Preston, United Kingdom; Singapore; Shanghai, China; Heerenveen, Netherlands; Sydney, Australia; and Sao Paulo, Brazil. Zebra Authorized Service Providers (ZASP) also provide repair services for most Zebra products at their locations. In addition, Zebra offers on-site repair services for tabletop printers in the United States. Outside of the United States, Zebra’s resellers may provide maintenance service, either directly as ZASPs or through independent service agents. Zebra also provides technical support from in-house support personnel located in the United States, the United Kingdom and Singapore. For most Zebra products, Zebra provides interactive technical support via the Internet at www.zebra.com, 24 hours per day, seven days per week.

Printer warranties

In general, Zebra provides one year of warranty coverage on our printers against defects in material and workmanship. Our printheads are warranted for nine months, and our batteries are warranted for twelve months. Zebra supplies are warranted against defects in material and workmanship for their stated shelf life or twelve months, whichever ends first. Defective equipment and supplies may be returned for repair or replacement during the applicable warranty periods.

Zebra’s technology

Our customers rely on Zebra to provide products and systems to help identify, authenticate, track or route both items and people, and then process the related transactions. These products and systems use technologies that provide specific benefits in each application.

All Zebra printers and print engines incorporate thermal printing technology, either direct thermal printing, thermal transfer printing or dye-sublimation printing. This technology creates an image by heating certain pixels of an electrical printhead to selectively image a ribbon or heat-sensitive substrate.

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Direct thermal printers apply the heat directly to a thermally-sensitive label, wristband, or receipt to create an image. This form of thermal printing technology benefits applications requiring simple and reliable operations such as shelf labeling, patient identification, and kiosk receipts. Some desktop label printers, mobile printers and kiosk printers support only direct thermal printing.

Thermal transfer printers apply heat to a ribbon to release ink onto labels or tags. This form of thermal printing technology allows a wider range of specialty label materials and associated inks to be used for applications such as circuit board labels, chemical identification and product labels that require resistance to chemicals, temperature extremes, abrasion, or labels requiring a long shelf life. Most of our printers in our high performance, midrange, print engine, desktop and mobile categories use thermal transfer printing but can also support direct thermal printing.

Dye-sublimation card printers apply heat to a ribbon to release a dye that is absorbed into a plastic card, retransfer film or treated paper. This process creates full-color, photographic quality images that are well-suited for driver’s licenses, access and identification cards, transaction cards, on-demand photographs, and financial cards (credit, debit and ATM cards).

Direct thermal and thermal transfer printers create crisp images at high speeds, making them ideal for printing easily readable text and machine readable barcodes. Dye sublimation thermal printers quickly create full-color images with visual characteristics more similar to halide-based film than to pixel-based ink jet or laser printers, making them ideal for high quality photographs and personalized plastic cards. Some printers also include HF (13.56 MHz) or UHF (860-960 MHz) RFID technology that can encode data into passive RFID transponders embedded in a label, card, or wristband.

Zebra’s printers integrate company-designed mechanisms, electrical systems, and firmware. Enclosures of metal or high-impact plastic ensure the durability of our printers. Special mechanisms optimize handling of labels, ribbons, and plastic cards. Fast, high-current electrical systems provide consistent image quality. Mobile printers use NiMH or LiIon batteries to optimize print quality over an extended operating shift. Firmware supports serial, parallel, Ethernet, USB, infrared, Bluetooth, or 802.11a/b/g/n wireless communications with appropriate security protocols. Printing instructions can be received as a proprietary language such as Zebra Programming Language II (ZPL II^®), as a print driver-provided image, or as user-defined XML. These features make our printers easy to integrate into virtually all common computer systems including those operating on UNIX, Linux, or Microsoft^® Windows^® operating systems. Some independent software vendors, including Adobe, Oracle and SAP, have included Zebra printing support in applications for healthcare, warehouse management, manufacturing, passenger transportation, and retailing.

Printer sales and marketing

Sales. We sell our printer products primarily through distributors, value-added resellers (VARs), and original equipment manufacturers (OEMs). We also sell our printer products directly to a select number of named customer accounts. For media and consumables, we sell directly to end users through the Internet and telesales operations. Distributors and VARs purchase, stock and sell a variety of automatic identification components from different manufacturers and customize systems for end-user applications using their systems and application integration expertise. Because these sales channels provide specific software, configuration, installation, integration and support services required by end users within various market segments, these relationships allow us to reach end users throughout the world in a wide variety of industries. We experience a minor amount of seasonality in sales, depending on the geographic region and industry served.

We functionally classify our direct VARs as Premier Partners, Advanced Partners, or Associate Partners, depending on their business competencies, depth and breadth of their sales teams, customer support capabilities, contributions to Zebra’s strategic goals and sales commitment to Zebra. In addition, we offer VARs the opportunity to earn certifications for mobile/wireless printers, supplies, services and RFID products in specific industries. We also sell through distributors, which in turn sell to an extended VAR community. All VARs, as well as OEMs and systems integrators, provide customers with a variety of automatic identification components including scanners, accessories, applications software and systems integration expertise, and, in the case of some OEMs, resell the Zebra-manufactured products under their own brands as part of their own product offering. We believe that the breadth of this indirect channel network, both in terms of variety and geographic scope, enhances our ability to compete and more effectively offer our solutions to a greater number of end users.

In some instances, we have designated a customer as a strategic account when the customer is in a targeted high-growth industry with applications for Zebra solutions that span our product categories. Zebra sales personnel, either alone or together with our channel partners, manage these strategic accounts to ensure their needs are being met.

The sales function also encompasses a team that manages three global alliances. They direct the business development strategies for third-party relationships that are strategic to new demand creation for specific vertical markets and/or specific applications.

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Marketing. Marketing operations encompass global corporate marketing, field marketing, product marketing, industry marketing, market research and channel marketing functions. Corporate marketing manages our Zebra brand globally, corporate public relations, internal communications and our web site. Corporate marketing is also responsible for market research and planning and industry marketing. Product marketing focuses on market analysis, positioning, product launch support and analyzes Zebra’s competitive strengths and weaknesses. Field marketing encompasses demand generation, channel program management and marketing and sales enablement.

Printer production and manufacturing

We design our products to optimize product performance, quality, reliability, durability and versatility. These designs combine cost-efficient materials, sourcing and assembly methods with high standards of workmanship.

In 2010 we completed the transfer of final printer assembly to a third-party manufacturer, Jabil Circuit, Inc. This action reduces product costs and optimized our global printer product supply chain. It has enabled us to be more responsive to customer needs and increase Zebra’s flexibility to meet emerging business opportunities.

Jabil produces our printers to our design specifications in the quantities we order. We maintain control over portions of the supply chain including supplier selection and price negotiations of key component parts. Jabil is responsible for the procurement of the component parts and subassemblies used in the Zebra printers it produces. Zebra has a subsidiary located in Guangzhou, China, and has an office located near the Jabil facility in China where our products are assembled. This office is staffed with our sourcing, engineering and quality personnel to help ensure that we receive optimal raw material pricing, manufacturing process controls are maintained and the final printers meet our quality standards. The majority of our printers manufactured by Jabil are shipped to our regional distribution centers. A small percentage of products are reconfigured at Zebra’s distribution centers through firmware downloads, packaging and customer specific customization before they are shipped to customers. In addition, certain products are manufactured in accordance with Federal procurement regulations and various international trade agreements, and remain eligible for sale to the United States government.

Competition

Many companies are engaged in the design, manufacture and marketing of barcode label printers, RFID printer/encoders, card personalization and active RFID/Real Time Locating System (RTLS) solutions.

We consider our direct competition in barcode label and receipt printing to be producers of on-demand thermal transfer and direct thermal label printing systems, printer/encoders, mobile printers and supplies. We also compete with companies engaged in the design, manufacture and marketing of printing systems that use alternative technologies, such as ink-jet and laser printing. Many of these companies are substantially larger than Zebra.

Dye sublimation, the technology used in our card printers, is only one of several commercially available processes used to personalize cards. We also compete with companies that produce identification cards using alternative technologies, which include ink-jet, thermal transfer, embossing, film-based systems, encoders, laser engraving and large-scale dye sublimation printers. These card personalization technologies offer viable alternatives to Zebra’s card printers and provide effective competition from a variety of companies, many of which are substantially larger than us. In addition, service bureaus compete for end user business and provide an alternative to the purchase of our card printing equipment and supplies.

We compete with a diverse group of small companies marketing RTLS solutions.

Our ability to compete effectively depends on a number of factors. These factors include the reliability, quality and reputation of the manufacturer and its products; hardware and software innovations and specifications; breadth of product offerings; information systems connectivity; price; level of technical support; supplies and applications support offered by the manufacturer; available distribution channels; and financial resources to support new product design and innovation. We believe that Zebra presently competes favorably with respect to these factors.

We face competition in our printing business from many printer companies, including the following (listed in alphabetical order): Argox; Avery Dennison; Bixolon; Blue Bamboo; Boca Systems; Brother International; Canon; CIM; Citizen; Cognitive TPG; Custom; Danaher; Datacard; Datamax-O’Neil, a unit of Dover Corporation; Dymo, a Newell Rubbermaid Company; Epson; Evolis; Fargo Electronics, a unit of HID Global; Godex; Hewlett-Packard; Hitachi; Intermec Inc.; Lexmark International; MagiCard; Matica; Microcom; Mitsubishi; NBS Technologies; Nisca; Oki Data; Olympus; Practical Automation; Printronix; Sato; Seiko Instruments; Song Woo Electronics; Sony; Star Micronics; Taiwan Semiconductor; Toshiba TEC; Victor Data Systems; Woosim; and Xerox.

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The supplies business is highly fragmented and competition is comprised of numerous competitors of various sizes depending on the geographic area.

Zebra’s competitors in the location solutions products include Aeroscout, Ekahau and Ubisense.

Alternative printing technologies

We believe thermal printing will be the preferred label, card and receipt printer technology in Zebra’s target applications for the foreseeable future. Among the many advantages of direct thermal and thermal transfer printing is the ability to print high-resolution, durable images on a wide variety of label materials at relatively low costs and high speeds compared with alternative printing technologies. We view passive RFID smart label encoding and active RFID location systems as complementary technologies to barcoded printing, offering growth opportunities for Zebra as the technologies become more widely adopted.

If other technologies were to evolve or become available, it is possible that those technologies would be incorporated into our products. Alternatively, if such technologies were to evolve or become available to our competitors, our products may become obsolete. This obsolescence would have a significant negative effect on our business, financial position, results of operations and cash flows.

Therefore, we continually assess competitive and complementary methods of barcode printing and other means of automatic identification. Alternative print technologies include ink jet, laser and direct marking. While we cannot be sure that new technology will not supplant thermal printing for labels, cards and receipts, we are not aware of any developing technology that offers the advantages of thermal printing for our targeted applications. We continually monitor and evaluate new RFID technologies, support standards development and rapidly adopt RFID into new Zebra products and systems as new markets and applications emerge.

Customers

Zebra has sold more than 11,900,000 thermal printers to customers as of December 31, 2012. Zebra had three customers that accounted for 10% or more of its sales. All three of these customers are distributors and not end users. Our net sales to significant customers as a percentage of total net sales were as follows:

	Year Ended December 31,
	2012			2011			2010
Customer A		20.4	%		20.7	%		19.8	%
Customer B		11.4	%		10.5	%		9.8	%
Customer C		10.3	%		8.9	%		8.0	%

No other customer accounted for 10% or more of total net sales during these years.

Sales

Net sales by product category for the last three years were (in thousands):

	Year Ended December 31,
Product Category	2012		2011		2010
Hardware	$	730,489	$	743,308	$	676,738
Supplies		212,499		187,457		167,633
Service and software		47,941		47,206		44,829
Subtotal		990,929		977,971		889,200
Shipping and handling		5,239		5,517		5,159
Total net sales	$	996,168	$	983,488	$	894,359

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Net sales to international customers, as a percent of total net sales, were as follows:

	Year Ended December 31,
	2012			2011			2010
Percent of net sales		56.2	%		58.4	%		55.9	%

We believe that international sales are likely to increase faster than domestic sales because of the lower penetration of automatic identification applications outside North America and Western Europe and generally higher economic growth rates in developing countries. As a result, Zebra has invested resources to support our international growth and currently operates facilities and sales offices, or has representation, in 30 different countries.

Research and Development

Zebra’s research and development expenditures for the last three years were as follows (in thousands, except percentages):

	Year Ended December 31,
	2012			2011			2010
Research and development expenses	$	87,364		$	89,926		$	82,575
Percent of net sales		8.8	%		9.1	%		9.2	%

We devote significant resources to developing new printing solutions for our target markets and ensuring that our products maintain high levels of reliability and value to our customers.

Intellectual Property Rights

Zebra relies on a combination of trade secrets, patents, trademarks, copyrights and contractual rights to establish and protect its innovations. We hold over 200 domestic and international trademarks. We hold over 700 United States and foreign patents and patent applications. The expiration of any individual patent would not have a significant negative impact on our business.

Despite our efforts to protect our intellectual property rights, it may be possible for unauthorized third parties to copy portions of our products or to reverse engineer or otherwise obtain and use some technology and information that we regard as proprietary. Moreover, the laws of some countries do not afford Zebra the same protection to proprietary rights, as do United States laws. There can be no assurance that legal protections relied upon by Zebra to protect its proprietary position will be adequate. While Zebra’s intellectual property is valuable and provides certain competitive advantages, we do not believe that the legal protections afforded to our intellectual property are fundamental to our success.

Other trademarks mentioned in this report are the property of their respective holders and include IBM, a registered trademark of International Business Machines; UNIX, a registered trademark of UNIX Systems Laboratories; MS/DOS and Windows, registered trademarks of Microsoft; SAP, a registered trademark of SAP AG; and Linux, a registered trademark of Linus Torvalds. Bluetooth is a trademark owned by Bluetooth SIG and used by Zebra under license.

Employees

As of January 26, 2013, Zebra employed approximately 2,544 persons, of which 265 are corporate employees. None of our employees are members of a union. Some portions of our business, primarily in Europe and China, are subject to labor laws that differ significantly from those in the United States. For example, in Europe, it is common for a works council to represent employees when discussing matters such as compensation, benefits or terminations of employment. We consider our employee relations to be very good.

Contact Information

Zebra Technologies Corporation is a Delaware corporation. Our principal offices are located at 475 Half Day Road, Suite 500, Lincolnshire, Illinois 60069. Our main telephone number is (847) 634-6700 and our primary Internet Web site address is www.zebra.com. You can find all of Zebra’s filings with the SEC free of charge through the investor page on this Web site, immediately upon filing.

Additional Information

For financial information regarding Zebra, see Zebra’s Consolidated Financial Statements and the related Notes, which are included in this Annual Report on Form 10-K.

11

Item 1A. Risk Factors

Investors should carefully consider the risks, uncertainties and other factors described below, as well as other disclosures in Management’s Discussion and Analysis of Financial Condition and Results of Operations, because they could have a material adverse effect on Zebra’s business, financial condition, operating results, cash flows and growth prospects.

Final assembly of our thermal printers and our location solutions products is performed by Jabil Circuit, a third-party electronics manufacturer. We are dependent on Jabil as a sole source of supply for the manufacture of such products. A failure by Jabil to provide manufacturing services to Zebra as Zebra requires, or any disruption in such manufacturing services, may adversely affect Zebra’s business results. Because we rely on a third-party provider such as Jabil to manufacture our products, Zebra may incur increased business continuity risks. Zebra is no longer able to exercise direct control over the assembly or related operations of its thermal printers and location solution products. If Jabil experiences business difficulties or fails to meet Zebra’s manufacturing needs, then Zebra may be unable to satisfy customer product demands, lose sales and be unable to maintain customer relationships. Longer production lead times may result in shortages of certain products and inadequate inventories during periods of unanticipated higher demand. Without Jabil’s continuing manufacture of Zebra’s products, Zebra will have no other means of final assembly of its thermal printers and location solution products until Zebra is able to secure the manufacturing capability at another facility or develop an alternative manufacturing facility. This transition could be costly and time consuming.

Although Zebra carries business interruption insurance to cover lost sales and profits in an amount it considers adequate, in the event of supply disruption, this insurance does not cover all possible situations. In addition, the business interruption insurance would not compensate Zebra for the loss of opportunity and potential adverse impact, both short-term and long-term, on relations with our existing customers.

Zebra has significant operations outside the United States and sells a significant portion of its products internationally and purchases important components, including final products, from foreign suppliers. These circumstances create a number of risks. Zebra has significant operations outside the United States which present added risks. In addition, Zebra sells a significant amount of its products to customers outside the United States. Shipments to international customers are expected to continue to account for a material portion of net sales. Zebra also expects to continue the use of third-party contract manufacturing services with overseas production and assembly of our products.

Risks associated with operations, sales and purchases outside the United States include:

• Fluctuating foreign currency rates could restrict sales, or increase costs of purchasing, in foreign countries,

• Volatility in foreign credit markets may affect our customers and suppliers,

• Adverse changes in, or uncertainty of, local business laws or practices, including the following:

• Foreign governments may impose burdensome tariffs, quotas, taxes, trade barriers or capital flow restrictions,

• Restrictions on the export or import of technology may reduce or eliminate the ability to sell in or purchase from certain markets,

• Political and economic instability may reduce demand for our products, or put our foreign assets at risk,

• Potentially limited intellectual property protection in certain countries may limit recourse against infringing products or cause Zebra to refrain from selling in certain geographic territories,

• Staffing and turnover at international operations may be unusually difficult,

• A government controlled exchange rate and limitations on the convertibility of the Chinese yuan,

• Transportation delays that may affect production and distribution of Zebra’s products, and

• Inadequately managing and overseeing operations that are distant and remote from corporate headquarters.

Customers have the right to return products that do not function properly within a limited time after delivery.

Zebra monitors and tracks product returns and records a provision for the estimated future returns based on historical experience and any notification received of pending returns. Zebra, however, cannot guarantee that it will continue to experience return rates consistent with historical patterns.

Zebra may not be able to continue to develop products to address user needs effectively in an industry characterized by ongoing change. To be successful, Zebra must adapt to rapidly changing technological and application needs by continually improving its products as well as introducing new products and services to address user demands.

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Zebra’s industry is characterized by:

• Evolving industry standards,

• Frequent new product and service introductions,

• Evolving distribution channels,

• Increasing demand for customized product and software solutions, and

• Changing customer demands.

Future success will depend on Zebra’s ability to effectively and economically adapt in this evolving environment. Zebra could incur substantial costs if it has to modify its business to adapt to these changes, and may even be unable to adapt to these changes.

Zebra competes in a competitive industry, which may become more competitive. Competitors may be able to respond more quickly to new or emerging technology and changes in customer requirements. Zebra faces significant competition in developing and selling its products and solutions. Some competitors have substantial marketing, financial, development and personnel resources. To remain competitive, Zebra believes it must continue to effectively provide and economically:

• Technologically advanced systems that satisfy user demands,

• Superior customer service,

• High levels of quality and reliability, and

• Dependable and efficient distribution networks.

Zebra cannot assure it will be able to compete successfully against current or future competitors. Increased competition in printers or supplies may result in price reductions, lower gross profit margins and loss of market share, and could require increased spending on research and development, sales and marketing and customer support. Some competitors may make strategic acquisitions or establish cooperative relationships with suppliers or companies that produce complementary products, which may create additional pressures on Zebra’s competitive position in the marketplace.

Zebra is vulnerable to the potential difficulties associated with the increase in the complexity of its business. Zebra has grown rapidly over the last several years through domestic and international growth. This growth has caused increased complexities in the business. We believe our future success depends in part on our ability to manage our growth and increased complexities of our business and the demands from increased responsibility on our management personnel. The following factors could present difficulties to us:

• Compliance with evolving laws and regulations in multiple international jurisdictions,

• Managing our distribution channel partners,

• Managing our contract manufacturing and supply chain,

• Manufacturing an increased number of products,

• Increased administrative and operational burden,

• Maintaining and improving information technology infrastructure to support growth,

• Increased logistical problems common to complex, expansive operations, and

• Managing increasing international operations.

Zebra could encounter difficulties in any acquisition it undertakes, including unanticipated integration problems and business disruption. Acquisitions could also dilute stockholder value and adversely affect operating results. Zebra may acquire or make investments in other businesses, technologies, services or products. An acquisition may present business issues which are new to Zebra. The process of integrating any acquired business, technology, service or product into operations may result in unforeseen operating difficulties and expenditures. Integration of an acquired company also may consume considerable management time and attention, which could otherwise be available for ongoing operations and development of the business. The expected benefits of any acquisition may not be realized.

Acquisitions also may involve a number of risks:

• Difficulties and uncertainties in transitioning the customers or other business relationships from the acquired entities to Zebra,

• The loss of key employees of acquired entities,

• The ability of acquired entities to fulfill obligations to their customers,

• The discovery of unanticipated issues or liabilities,

• The failure of acquired entities to meet or exceed expected returns, and

• The acquired entities’ ability to improve internal controls and accounting systems to be compliant with requirements applicable to public companies subject to SEC reporting.

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Future acquisitions could result in potentially dilutive issuances of equity securities or the incurrence of debt and contingent liabilities.

Zebra sources some of its component parts from sole source suppliers. A disruption in the supply of such component parts could have a material adverse effect on our ability to meet customer demand and negatively affect our financial results.

Infringement by Zebra or Zebra suppliers on the proprietary rights of others could put Zebra at a competitive disadvantage, and any related litigation could be time consuming and costly. Third parties may claim that Zebra or Zebra suppliers violated their intellectual property rights. To the extent of a violation of a third party’s patent or other intellectual property right, Zebra may be prevented from operating its business as planned, and may be required to pay damages, to obtain a license, if available, or to use a non-infringing method, if possible, to accomplish its objectives. Any of these claims, with or without merit, could result in costly litigation and divert the attention of key personnel. If such claims are successful, they could result in costly judgments or settlements. Also, as new technologies emerge, such as RFID, the intellectual property rights of parties in such technologies can be uncertain. As a result, products involving such technologies may have higher risk of claims of infringement of the intellectual proprietary rights of third parties.

The inability to protect intellectual property could harm Zebra’s reputation, and its competitive position may be materially damaged. Zebra’s intellectual property is valuable and provides Zebra with certain competitive advantages. Copyrights, patents, trademarks, trade secrets and contracts are used to protect these proprietary rights. Despite these precautions, third parties may be able to copy or reproduce aspects of Zebra’s intellectual property and its products or, without authorization, to misappropriate and use information which Zebra regards as its trade secrets.

Zebra may incur liabilities as a result of product failures due to actual or apparent design or manufacturing defects. Zebra may be subject to product liability claims, which could include claims for property or economic damage or personal injury, in the event our products present actual or apparent design or manufacturing defects. Such design or manufacturing defects may occur not only in Zebra’s own designed products but also in components provided by third party suppliers. Zebra generally has insurance protection against property damage and personal injury liabilities and also seeks to limit such risk through product design, manufacturing quality control processes, product testing and contractual indemnification from suppliers. However, due to the large and growing size of Zebra’s installed printer base, a design or manufacturing defect involving this large installed printer base could result in product recalls or customer service costs that could have material adverse effects on Zebra’s financial results.

Zebra’s products are subject to U.S. and non-U.S. foreign regulations that pertain to electrical and electronic equipment, which may materially adversely affect Zebra’s business. These regulations influence the design, components or operation of such products. New regulations and changes to current regulations are always possible and, in some jurisdictions, regulations may be introduced with little or no time to bring related products into compliance with these regulations. Zebra’s failure to comply with these regulations may prevent Zebra from selling our products in a certain country. In addition, these regulations may increase our cost of supplying the products by forcing us to redesign existing products or to use more expensive designs or components. In these cases, Zebra may experience unexpected disruptions in our ability to supply customers with products, or we may incur unexpected costs or operational complexities to bring products into compliance. This could have an adverse effect on Zebra’s revenues, gross profit margins and results of operations and increase the volatility of our financial results.

Zebra is implementing a new company-wide enterprise resource planning (ERP) system. The implementation process is complex and involves a number of risks that may adversely affect Zebra’s business and results of operations. Zebra is currently replacing its multiple legacy business systems at its different sites with a new company-wide, integrated enterprise resource planning (ERP) system to handle various business, operating and financial processes for Zebra and its subsidiaries. The new system will enhance a variety of important functions, such as order entry, invoicing, accounts receivable, accounts payable, financial consolidation, logistics, and internal and external financial and management reporting matters. The system implementation has progressed well with EMEA implemented in January 2011 and North America in February 2012.

ERP implementations are complex and time-consuming projects that involve substantial expenditures on system hardware and software and implementation activities that often continue for several years. Such an integrated, wide-scale implementation is extremely complex and requires transformation of business and financial processes in order to reap the benefits of the ERP system. Significant efforts are required for requirements identification, functional design, process documentation, data conversion, user training and post implementation support. Problems in any of these areas could result in operational issues including delayed shipments or production, missed sales, billing and accounting errors and other operational issues. System delays or malfunctioning could also disrupt Zebra’s ability to timely and accurately process and report key components of the results of its consolidated operations, its financial position and cash flows, which could impact Zebra’s ability to timely complete important business processes such as the evaluation of its internal controls and attestation activities pursuant to Section 404 of the Sarbanes-Oxley Act of 2002.

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Until the new ERP system is fully implemented, Zebra expects to incur additional selling, general and administrative expenses and capital expenditures to implement and test the system, and there can be no assurance that other issues relating to the ERP system will not occur or be identified. Zebra’s business and results of operations may be adversely affected if it experiences operating problems and/or cost overruns during the ERP implementation process or if the ERP system and the associated process changes do not function as expected or give rise to the expected benefits.

Zebra depends on the ongoing service of its senior management and ability to attract and retain other key personnel. The future success of Zebra is substantially dependent on the continued service and continuing contributions of senior management and other key personnel.

The ability to attract, retain and motivate highly skilled employees is important to Zebra’s long-term success. Competition for skill sets in certain functions within our industry is intense, and Zebra may be unable to retain key employees or attract, assimilate or retain other highly qualified employees in the future.

Terrorist attacks or war could lead to further economic instability and adversely affect Zebra’s stock price, operations, and profitability. The terrorist attacks that occurred in the United States on September 11, 2001, caused major instability in the U.S. and other financial markets. The possibility of further acts of terrorism and current and future war risks could have a similar impact. Any such attacks could, among other things, cause further instability in financial markets and could directly, or indirectly through reduced demand, negatively affect Zebra’s facilities and operations or those of its customers or suppliers.

Taxing authority challenges may lead to tax payments exceeding current reserves. Zebra is subject to ongoing tax examinations in various jurisdictions. As a result, we may record incremental tax expense based on expected outcomes of such matters. In addition, we may adjust previously reported tax reserves based on expected results of these examinations. Such adjustments could result in an increase or decrease to Zebra’s effective tax rate.

Economic conditions and financial market disruptions may adversely affect Zebra’s business and results of operations. Adverse economic conditions or reduced information technology spending may adversely impact our business. As widely reported, financial markets throughout the world experienced extreme disruption since 2008, including historically high volatility in security prices, severely diminished liquidity and credit availability, rating downgrades of certain investments and declining valuations of others, failure and potential failures of major financial institutions and unprecedented government support of financial institutions and corporations. A recurrence of these developments and a related general economic downturn could adversely affect Zebra’s business and financial condition through a reduction in demand for our products by our customers. If a slowdown were severe enough, it could require further impairment testing and write-downs of goodwill and other intangible assets. Cost reduction actions may be necessary and lead to restructuring charges. A tightening of financial credit could adversely affect our customers, suppliers, outsource manufacturer and channel partners (e.g., distributors and resellers) from obtaining adequate credit for the financing of significant purchases. Another economic downturn could also result in a decrease in or cancellation of orders for Zebra’s products and services; negatively impact Zebra’s ability to collect its accounts receivable on a timely basis; result in additional reserves for uncollectible accounts receivable; and require additional reserves for inventory obsolescence. Higher volatility and fluctuations in foreign exchange rates for the U.S. dollar against currencies such as the euro, the British pound, the Chinese yuan, and the Brazilian real could negatively impact product sales, margins and collections.

A natural disaster may cause supply disruptions that could adversely affect Zebra’s business and results of operations. As widely reported, a powerful earthquake centered off the northeastern coast of Japan on March 11, 2011, resulted in the loss of many lives, wide-spread damage to and destruction of property, disruption of electric power, and the release of radiation from a crippled nuclear power plant. This devastation disrupted the operations to varying degrees of companies with business activity in the affected region, including the business of Zebra suppliers. Other natural disasters may occur in the future and Zebra is not able to predict to what extent or duration any such disruptions will have on our ability to maintain ordinary business operations. The consequences of an unfortunate natural disaster may have a material adverse effect on Zebra’s business and results of operations.

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Item 1B. Unresolved Staff Comments

Not applicable.

16

Item 2. Properties

Zebra’s corporate headquarters are located in Lincolnshire, Illinois, a northern suburb of Chicago. Zebra also conducts its sales, marketing, engineering and operations activities from facilities in Vernon Hills, Illinois, and Agoura Hills, California.

Zebra’s principal facilities as of December 31, 2012, are listed below:

	Square Footage
Location	Manufacturing, Production & Warehousing		Administrative, Research & Sales		Total		Lease Expires
Vernon Hills, Illinois, USA		110,000		115,000		225,000	June 2015
Heerenveen, The Netherlands		47,286		47,286		94,572	January 2015
Agoura Hills, California, USA		—		75,077		75,077	March 2021
Buffalo Grove, Illinois, USA		63,189		—		63,189	July 2014
Preston, UK		51,450		8,600		60,050	Owned by Zebra
Greenville, Wisconsin, USA		60,000		—		60,000	May 2028
Lincolnshire, Illinois, USA		—		47,334		47,334	June 2015
Flowery Branch, Georgia, USA		40,520		—		40,520	June 2017
Lincoln, Rhode Island, USA		—		40,116		40,116	April 2016
Guangzhou, China		—		32,655		32,655	January 2014
Bourne End, UK		—		27,251		27,251	June 2014
Otay Mesa, California, USA		26,639		—		26,639	September 2014
San Jose, California, USA		—		24,630		24,630	July 2015
McAllen, Texas, USA		18,000		—		18,000	September 2016
Germantown, Maryland, USA		—		13,134		13,134	January 2016
Chicago, Illinois, USA		—		10,417		10,417	June 2014
Rogersville, Tennessee, USA		9,780		—		9,780	April 2014
Singapore, Singapore		—		9,427		9,427	February 2017
Shanghai, China		—		7,524		7,524	January 2014
Detroit, Michigan, USA		—		7,085		7,085	November 2017
Mexico City, Mexico		3,400		3,488		6,888	October 2015
Clayton, Missouri, USA		—		6,171		6,171	September 2013
Sao Paulo, Brazil		—		5,812		5,812	February 2015
Miami, Florida, USA		—		5,786		5,786	October 2017
Shanghai, China		—		5,287		5,287	January 2015
Total		430,264		492,080		922,344

Zebra leases various other facilities around the world, which are dedicated to administrative, research and sales functions. These other leases, solely or in aggregate, are not material to Zebra.

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Item 3. Legal Proceedings

See Note 12 in the Notes to the Consolidated Financial Statements included in this Form 10-K.

Item 4. Mine Safety Disclosures

Not applicable.

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PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Stock Information: Price Range and Common Stock

Our Class A Common Stock is traded on The NASDAQ Stock Market under the symbol ZBRA. The following table shows the high and low trade prices for each fiscal quarter in 2012 and 2011, as reported by The NASDAQ Stock Market.

2012	High		Low		2011	High		Low
First Quarter	$	41.88	$	34.61	First Quarter	$	41.48	$	34.66
Second Quarter		41.79		31.79	Second Quarter		44.53		36.55
Third Quarter		38.74		33.25	Third Quarter		43.61		28.20
Fourth Quarter		40.41		34.92	Fourth Quarter		38.48		29.54

Source: The NASDAQ Stock Market

At February 8, 2013, the last reported price for the Class A Common Stock was $44.07 per share, and there were 465 registered stockholders of record for Zebra’s Class A Common Stock. In addition, we had approximately 14,000 stockholders who owned Zebra stock in street name.

Dividend Policy

Since our initial public offering in 1991, we have not declared any cash dividends or distributions on our capital stock. Zebra currently does not anticipate paying any cash dividends in the foreseeable future.

Treasury Shares

During the fourth quarter of 2012, Zebra purchased 400,000 shares of Zebra’s Class A Common Stock at a weighted average share price of $36.69 per share, as follows:

ISSUER PURCHASES OF EQUITY SECURITIES

Period	Total number of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced program		Maximum number of shares that may yet be purchased under  the program
October 2012 (September 30 – October 27)		392,146	$	36.71		392,146	2,030,190
November 2012 (October 28 – November 24)		7,854	$	35.67		7,854	2,022,336
December 2012 (November 25 – December 31)		0	$	0.00		0	2,022,336

(1) On November 4, 2011, Zebra’s Board authorized the purchase of up to an additional 3,000,000 shares under the purchase plan program. The November 2011 authorization does not have an expiration date.

(2) During the fourth quarter, Zebra acquired 3,651 shares of Zebra Class A Common Stock through the withholding of shares necessary to satisfy tax withholding obligations upon the vesting of restricted stock awards. These shares were acquired at an average price of $38.44 per share.

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Item 6. Selected Financial Data

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) DATA

(In thousands, except per share amounts)

	Year Ended December 31,
	2012			2011			2010			2009			2008
Net sales	$	996,168		$	983,488		$	894,359		$	738,482		$	910,065
Cost of sales		504,524			496,719			473,584			420,895			471,546
Gross profit		491,644			486,769			420,775			317,587			438,519
Total operating expenses		327,293	(1)		304,733	(2)		272,560	(3)		247,308	(4)		427,730	(5)
Operating income		164,351			182,036			148,215			70,279			10,789
Income from continuing operations before income taxes		164,174			179,719			149,607			72,319			15,085
Income (loss) from continuing operations		121,987			130,343			104,614			48,491			(19,047	)
Income (loss) from discontinued operations, net of tax		1,007			44,300			(2,836	)		(1,387	)		(19,374	)
Net income (loss)	$	122,904		$	174,643		$	101,778		$	47,104		$	(38,421	)
Basic earnings per share:
Income (loss) from continuing operations	$	2.36		$	2.42		$	1.83		$	0.81		$	(0.30	)
Income (loss) from discontinued operations		0.02			0.82			(0.05	)		(0.02	)		(0.30	)
Net income (loss)	$	2.38		$	3.24		$	1.78		$	0.79		$	(0.60	)
Diluted earnings per share:
Income (loss) from continuing operations	$	2.35		$	2.40		$	1.82		$	0.81		$	(0.30	)
Income (loss) from discontinued operations		0.02			0.82			(0.05	)		(0.02	)		(0.30	)
Net income (loss)	$	2.37		$	3.22		$	1.77		$	0.79		$	(0.60	)
Weighted average shares outstanding
Basic		51,566			53,854			57,143			59,306			64,524
Diluted		51,843			54,191			57,428			59,425			64,524

CONSOLIDATED BALANCE SHEET DATA

(In thousands)

	December 31,
	2012		2011		2010		2009		2008
Cash and cash equivalents, restricted cash, investments and marketable securities (current and long-term)	$	394,075	$	326,695	$	258,598	$	245,027	$	221,409
Working capital (6)		615,649		475,899		455,143		429,277		400,883
Total assets		967,748		899,006		878,864		830,479		850,878
Long-term obligations (7)		14,229		11,515		10,191		9,012		9,345
Stockholders’ equity		857,002		776,925		730,032		712,129		710,738

(1) Includes asset impairment charges of $9,114,000 and exit and restructuring costs of $960,000.

(2) Includes exit and restructuring costs of $2,041,000.

(3) Includes litigation settlement proceeds received of $1,082,000 and exit and restructuring costs of $2,262,000.

(4) Includes exit and restructuring costs of $9,902,000.

(5) Includes asset impairment charges of $144,950,000 and exit and restructuring costs of $17,932,000.

(6) Calculated as current assets minus current liabilities.

(7) Long-term obligations include deferred compensation and unearned revenue. See Note 17 Deferred Compensation Plan in the Notes to the Consolidated Financial Statements included in this Form 10-K.

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations: Fourth Quarter of 2012 versus Fourth Quarter of 2011

Consolidated Results of Operations

(Amounts in thousands, except percentages)

	Three Months Ended				Percent Change		Percent of Net  Sales - 2012		Percent of Net  Sales - 2011
	December 31, 2012		December 31, 2011
Net Sales
Tangible products	$	241,257	$	235,714		2.4		95.3		95.3
Service & software		11,922		11,594		2.8		4.7		4.7
Total net sales		253,179		247,308		2.4		100.0		100.0
Cost of Sales
Tangible products		121,869		118,792		2.6		48.1		48.1
Service & software		6,850		6,996		(2.1)		2.7		2.8
Total cost of sales		128,719		125,788		2.3		50.8		50.9
Gross profit		124,460		121,520		2.4		49.2		49.1
Operating expenses		80,342		79,397		1.2		31.7		32.1
Operating income		44,118		42,123		4.7		17.5		17.0
Other income (expense)		(56)		(1,011)		(94.5)		(0.1)		(0.4)
Income from continuing operations before income taxes		44,062		41,112		7.2		17.4		16.6
Income taxes		9,263		8,253		12.2		3.7		3.3
Income from continuing operations		34,799		32,859		5.9		13.7		13.3
Income from discontinued operations, net of tax		191		2,185		(91.3)		0.1		0.9
Net income	$	34,990	$	35,044		(0.2)		13.8		14.2
Diluted earnings per share:
Income from continuing operations	$	0.68	$	0.63		7.9
Income from discontinued operations		0.00		0.04		100.0
Net income	$	0.68	$	0.67		1.5

Consolidated Results of Operations – Fourth quarter

Sales

Net sales for the fourth quarter of 2012 compared with the 2011 quarter increased 2.4% primarily due to increased sales in supplies and aftermarket services. Printer unit volume increased 2.9% for 2012 compared to 2011 principally from unit volume increases in desktop and tabletop printers.

Sales by product category were as follows (amounts in thousands, except percentages):

	Three Months Ended						Percent of Net  Sales 2012		Percent of Net  Sales 2011
Product category	December 31, 2012		December 31, 2011		Percent Change
Hardware	$	182,267	$	188,198		(3.2)		72.0		76.1
Supplies		57,607		46,135		24.9		22.8		18.6
Service and software		11,922		11,594		2.8		4.7		4.7
Subtotal products		251,796		245,927		2.4		99.5		99.4
Shipping and handling		1,383		1,381		0.1		0.5		0.6
Total net sales	$	253,179	$	247,308		2.4		100.0		100.0

21

Sales declines in Europe, Middle East and Africa, and Asia Pacific, primarily from a challenged business environment, were offset by increased sales in North America and Latin America. Sales increased in Latin America in part from improved geographic coverage, with notable increases in supplies, tabletop, desktop, and mobile printers. Sales in North America increased due to increased sales in supplies and aftermarket services. Zebra continues to build a broader base of customers to penetrate targeted industries more deeply. Movements in foreign exchange rates decreased sales by $1,858,000 in the Europe, Middle East and Africa region for the quarter, due to a weaker euro against the U.S. dollar compared to the same period in the prior year.

Sales to customers by geographic region were as follows (in thousands, except percentages):

	Three Months Ended						Percent of Net  Sales 2012		Percent of Net  Sales 2011
	December 31,		December 31,		Percent
Geographic region	2012		2011		Change
Europe, Middle East and Africa	$	83,355	$	88,360		(5.7)		32.9		35.7
Latin America		26,255		21,578		21.7		10.4		8.7
Asia-Pacific		31,665		32,470		(2.5)		12.5		13.1
Total International		141,275		142,408		(0.8)		55.8		57.5
North America		111,904		104,900		6.7		44.2		42.5
Total net sales	$	253,179	$	247,308		2.4		100.0		100.0

Gross profit

Gross profit increased 2.4% reflecting reduced overhead and freight costs, partially offset by unfavorable movements in foreign exchange rates and product mix. Unfavorable foreign currency movements decreased fourth quarter gross profit by $1,806,000. As a percentage of sales, gross margin improved from 49.1% to 49.2%.

Printer unit volumes and average selling price information is summarized below:

	Three Months Ended				Percent        Change
	December 31,		December 31,
	2012		2011
Total printers shipped		321,314		312,409		2.9
Average selling price of printers shipped	$	477	$	506		(5.7)

For the fourth quarter of 2012, unit volumes increased in tabletop and desktop printers. Desktop printers achieved record sales. The decrease in average selling price is a result of a change in product mix toward lower priced products in the 2012 quarter compared to the 2011 quarter.

Operating expenses

Operating expenses are summarized below (in thousands, except percentages):

	Three Months Ended						Percent of Net  Sales 2012		Percent of Net  Sales 2011
	December 31,		December 31,		Percent
Operating expenses	2012		2011		Change
Selling and marketing	$	33,313	$	36,377		(8.4)		13.2		14.7
Research and development		22,605		23,174		(2.5)		8.9		9.4
General and administrative		20,964		18,973		10.5		8.3		7.7
Amortization of intangible assets		1,463		806		81.5		0.6		0.3
Acquisition costs		1,037		116		N/M		0.4		0.0
Exit and restructuring costs		960		(49)		N/M		0.4		0.0
Total operating expenses	$	80,342	$	79,397		1.2		31.7		32.1

Operating expenses for the quarter increased 1.2% due mainly to higher general and administrative expenses, amortization and acquisition expenses, and exit and restructuring costs. Compensation costs and depreciation increased over 2011 levels. Amortization expense increases are primarily related to the intangibles acquired with the LaserBand acquisition. Acquisition costs relate to investigated and completed merger and acquisition activity during the period. Exit and restructuring costs in 2012 relate to the restructuring of the location solutions business management structure.

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Other income (expense)

Zebra’s non-operating income and expense items are summarized in the following table (in thousands):

	Three Months Ended
	December 31,		December 31,
	2012		2011
Investment income	$	526	$	594
Foreign exchange loss		(5)		(706)
Other, net		(577)		(899)
Total other income (expense)	$	(56)	$	(1,011)

Other expense decreased in the fourth quarter of 2012 as a result of decreases in foreign exchange losses.

Operating income

Operating income for the fourth quarter of 2012, compared to the same period in 2011, increased 4.7%. See comments above for explanation of changes in individual categories.

Income taxes

The effective income tax rate for the fourth quarter of 2012 was 21.0% compared with 20.1% for the same quarter in the prior year. The fourth quarter 2012 effective tax rate increased slightly due to an increase in income in higher rate tax jurisdictions in 2012 when compared to the prior years quarter. The increase in 2012 was offset by an August 2012 decrease in the UK statutory tax rate from 25.5% to 24.5%. During 2012 Zebra implemented a new international holding company structure to facilitate the investment of overseas cash and international acquisitions. This new structure has also decreased our international income taxes. In addition, the fourth quarter of 2012 benefitted from one-time adjustments resulting from amended tax returns for 2010 and prior years.

Income from discontinued operations

The income in the fourth quarter of 2012 is related to a reversal of amounts previously reserved, which were related to the finalization of the accounting and taxes related to discontinued operations transactions during 2011.

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Results of Operations: Year ended December 31, 2012 versus Year ended December 31, 2011

Consolidated Results of Operations

(Amounts in thousands, except percentages)

	Year Ended
	December 31,		December 31,		Percent Change		Percent  of Net Sales - 2012		Percent  of Net Sales - 2011
	2012		2011
Net Sales
Tangible products	$	948,227	$	936,282		1.3		95.2		95.2
Service & software		47,941		47,206		1.6		4.8		4.8
Total net sales		996,168		983,488		1.3		100.0		100.0
Cost of Sales
Tangible products		479,633		469,834		2.1		48.1		47.8
Service & software		24,891		26,885		(7.4)		2.5		2.7
Total cost of sales		504,524		496,719		1.6		50.6		50.5
Gross profit		491,644		486,769		1.0		49.4		49.5
Operating expenses		327,293		304,733		7.4		32.9		31.0
Operating income		164,351		182,036		(9.7)		16.5		18.5
Other income (expense)		(177)		(2,317)		(92.4)		(0.0)		(0.2)
Income from continuing operations before income taxes		164,174		179,719		(8.6)		16.5		18.3
Income taxes		42,277		49,376		(14.4)		4.3		5.0
Income from continuing operations		121,897		130,343		(6.5)		12.2		13.3
Income from discontinued operations, net of tax		1,007		44,300		(97.7)		0.1		4.5
Net income	$	122,904	$	174,643		(29.6)		12.3		17.8
Diluted earnings per share:
Income from continuing operations	$	2.35	$	2.40		(2.1)
Income from discontinued operations		0.02		0.82		(97.6)
Net income	$	2.37	$	3.22		(26.4)

Consolidated Results of Operations – Full Year

Net sales for 2012 compared with 2011 increased 1.3%. This increase is primarily due to growth in sales of supplies, including the impact of the acquisition of LaserBand LLC in July 2012. Printer unit volumes increased 6.0% for 2012 compared to 2011 due to volume increases in desktop, mobile and card printers. Movement towards lower-priced printers partially offset unit volume increases.

Sales by product category were as follows (amounts in thousands, except percentages):

	Year Ended						Percent of Net Sales		Percent of Net Sales
	December 31,		December 31,		Percent
Product category	2012		2011		Change		2012		2011
Hardware	$	730,489	$	743,308		(1.7)		73.4		75.5
Supplies		212,499		187,457		13.4		21.3		19.1
Service and software		47,941		47,206		1.6		4.8		4.8
Subtotal products		990,929		977,971		1.3		99.5		99.4
Shipping and handling		5,239		5,517		(5.0)		0.5		0.6
Total net sales	$	996,168	$	983,488		1.3		100.0		100.0

Sales increased in Latin America due to improved geographic coverage with notable increases in supplies, mobile, and card printer sales compared to 2011. Sales in North America increased due to increased sales of supplies and continued demand for desktop, card and tabletop printers. Zebra continues to build a broader base of customers to penetrate targeted industries more deeply. Movements in foreign exchange rates decreased sales by $12,139,000 in the Europe, Middle East and Africa regions due principally to a weaker euro against the U.S. dollar.

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Sales to customers by geographic region were as follows (in thousands, except percentages):

	Year Ended						Percent of Net  Sales 2012		Percent of Net  Sales 2011
	December 31,		December 31,		Percent
Geographic region	2012		2011		Change
Europe, Middle East and Africa	$	322,970	$	342,578		(5.7)		32.4		34.8
Latin America		100,101		89,715		11.6		10.0		9.1
Asia-Pacific		137,577		141,987		(3.1)		13.8		14.5
Total International		560,648		574,280		(2.4)		56.2		58.4
North America		435,520		409,208		6.4		43.8		41.6
Total net sales	$	996,168	$	983,488		1.3		100.0		100.0

Gross profit

Gross profit increased 1.0% due to higher volumes and lower material costs. Lower freight costs in 2012 of $5,042,000 versus 2011 helped improve gross profit while unfavorable movements in foreign currency decreased gross profit by $9,923,000. The above factors contributed to the slight decrease in gross margin from 49.5% to 49.4%.

Printer unit volumes and average selling price information is summarized below:

	Year Ended
	December 31,		December 31,		Percent
	2012		2011		Change
Total printers shipped		1,260,141		1,188,892		6.0
Average selling price of printers shipped	$	485	$	527		(7.9)

Product unit volumes increased 6.0% in 2012 over the prior year. This was due to increased volumes in desktop, mobile and card printers. The average selling price reflects a change in product mix toward lower priced products from year to year.

Operating expenses

Operating expenses are summarized below (in thousands, except percentages):

	Year Ended						Percent of		Percent of
	December 31,		December 31,		Percent
Operating Expenses	2012		2011		Change		Net Sales 2012		Net Sales 2011
Selling and marketing	$	129,906	$	127,797		1.7		13.0		13.1
Research and development		87,364		89,926		(2.8)		8.8		9.1
General and administrative		92,167		81,345		13.3		9.3		8.3
Amortization of intangible assets		4,673		3,320		40.8		0.5		0.3
Acquisition costs		3,109		304		N/M		0.3		0.0
Exit and restructuring costs		960		2,041		(53.0)		0.1		0.2
Asset impairment charge		9,114		0		N/M		0.9		0.0
Total operating expenses	$	327,293	$	304,733		7.4		32.9		31.0

Operating expenses for 2012 increased 7.4%. This is primarily due to greater selling and marketing and general and administrative expenses. The asset impairment charge was accounted for 40.4% of the total increase in 2012. Several categories accounted for these increases, including compensation costs, outside professional services, rent, depreciation and information systems expenses. Acquisition costs are related to investigated and completed acquisitions during the period. Exit and restructuring costs in 2012 relate to the restructuring of the location solutions business management structure while costs in 2011 relate to the relocation and consolidation of administrative, accounting and distribution functions of our location solutions operations to Illinois. The asset impairment charge in 2012 relates to the goodwill associated with Zebra’s smaller reporting unit.

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Selling and marketing expenses

Selling and marketing expenses are summarized below (in thousands):

	Year Ended				Increase / (Decrease)
	December 31, 2012		December 31, 2011
Payroll and benefit costs	$	78,894	$	75,436	$	3,458
Business development		23,434		23,022		412
Travel and entertainment expenses		8,451		8,068		383
Offsite meetings		1,141		3,362		(2,221)
Other changes		17,986		17,909		77
Total selling and marketing expenses	$	129,906	$	127,797	$	2,109

Selling and marketing expenses were higher in 2012 primarily due to increased payroll and benefit costs related to the addition of more sales-related Zebra personnel in geographic regions with high-growth opportunities. Payroll and benefit cost increases include salaries, commissions, benefits, and payroll taxes. Other selling and marketing expense categories also increased over 2011 levels due to higher expenses relating to the addition of Zebra sales representatives to expand Zebra’s global reach into new developing geographic regions.

Research and development costs

The development of new products and enhancement of existing products are important to Zebra’s business and growth prospects. To maintain and build our product pipeline, we continue to make investments in research and development. In 2012 we introduced 14 new printer related products and 19 location software and hardware releases. Zebra introduced its latest generation of print engine during the year which enables Zebra to expand into new markets. The ZE500 is designed for reliable operations in mission critical applications and is well suited for use in the food and beverage industries and other environments where dust and moisture can create printing challenges. Zebra has enhanced its printers for cloud based connectivity through Zebra’s Link-OS, an ecosystem enabled by Zebra’s printer architecture which makes Zebra printers significantly easier to integrate, manage and use in a company’s operations, with greater capabilities for customization with the development of specialized apps.

Quarterly product development expenses fluctuate depending on the status of ongoing projects. We are committed to a long-term strategy of significant investment in product development. Research and development costs are summarized below (in thousands):

	Year Ended				Increase / (Decrease)
	December 31, 2012		December 31, 201110
Payroll and benefit costs	$	58,464	$	59,087	$	(623)
Project expenses		5,710		7,838		(2,128)
Other changes		23,190		23,001		189
Total research and development costs	$	87,364	$	89,926	$	(2,562)

The decreases in research and development costs relate to decreased payroll and benefit costs and project expenses. Project expenses decreased due primarily due to the completion on new mid-range and print engine products in 2012.

General and administrative expenses

General and administrative expenses are summarized below (in thousands):

	Year Ended				Increase / (Decrease)
	December 31, 2012		December 31, 2011
Payroll and benefit costs	$	46,606	$	40,975	$	5,631
Professional services expenses		13,890		10,544		3,346
Information systems expenses		13,046		12,138		908
Other changes		18,625		17,688		937
Total general and administrative expenses	$	92,167	$	81,345	$	10,822

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General and administrative expenses increased over 2011due to larger incentive costs related to merit increases and equity incentives. Professional fees increased slightly due to the acquisition of LaserBand and other long-term investments in 2012. Professional services were also utilized for the implementation of Zebra’s new international structure and to expand geographic regions. Information systems costs increased slightly in the maintenance and service contracts area.

Amortization of intangible assets

Amortization of intangible assets increased $1,353,000 during 2012 due to additions of current technology, patent and patent rights and customer relationships during the year as a result of the acquisition of LaserBand.

Exit and restructuring costs

Exit and restructuring costs in 2012 of $960,000 relate to the restructuring of our location solutions business management structure. Costs in 2011 of $2,041,000 relate to the consolidation of our location solutions operations following the divestiture of Navis in the first quarter of 2011.

Operating income

The operating income decrease for 2012 was the result of operating expense increases as noted above.

Other income (expense)

Zebra’s non-operating income and expense items are summarized in the following table (in thousands):

	Year Ended
	December 31,			December 31,
	2012			2011
Investment income	$	2,485		$	1,944
Foreign exchange loss		(941	)		(2,006	)
Other, net		(1,721	)		(2,255	)
Total other income (expense)	$	(177	)	$	(2,317	)
Other expense decreased in 2012 as a result of decreases in foreign exchange losses.
	Year Ended
Rate of return analysis:	December 31, 2012			December 31, 2011
Average cash and marketable securities balances	$	360,385		$	292,646
Annualized rate of return		0.7	%		0.7	%

Investment income increased overall from higher cash and investment balances in 2012 versus 2011.

Income taxes

The effective income tax rate for 2012 was 25.8% compared with an income tax rate of 27.5% for 2011. During 2012 Zebra implemented a new international holding company structure to facilitate the investment of overseas cash and international acquisitions. This new structure also decreased our international income taxes. In addition, the UK statutory rate decreased from 25.5% to 24.5% in August 2012. These reductions were offset by a discrete item in the third quarter of 2012 related to a non-deductible asset impairment charge which increased the effective tax rate for 2012 by 1.9%. The rate in 2011 included a tax valuation allowance in the first quarter of 2011 against a subsequently divested subsidiary.

Income from discontinued operations

The income from discontinued operations in 2012 is related to an amendment and extension of the proveo loan agreement and reversal of amounts previously reserved which were related to the finalization of the accounting and taxes. The income from discontinued operations in 2011 relates to the sale of Navis LLC and proveo AG, offset by losses on discontinued operations.

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Comparison of Years Ended December 31, 2011 and 2010

Consolidated Results of Operations

(Amounts in thousands, except percentages)

	Year Ended
	December 31, 2011		December 31, 2010		Percent Change		Percent of Net Sales - 2011		Percent of Net Sales - 2010
Net Sales
Tangible products	$	936,282	$	849,530		10.2		95.2		95.0
Service & software		47,206		44,829		5.3		4.8		5.0
Total net sales		983,488		894,359		10.0		100.0		100.0
Cost of Sales
Tangible products		469,834		450,630		4.3		47.8		50.4
Service & software		26,885		22,954		17.1		2.7		2.6
Total cost of sales		496,719		473,584		4.9		50.5		53.0
Gross profit		486,769		420,775		15.7		49.5		47.0
Operating expenses		304,733		272,560		11.8		31.0		30.5
Operating income		182,036		148,215		22.8		18.5		16.5
Other income (expense)		(2,317)		1,392		N/M		(0.2)		0.2
Income from continuing operations before income taxes		179,719		149,607		20.1		18.3		16.7
Income taxes		49,376		44,993		9.7		5.0		5.0
Income from continuing operations		130,343		104,614		24.6		13.3		11.7
Income (loss) from discontinued operations, net of tax		44,300		(2,836)		N/M		4.5		(0.3)
Net income	$	174,643	$	101,778		71.6		17.8		11.4
Diluted earnings per share:
Income from continuing operations	$	2.40	$	1.82		31.9
Income (loss) from discontinued operations		0.82		(0.05)		N/M
Net income	$	3.22	$	1.77		81.9

Consolidated Results of Operations – year to date

Sales

Net sales for the 2011 year compared with 2010 increased 10.0% due to a broad-based increase in demand, complemented by a focused business strategy of geographic expansion, new product introductions and expansion of go-to-market channels. New products introduced over the past year helped us meet more of our customers’ needs for improving asset visibility in complex supply chain environments. The increase in sales was largely attributable to increased hardware sales with notable volume increases in high-performance and mid-range tabletop, desktop, mobile printers and aftermarket parts. Supplies sales increased from greater shipments of labels and thermal ribbons. Printer unit volume increased 12.4% for 2011 compared to levels in 2010.

Sales by product category were as follows (amounts in thousands, except percentages):

	Year Ended						Percent of		Percent of
	December 31,		December 31,		Percent
Product Category	2011		2010		Change		Net Sales 2011		Net Sales 2010
Hardware	$	743,308	$	676,738		9.8		75.5		75.7
Supplies		187,457		167,633		11.8		19.1		18.7
Service and software		47,206		44,829		5.3		4.8		5.0
Subtotal		977,971		889,200		10.0		99.4		99.4
Shipping and handling		5,517		5,159		6.9		0.6		0.6
Total net sales	$	983,488	$	894,359		10.0		100.0		100.0

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Sales increased in all geographic regions, in part from the impact of our investments in sales and sales-related personnel to expand Zebra’s presence in high-growth regions including China, Brazil and Eastern Europe. Sales in the regions targeted by Zebra for geographic expansion increased by 22%. Movements in foreign exchange rates increased sales by $14,412,000 in the Europe, Middle East and Africa region due principally to a stronger euro against the U.S. dollar for the first three quarters of 2011.

Sales to customers by geographic region were as follows (in thousands, except percentages):

Geographic Region	Year Ended				Percent Change		Percent of Net  Sales 2011		Percent of Net  Sales 2010
	December 31,		December 31,
	2011		2010
Europe, Middle East and Africa	$	342,578	$	305,659		12.1		34.8		34.2
Latin America		89,715		80,679		11.2		9.1		9.0
Asia-Pacific		141,987		113,156		25.5		14.5		12.7
Total International		574,280		499,494		15.0		58.4		55.9
North America		409,208		394,865		3.6		41.6		44.1
Total net sales	$	983,488	$	894,359		10.0		100.0		100.0

Gross profit

Gross profit increased 15.7% due to higher volumes and lower material costs. Lower freight costs in 2011 of $4,963,000 versus 2010 helped improve profit. Gross profit was also affected by favorable foreign currency movements which also improved gross profit by $12,730,000. The above factors contributed to the increase in gross margin from 47.0% to 49.5%.

Printer unit volumes and average selling price information is summarized below:

	Year Ended December 31,				Percent Change
	2011		2010
Total printers shipped		1,188,892		1,057,744		12.4
Average selling price of printers shipped	$	527	$	533		(1.1)

For 2011, product unit volumes increased in nearly all printer product lines with notable volume increases in high-performance and mid-range table top, desktop, and mobile.

Operating expenses

Operating expenses are summarized below (in thousands, except percentages):

	Year Ended				Percent Change		Percent of Net  Sales 2011		Percent of Net  Sales 2010
	December 31,		December 31,
Operating Expenses	2011		2010
Selling and marketing	$	127,797	$	112,365		13.7		13.1		12.5
Research and development		89,926		82,575		8.9		9.1		9.2
General and administrative		81,345		73,229		11.1		8.3		8.2
Amortization of intangible assets		3,320		3,211		3.4		0.3		0.4
Litigation settlement		0		(1,082)		(100.0)		0.0		(0.1)
Acquisition costs		304		0		N/M		0.0		0.0
Exit and restructuring costs		2,041		2,262		(9.8)		0.2		0.3
Total operating expenses	$	304,733	$	272,560		11.8		31.0		30.5

Operating expenses for 2011 increased 11.8% due to higher expenses in all three operating expense line items. Several categories accounted for these increases, including compensation costs which include salaries, stock option expense, and commissions. These increases are primarily related to more employees in 2011 versus 2010. Business development, outside professional services, travel and entertainment, rent, information systems, recruiting, offsite meetings, shipping and depreciation expenses all increased over 2010 levels.

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Selling and marketing expenses

Selling and marketing expenses are summarized below (in thousands):

	Year Ended				Increase / (Decrease)
	December 31, 2011		December 31, 2010
Payroll and benefit costs	$	75,436	$	70,539	$	4,897
Business development		23,022		20,608		2,414
Professional services expense		3,538		2,308		1,230
Travel and entertainment expenses		8,068		6,421		1,647
Offsite meetings		3,362		884		2,478
Other changes		14,371		11,605		2,766
Total selling and marketing expenses	$	127,797	$	112,365	$	15,432

Selling and marketing expenses were higher in 2011 primarily due to increased payroll and benefit costs related to the addition of more sales-related Zebra personnel in geographic regions with high-growth opportunities and increased sales volume. Payroll and benefit cost increases include salaries, bonus, commissions, benefits and payroll taxes. Other selling and marketing expense categories also increased over 2010 levels due to higher expenses relating to the addition of Zebra sales representatives to expand Zebra’s global reach into new developing geographic regions and a global partner conference in 2011.

Research and development costs

The development of new products and enhancement of existing products are important to Zebra’s business and growth prospects. To maintain and build our product pipeline, we continue to make investments in research and development. In 2011 we introduced 13 new printer related products and 10 location software and hardware releases. Products introduced in 2011 include printers in the mobile, desktop, and card lines as well as related accessories. Zebra is receiving positive customer responses to its recently introduced QLn wireless mobile printer which incorporates a flexible user interface for easy configuration. Zebra’s ZXP8 retransfer card printer which is utilized for printing secure employee IDs. In 2010, we introduced an updated two inch light duty printer and a new Xi4 high-performance printer. We also introduced innovative new IQ color labels which enables customers to print spot colors on predetermined areas of a label using any Zebra thermal label printer. This breakthrough product enhances readability, increases business efficiency and improves safety.

Quarterly product development expenses fluctuate depending on the status of ongoing projects. We are committed to a long-term strategy of significant investment in product development. Research and development costs are summarized below (in thousands):

	Year Ended				Increase / (Decrease)
	December 31, 2011		December 31, 2010
Payroll and benefit costs	$	59,087	$	54,602	$	4,485
Professional services expenses		8,708		7,802		906
Travel and entertainment expenses		2,585		2,164		421
Shipping expense		693		238		455
Other changes		18,853		17,769		1,084
Total research and development costs	$	89,926	$	82,575	$	7,351

The increases in research and development costs relate to increased payroll and benefit costs, compliance and project expenses to bring new products to market.

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General and administrative expenses

General and administrative expenses are summarized below (in thousands):

	Year Ended				Increase /(Decrease)
	December 31, 2011		December 31, 2010
Payroll and benefit costs	$	40,975	$	36,833	$	4,142
Professional services expenses		10,544		9,987		557
Information systems expenses		12,138		10,547		1,591
Depreciation expense		9,232		8,221		1,011
Other changes		8,456		7,641		815
Total general and administrative expenses	$	81,345	$	73,229	$	8,116

General and administrative expenses increased over 2010 amounts from larger incentive costs related to merit increases and equity incentives. Professional fees increased slightly due to the Navis and proveo dispositions in 2011, and the utilization of professional services in the expanding geographic regions. Information systems costs increased slightly primarily in the maintenance and service contracts area.

Amortization of intangible assets

Amortization of intangible assets increased $109,000 during 2011 due to additions of patents during the year.

Litigation settlement

In 2010 Zebra received litigation settlement proceeds of $1,082,000 related to our acquisition of MSSI in 2008.

Exit and restructuring costs

Exit and restructuring costs in 2011 of $2,041,000 relate to the consolidation of our Location solutions product line following the divestiture of Navis in the first quarter of 2011. Costs in 2010 of $2,262,000 relate to the completion of the production transfer to Jabil. See Note 10 of the Consolidated Financial Statements included in this Annual Report on Form 10-K for a more detailed discussion of exit and restructuring charges.

Operating income

The operating income increase for 2011 was the result of increased sales and gross profit as noted above.

Other income (expense)

Zebra’s non-operating income and expense items are summarized in the following table (in thousands):

	Year Ended
	December 31, 2011		December 31, 2010
Investment income	$	1,944	$	2,678
Foreign exchange loss		(2,006)		(169)
Other, net		(2,255)		(1,117)
Total other income (expense)	$	(2,317)	$	1,392
	Year Ended
Rate of return analysis:	December 31, 2011		December 31, 2010
Average cash and marketable securities balances	$	292,646	$	251,812
Annualized rate of return		0.7%		1.1%

Investment income declined overall from lower short-term interest rates in 2011 compared with 2010 even though cash and investment balances were higher in 2011 versus 2010.

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Income taxes

The effective income tax rate for 2011 was 27.5% compared with an income tax rate of 30.1% for 2010. Zebra’s effective tax rate for the first quarter of 2010 included a $2,764,000 reduction of federal taxes related to improperly accounting for the tax impact on intercompany profit generated from intercompany sales in 2009. This adjustment reduced our effective rate for 2010 by approximately 1.8%. Zebra’s effective rate has also decreased in 2011 due to higher profits in lower rate international jurisdictions.

Income (loss) discontinued operations

The income from discontinued operations in 2011 relates to the sale of Navis LLC and proveo AG, offset by losses on discontinued operations. The loss from discontinued operations for 2010 represents the results of operations for the entities we divested in 2011.

Critical Accounting Policies and Estimates

Management prepared the consolidated financial statements of Zebra under accounting principles generally accepted in the United States of America. These principles require the use of estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions we used are reasonable, based upon the information available.

Our estimates and assumptions affect the reported amounts in our financial statements. The following accounting policies comprise those that we believe are the most critical in understanding and evaluating Zebra’s reported financial results.

Revenue Recognition

Product revenue is recognized once four criteria are met: (1) we have persuasive evidence that an arrangement exits; (2) delivery has occurred and title has passed to the customer, which happens at the point of shipment (except in Asia where the terms are FOB destination) provided that no significant obligations remain; (3) the price is fixed and determinable; and (4) collectability is reasonably assured. Other items that affect our revenue recognition include:

Customer returns

Customers have the right to return products that do not function properly within a limited time after delivery. We monitor and track product returns and record a provision for the estimated future returns based on historical experience and any notification received of pending returns. Returns have historically been within expectations and the provisions established, but Zebra cannot guarantee that it will continue to experience return rates consistent with historical patterns. Historically, our product returns have not been significant. However, if a significant issue should arise, it could have a material impact on our financial statements.

Growth Rebates

Some of our channel program partners are offered incentive rebates based on the attainment of specific growth targets related to products they purchase from us over a quarter or year. These rebates are recorded as a reduction to revenue. Each quarter, we estimate the amount of outstanding rebates and establish a reserve for them based on shipment history. Historically, actual rebates have been in line with our estimates.

Price Protection

Some of our customers are offered price protection by Zebra as an incentive to carry inventory of our product. These price protection plans provide that if we lower prices, we will credit them for the price decrease on inventory they hold. We estimate future payments under price protection programs quarterly and establish a reserve, which is charged against revenue. Our customers typically carry limited amounts of inventory, and Zebra infrequently lowers prices on current products. As a result, the amounts paid under these plans have been minimal.

Software Revenue

We sell four types of software and record revenue as follows:

• Our printers contain embedded firmware, which is part of the hardware purchase. We consider the sale of this firmware to be incidental to the sale of the printer and do not attribute any revenue to it.

• We sell a limited amount of prepackaged, or off-the-shelf, software for the creation of barcode labels using our printers. There is no customization required to use this software, and we have no post-shipment obligations on the software. Revenue is recognized at the time this prepackaged software is shipped.

• We sometimes provide custom software as part of a printer installation project. We bill custom software development services separate from the related hardware. Revenue related to custom software is recognized once the custom software development services have been completed and accepted by the customer.

• We recognize license revenue under ASC (Accounting Standards Codification) 985, when (1) a signed contract is obtained; (2) delivery of the product has occurred; (3) the license fee is fixed or determinable; and (4) collection is probable.

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Maintenance and Support Agreements

We enter into post-contract maintenance and support agreements. Revenues are recognized ratably over the service period and the cost of providing these services is expensed as incurred.

Shipping and Handling

We charge our customers for shipping and handling services based upon our internal price list for these items. The amounts billed to customers are recorded as revenue when the product ships. Any costs incurred related to these services are included in cost of sales.

Zebra enters into sales transactions that include more than one product type. This bundle of products might include printers, current or future supplies, and services. When this type of transaction occurs, we allocate the purchase price to each product type based on the fair value of the individual products determined by vendor specific objective evidence. The revenue for each individual product is then recognized when the recognition criteria for that product is fully met.

Investments and Marketable Securities

Investments and marketable securities at December 31, 2012, consisted of the following:

U.S. government and agency securities	29.4	%
Obligations of government sponsored enterprises (1)	1.5	%
State and municipal bonds	29.3	%
Corporate securities	39.8	%

(1) Includes investments in notes issued by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association and the Federal Home Loan Bank.

Trading securities are bought and held principally for the purpose of selling them in the near term. Held-to-maturity securities are those debt securities that Zebra has the ability and intent to hold until maturity. Securities not included in trading or held-to-maturity are classified as available-for-sale.

Trading and available-for-sale securities are recorded at fair value. Held-to-maturity securities are recorded at amortized cost, adjusted for the amortization or accretion of discounts or premiums. Unrealized holding gains and losses on trading securities are included in earnings. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of stockholders’ equity until realized.

Zebra’s investments in marketable debt securities are classified as available-for-sale except for securities held in Zebra’s deferred compensation plan which are considered to be trading securities. Investments in marketable debt securities are classified based on intent and ability to sell investment securities. Zebra’s available-for-sale securities are used to fund further acquisitions and other operating needs and therefore can be sold prior to maturity. Investments in marketable debt securities for which Zebra intends to sell within the next year are classified as current and those that we intend to hold in excess of one-year are classified as non-current.

Accounts Receivable

We have standardized credit granting and review policies and procedures for all customer accounts, including:

• Credit reviews of all new customer accounts,

• Ongoing credit evaluations of current customers,

• Credit limits and payment terms based on available credit information,

• Adjustments to credit limits based upon payment history and the customer’s current credit worthiness,

• Active collection efforts by regional credit functions, reporting directly to the corporate financial officers, and

• Limited credit insurance on the majority of our international revenues.

We reserve for estimated credit losses based upon historical experience and specific customer collection issues. Over the last three years, accounts receivable reserves varied from 0.4% to 1.2% of total accounts receivable. Accounts receivable reserves as of December 31, 2012, were $669,000, or 0.4% of the balance due. We believe this reserve level is appropriate considering the quality of the portfolio as of December 31, 2012. While credit losses have historically been within expectations and the provisions established, we cannot guarantee that our credit loss experience will continue to be consistent with historical experience.

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Inventories

We value our inventories at the lower of the actual cost to purchase or manufacture using the first-in, first-out (FIFO) method, or the current estimated market value. We review inventory quantities on hand and record a provision for excess and obsolete inventory based on forecasts of product demand and production requirements for the subsequent twelve months.

Over the last three years, our inventory reserves have ranged from 8.0% to 11.9% of gross inventory. As of December 31, 2012, inventory reserves were $13,655,000, or 10.0% of gross inventory. We believe this reserve level is appropriate considering the quantities and quality of the inventories as of December 31, 2012.

Valuation of Goodwill

Goodwill of a reporting unit is tested for impairment between annual tests if an event occurs or circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. Examples of such events or circumstances include:

• Significant adverse change in legal factors or in the business climate,

• Adverse action or assessment by a regulator,

• Unanticipated competition,

• Loss of key personnel,

• More-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of,

• Testing for recoverability of a significant asset group within a reporting unit, or

• Allocation of a portion of goodwill to a business to be disposed of.

If we believe that one or more of the above indicators of impairment have occurred, we perform an impairment test. The performance of the test involves a two-step process. The first step of the impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. We generally determine the fair value of our reporting units using three valuation methods: Income Approach – Discounted Cash Flow Analysis, Market Approach – Guideline Public Company Method, and Market Approach – Comparative Transactions Method. The approach defined below is based upon our last impairment test conducted in June 2012 as of the end of May 2012. Zebra did perform an interim impairment test in October 2012 for its smaller reporting unit as of the end of September 2012. The October 2012 test only utilized the income approach as discussed below.

Under the “Income Approach – Discounted Cash Flow Analysis” the key assumptions consider sales, cost of sales and operating expenses projected through the year 2021. These assumptions were determined by management utilizing our internal operating plan and assuming growth rates for revenues and operating expenses, and margin assumptions. The fourth key assumption under this approach is the discount rate which is determined by looking at current risk-free rates of capital, current market interest rates and the evaluation of risk premium relevant to the business segment. If our assumptions relative to growth rates were to change or were incorrect, our fair value calculation may change which could result in impairment. The company’s risk factors are discussed under Item 1A of this Form 10-K.

Under the “Market Approach – Guideline Company Method” we identified 20 publicly traded companies, including Zebra, which we believe have significant relevant similarities. For these 20 companies we calculated the mean ratio of invested capital to revenues and invested capital to EBITDA. Similar to the Income approach discussed above, sales, cost of sales, operating expenses and their respective growth rates were the key assumptions utilized. The market prices of Zebra and other guideline company shares are key assumptions. If these market prices increase, the estimated market value would increase. If the market prices decrease, the estimated market value would decrease.

Under the “Market Approach – Comparative Transactions Method” we looked at 19 market based transactions for companies that have similarities to our business segment, including similarities to one or more of the business lines, markets, growth prospects, margins and size. We calculated mean revenue and EBITDA multiples for the selected transactions. These multiples were applied to forecasted Zebra results for that segment to estimate market value. The key assumptions and impact to changes to those assumptions would be similar to those assumptions under the “Income Approach – Discounted Cash Flow Analysis” and the “Market Approach – Guideline Company Method”.

The results of these three methods are weighted based upon managements’ determination with more weight attached to the Income approach because it considers anticipated future financial performance. The Market approaches are based upon historical and current economic conditions which might not reflect the long term prospects or opportunities for our business segment being evaluated.

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If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, we perform the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit’s goodwill with the carrying value of that goodwill.

There have not been any significant changes to our impairment testing methodology other than updating the assumptions to reflect the current market environment. As discussed above, key assumptions used in the first step of the goodwill impairment test were determined by management utilizing the internal operating plan. The key assumptions utilized include forecasted growth rates for revenues and operating expenses as well as a discount rate which is determined by looking at current risk-free rates of capital, current market interest rates and the evaluation of a risk premium relevant to the business segment. Zebra will monitor future results and will perform a test if indicators trigger an impairment review.

We test the impairment of goodwill each year as of the end of May or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Zebra has two reporting units required for its annual goodwill impairment test. We completed our annual assessment during June 2012 and determined that our goodwill was not impaired as of the end of May 2012.As part of Zebra’s annual impairment test in the second quarter, Management determined that the larger of the two reporting units’ fair value exceeded its carrying value by a significant amount. The second smaller reporting unit’s amount by which the fair value exceeded the carrying value ranged from approximately 8% under the Income Approach to 31% under the Market Approach.

Due to the deterioration in the smaller reporting unit’s operating results during the third quarter, failing to meet our forecasted revenues and operating expenses, and a decline in expected growth rates, our fair value calculation for the smaller reporting unit changed and we determined our goodwill associated with the smaller reporting unit was impaired. The above impairment indicators led us to conclude an interim goodwill test was necessary. Zebra performed the first step of the impairment test which failed. As a result, Zebra also performed a second step analysis and recorded a goodwill impairment charge of $9,114,000 as of September 29, 2012. After this impairment charge, there is no remaining goodwill in the smaller reporting unit.

Valuation of Long-Lived and Other Intangible Assets

Zebra evaluates the impairment of identifiable intangibles and other long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered that may trigger an impairment review consist of:

• Significant underperformance relative to expected historical or projected future operating results,

• Significant changes in the manner of use of the acquired assets or the strategy for the overall business,

• Significant negative industry or economic trends,

• Significant decline in Zebra’s stock price for a sustained period, and

• Significant decline in market capitalization relative to net book value.

If Zebra believes that one or more of the above indicators of impairment have occurred and the undiscounted cash flow test has failed in the case of amortizable assets, Zebra measures impairment based on projected discounted cash flows using a discount rate that incorporates the risk inherent in the cash flows.

Net intangible assets, long-lived assets and goodwill amounted to $235,442,000 as of December 31, 2012.

Income Taxes

On January 1, 2007, we adopted ASC 740. According to ASC 740, Zebra identified, evaluated, and measured the amount of income tax benefits to be recognized for all of our income tax positions. During 2008, Zebra recognized an increase of approximately $4,000,000 in the liability for unrecognized tax benefits related to an acquisition. During 2012 Zebra recognized an increase of $680,000 for tax benefits related to the foreign restructuring.

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A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at January 1, 2011	$	4,000
Additions based on tax positions related to 2011		—
Additions based on tax positions related to 2012		680
Balance at December 31, 2012	$	4,680

Zebra’s continuing practice is to recognize interest and penalties related to income tax matters as part of income tax expense. For the years ended December 31, 2012 and December 31, 2011, we did not accrue any interest or penalties into income tax expense.

An audit of U.S. federal income tax returns for years of 2008 through 2010 was completed in 2012. The tax years 2008 through 2010 remain open to examination by multiple state taxing jurisdictions. Tax authorities in the United Kingdom have completed income tax audits for tax years through 2008.

Included in deferred tax assets are amounts related to federal and state net operating losses that resulted from Zebra’s acquisition of WhereNet Corp. As of December 31, 2012, Zebra had approximately $2,518,000 of federal net operating loss carryforwards available to offset future taxable income which expire in 2022 through 2027. As of December 31, 2012, Zebra also had approximately $27,391,000 of state net operating loss carryforwards which expire in 2012 through 2020. Zebra’s intention is to utilize these net operating loss carryforwards to offset future income tax expense. Under the United States Tax Reform Act of 1986, the amount of benefits from net operating loss carryforwards may be impaired or limited in certain circumstances, including significant changes in ownership interests.

	Year Ended
	December 31, 2012		December 31, 2011
Effective tax rate		25.8%		27.5%

During 2012, Zebra established a foreign holding company structure that is designed to accomplish various international business objectives. This new holding company structure allows Zebra to consolidate the ownership of its significant foreign affiliates under a single holding company. In addition, the structure gives the company the ability to facilitate cash pooling for its non-US operations and provide for the tax efficient movement of cash within the structure to efficiently deploy cash generated by the foreign subsidiaries. Zebra’s international income taxes have also decreased as result of this project.

Contingencies

Zebra records estimated liabilities related to contingencies based on our estimates of the probable outcomes. Quarterly, Zebra assesses the potential liability related to pending litigation, tax audits and other contingencies and confirm or revise estimates and reserves as appropriate.

For further information regarding material pending legal proceedings, see Note 12 in the Notes to the Consolidated Financial Statements included in the Form 10-K.

Equity-Based Compensation

As of December 31, 2012, Zebra had an active equity-based compensation plan and a stock purchase plan available for future grants. We accounted for these plans in accordance with ASC 505 and ASC 718. Zebra recognizes compensation costs using the straight-line method over the vesting period of up to 5 years. See Notes 2 and 16 to the Consolidated Financial Statements included in the Form 10-K for further information.

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Liquidity and Capital Resources

(Amounts in thousands, except percentages):

	Year Ended
Rate of Return Analysis:	December 31, 2012			December 31, 2011
Average cash and marketable securities balances	$	360,385		$	292,646
Annualized rate of return		0.7	%		0.7	%

Average cash and marketable securities balances for 2012 increased compared to 2011 as a result of increased cash provided by operations.

As of December 31, 2012, Zebra had $394,075,000 in cash, restricted cash, investments and marketable securities, compared with $326,695,000 at December 31, 2011. Factors affecting cash and investment balances during 2012 include the following (changes below include the impact of foreign currency):

• Accounts receivable increased $8,647,000 due to the increased sales and the timing of receipts.

• Inventories decreased $11,530,000 due to decreases in raw materials inventory.

• Accounts payable decreased $14,605,000 due to the timing of payments at period end.

• Income taxes increased $16,335,000 due to the timing of tax payments and taxes incurred.

• Purchases of property and equipment totaled $22,443,000.

• Escrowed proceeds received from the sale of Navis totaled $27,580,000.

• Acquisition of businesses totaled $59,876,000.

• Purchases of treasury stock totaled $54,373,000.

Management believes that existing capital resources and funds generated from operations are sufficient to finance anticipated capital requirements.

Zebra earns a significant amount of our operating income outside the U.S., which is deemed to be permanently reinvested in foreign jurisdictions. Zebra does not currently foresee a need to repatriate funds, however, should Zebra require more capital in the U.S. than is generated by our operations locally, Zebra could elect to repatriate funds held in foreign jurisdictions or raise capital in the U.S. through debt or equity issuances. These alternatives could result in higher effective tax rates or increased interest expense. Included in Zebra’s cash, restricted cash, investments and marketable securities are amounts held by foreign subsidiaries. Zebra had $173,483,000 as of December 31, 2012, and $96,829,000 as of December 31, 2011 of foreign cash and investments, which are generally invested in U.S. dollar-denominated holdings.

Contractual Obligations

Zebra’s contractual obligations as of December 31, 2012 were (in thousands):

	Payments due by period
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating lease obligations	$	31,497	$	10,699	$	11,125	$	4,574	$	5,099
Deferred compensation liability		3,553		—		—		—		3,553
Deferred revenue		24,001		13,326		10,675		—		—
Purchase obligations		104,366		104,366		—		—		—
Total	$	163,417	$	128,391	$	21,800	$	4,574	$	8,652

Purchase obligations are for purchases made in the normal course of business to meet operational requirements, primarily raw materials and finished goods.

On October 10, 2012, Zebra entered into a revolving credit agreement for a five-year $250 million revolving credit facility with a syndicate of banks led by J. P. Morgan Securities LLC as Administrative Agent. 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

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purposes permitted by the agreement. As of December 31, 2012, we had established letters of credit amounting to $2,300,000, which reduce the funds available for borrowing under the agreement. No amounts were outstanding under the credit agreement as of December 31, 2012.

Management believes that existing capital resources and funds generated from operations are sufficient to finance anticipated capital requirements.

Recently Issued Accounting Pronouncements

In June 2011, the FASB issued update 2011-05, ASC 220, Comprehensive Income: Presentation of Comprehensive Income and in December 2011, the FASB issued update 2011-12, ASC 220, Comprehensive Income: Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU No. 2011-12 is to defer only those changes in ASU No. 2011-05 that relate to the presentation of reclassification adjustments. Entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before ASU No. 2011-05. All other requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. This standard is effective for interim and annual periods beginning after December 15, 2011. The adoption of this standard moved the Other Comprehensive Income statement disclosure from our footnote to its own financial statement for our 10-Q filings in 2012.

In September 2011, the FASB issued update 2011-08, ASC 350, Intangibles Goodwill and Other: Testing Goodwill for Impairment. This updated guidance simplifies how companies test goodwill for impairment. Essentially, companies are no longer required to calculate the fair value of a reporting unit unless the entity determines that it is more-likely-than-not that its fair value is less than its carrying amount using a qualitative assessment. This standard is effective for fiscal years beginning after December 15, 2011. The adoption of this standard did not have any effect upon our consolidated financial statements.

In July 2012, the FASB issued update 2012-03, ASC 350, Intangibles Goodwill and Other: Testing Indefinite-Lived Intangible Assets for Impairment. This updated guidance provides entities with the option to make qualitative assessments about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. This standard is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of this standard did not have any effect upon our consolidated financial statements.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

Zebra is exposed to the impact of changes in interest rates because of our large investment portfolio. As stated in our written investment policy’s objective is to achieve stable and predictable targeted rates of return, and to provide the liquidity necessary for the operation of the business.

Zebra mitigates interest rate risk with an investment policy that requires the use of outside professional investment managers, specified investment liquidity levels, and broad diversification across investments, and which limits the types of investments that may be made. Moreover, the policy requires due diligence of each investment manager both before employment and on an ongoing basis.

The following table sets forth the full-year impact of a one-percentage point movement in interest rates on the value of Zebra’s investment portfolio (in thousands, except per share data).

	As of December 31,
Interest rate sensitive instruments	2012		2011
+1 percentage point movement
Effect on Pretax Income	$	(3,657)	$	(3,423)
Effect on Diluted EPS (after tax)	$	(0.05)	$	(0.05)
-1 percentage point movement
Effect on Pretax Income	$	3,657	$	3,423
Effect on Diluted EPS (after tax)	$	0.05	$	0.05

Because these securities are classified as available-for-sale under ASC 320 (formerly SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities), the impact of a one-percentage point movement in interest rates occurs over an extended period of time as investments are sold and the funds are subsequently reinvested.

Foreign Exchange Risk

We conduct business in over 100 countries throughout the world and, therefore, at times are exposed to risk based on movements in foreign exchange rates. On occasion, we invoice customers in their local currency and have a resulting foreign currency denominated revenue transaction and accounts receivable. We also purchase certain raw materials and other items in foreign currencies. We manage these risks using derivative financial instruments. See Note 11 of the Notes to the Consolidated Financial Statements included in this form 10-K for further discussions of hedging activities.

The following table sets forth the impact of a ten percent movement in the dollar/pound and dollar/euro rates measured as if Zebra did not engage in the selective hedging practices described above. It is based on the dollar/euro and dollar/pound exchange rates and euro and pound denominated assets and liabilities (in thousands, except per share data).

	As of December 31,
Foreign exchange	2012		2011
Dollar/pound
Effect on Pretax Income	$	824	$	895
Effect on Diluted EPS (after tax)	$	0.01	$	0.01
Dollar/euro
Effect on Pretax Income	$	5,193	$	5,970
Effect on Diluted EPS (after tax)	$	0.07	$	0.08

Equity Price Risk

Zebra’s investment manager uses an investment strategy that is principally designed to preserve capital. Zebra utilizes a Value-at-Risk (VaR) model to determine the maximum potential one-day loss in the fair value of its interest rate, foreign exchange and equity price sensitive instruments.

From time to time, Zebra has taken direct equity positions in companies. These investments relate to potential acquisitions and other strategic business opportunities. To the extent that it has a direct investment in the equity securities of another company, Zebra is exposed to the risks associated with such investments.

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Item 8. Financial Statements and Supplementary Data

The financial statements and schedule of Zebra are annexed to this report as pages F-2 through F-36. An index to such materials appears on page F-1.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

Not applicable.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of the end of the period covered by this Form 10-K. The evaluation was conducted under the supervision of our Disclosure Committee, and with the participation of management, including our Chief Executive Officer and Chief Financial Officer. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective to provide reasonable assurance that (i) the information required to be disclosed by us in this Form 10-K was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (ii) information required to be disclosed by us in our reports that we file or furnish under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2012. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework. Based on this assessment and those criteria, our management believes that, as of December 31, 2012, our internal control over financial reporting is effective. Our independent registered public accounting firm, Ernst & Young LLP, has issued an attestation report on Zebra’s internal control over financial reporting. Ernst & Young LLP’s report is included on page 43 of this report on Form 10-K.

Changes in Internal Control over Financial Reporting

In January 2008, Zebra began a program to update substantially all of its key financial systems. As pieces of these systems are completed, they will be subject to the requirements related to internal control over financial reporting. The requirements for internal control over financial reporting will be a fundamental element of the design and implementation of these systems.

As of January 31, 2011, we completed the implementation of the new systems for our EMEA region. This implementation included customer order entry and invoicing, inventory procurement and management, certain accounts payable activity, and other related operational systems. As part of the implementation, we changed many of the related internal controls, primarily by replacing manual controls with system controls and streamlining Zebra’s internal operations. These new controls were subject to testing throughout 2011and 2012.

As of February 27, 2012, we completed the implementation of the new systems for our North America region. This implementation included customer order entry and invoicing, inventory procurement and management, certain accounts payable activity, and other related operational systems. As part of the implementation, we changed many of the related internal controls substantially by reducing the number of manual controls with system controls and streamlining Zebra’s internal operations. These new controls were subject to testing throughout 2012.

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During 2012, we made additional changes to our controls and procedures as part of our ongoing monitoring of our controls. None of these changes has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. In addition, there were no other changes that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on the Effectiveness of Controls

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within Zebra have been prevented or detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

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Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of

Zebra Technologies Corporation:

We have audited Zebra Technologies Corporation and subsidiaries’ internal control over financial reporting as of December 31, 2012, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). Zebra Technologies Corporation and subsidiaries’ management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Zebra Technologies Corporation and subsidiaries maintained, in all material respects, effective internal control over financial reporting as of December 31, 2012, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Zebra Technologies Corporation and subsidiaries as of December 31, 2012 and 2011, and the related consolidated statements of earnings, comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2012, our report dated February 21, 2013 expressed an unqualified opinion thereon.

/s/Ernst & Young LLP

Chicago, Illinois

February 21, 2013

42

Item 9B. Other Information

Not applicable.

43

PART III

Item 10. Directors, Executive Officers and Corporate Governance

We have adopted a Code of Ethics for Senior Financial Officers that applies to Zebra’s Chief Executive Officer, Chief Financial Officer and the Vice President, Finance. The Code of Ethics is posted on the Investor Relations – Corporate Governance page of Zebra’s Internet Web site, www.zebra.com, and is available for download. Any waiver from the Code of Ethics and any amendment to the Code of Ethics will be disclosed on such page of Zebra’s Web site

All other information in response to this item is incorporated by reference from the Proxy Statement sections entitled “Corporate Governance,” “Election of Directors,” “Board and Committees of the Board,” “Executive Officers,” and “Section 16(a) Beneficial Ownership Reporting Compliance.”.”

Item 11. Executive Compensation

The information in response to this item is incorporated by reference from the Proxy Statement sections entitled “Compensation Discussion and Analysis-Executive Summary,” “Compensation Discussion and Analysis,” “Executive Compensation,” “Director Compensation,” “Compensation Committee Interlocks and Insider Participation” and “Compensation Committee Report.”

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information in response to this item is incorporated by reference from the Proxy Statement sections entitled “Ownership of our Common Stock” and “Equity Compensation Plan Information.”

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information in response to this item is incorporated by reference from the Proxy Statement section entitled “Corporate Governance.”

Item 14. Principal Accounting Fees and Services

The information in response to this item is incorporated by reference from the Proxy Statement section entitled “Fees of Independent Auditors.”

44

PART IV

Item 15. Exhibits, Financial Statement Schedules

The financial statements and schedule filed as part of this report are listed in the accompanying Index to Financial Statements and Schedule. The exhibits filed as a part of this report are listed in the accompanying Index to Exhibits.

45

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, there unto duly authorized, on the 21st day of February 2013.

ZEBRA TECHNOLOGIES CORPORATION
	By: /s/Anders Gustafsson
	Anders Gustafsson
	Chief Executive Officer

Pursuant to the requirements of the Securities and Exchange Act of 1934, the report has been signed below by the following persons in the capacities and on the dates indicated.

Signature	Title	Date
/s/ Anders Gustafsson Anders Gustafsson	Chief Executive Officer and Director (Principal Executive Officer)	February 21, 2013
/s/ Gerhard Cless Gerhard Cless	Executive Vice President, Director	February 21, 2013
/s/ Michael C. Smiley Michael C. Smiley	Chief Financial Officer (Principal Financial Officer)	February 21, 2013
/s/ Todd R. Naughton Todd R. Naughton	Vice President, Finance (Principal Accounting Officer)	February 21, 2013
/s/ Michael A. Smith Michael A. Smith	Director and Chairman of the Board of Directors	February 21, 2013
/s/ Andrew Ludwick Andrew Ludwick	Director	February 21, 2013
/s/ Ross W. Manire Ross W. Manire	Director	February 21, 2013
/s/ Robert J. Potter Robert J. Potter	Director	February 21, 2013
/s/ Richard Keyser Richard Keyser	Director	February 21, 2013

46

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

INDEX TO FINANCIAL STATEMENTS AND SCHEDULE

	Page
Financial Statements
Report of Independent Registered Public Accounting Firm		F-2
Consolidated Balance Sheets as of December 31, 2012 and 2011		F-3
Consolidated Statements of Earnings for the years ended December 31, 2012, 2011, and 2010		F-4
Consolidated Statements of Comprehensive Income for the years ended December  31, 2012, 2011, and 2010		F-5
Consolidated Statements of Stockholders’ Equity for the years ended December  31, 2012, 2011, and 2010		F-6
Consolidated Statements of Cash Flows for the years ended December 31, 2012, 2011, and 2010		F-7
Notes to Consolidated Financial Statements		F-8
Financial Statement Schedule
The following financial statement schedule is included herein:
Schedule II - Valuation and Qualifying Accounts		F-37

All other financial statement schedules are omitted because they are not applicable or the required information is shown in the consolidated financial statements or related notes.

F-1

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of

Zebra Technologies Corporation

We have audited the accompanying consolidated balance sheets of Zebra Technologies Corporation and subsidiaries (the Company) as of December 31, 2012 and 2011, and the related consolidated statements of earnings, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2012. Our audits also included the financial statement schedule listed in Index at Item 15. These financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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 consolidated financial position of Zebra Technologies Corporation and subsidiaries at December 31, 2012 and 2011, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2012, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Zebra Technologies Corporation’s internal control over financial reporting as of December 31, 2012, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 21, 2013 expressed an unqualified opinion thereon.

/s/Ernst & Young LLP

Chicago, Illinois

February 21, 2013

F-2

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

	December 31,         2012		December 31,         2011
ASSETS
Current assets:
Cash and cash equivalents	$	64,740	$	36,418
Investments and marketable securities		324,140		182,398
Accounts receivable, net		168,732		155,230
Receivable from buyer		0		27,580
Inventories, net		123,357		133,288
Deferred income taxes		13,484		13,931
Income tax receivable		0		13,111
Prepaid expenses and other current assets		16,410		22,917
Total current assets		710,863		584,873
Property and equipment at cost, less accumulated depreciation and amortization		101,349		97,822
Long-term deferred income taxes		2,602		11,866
Goodwill		94,942		79,703
Other intangibles, net		39,151		12,667
Long-term investments and marketable securities		5,195		107,879
Other assets		13,646		4,196
Total assets	$	967,748	$	899,006
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	23,045	$	33,273
Accrued liabilities		57,234		64,612
Deferred revenue		13,326		11,089
Income taxes payable		1,609		0
Total current liabilities		95,214		108,974
Deferred rent		1,303		1,592
Other long-term liabilities		14,229		11,515
Total liabilities		110,746		122,081
Stockholders’ equity:
Preferred Stock		0		0
Class A Common Stock		722		722
Additional paid-in capital		139,523		131,422
Treasury stock		(641,438)		(596,622)
Retained earnings		1,368,520		1,245,616
Accumulated other comprehensive loss		(10,325)		(4,213)
Total stockholders’ equity		857,002		776,925
Total liabilities and stockholders’ equity	$	967,748	$	899,006

See accompanying notes to consolidated financial statements.

F-3

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(Amounts in thousands, except per share data)

	Year Ended December 31,
	2012		2011		2010
Net sales
Net sales of tangible products	$	948,227	$	936,282	$	849,530
Revenue from services and software		47,941		47,206		44,829
Total net sales		996,168		983,488		894,359
Cost of sales
Cost of sales of tangible products		479,633		469,834		450,630
Cost of services and software		24,891		26,885		22,954
Total cost of sales		504,524		496,719		473,584
Gross profit		491,644		486,769		420,775
Operating expenses:
Selling and marketing		129,906		127,797		112,365
Research and development		87,364		89,926		82,575
General and administrative		92,167		81,345		73,229
Amortization of intangible assets		4,673		3,320		3,211
Acquisition costs		3,109		304		0
Litigation settlement		0		0		(1,082)
Exit and restructuring costs		960		2,041		2,262
Asset impairment charge		9,114		0		0
Total operating expenses		327,293		304,733		272,560
Operating income		164,351		182,036		148,215
Other income (expense):
Investment income		2,485		1,944		2,678
Foreign exchange loss		(941)		(2,006)		(169)
Other, net		(1,721)		(2,255)		(1,117)
Total other income (expense)		(177)		(2,317)		1,392
Income from continuing operations before income taxes		164,174		179,719		149,607
Income taxes		42,277		49,376		44,993
Income from continuing operations		121,897		130,343		104,614
Income (loss) from discontinued operations, net of tax		1,007		44,300		(2,836)
Net income	$	122,904	$	174,643	$	101,778
Basic earnings per share
Income from continuing operations	$	2.36	$	2.42	$	1.83
Income (loss) from discontinued operations		0.02		0.82		(0.05)
Net Income	$	2.38	$	3.24	$	1.78
Diluted earnings per share
Income from continuing operations	$	2.35	$	2.40	$	1.82
Income (loss) from discontinued operations		0.02		0.82		(0.05)
Net Income	$	2.37	$	3.22	$	1.77
Basic weighted average shares outstanding		51,566		53,854		57,143
Diluted weighted average and equivalent shares outstanding		51,843		54,191		57,428

See accompanying notes to consolidated financial statements.

F-4

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands)

	Year Ended December 31,
	2012		2011		2010
Net income	$	122,904	$	174,643	$	101,778
Other comprehensive income (loss):
Unrealized gain (loss) on hedging transactions, net of income taxes		(7,241)		6,209		(949)
Unrealized holding gain (loss) on investments, net of income taxes		887		(385)		(406)
Foreign currency translation adjustment		242		(688)		67
Comprehensive income	$	116,792	$	179,779	$	100,490

See accompanying notes to consolidated financial statements.

F-5

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Dollars in thousands)

	Class A Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total
Balance at December 31, 2009	$	722	$	136,104	$	(385,831)	$	969,195	$	(8,061)	$	712,129
Repurchase of 3,349,286 shares of Class A Common Stock		—		—		(102,091)		—		—		(102,091)
Issuance of 765,078 treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards		—		(16,918)		25,893		—		—		8,975
Additional tax benefit resulting from exercise of options		—		(1,342)		—		—		—		(1,342)
Equity-based compensation		—		11,871		—		—		—		11,871
Net income		—		—		—		101,778		—		101,778
Unrealized holding loss on investments (net of income taxes)		—		—		—		—		(406)		(406)
Unrealized holding loss on hedging transactions (net of income taxes)		—		—		—		—		(949)		(949)
Foreign currency translation adjustment		—		—		—		—		67		67
Balance at December 31, 2010	$	722	$	129,715	$	(462,029)	$	1,070,973	$	(9,349)	$	730,032
Repurchase of 4,353,801 shares of Class A Common Stock		—		—		(160,200)		—		—		(160,200)
Issuance of 809,084 treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards		—		(12,598)		25,607		—		—		13,009
Additional tax benefit resulting from exercise of options		—		210		—		—		—		210
Equity-based compensation		—		14,095		—		—		—		14,095
Net income		—		—		—		174,643		—		174,643
Unrealized holding loss on investments (net of income taxes)		—		—		—		—		(385)		(385)
Unrealized holding gain on hedging transactions (net of income taxes)		—		—		—		—		6,209		6,209
Foreign currency translation adjustment		—		—		—		—		(688)		(688)
Balance at December 31, 2011	$	722	$	131,422	$	(596,622)	$	1,245,616	$	(4,213)	$	776,925
Repurchase of 1,473,863 shares of Class A Common Stock		—		—		(54,373)		—		—		(54,373)
Issuance of 488,863 treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards		—		(6,196)		9,557		—		—		3,361
Additional tax benefit resulting from exercise of options		—		(430)		—		—		—		(430)
Equity-based compensation		—		14,727		—		—		—		14,727
Net income		—		—		—		122,904		—		122,904
Unrealized holding gain on investments (net of income taxes)		—		—		—		—		887		887
Unrealized holding loss on hedging transactions (net of income taxes)		—		—		—		—		(7,241)		(7,241)
Foreign currency translation adjustment		—		—		—		—		242		242
Balance at December 31, 2012	$	722	$	139,523	$	(641,438)	$	1,368,520	$	(10,325)	$	857,002

See accompanying notes to consolidated financial statements.

F-6

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

	Year Ended December 31,
	2012		2011		2010
Cash flows from operating activities:
Net income	$	122,904	$	174,643	$	101,778
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		26,177		24,000		31,209
Equity-based compensation		14,727		14,095		11,871
Asset impairment charges		9,114		0		0
Impairment of investments		0		219		0
Excess tax benefit from share-based compensation		(1,578)		(1,392)		(244)
Loss on sale of property and equipment		311		284		(58)
Gain on sale of business		(930)		(68,745)		0
Deferred income taxes		8,067		10,796		(1,347)
Changes in assets and liabilities, net of businesses acquired:
Accounts receivable, net		(8,647)		(3,269)		(4,603)
Inventories, net		11,530		(19,545)		(33,884)
Other assets		7,304		(12,721)		(2,615)
Accounts payable		(14,605)		(5,439)		6,619
Accrued liabilities		(4,193)		(11,086)		15,386
Deferred revenue		4,351		(14,131)		3,414
Income taxes		16,335		(14,983)		16,980
Other operating activities		(7,536)		5,582		(2,669)
Net cash provided by operating activities		183,331		78,308		141,837
Cash flows from investing activities:
Purchases of property and equipment		(22,443)		(26,918)		(30,721)
Proceeds from the sale of business		27,580		161,206		0
Acquisition of businesses, net of cash acquired		(59,876)		0		0
Acquisition of intangible assets		(3,500)		(1,232)		(3,497)
Purchases of long-term investments		(9,125)		0		0
Purchases of investments and marketable securities		(347,609)		(991,633)		(382,091)
Maturities of investments and marketable securities		145,028		607,996		274,208
Proceeds from sales of investments and marketable securities		164,410		303,801		102,485
Net cash provided by (used in) investing activities		(105,535)		53,220		(39,616)
Cash flows from financing activities:
Purchase of treasury stock		(54,373)		(160,200)		(102,091)
Proceeds from exercise of stock options and stock purchase plan purchases		3,361		13,009		8,975
Excess tax benefit from equity-based compensation		1,578		1,392		244
Net cash used in financing activities		(49,434)		(145,799)		(92,872)
Effect of exchange rate changes on cash		(40)		1,835		562
Net increase (decrease) in cash and cash equivalents		28,322		(12,436)		9,911
Cash balance of discontinued operations at beginning of period		0		1,301		1,694
Less: Cash balance of discontinued operations at end of period		0		0		1,301
Cash and cash equivalents at beginning of period		36,418		47,553		37,249
Cash and cash equivalents at end of period	$	64,740	$	36,418	$	47,553
Supplemental disclosures of cash flow information:
Income taxes paid	$	20,059	$	65,364	$	26,563

See accompanying notes to consolidated financial statements.

F-7

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 Description of Business

Zebra Technologies Corporation and its wholly-owned subsidiaries (Zebra) design, manufacture, sell and support a broad range of direct thermal and thermal transfer label printers, radio frequency identification printer/encoders, dye sublimation card printers, real-time locating solutions, related accessories and support software. These products are used principally in automatic identification (auto ID), data collection and personal identification applications and are distributed world-wide through a network of resellers, distributors and end users representing a wide cross-section of industrial, service and government organizations.

In 2008 and 2007, we acquired WhereNet Corp., proveo AG, Navis Holdings, LLC (Navis) and Multispectral Solutions Inc., which we referred to as Zebra Enterprise Solutions Group (ZES). On January 31, 2011, we announced a definitive agreement to sell the Navis operations and certain other assets of ZES. Upon completion of the transaction we consolidated the remaining operations of ZES and no longer report ZES as a separate segment since it is not greater than 10% of Zebra’s consolidated totals.

Reclassifications. Prior-period amounts will differ from amounts previously reported because certain immaterial amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation.

Note 2 Summary of Significant Accounting Policies

Principles of Consolidation. These consolidated financial statements were prepared on a consolidated basis to include the accounts of Zebra and its wholly owned subsidiaries. All significant intercompany accounts, transactions and unrealized profit were eliminated in consolidation.

Fiscal Calendar. Zebra operates on a 4 week/4 week/5 week fiscal quarter, and each fiscal quarter ends on a Saturday. The fiscal year always begins on January 1 and ends on December 31. This fiscal calendar results in some fiscal quarters being either greater than or less than 13 weeks, depending on the days of the week those dates fall. During the 2012 fiscal year, our quarter end dates were as follows:

• March 31,

• June 30,

• September 29, and

• December 31.

Use of Estimates. These consolidated financial statements were prepared using estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents. Cash consists primarily of deposits with banks. In addition, Zebra considers highly liquid short-term investments with original maturities of less than three months to be cash equivalents. These highly liquid short-term investments are readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of a change in value because of changes in interest rates.

Investments and Marketable Securities. Investments and marketable securities at December 31, 2012, consisted of U.S. government and agency securities, state and municipal bonds, corporate bonds, and other security interests. Trading securities are bought and held principally for the purpose of selling them in the near term. Held-to-maturity securities are those debt securities that Zebra has the ability and intent to hold until maturity. All securities not included in trading or held-to-maturity are classified as available-for-sale. Trading and available-for-sale securities are recorded at fair value. Held-to-maturity securities are recorded at amortized cost, adjusted for the amortization or accretion of discounts or premiums. Unrealized holding gains and losses on trading securities are included in earnings. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of stockholders’ equity until realized, unless we determine them to be other-than-temporarily impaired.

Zebra’s investments and marketable securities are classified as available-for-sale securities except for securities held in Zebra’s deferred compensation plan which are considered trading securities. Investments in marketable debt securities are classified based on intent and ability to sell investment securities. Zebra’s available-for-sale securities are used to fund further acquisitions and other operating needs and therefore can be sold prior to maturity. Investments in marketable debt securities for which Zebra intends to sell within the next year are classified as current and those that we intend to hold in excess of one-year are classified as non-current.

F-8

Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable consist primarily of amounts due to us from our normal business activities. Collateral on trade accounts receivable is generally not required. Zebra maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on our assessment of known delinquent accounts. Accounts are written off against the allowance account when they are determined to be no longer collectible.

Inventories. Inventories are stated at the lower of cost or market, and cost is determined by the first-in, first-out (FIFO) method. Manufactured inventories consist of the following costs: component, direct labor and manufacturing overhead. Purchased inventories consist of purchased costs and purchasing overhead.

Property and Equipment. Property and equipment is stated at cost. Depreciation and amortization is computed primarily using the straight-line method over the estimated useful lives of the various classes of property and equipment, which are 30 years for buildings and range from 3 to 10 years for other property. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset.

Income Taxes. Zebra’s continuing practice is to recognize interest and penalties related to income tax matters as part of income tax expense. During 2012 Zebra recognized an increase of $680,000 in the liability for tax benefits related to the foreign restructuring.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at January 1, 2011	$	4,000
Additions based on tax positions related to 2011		0
Additions based on tax positions related to 2012		680
Balance at December 31, 2012	$	4,680

Goodwill and Other Intangibles. Goodwill represents the unamortized excess of the cost of acquiring a business over the fair values of the net assets received at the date of acquisition.

Goodwill of a reporting unit should be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Examples of such events or circumstances include:

• Significant adverse change in legal factors or in the business climate,

• Adverse action or assessment by a regulator,

• Unanticipated competition,

• Loss of key personnel,

• More-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of,

• Testing for recoverability under ASC 360 of a significant asset group within a reporting unit,

• Recognition of a goodwill impairment loss in the financial statement of a subsidiary that is a component of a reporting unit, or

• Allocation of a portion of goodwill to a business to be disposed of.

We evaluate the impairment of identifiable intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered that might trigger an impairment review consist of:

• Significant underperformance relative to expected historical or projected future operating results,

• Significant changes in the manner of use of the acquired assets or the strategy for the overall business,

• Significant negative industry or economic trends,

• Significant decline in Zebra’s stock price for a sustained period, and

• Significant decline in market capitalization relative to net book value.

If we believe that one or more of the above indicators of impairment have occurred, we perform an impairment test. The performance of the test involves a two-step process. The first step of the impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. We generally determine the fair value of our reporting units using three valuation methods: Income Approach – Discounted Cash Flow Analysis, Market Approach – Guideline Public Company Method, and Market Approach – Comparative Transactions Method. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, we perform the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit’s goodwill with the carrying value of that goodwill.

F-9

We performed our annual impairment test in June 2012 and determined that our goodwill was not impaired as of the end of May 2012. Zebra has two reporting units required for its annual goodwill impairment test. As of our May 2012 testing date, the larger of the two reporting units’ fair value exceeded its carrying value by a significant amount. The fair value amount by which the second smaller reporting unit exceeded the carrying value ranged from approximately 8% under the Income Approach and 31% under the Market Approach. Key assumptions used in the first step of the goodwill impairment test were determined by management utilizing the internal operating plan. The key assumptions utilized included forecasted growth rates for revenues and operating expenses as well as a discount rate which is determined by looking at current risk-free rates of capital, current market interest rates, and the evaluation of a risk premium relevant to the business segment. Due to the deterioration in the smaller reporting unit’s operating results during the third quarter our fair value calculation for the smaller reporting unit changed and we determined our goodwill associated with the smaller reporting unit to be impaired. The above impairment indicators led us to conclude an interim goodwill test was necessary. Zebra performed the first step of the impairment test which failed. As a result, Zebra also performed a second step analysis and recorded a goodwill impairment charge of $9,114,000 as of September 29, 2012. After this impairment charge, there is no remaining goodwill in the smaller reporting unit.

Other intangible assets capitalized consist primarily of current technology, customer relationships, patents and patent rights. These assets are recorded at cost and amortized on a straight-line basis over a weighted-average life of 5.3 years, which approximates the estimated useful lives. Weighted average lives remaining by intangible asset class are as follows: Current technology 4.0 years; Patent and patent rights 4.4 years; Customer relationships 7.3 years.

Revenue Recognition. Revenue includes sales of hardware, supplies, software and services (including repair services, extended service contracts, and professional services). Product revenue is recognized once four criteria are met: (1) we have persuasive evidence that an arrangement exits; (2) delivery has occurred and title has passed to the customer, which happens at the point of shipment provided that no significant obligations remain; (3) the price is fixed and determinable; and (4) collectability is reasonably assured. We provide for an estimate of product returns based on historical experience. Revenue related to extended warranty and service contracts is recorded as deferred revenue and recognized over the life of the contract. Professional services revenue is recorded when performed. Zebra enters into sales transactions that include more than one product type. This bundle of products might include printers, current or future supplies, and services. When this type of transaction occurs, we allocate the purchase price to each product type based on the fair value of the individual products determined by vendor specific objective evidence. The revenue for each individual product is then recognized when the earning process for that product is complete. We enter into post-contract maintenance and support agreements. Revenues are recognized ratably over the service period and the cost of providing these services is expensed as incurred.

Zebra records payments to resellers of its product as reductions to revenue unless these payments meet the requirements for operating expense treatment under ASC 605. See the market development funds accounting policy for further details.

Revenue includes all customer billings for shipping and handling charges. The related costs of shipping and handling revenue are recorded as cost of goods sold.

Research and Development Costs. Research and development costs are expensed as incurred. These costs include:

• Salaries, benefits, and other R&D personnel related costs,

• Consulting and other outside services used in the R&D process,

• Engineering supplies,

• Engineering related information systems costs, and

• Allocation of building and related costs.

Advertising. Advertising is expensed as incurred. Advertising costs totaled $8,983,000 for the year ended December 31, 2012, $8,070,000 for the year ended December 31, 2011 and $6,836,000 for the year ended December 31, 2010.

Market Development Funds. Zebra makes market development funds available to its resellers to support demand generation activity by the resellers. These funds require the reseller to provide specific services or benefits to Zebra and substantiate the fair value of such services rendered. Zebra reimburses resellers for agreed activities up to the amounts approved by Zebra. These payments are treated as marketing costs consistent with the requirements of ASC 605. Any payments to resellers that do not meet these requirements are recorded as reductions to revenue.

F-10

Warranty. In general, Zebra provides warranty coverage of one year on printers against defects in material and workmanship. Printheads are warranted for nine months and batteries are warranted for twelve months. Battery based products, such as location tags, are covered by a 30 day warranty. A provision for warranty expense is recorded at the time of sale and adjusted quarterly based on historical warranty experience. The following table is a summary of Zebra’s accrued warranty obligation (in thousands):

	Year Ended December 31,
Warranty Reserve	2012		2011		2010
Balance at the beginning of the year	$	4,613	$	4,554	$	3,813
Warranty expense		6,828		5,856		6,427
Warranty payments		(7,189)		(5,797)		(5,686)
Balance at the end of the period	$	4,252	$	4,613	$	4,554

Fair Value of Financial Instruments. Zebra estimates the fair value of its financial instruments as follows:

Instrument	Method for determining fair  value
Cash, cash equivalents, restricted cash, accounts receivable and accounts payable	Cost, which approximates fair value due to the short- term nature of these instruments
Investments in marketable debt securities	Market quotes from independent pricing services
Investments in auction rate securities	Broker quotations, discounted cash flow analysis or other types of valuation adjustment methodologies
Foreign currency forward contracts	Estimated using market quoted rates for foreign currency at the balance sheet date
Foreign currency option contracts	Estimated using market quoted rates for foreign currency at the balance sheet date and application of such rates subject to the option terms

In accordance with ASC 815 we recognize derivative instruments and hedging activities as either assets or liabilities on the balance sheet and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. See Note 11 for additional information on our derivatives and hedging activities.

Equity-Based Compensation. At December 31, 2012, Zebra had a general equity-based compensation plan and a stock purchase plan under which shares of our common stock were available for future grants and sales, and which are described more fully in Note 16. We account for these plans in accordance with ASC 505 and ASC 718. Zebra recognizes compensation costs using the straight-line method over the vesting period of upon grant to up to 5 years.

The compensation expense and the related income tax benefit for share-based payments were included in the Consolidated Statement of Earnings as follows (in thousands):

	For the years ended December 31,
Compensation costs and related income tax benefit:	2012		2011		2010
Cost of sales	$	1,061	$	1,029	$	882
Selling and marketing		1,792		1,463		1,368
Research and development		1,593		1,387		1,282
General and administration		10,281		9,228		6,580
Total compensation expense	$	14,727	$	13,107	$	10,112
Income tax benefit	$	5,132	$	4,522	$	3,489

ASC 505 and ASC 718 requires the cash flows resulting from the tax benefits from tax deductions in excess of the compensation cost recognized (excess tax benefits) to be classified as cash flows from financing activities. Cash flows resulting from the tax benefits of tax deductions in excess of the compensation cost recognized (excess tax benefits) are classified as financing cash flows in the statement of cash flows. The tax benefits classified as financing cash flows was $1,578,000 as of December 31, 2012, $1,392,000 as of December 31, 2011, and $244,000 as of December 31, 2010.

F-11

Deferred Compensation Plan. Zebra has a deferred compensation plan that permits directors, management and highly compensated employees to defer portions of their compensation. Zebra immediately pays deferred amounts into a Rabbi Trust, and plan participants select a method of investing these funds into hypothetical investments. Zebra tracks the performance of these hypothetical investments in order to determine the value of each participant’s deferral. Zebra accrues the deferred compensation liability in other long-term liabilities as the amount that is actually owed to the participants.

Foreign Currency Translation. The consolidated balance sheets of Zebra’s foreign subsidiaries, not having a U.S. dollar functional currency, are translated into U.S. dollars using the year-end exchange rate, and statement of earnings items are translated using the average exchange rate for the year. The resulting translation gains or losses are recorded in stockholders’ equity as a cumulative translation adjustment, which is a component of accumulated other comprehensive income (loss).

Acquisition Costs. Zebra expenses acquisition costs as incurred.

Concentration risks. Final assembly of our thermal printers is performed by Jabil Circuit, a third-party electronics manufacturer. We are now dependent on Jabil for the manufacture of such printers. A failure by Jabil to provide manufacturing services to Zebra as Zebra now requires, or any disruption in such manufacturing services, may adversely affect Zebra’s business results. Because we rely on a third-party provider such as Jabil to manufacture its products, Zebra may incur increased business continuity risks.

Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of. Zebra accounts for long-lived assets in accordance with the provisions of ASC 350. The statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposition of the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. See Note 8 for further information related to impairment charges.

Recently Issued Accounting Pronouncements.

In June 2011, the FASB issued update 2011-05, ASC 220, Comprehensive Income: Presentation of Comprehensive Income and in December 2011, the FASB issued update 2011-12, ASC 220, Comprehensive Income: Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU No. 2011-12 is to defer only those changes in ASU No. 2011-05 that relate to the presentation of reclassification adjustments. Entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before ASU No. 2011-05. All other requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. This standard is effective for interim and annual periods beginning after December 15, 2011. The adoption of this standard moved the Other Comprehensive Income statement disclosure from our footnote to its own financial statement for our 10-Q filings in 2012.

In September 2011, the FASB issued update 2011-08, ASC 350, Intangibles Goodwill and Other: Testing Goodwill for Impairment. This updated guidance simplifies how companies test goodwill for impairment. Essentially, companies are no longer required to calculate the fair value of a reporting unit unless the entity determines that it is more-likely-than-not that its fair value is less than its carrying amount using a qualitative assessment. This standard is effective for fiscal years beginning after December 15, 2011. The adoption of this standard did not have any effect upon our consolidated financial statements.

In July 2012, the FASB issued update 2012-03, ASC 350, Intangibles Goodwill and Other: Testing Indefinite-Lived Intangible Assets for Impairment. This updated guidance provides entities with the option to make qualitative assessments about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. This standard is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of this standard did not have any effect upon our consolidated financial statements.

Subsequent events. We have evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued.

F-12

Note 3 Fair Value Measurements

Financial assets and liabilities are to be measured using inputs from three levels of the fair value hierarchy. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Zebra uses a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels:

Level 1:	Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. (i.e. U.S. Treasuries and money market funds)
Level 2:	Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.
Level 3:	Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in the assessment of fair value. Included in our investment portfolio at December 31, 2012, is an auction rate security which is classified as available for sale and is reflected at fair value. Due to events in credit markets, however, the auction event for the instrument held by Zebra is failed. Therefore, the fair value of this security is estimated utilizing broker quotations, discounted cash flow analysis or other types of valuation adjustment methodologies at December 31, 2012. These analyses consider, among other items, the collateral underlying the security instruments, the creditworthiness of the counterparty, the timing of expected future cash flows, estimates of the next time the security is expected to have a successful auction, and Zebra’s intent and ability to hold such securities until credit markets improve. The security was also compared, when possible, to other securities with similar characteristics.

The decline in the market value of the auction rate security is considered temporary and has been recorded in accumulated other comprehensive income (loss) on Zebra’s balance sheet. Since Zebra has the intent and ability to hold this auction rate security until it is sold at auction, redeemed at carrying value or reach maturity, we have classified it as a long-term investment on the balance sheet.

Financial assets and liabilities carried at fair value as of December 31, 2012, are classified below (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
U.S. government and agency securities	$	83,532	$	13,455	$	0	$	96,987
Obligations of government-sponsored enterprises (1)		0		4,840		0		4,840
State and municipal bonds		0		96,516		0		96,516
Corporate securities		0		128,368		2,588		130,956
Other investments		0		36		0		36
Investments subtotal		83,532		243,215		2,588		329,335
Money market investments related to the deferred compensation plan		3,553		0		0		3,553
Total assets at fair value	$	87,085	$	243,215	$	2,588	$	332,888
Liabilities:
Forward contracts (2)	$	1,174	$	871	$	0	$	2,045
Liabilities related to the deferred compensation plan		3,553		0		0		3,553
Total liabilities at fair value	$	4,727	$	871	$	0	$	5,598

F-13

Financial assets and liabilities carried at fair value as of December 31, 2011, are classified below (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
U.S. government and agency securities	$	25,540	$	25,307	$	0	$	50,847
Obligations of government-sponsored enterprises (1)		0		16,612		0		16,612
State and municipal bonds		0		142,873		0		142,873
Corporate securities		0		77,321		2,588		79,909
Other investments		0		36		0		36
Investments subtotal		25,540		262,149		2,588		290,277
Forward contracts (2)		2,626		6,584		0		9,210
Money market investments related to the deferred compensation plan		3,199		0		0		3,199
Total assets at fair value	$	31,365	$	268,733	$	2,588	$	302,686
Liabilities:
Liabilities related to the deferred compensation plan	$	3,199	$	0	$	0	$	3,199
Total liabilities at fair value	$	3,199	$	0	$	0	$	3,199

1) Includes investments in notes issued by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Federal Farm Credit Banks and the Federal Home Loan Bank.

2) The fair value of forward contracts are calculated as follows:

a. Fair value of a collar or put option contract associated with forecasted sales hedges are calculated using bid and ask rates for similar contracts.

b. Fair value of regular forward contracts associated with forecasted sales hedges are calculated using the period-end exchange rate adjusted for current forward points.

c. Fair value of balance sheet hedges are 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.

The following table presents Zebra’s activity for assets measured at fair value on a recurring basis using significant unobservable inputs, Level 3 as defined in ASC 820 for the years ended December 31 (in thousands):

	Year Ended
	December 31, 2012		December 31, 2011
Balance at beginning of the year	$	2,588	$	5,597
Transfers to Level 3		0		0
Total losses (realized or unrealized):
Included in earnings		0		(255	)
Included in other comprehensive income (loss)		0		317
Purchases and settlements (net)		0		(3,071	)
Balance at end of period	$	2,588	$	2,588
Total gains (losses) for the period included in earnings attributable to the change in unrealized losses relating to assets still held at end of period	$	0	$	0

As of December 31, 2012 and December 31, 2011, there were no other Level 3 unrealized losses that Zebra believes to be other-than-temporary. No realized gains or losses were recorded for the years ended December 31, 2012 and 2011.

F-14

The following is a summary of short-term and long-term investments at December 31, 2012 and December 31, 2011 (in thousands):

	As of December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government and agency securities	$	96,913	$	77	$	(3	)	$	96,987
Obligations of government-sponsored enterprises		4,830		10		0			4,840
State and municipal bonds		96,383		161		(28	)		96,516
Corporate securities		130,634		790		(468	)		130,956
Other investments		36		0		0			36
Total investments	$	328,796	$	1,038	$	(499	)	$	329,335
	As of December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government and agency securities	$	50,738	$	115	$	(6	)	$	50,847
Obligations of government-sponsored enterprises		16,581		32		(1	)		16,612
State and municipal bonds		142,586		330		(43	)		142,873
Corporate securities		81,132		164		(1,387	)		79,909
Other investments		36		0		0			36
Total investments	$	291,073	$	641	$	(1,437	)	$	290,277

The maturity dates of investments as of December 31, 2012 are as follows (in thousands):

	As of December 31, 2012
	Amortized Cost		Estimated Fair Value
Less than 1 year	$	323,210	$	324,140
1 to 5 years		0		0
6 to 10 years		5,586		5,195
Thereafter		0		0
Total	$	328,796	$	329,335

The carrying value for Zebra’s financial instruments classified as current assets (other than short-term investments) and current liabilities approximate fair value due to short term maturities.

Note 4 Investments and Marketable Securities

Investments in marketable debt securities are classified based on intent and ability to sell investment securities. Zebra’s available-for-sale securities are used to fund further acquisitions and other operating needs and therefore can be sold prior to maturity. Investments in marketable debt securities for which Zebra intends to sell within the next year are classified as current and those that we intend to hold in excess of one-year are classified as non-current.

Changes in the market value of available-for-sale securities are reflected in the accumulated other comprehensive income caption of stockholders’ equity in the balance sheet, until we dispose of the securities. Once these securities are disposed of, either by sale or maturity, the accumulated changes in market value are transferred to investment income. On the statement of cash flows, changes in the balances of available-for-sale securities are shown as purchases, sales and maturities of investments and marketable securities under investing activities.

Changes in market value of trading securities would be recorded in investment income as they occur, and the related cash flow statement includes changes in the balances of trading securities as operating cash flows.

F-15

Changes in unrealized gains and losses on available-for-sale securities are included in these financial statements as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Changes in unrealized gains and losses on available-for- sale securities, net of tax, recorded in accumulated other comprehensive income (loss)	$	887	$	(385)	$	(406)

The following table shows the number, aggregate market value and unrealized losses (in thousands) of investments with market values that were less than amortized cost as of December 31, 2012. These lower market values are primarily caused by fluctuations in credit spreads. Market values are expected to recover to the amortized cost prior to maturity.

	Unrealized Loss < 12 months					Unrealized Loss > 12 months
	Number of investments	Aggregate Market Value		Unrealized     Losses		Number of investments	Aggregate Market Value		Unrealized     Losses
Government securities	4	$	5,179	$	(3)	1	$	1,790	$	(0)
State and municipal bonds	19		24,969		(27)	1		1,092		(1)
Corporate Securities	33		15,429		(23)	14		7,262		(445)
Total	56	$	45,577	$	(53)	16	$	10,144	$	(446)

As of December 31, 2011, the number, aggregate market value and unrealized losses (in thousands) of investments with market values that were less than amortized cost were:

	Unrealized Loss < 12 months					Unrealized Loss > 12 months
	Number of investments	Aggregate Market Value		Unrealized Losses		Number of investments	Aggregate Market Value		Unrealized Losses
Government securities	5	$	4,599	$	(3)	6	$	6,708	$	(4)
State and municipal bonds	16		24,556		(7)	11		18,612		(36)
Corporate Securities	35		31,461		(855)	53		17,057		(532)
Total	56	$	60,616	$	(865)	70	$	42,377	$	(572)

Using the specific identification method, the proceeds and realized gains on the sales of available-for-sale securities were as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
Proceeds	$	164,410		$	303,801		$	102,485
Realized gains		423			388			458
Realized losses		(78	)		(306	)		(198)
Net realized gains (losses) included in other comprehensive income (loss) as of the end of the prior year		285			159			(264)

Included in Zebra’s cash, restricted cash, investments and marketable securities are amounts held by foreign subsidiaries which are generally invested in U.S. dollar-denominated holdings. Zebra had $173,483,000 as of December 31, 2012, and $96,829,000 as of December 31, 2011 of foreign cash and investments. Amounts held by foreign subsidiaries are generally subject to U.S. income taxation upon repatriation, however, Zebra does not see a need to repatriate these funds.

F-16

Note 5 Accounts Receivable Reserves

The components of accounts receivable are as follows (in thousands):

	As of
	December 31, 2012		December 31, 2011
Gross accounts receivable	$	169,401	$	156,790
Accounts receivable reserves		(669)		(1,560)
Accounts receivable, net	$	168,732	$	155,230

Note 6 Inventories

The components of inventories are as follows (in thousands):

	As of
	December 31, 2012		December 31, 2011
Raw material	$	31,350	$	45,795
Work in process		921		872
Deferred costs of long-term contracts		604		220
Finished goods		104,137		101,111
Total inventories, gross		137,012		147,998
Inventory reserves		(13,655)		(14,710)
Total inventories, net	$	123,357	$	133,288

Note 7 Property and Equipment

Property and equipment, which includes assets under capital leases, is comprised of the following (in thousands):

	As of December 31,
	2012		2011
Buildings	$	2,134	$	2,086
Land		504		504
Machinery, equipment and tooling		88,222		81,464
Furniture and office equipment		12,672		12,003
Computers and software		130,357		111,793
Automobiles		18		18
Leasehold improvements		16,380		15,494
Projects in progress – computers and software		2,217		9,135
Projects in progress - other		15,561		11,332
		268,065		243,829
Less accumulated depreciation and amortization		(166,716)		(146,007)
Net property and equipment	$	101,349	$	97,822

Other items related to property and equipment are as follows (in thousands):

	As of December 31,
	2012		2011
Unamortized computer software costs	$	48,873	$	42,134

	Year Ended December 31,
	2012		2011		2010
Amortization of capitalized software	$	7,912	$	6,180	$	5,624
Total depreciation expense charged to income		21,504		20,680		20,291

F-17

Note 8 Goodwill and Other Intangible Asset Data

Intangible asset data are as follows (in thousands):

	As of December 31, 2012
	Gross Amount		Accumulated Amortization			Net Amount
Amortized intangible assets
Current technology	$	18,978	$	(12,391	)	$	6,587
Patent and patent rights		29,569		(14,618	)		14,951
Customer relationships		20,493		(2,880	)		17,613
Total	$	69,040	$	(29,889	)	$	39,151
Amortization expense for the year ended December 31, 2012			$	4,673

Estimated amortization expense:
For the year ended December 31, 2013	$	7,382
For the year ended December 31, 2014		7,133
For the year ended December 31, 2015		6,669
For the year ended December 31, 2016		6,231
For the year ended December 31, 2017		5,000
Thereafter		6,736
Total	$	39,151

In 2012, we acquired intangible assets in the amount of $31,157,000 for patents, technology and customer relationships. These intangible assets have an estimated useful life ranging from 5 to 9 years. See Note 24 Business Combinations for specific information regarding the acquisition. In 2011, we acquired intangible assets in the amount of $6,232,000 for patents and other intellectual property, of which, $5,000,000 was accrued as of December 31, 2011. During 2012, Zebra paid $3,500,000 towards intangible asset commitments previously accrued.

	As of December 31, 2011
	Gross Amount		Accumulated Amortization			Net Amount
Amortized intangible assets
Current technology	$	12,718	$	(11,403	)	$	1,315
Patent and patent rights		23,392		(12,079	)		11,313
Customer relationships		1,773		(1,734	)		39
Total	$	37,883	$	(25,216	)	$	12,667
Amortization expense for the year ended December 31, 2011			$	3,320

Changes in the net carrying value amount of goodwill were as follows (in thousands):

	Total
Unamortized intangible assets:
Goodwill at gross cost	$	180,731
Impairment charge – 2008		(101,028	)
Goodwill as of December 31, 2011		79,703
Acquisitions – LaserBand		24,353
Impairment charge – 2012		(9,114	)
Goodwill as of December 31, 2012	$	94,942

	As of December 31,
	2012			2011
Unamortized intangible assets
Goodwill at gross cost	$	205,084		$	180,731
Impairment charges		(110,142	)		(101,028	)
Goodwill	$	94,942		$	79,703

F-18

Note 9 Other Assets

Other assets consist of the following (in thousands):

	As of December 31,
	2012		2011
Money market investments related to the deferred compensation plan (See Note 17)	$	3,553	$	3,199
Long-term investments		9,195		80
Deposits		898		917
Total	$	13,646	$	4,196

During 2012, Zebra acquired interests ranging from 4.7% to 19.7% in several venture capital technology companies for $9,125,000 during the year. These investments are classified as long term.

Note 10 Costs Associated with Exit or Disposal Activities

In December 2012, Zebra began a plan to restructure its Location Solutions business management structure and announced a project to further optimize our manufacturing operations costs, which includes the consolidation and relocation of support functions. The costs below incurred for the year ended December 31, 2012 represent the costs related to the restructuring of Location solutions business management structure. The costs expected to be incurred relate to the restructuring of Zebra’s manufacturing operations and relocation of this portion of Zebra’s business from the U.S. to China and consolidating some activities domestically.

As of December 31, 2012, we have incurred the following exit and restructuring costs related to the location solutions business management structure and manufacturing operations relocation and restructuring (in thousands):

Type of Cost	Costs incurred for the year ended December 31, 2012		Additional costs expected to be incurred		Total costs     expected to be     incurred
Severance, stay bonuses, and other employee-related expenses	$	960	$	4,590	$	5,550
Professional services		0		310		310
Relocation and transition costs		0		480		480
Total	$	960	$	5,380	$	6,340

In January 2011, we announced an agreement to sell Navis, to Cargotec Corporation. Following the transaction which was completed on March 18, 2011, we retained the location solutions products from the former ZES, which includes active RFID real-time location solutions and associated tags and readers. In the first quarter of 2011, we also announced a plan to consolidate any remaining administrative and accounting functions from the former ZES into our corporate facilities in Illinois. The costs below incurred for the year ended December 31, 2011, represent the costs related to the consolidation and relocation of the administrative and accounting functions. There are no costs in 2012 related to this restructuring as this project was completed in 2011.

As of December 31, 2012, we have incurred the following exit and restructuring costs related to consolidating the former ZES administrative and accounting function into our corporate facilities (in thousands):

Type of Cost	Costs incurred for the year ended December 31, 2011		Costs incurred for the year ended December 31, 2012		Total costs     incurred as of     2012
Severance, stay bonuses, and other employee-related expenses	$	1,113	$	0	$	1,113
Professional services		890		0		890
Relocation and transition costs		38		0		38
Total	$	2,041	$	0	$	2,041

F-19

Liabilities and expenses related to exit activities were as follows (in thousands):

	Year Ended December 31,
	2012		2011
Balance at beginning of period	$	1,048	$	1,479
Charged to earnings		960		2,041
Cash paid		(1,041)		(2,472)
Balance at the end of period	$	967	$	1,048

Liabilities related to exit activities are included in the accrued liabilities line item on the balance sheet. Exit costs are included in operating expenses under the line item exit and restructuring costs.

Note 11 Derivative Instruments

Portions of our operations are subject to fluctuations in currency values. We manage these risks using derivative financial instruments. We conduct business on a multinational basis in a wide variety of foreign currencies. Our exposure to market risk for changes in foreign currency exchange rates arises from international financing activities between subsidiaries, foreign currency denominated monetary assets and liabilities and transactions arising from international trade. Our objective is to preserve the economic value of non-functional currency denominated cash flows. We attempt 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.

Credit and market risk

Financial instruments, including derivatives, expose us to counter party credit risk for nonperformance and to market risk related to interest and currency exchange rates. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. Our counterparties in derivative transactions are commercial banks with significant experience using derivative instruments. We monitor the impact of market risk on the fair value and cash flows of our derivative and other financial instruments considering reasonably possible changes in interest rates and currency exchange rates and restrict the use of derivative financial instruments to hedging activities. We continually monitor the creditworthiness of our customers to which we grant credit terms in the normal course of business. The terms and conditions of our credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer.

Fair Value of Derivative Instruments

Zebra 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 do we use leveraged derivative financial instruments. Our 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

We use forward contracts to manage exposure related to our pound and euro denominated net assets. Forward contracts typically mature within three months after execution of the contracts. We record gains and losses on these contracts and options in income each quarter along with the transaction gains and losses related to our net asset positions, which would ordinarily offset each other.

Summary financial information related to these activities included in our consolidated statement of earnings as other income (expense) is as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Change in gains (losses) from foreign exchange derivatives	$	(1,347)	$	(825)	$	5,074
Gain (loss) on net foreign currency assets		406		(1,181)		(5,243)
Net foreign exchange loss	$	(941)	$	(2,006)	$	(169)
	As of
	December 31, 2012		December 31, 2011
Notional balance of outstanding contracts:
Euro/US dollar	€	37,598	€	36,684
Pound/US dollar	£	3,810	£	6,016
Net fair value of outstanding contracts	$	18	$	(54)

F-20

Hedging of Anticipated Sales

We can manage the exchange rate risk of anticipated euro-denominated sales using purchased options, forward contracts, and participating forwards. We designate 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 gains or losses will then be reported as an increase or decrease to sales.

Summary financial information related to the cash flow hedges is as follows (in thousands):

	As of
	December 31, 2012		December 31, 2011
Net unrealized gains (losses) in other comprehensive income:
Gross	$	(9,936)	$	8,878
Income tax expense (benefit)		(2,695)		2,669
Net	$	(7,241)	$	6,209

Summary financial information related to the cash flow hedges of future revenues follows (in thousands, except percentages):

	As of
	December 31, 2012		December 31, 2011
Notional balance of outstanding contracts versus the dollar	€	88,680	€	85,105
Hedge effectiveness		100%		100%

	Year Ended December 31,
		2012		2011		2010
Net gains and (losses) included in revenue	$	4,201	$	(4,159)	$	(630)

Forward Contracts

We record our forward contracts at fair value on our consolidated balance sheet as either long-term other assets or long-term other liabilities depending upon the fair value calculation as detailed in Note 3 of Zebra’s financial statements. The amounts recorded on our consolidated balance sheets are as follows (in thousands):

	As of
	December 31, 2012		December 31, 2011
Assets:
Prepaid expenses and other current assets	$	0	$	9,210
Total	$	0	$	9,210
Liabilities:
Accrued liabilities	$	2,045	$	0
Total	$	2,045	$	0

F-21

Note 12 Commitments and Contingencies

Leases. Minimum future obligations under all non-cancelable operating leases as of December 31, 2012 are as follows (in thousands):

	Operating     Leases
2013	$	10,699
2014		7,336
2015		3,788
2016		2,501
2017		2,074
Thereafter		5,099
Total minimum lease payments	$	31,497

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

	Year Ended December 31,
		2012		2011		2010
Rent expense	$	15,254	$	13,907	$	11,469

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 9 years with breaking periods specified in the lease agreements.

Letters of Credit. In connection with various customer contracts, Zebra has entered into two letters of credit agreements with a bank. The contingent liability of Zebra under these agreements as of December 31, 2012, is $482,000. See below for letters of credit related to our revolving credit agreement.

Revolving Credit Agreement. On October 10, 2012, Zebra entered into a revolving credit agreement for a five-year $250,000,000 revolving credit facility with a syndicate of banks led by J. P. Morgan Securities LLC as Administrative Agent. 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 a spread over the base rate, which base rate is the greater of: the prime rate, the Federal Funds Effective Rate plus one-half of one percent (0.50%), or an adjusted LIBOR rate, plus one percent (1%). The spread is dependent on Zebra’s ratio of Total Debt to EBITDA, and ranges from 0.25% to 1.75%. The spread in effect at closing for prime rate and Federal Funds based loans was 0.00%. The spread for LIBOR-based loans ranges from 1.00% to 1.75%. The spread in effect at closing for LIBOR-based loans was 1.00%. Zebra did not make any barrow any monies under the New Credit Agreement at the time of closing.

The credit agreement includes customary representations, warranties, affirmative and negative covenants and events of default. It also contains financial covenants tied to Zebra’s leverage ratio and interest coverage ratio. As of December 31, 2012, we had established letters of credit amounting to $2,300,000, which reduce the funds available for borrowing under the agreement. As of December 31, 2012 and 2011, no amounts were outstanding under the company’s credit agreement.

The credit agreement above replaced Zebra’s August 2008 five year $100,000,000 credit agreement.

Legal Proceedings. 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.

F-22

Note 13 Savings and Profit Sharing Plans

Zebra has a Retirement Savings and Investment Plan (401(k) Plan), which is intended to qualify under Section 401(k) of the Internal Revenue Code. Qualified employees may participate in Zebra’s 401(k) Plan by contributing up to 15% of their gross earnings to the plan subject to certain Internal Revenue Service restrictions. Zebra matches 100% of the first 2% of gross eligible earnings, and also match the next 4% of gross eligible earnings at the rate of 50%. Zebra may contribute additional amounts to its 401(k) Plan at the discretion of the Board of Directors, subject to certain legal limits.

Company contributions to these plans, which were charged to operations, approximated the following (in thousands):

	Year Ended December 31,
	2012		2011		2010
401(k)	$	5,138	$	4,813	$	4,586
Total	$	5,138	$	4,813	$	4,586

Note 14 Stockholders’ Equity

Share count and par value data related to stockholders’ equity are as follows:

	As of
	December 31,     2012		December 31,     2011
Preferred Stock
Par value per share	$	0.01	$	0.01
Shares authorized		10,000,000		10,000,000
Shares outstanding		0		0
Common Stock—Class A
Par value per share	$	0.01	$	0.01
Shares authorized		150,000,000		150,000,000
Shares issued		72,151,857		72,151,857
Shares outstanding		50,908,267		52,095,166
Treasury stock
Shares held		21,243,590		20,056,691

During the year ended December 31, 2012, Zebra purchased 1,473,863 shares of common stock for $54,373,000 under board authorized share repurchase plans compared to the year ended December 31, 2011, in which Zebra purchased 4,353,801 shares of common stock for $160,200,000. During the year ended December 31, 2010, Zebra purchased 3,349,286 shares of common stock for $102,091,000.

A roll forward of Class A common shares outstanding is as follows:

	Year Ended December 31,
	2012		2011
Balance at the beginning of the year		52,095,166		55,711,325
Repurchases		(1,473,863)		(4,353,801)
Stock options, rights and ESPP issuances		246,625		593,574
Restricted share issuances		242,238		215,510
Restricted share forfeitures		(130,119)		(17,138)
Shares withheld for tax obligations		(71,780)		(54,304)
Balance at the end of the period		50,908,267		52,095,166

F-23

Note 15 Earnings (Loss) Per Share

For the years ended December 31, 2012, 2011, and 2010, earnings (loss) per share were computed as follows (in thousands, except per-share amounts):

	Year Ended December 31,
	2012		2011		2010
Weighted average shares:
Weighted average common shares outstanding		51,566		53,854		57,143
Effect of dilutive securities outstanding		277		337		285
Diluted weighted average shares outstanding		51,843		54,191		57,428
Earnings (loss):
Income from continuing operations	$	121,897	$	130,343	$	104,614
Income (loss) from discontinued operations		1,007		44,300		(2,836)
Net Income	$	122,904	$	174,643	$	101,778
Basic per share amounts:
Income from continuing operations	$	2.36	$	2.42	$	1.83
Income (loss) from discontinued operations		0.02		0.82		(0.05)
Net Income	$	2.38	$	3.24	$	1.78
Diluted per share amounts:
Income from continuing operations	$	2.35	$	2.40	$	1.82
Income (loss) from discontinued operations		0.02		0.82		(0.05)
Net Income	$	2.37	$	3.22	$	1.77

The potentially dilutive securities that were excluded from the earnings (loss) per share calculation consist of stock options and stock appreciation rights (SARs) with an exercise price greater than the average market price of the Class A Common Stock. These options were as follows:

	Year Ended December 31,
	2012		2011		2010
Potentially dilutive shares		1,753,311		1,425,880		1,844,038

Note 16 Equity-Based Compensation

As of December 31, 2012, Zebra had a general equity-based compensation plan and a stock purchase plan under which shares of our common stock were available for future grants and sales, and which are described below.

On May 19, 2011, Zebra’s stockholders approved the 2011 Zebra Technologies Corporation Long Term Incentive Plan (the 2011 Plan), which included authorization for issuance of awards of 5,500,000 shares under the 2011 Plan. The 2011 Plan became effective immediately and superseded the 2006 Incentive Compensation Plan (the 2006 Plan), the 1997 Stock Option Plan (the 1997 Plan) and the 2002 Non-Employee Director Stock Option Plan (the 2002 Director Plan), except that the prior plans will remain in effect with respect to awards granted under the prior plans until such awards have been exercised, forfeited, cancelled, expired or otherwise terminated in accordance with the terms of such grants. The types of awards available under the 2011 Plan are incentive stock options, nonqualified stock options, stock appreciation rights (SARs), restricted stock, performance shares and units and performance-based cash bonuses. Employees, directors and consultants of Zebra and its subsidiaries are eligible to participate in the 2011 Plan. The Compensation Committee of the Board of Directors administers the plan. As of December 31, 2012, 4,805,599 shares were available for grant under the plan, and options for 438,671 shares were outstanding under the 2011 Plan.

The options and SARs granted under the 2011 Plan have an exercise or grant price equal to the closing market price of Zebra’s stock on the date of grant. Options and SAR’s generally vest over a four or five-year period. These awards expire on the earlier of (a) ten years following the grant date, (b) immediately if the employee is terminated for cause, (c) ninety days after termination of employment if the employee is terminated involuntarily other than for cause, (d) thirty days after termination of employment if the employee voluntarily terminates his or her employment, or (e) one year after termination of employment if the employee’s employment terminates due to death, disability, or retirement.

F-24

Zebra’s time-vested restricted stock grants consist of restricted stock awards (RSA’s) and performance share awards (PSA’s). The following table shows the number of shares of time-vested restricted stock granted in 2012 and the vesting schedules of the restricted stock awards that were granted under the Plan to certain executive officers and other members of management.

Vesting period	RSA’s		PSA’s		Total
At grant		6,955		0		6,955
After three years of service		162,126		72,470		234,596
Total		169,081		72,470		241,551

These RSA’s will vest at each vesting date if the employee remains employed by Zebra throughout the applicable time period, but will vest in whole or in part (as set forth in each Restricted Stock Agreement) before the end of the each vesting period in the event of death, disability, resignation for good reason, a change in control (as defined in the 2011 Plan), or termination by Zebra other than for Cause, as defined in the Restricted Stock Agreement entered into by Zebra with each employee who was granted restricted stock. The restricted stock is forfeited in certain situations specified in the Restricted Stock Agreement, including, if the employee’s employment is terminated by Zebra for Cause or if the employee resigns for other than good reason. Zebra’s restricted stock awards are expensed over the vesting period of the related award, which is typically three to five years. However, some recent awards vested upon grant. Compensation cost is calculated as the market date fair value on grant date multiplied by the number of shares granted.

The 2006 Plan was superseded by the 2011 Plan. As of December 31, 2012, options and SARs for 1,830,544 shares were outstanding and exercisable under the 2006 Plan. These options and SARs expire on the earlier of (a) ten years following the grant date, or (b) immediately if the employee is terminated for cause, (c) ninety days after termination of employment if the employee is terminated involuntarily other than for cause, (d) thirty days after termination of employment if the employee voluntarily terminates his or her employment, or (e) one year after termination of employment if the employee’s employment terminates due to death, disability, or retirement.

The 1997 Plan was superseded by the 2006 Plan. As of December 31, 2012, options for 705,445 shares were outstanding and exercisable under the 1997 Plan. These options terms are the same as noted in the paragraph above in the 2006 Plan.

The 2002 Director Plan was superseded by the 2006 Plan. As of December 31, 2012, options for 80,000 shares were outstanding and exercisable under the 2002 Director Plan. Unless otherwise provided in an option agreement, options granted under the 2002 Director Plan become exercisable in five equal increments beginning on the date of the grant and continuing on each of the four anniversaries thereafter. All such options expire on the earlier of (a) ten years following the grant date, (b) the first anniversary of the termination date of the non-employee director’s directorship for any reason other than the termination of the non-employee director’s directorship by Zebra’s stockholders for cause, or resignation for cause, in each case as defined in the option agreement.

In connection with Zebra’s acquisition of WhereNet, Zebra assumed existing unvested stock options exercisable for shares of WhereNet’s common stock and converted them into options exercisable for Zebra common stock. These converted options have exercise prices and vesting dates based on their previous terms and all of these options that are outstanding are fully vested. As of December 31, 2012, outstanding WhereNet options were exercisable into 12,988 shares of Zebra Class A Common Stock.

On May 19, 2011 Zebra’s stockholders adopted the 2011 Employee Stock Purchase Plan (which replaced the 2001 Stock Purchase plan) under which employees who work a minimum of 20 hours per week may elect to withhold up to 10% of their cash compensation through regular payroll deductions to purchase shares of Class A Common Stock from Zebra over a period not to exceed 12 months at a purchase price per share which is equal to the lesser of: (1) 95% of the fair market value of the shares as of the date of the grant, or (2) 95% of the fair market value of the shares as of the date of purchase. Stock purchase plan expense for the year ended December 31, 2012 was $242,000. Stock purchase plan expense for the year ended December 31, 2011 was $321,000 and for the year ended December 31, 2010 was $315,000.

F-25

For purposes of calculating the compensation cost, the fair value 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 Zebra’s stock prices over our entire stock history. Stock option grants in the table below include both stock options, all of which were non-qualified, and stock appreciation rights (SAR) that will be settled in Zebra stock. 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:

	2012	2011	2010
Expected dividend yield	0%	0%	0%
Forfeiture rate	10.21%	11.50%	9.78%
Volatility	35.90%	35.33%	39.50%
Risk free interest rate	.94%	2.01%	2.26%
- Range of interest rates	0.07% - 1.95%	0.01% - 3.18%	0.06% - 3.41%
Expected weighted-average life	5.48 years	5.42 years	5.36 years
Fair value of SARs granted	$5,533,000	$5,495,000	$6,527,000
Weighted-average grant date fair value of options and SARs granted     (per underlying share)	$12.84	$14.29	$10.64

The forfeiture rate is based on the historical annualized forfeiture rate, which is consistent with prior year rates. This rate includes only pre-vesting forfeitures. Volatility is based on an average of the implied volatility in the open market and the annualized volatility of Zebra’s stock prices over our entire stock history. The risk free interest rate used is the implied yield currently available from the U.S. Treasury zero-coupon yield curve over the contractual term of the options. The expected weighted-average life is based on historical exercise behavior, which combines the average life of the options that have already been exercised or cancelled with the exercise life of all unexercised options. The exercise life of unexercised options assumes that the option will be exercised at the midpoint of the vesting date and the full contractual term. These assumptions are consistent with the assumptions used in prior years.

Stock option activity for the years ended December 31, 2012, 2011, and 2010, was as follows:

	2012					2011					2010
Options	Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price
Outstanding at beginning of year		1,702,650		$	40.43		2,340,959		$	37.35		2,767,887		$	35.98
Granted		0			0		0			0		0			0
Exercised		(148,802	)		27.02		(490,715	)		26.63		(273,564	)		23.43
Forfeited		(1,663	)		36.36		(63,714	)		32.29		(62,798	)		35.87
Expired		(20,341	)		43.63		(83,880	)		40.76		(90,566	)		35.08
Outstanding at end of year		1,531,844		$	41.69		1,702,650		$	40.43		2,340,959		$	37.35
Exercisable at end of year		1,527,814		$	41.75		1,589,096		$	40.84		1,893,346		$	37.50
Intrinsic value of exercised options	$	1,700,000				$	6,400,000				$	2,214,000

There were no stock options granted in 2012, 2011 or 2010.

The following table summarizes information about stock options outstanding at December 31, 2012:

	Outstanding	Exercisable
Aggregate intrinsic value	$    1,379,000	$    1,306,000
Weighted-average remaining contractual term	3.4 years	3.4 years

F-26

SAR activity for the years ended December 31, 2012, 2011, and 2010, was as follows:

	2012					2011					2010
SARs	Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price
Outstanding at beginning of year		1,287,724			$ 28.91		1,234,787			$ 23.82		684,058			$ 19.97
Granted		431,040			38.51		387,847			41.14		612,681			27.82
Exercised		(102,972	)		23.83		(95,672	)		22.20		(31,001	)		19.56
Forfeited		(75,978	)		34.10		(238,965	)		25.15		(30,678	)		22.14
Expired		(4,010	)		41.57		(273	)		19.56		(273	)		19.56
Outstanding at end of year		1,535,804			$ 31.66		1,287,724			$ 28.91		1,234,787			$ 23.82
Exercisable at end of year		514,787			$ 26.52		305,228			$ 23.27		149,318			$ 20.19
Intrinsic value of exercised SARs		$ 1,500,000					$ 1,700,000					$ 353,000

The terms of the SARs are established under the applicable Plan and the applicable SAR agreement. Once vested, a SAR entitles the holder to receive a payment equal to the difference between the per-share grant price of the SAR and the fair market value of a share of Zebra stock on the date the SAR is exercised, multiplied by the number of shares covered by the SAR. Exercised SARs will be settled in whole shares of Zebra stock, and any fraction of a share will be settled in cash. Vesting of SARs granted in 2012 is as follows: 20,155 SARs vested upon grant and 410,885 SARs vest annually in four equal amounts on each of the first four anniversaries of the grant date. Vesting of SARs granted in 2011 is as follows: 16,045 SARs vested after one year, 371,802 SARs vest annually in four equal amounts on each of the first four anniversaries of the grant date. All SARs expire 10 years after the grant date.

The following table summarizes information about SARs outstanding at December 31, 2012:

	Outstanding	Exercisable
Aggregate intrinsic value	$    10,551,000	$    5,926,000
Weighted-average remaining contractual term	7.7 years	6.9 years

Restricted stock award activity, granted under the 2011 and 2006 Plans, for the years ended December 31, 2012, 2011 and 2010 was as follows:

	2012					2011					2010
Restricted Stock Awards	Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Grant Date Fair Value
Outstanding at beginning of year		529,880			$ 28.20		594,090			$ 25.51		406,682			$ 24.43
Granted		169,081			38.45		152,636			41.17		225,985			27.85
Released		(235,580	)		21.39		(197,472	)		30.08		(22,325	)		29.11
Forfeited		(19,019	)		34.90		(19,374	)		29.08		(16,252	)		26.19
Outstanding at end of year		444,362			$ 35.43		529,880			$ 28.20		594,090			$ 25.51

F-27

Performance share award activity, granted under the 2011 and 2006 Plans, for the years ended December 31, 2012, 2011 and 2010 was as follows:

	2012					2011					2010
Performance Share Awards	Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Grant Date Fair Value		Shares		Weighted-Average Grant Date Fair Value
Outstanding at beginning of year		306,261			$  28.58		250,596			$  25.35		100,660		$  21.68
Granted		72,470			38.68		62,874			41.47		149,936		27.82
Released		(1,802	)		41.57		(7,209	)		28.79		0		0.0
Forfeited		(111,100	)		23.06		0			0.0		0		0.0
Outstanding at end of year		265,829			$  35.55		306,261			$  28.58		250,596		$  25.35

As of December 31, 2012, there was $18,534,000 of unearned compensation cost related to awards granted under Zebra’s equity-based compensation plans, which is expected to be recognized over a weighted-average period of 2.4 years.

The fair value of the purchase rights issued to Zebra 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.

	2012		2011		2010
Fair market value	$	35.43	$	34.77	$	27.95
Option price	$	33.66	$	33.03	$	26.55
Expected dividend yield		0%		0%		0%
Expected volatility		21%		33%		25%
Risk free interest rate		0.07%		0.07%		0.14%

Note 17 Deferred Compensation Plan

Zebra offers a deferred compensation plan that permits directors and executive management employees to defer portions of their compensation and to select a method of investing these funds. The salaries that have been deferred since the plan’s inception have been accrued and the only expense, other than salaries, related to this plan is the gain or loss from the changes to the deferred compensation liability, which is charged to compensation expense. To fund this plan, Zebra purchases mutual funds in the form of stock or bond funds.

The following table shows the income, asset and liability amounts related to this plan (in thousands):

	As of December 31,
	2012		2011
Mutual funds included in other assets	$	3,553	$	3,199
Deferred compensation liability included in other long-term liabilities	$	3,553	$	3,199

Note 18 Income Taxes

The geographical sources of income before income taxes were as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
United States	$	60,388	$	78,593	$	72,298
Outside United States		103,786		101,126		77,309
Total	$	164,174	$	179,719	$	149,607

F-28

Zebra earns a significant amount of our operating income outside the U.S., which is deemed to be permanently reinvested in foreign jurisdictions. Zebra does not currently foresee a need to repatriate funds, however, should Zebra require more capital in the U.S. than is generated by our operations locally, Zebra could elect to repatriate funds held in foreign jurisdictions or raise capital in the U.S. through debt or equity issuances. These alternatives could result in higher effective tax rates or increased interest expense.

Deferred income taxes are not provided on undistributed earnings of foreign subsidiaries, aggregating approximately $256,000,000 at December 31, 2012 and $175,000,000 at December 31, 2011.

The provision for income taxes consists of the following (in thousands):

	Year Ended December 31,
	2012			2011			2010
Current:
Federal	$	17,744		$	7,250		$	25,795
State		1,324			1,191			3,108
Foreign		14,258			28,175			17,157
Total current		33,326			36,616			46,060
Deferred:
Federal		8,656			12,477			(3,591)
State		375			405			2,524
Foreign		(80	)		(122	)		0
Total deferred		8,951			12,760			(1,067)
Total	$	42,277		$	49,376		$	44,993

The provision for income taxes differs from the amount computed by applying the U.S. statutory Federal income tax rate of 35% to income before income taxes. The reconciliation of statutory and effective income taxes is presented below (in thousands):

	Year Ended December 31,
	2012		2011		2010
Provision computed at statutory rate	$	57,461	$	62,905	$	51,714
State income tax, net of Federal tax benefit		1,353		1,432		1,884
Asset impairment charge		3,190		0		0
Tax-exempt interest income		(8,118)		(334)		(554)
Acquisition related items		322		0		(315)
Domestic manufacturing deduction		(105)		(212)		(70)
Research and experimental credit		0		(508)		(713)
Foreign rate differential		(13,710)		(13,899)		(8,134)
Other		1,884		(8)		1,181
Provision for income taxes	$	42,277	$	49,376	$	44,993

In conjunction with the opening of Zebra’s Singapore distribution center and the establishment of Singapore as a regional headquarter location in 2009, Zebra negotiated a 10% income tax rate with the Singapore Economic Development Board. The negotiated rate is a reduction from the then current statutory rate of 17%. The 10% rate expires at the end of 2014 unless Zebra meets agreed commitments for employees and business expenditures in Singapore. If these requirements are met, the 10% rate extends through 2018. This agreement reduced Zebra’s consolidated income taxes by $2,002,000 in 2012, $2,030,000 in 2011, and $1,247,000 in 2010.

Deferred income taxes reflect the impact of temporary differences between the amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. Based on management’s assessment, it is more likely than not that the deferred tax assets will be realized through future taxable earnings.

F-29

Tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows (in thousands):

	As of December 31,
	2012			2011
Deferred tax assets:
Deferred rent	$	508		$	623
Accrued vacation		2,480			1,926
Accrued bonus		2,747			4,342
Deferred compensation		1,497			1,451
Inventory items		6,967			7,072
Allowance for doubtful accounts and other receivables		211			355
Other accruals		6,531			7,355
Equity based compensation expense		16,620			16,124
Unrealized gain on securities		438			288
Unrealized loss on other investments		419			0
Net operating loss carry-forwards		2,462			4,511
Valuation allowance		(267	)		(267)
Total deferred tax assets		40,613			43,780
Deferred tax liabilities:
Unrealized loss on other investments		0			(931)
Depreciation and amortization		(24,527	)		(17,052)
Total deferred tax liabilities		(24,527	)		(17,983)
Net deferred tax assets	$	16,086		$	25,797

On January 1, 2007, Zebra adopted ASC 740 (formerly FASB Interpretation (FIN) No. 48, Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109). According to ASC 740, Zebra identified, evaluated, and measured the amount of income tax benefits to be recognized for all of its income tax positions. During 2008, Zebra recognized an increase of approximately $4,000,000 in the liability for unrecognized tax benefits related to an acquisition. During 2012 Zebra recognized an increase of $680,000 in one of its UK subsidiaries.

Included in deferred tax assets are amounts related to federal and state net operating losses that resulted from our acquisition of WhereNet Corp. As of December 31, 2012, Zebra had approximately $2,518,000 of federal net operating loss carryforwards available to offset future taxable income which expire in 2022 through 2027. As of December 31, 2011, Zebra also had approximately $27,391,000 of state net operating loss carryforwards which expire in 2013 through 2021. Zebra’s intention is to utilize these net operating loss carryforwards to offset future income tax expense. Under the United States Tax Reform Act of 1986, the amounts of benefits from net operating loss carryforwards may be impaired or limited in certain circumstances, including significant changes in ownership interests.

Deferred tax asset valuation allowances included in the temporary differences above are as follows (in thousands):

	Year Ended December 31,
Valuation allowance	2012		2011		2010
Balance at the beginning of the year	$	267	$	267	$	0
Additions		0		0		267
Subtractions		0		0		0
Balance at the end of the period	$	267	$	267	$	267

Zebra’s deferred tax valuation allowance is the result of uncertainties regarding the future realization of recorded tax benefits on state income tax loss carry-forwards. The addition in 2010 is primarily related to state income tax law changes in 2011 for that year and tax years going forward.

An audit of U.S. federal tax returns for years 2008 through 2010 was completed in 2012. The tax years 2008 through 2010 remain open to examination by multiple state taxing jurisdictions. Tax authorities in the United Kingdom have completed income tax audits for tax years through 2009.

F-30

Zebra’s continuing practice is to recognize interest and/or penalties related to income tax matters as part of income tax expense. For the years ended December 31, 2012, 2011 and 2010, Zebra did not accrue any interest or penalties into income tax expense.

Note 19 Other Comprehensive Income (Loss)

Stockholders’ equity contains certain items classified as other comprehensive income (loss), including:

• Foreign currency translation adjustments related to our non-U.S. subsidiary companies that have designated a functional currency other than the dollar. We are required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, month-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustments component of other comprehensive income (loss).

• Unrealized holding gains (losses) on foreign currency hedging activities relate to derivative instruments used to hedge the currency exchange rates for forecasted euro sales. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transaction occurs. See Note 11 for more details.

• Unrealized gains (losses) on investments classified as available-for-sale are deferred from income statement recognition. See Note 4 for more details.

The components of other comprehensive income (loss) included in the Consolidated Statements of Comprehensive Income (Loss) are as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Changes in unrealized gains and (losses) on hedging transactions:
Gross	$	(9,936)	$	8,878	$	(1,522)
Income tax (benefit)		(2,695)		2,669		(573)
Net	$	(7,241)	$	6,209	$	(949)
Changes in unrealized holding gains and (losses) on investments classified as available-for-sale:
Gross	$	1,337	$	(597)	$	(652)
Income tax (benefit)		450		(212)		(246)
Net	$	887	$	(385)	$	(406)
Foreign currency translation adjustments	$	242	$	(688)	$	67

Changes in unrealized gains (losses) on hedging transactions included in net income totaled $7,203,000 for the year ended December 31, 2012, $(5,109,000) for the year ended December 31, 2011, and $3,689,000 for the year ended December 31, 2010.

The components of accumulated other comprehensive income (loss) included in the Consolidated Balance Sheets are as follows (in thousands):

	As of December 31,
	2012		2011
Unrealized gains and (losses) on hedging transactions:
Gross	$	(2,581)	$	7,355
Income tax expense (benefit)		(599)		2,096
Net		(1,982)		5,259
Unrealized gains and (losses) on investments classified as available-for-sale:
Gross		540		(797)
Income tax expense (benefit)		162		(288)
Net		378		(509)
Foreign currency translation adjustments		(8,721)		(8,963)
Total accumulated other comprehensive income (loss)	$	(10,325)	$	(4,213)

F-31

Note 20 Geographic Data

Information regarding Zebra’s operations by geographic area is contained in the following table. These amounts (in thousands) are reported in the geographic area of the destination of the final sale. We manage our business based on these regions rather than by individual countries.

	North America		Europe, Middle East & Africa		Latin America		Asia		Total
2012
Net sales	$	435,520	$	322,970	$	100,101	$	137,577	$	996,168
Long-lived assets		90,363		7,522		538		2,926		101,349
2011
Net sales	$	409,208	$	342,578	$	89,715	$	141,987	$	983,488
Long-lived assets		88,382		5,965		362		3,113		97,822
2010
Net sales	$	394,865	$	305,659	$	80,679	$	113,156	$	894,359
Long-lived assets		78,938		6,566		332		1,257		87,093
Net sales by country that are greater than 10% of total net sales are as follows (in thousands):
	United States		United Kingdom		Singapore		Other		Total
2012	$	539,504	$	317,793	$	134,349	$	4,522	$	996,168
2011	$	504,283	$	339,027	$	136,757	$	3,421	$	983,488
2010	$	482,891	$	303,604	$	105,286	$	2,578	$	894,359
Net sales by major product category are as follows (in thousands):
	Hardware		Supplies		Service and Software		Shipping and Handling		Total
2012	$	730,489	$	212,499	$	47,941	$	5,239	$	996,168
2011	$	743,308	$	187,457	$	47,206	$	5,517	$	983,488
2010	$	676,738	$	167,633	$	44,829	$	5,159	$	894,359

Note 21 Major Customers

Our net sales to significant customers as a percentage of total net sales were as follows:

	Year Ended December 31,
	2012		2011		2010
Customer A		20.4%		20.7%		19.8%
Customer B		11.4%		10.5%		9.8%
Customer C		10.3%		8.9%		8.0%

All three of the above customers are distributors and not end users. No other customer accounted for 10% or more of total net sales during these years.

F-32

Note 22 Quarterly Results of Operations (unaudited)

(Amounts in thousands, except per share data)

	2012
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Net Sales
Net sales of tangible products	$	232,476		$	234,708		$	239,786		$	241,257
Revenue from services and software		11,399			12,369			12,251			11,922
Total net sales		243,875			247,077			252,037			253,179
Cost of Sales
Cost of sales of tangible products		119,033			119,980			118,751			121,869
Cost of sales services and software		4,959			6,720			6,362			6,850
Cost of sales		123,992			126,700			125,113			128,719
Gross Profit		119,883			120,377			126,924			124,460
Operating expenses:
Selling and marketing		32,114			32,158			32,321			33,313
Research and development		20,416			22,336			22,007			22,605
General and administrative		24,320			24,402			22,481			20,964
Amortization of intangible assets		770			770			1,670			1,463
Acquisition costs		254			1,252			566			1,037
Exit and restructuring costs		0			0			0			960
Asset impairment charge		0			0			9,114			0
Total operating expenses		77,874			80,918			88,159			80,342
Operating income		42,009			39,459			38,765			44,118
Other income (loss)
Investment income		592			826			541			526
Foreign exchange loss		(342	)		(80	)		(514	)		(5)
Other, net		(364	)		(486	)		(294	)		(577)
Total other income (loss)		(114	)		260			(267	)		(56)
Income from continuing operations before income taxes		41,895			39,719			38,498			44,062
Income taxes		11,731			9,366			11,917			9,263
Income from continuing operations		30,164			30,353			26,581			34,799
Income from discontinued operations, net of tax		0			300			516			191
Net income	$	30,164		$	30,653		$	27,097		$	34,990
Basic earnings per share:
Income from continuing operations	$	0.58		$	0.58		$	0.52		$	0.69
Income from discontinued operations		0.00			0.01			0.01			0.00
Net Income	$	0.58		$	0.59		$	0.53		$	0.69
Diluted earnings per share:
Income from continuing operations	$	0.58		$	0.58		$	0.51		$	0.68
Income from discontinued operations		0.00			0.01			0.01			0.00
Net Income	$	0.58		$	0.59		$	0.52		$	0.68
Basic weighted average shares outstanding		51,998			51,771			51,566			50,968
Diluted weighted average and equivalent shares outstanding		52,301			52,030			51,809			51,262

F-33

	2011
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Net Sales
Net sales of tangible products	$	226,120		$	232,762		$	241,686		$	235,714
Revenue from services and software		11,181			12,779			11,652			11,594
Total net sales		237,301			245,541			253,338			247,308
Cost of Sales
Cost of sales of tangible products		110,781			117,732			122,529			118,792
Cost of sales services and software		6,522			6,111			7,256			6,996
Cost of sales		117,303			123,843			129,785			125,788
Gross Profit		119,998			121,698			123,553			121,520
Operating expenses:
Selling and marketing		28,528			30,950			31,942			36,377
Research and development		21,681			22,487			22,584			23,174
General and administrative		22,706			20,688			18,978			18,973
Amortization of intangible assets		835			836			843			806
Acquisition costs		0			0			188			116
Exit and restructuring costs		1,886			66			138			(49)
Total operating expenses		75,636			75,027			74,673			79,397
Operating income		44,362			46,671			48,880			42,123
Other income (loss)
Investment income		560			656			134			594
Foreign exchange loss		(294	)		(833	)		(173	)		(706)
Other, net		(254	)		(243	)		(859	)		(899)
Total other income (loss)		12			(420	)		(898	)		(1,011)
Income from continuing operations before income taxes		44,374			46,251			47,982			41,112
Income taxes		14,246			13,082			13,795			8,253
Income from continuing operations		30,128			33,169			34,187			32,859
Income (loss) from discontinued operations, net of tax		31,506			(205	)		10,814			2,185
Net income	$	61,634		$	32,964		$	45,001		$	35,044
Basic earnings per share:
Income from continuing operations	$	0.54		$	0.60		$	0.64		$	0.63
Income from discontinued operations		0.57			0.00			0.20			0.04
Net Income	$	1.11		$	0.60		$	0.84		$	0.67
Diluted earnings per share:
Income from continuing operations	$	0.54		$	0.60		$	0.64		$	0.63
Income from discontinued operations		0.56			0.00			0.20			0.04
Net Income	$	1.10		$	0.60		$	0.84		$	0.67
Basic weighted average shares outstanding		55,353			54,546			53,339			52,108
Diluted weighted average and equivalent shares outstanding		55,774			54,958			53,628			52,354

F-34

Note 23 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. As of December 31, 2011, Zebra had a short term receivable from the buyer in the amount of $27,580,000 which represented funds held in escrow, of which, we received $13,790,000 in the first quarter of 2012 and the remaining $13,790,000 in the third quarter of 2012.

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 was due on August 3, 2012 and bore 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. On June 29, 2012 F Two NV (a Belgium company) sold the business and assigned the revolving loan to OBQ SA (a Luxembourg company) with Zebra’s consent. The revolving loan commitment was reduced to a lesser amount of up to €526,058. The due date for borrowings under the agreement was extended from August 3, 2012 to December 31, 2012. The interest rate remains unchanged at 6.5%. In 2012, Zebra realized a gain of $930,000 related to payments received under the loan agreement. The balance of the loan outstanding at December 31, 2012 was €376,058.

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 Navis and proveo assets and liabilities, and the operating results of these businesses for the years ended December 31, 2012, 2011 and 2010. With the Navis sale, Zebra consolidated the remaining ZES location solutions operations.

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

	Year Ended December 31
	2012		2011		2010
Net sales	$	0	$	13,945	$	62,489
Loss from discontinued operations	$	(141)	$	(13,971)	$	(4,673)
Income tax benefit		218		1,299		1,837
Gain on sale of discontinued operations		930		68,745		0
Income tax expense on sale		0		(11,773)		0
Income (loss) from discontinued operations	$	1,007	$	44,300	$	(2,836)

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

	Year Ended December  31
	2012		2011			2010
Cash flows from discontinued operations:
Net cash (used) by operating activities	$	0	$	(1,301	)	$	(2,164)
Net cash provided by (used in) by investing activities		0		0			0
Net cash provided by (used in) by financing activities		0		0			0
Effect of exchange rate changes on cash		0		0			1,771
Net decrease in cash and cash equivalents		0		(1,301	)		(393)
Cash and cash equivalents at beginning of period		0		1,301			1,694
Cash and cash equivalents at end of period	$	0	$	0		$	1,301

F-35

Note 24 Business Combinations

LaserBand LLC. On July 13, 2012, Zebra acquired all of the outstanding membership interests in LaserBand LLC (a Missouri limited liability company) for a cash purchase price of $59,874,000, included in this amount is cash acquired of $1,431,000. As part of the acquisition closing, an escrow balance of approximately $8,700,000 was established against the total purchase price.

LaserBand LLC is based in St. Louis, Missouri, and is a leader in patient identification wristbands and related products. LaserBand strengthens Zebra’s product and patent portfolio and enables Zebra to offer a wider array of products to hospitals, other healthcare organizations and other wristband customers. The consolidated financial statements include the operating results of LaserBand from the date of acquisition. Pro forma results have not been presented because the effect of the acquisition is not material to the company’s financial results.

The following table (in thousands) summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition:

	As of
	July 13, 2012
Current assets	$	7,017
Property and equipment		46
Other assets		17
Goodwill		24,353
Other intangibles		29,560
Total assets acquired	$	60,993
Current liabilities		1,119
Net assets acquired	$	59,874

On a preliminary basis pending the receipt of final valuations, 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 $24,353,000. The intangible assets of $29,560,000 consist of the following (in thousands):

	Amount		Useful life
Current technology	$	6,260	5 years
Patents and patent rights		4,580	7 years
Customer relationships		18,720	5 to 9 years
Acquired other intangibles	$	29,560

The goodwill is deductible for tax purposes.

StepOne Systems. On December 21, 2012, Zebra acquired StepOne Systems for a cash purchase price of $1,543,000, included in this amount is cash acquired of $110,000. The cash purchase price is subject to certain working capital conditions. As part of the closing, an escrow balance of $320,000 was established against the total purchase price. StepOne is a specialty software company focused on solving business retailer’s challenges through mobile technology. StepOne is located in Pittsburgh, Pennsylvania.

StepOne has been able to increase sales via customer facing technologies, reduced out-of-stock, labor cost reduction, increased inventory/shipping accuracy and reduction in manual errors. Retail is an important part of our strategy to further penetrate existing markets. Retail organizations worldwide are increasingly embracing technology to improve the customer experience, build brand loyalty and enhance operational efficiency in the front and back of the store. This investment gives Zebra’s a more comprehensive solution in mobile POS and makes Zebra more competitive in this market space.

F-36

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

Schedule II

Valuation and Qualifying Accounts

(Amounts in thousands)

Description	Balance at Beginning of Period		Charged to Costs and Expenses		Deductions / (Recoveries)		Balance at End of Period
Valuation account for accounts receivable:
Year ended December 31, 2012	$	1,560	$	0	$	891	$	669
Year ended December 31, 2011	$	1,459	$	343	$	242	$	1,560
Year ended December 31, 2010	$	1,406	$	315	$	262	$	1,459
Valuation accounts for inventories:
Year ended December 31, 2012	$	14,710	$	6,758	$	7,813	$	13,655
Year ended December 31, 2011	$	9,837	$	8,762	$	3,889	$	14,710
Year ended December 31, 2010	$	9,054	$	5,470	$	4,687	$	9,837

See accompanying report of independent registered public accounting firm.

F-37

Index to Exhibits

3.1(i)	(6)	Restated Certificate of Incorporation of the Company.
3.1(ii)	(35)	Amended and Restated By-laws of Zebra Technologies Corporation, as amended as of January 7, 2013.
4.0	(5)	Specimen stock certificate representing Class A Common Stock.
10.1	(7)	1997 Stock Option Plan. +
10.2	(8)	First Amendment to 1997 Stock Option Plan. +
10.3	(8)	Second Amendment to 1997 Stock Option Plan. +
10.4	(9)	Third Amendment to 1997 Stock Option Plan. +
10.5	(10)	Amendment No. Four to 1997 Stock Option Plan. +
10.6	(5)	Lease between the Company and Unique Building Corporation for the Company’s facility in Vernon Hills, Illinois.
10.7	(2)	Amendment to the lease between the Company and Unique Building Corporation for the Company’s facility in Vernon Hills, Illinois, dated April 1, 1993.
10.8	(2)	Amendment to the lease between the Company and Unique Building Corporation for the Company’s facility in Vernon Hills, Illinois, dated December 1, 1994.
10.9	(11)	Amendment to the lease between the Company and Unique Building Corporation for the Company’s facility in Vernon Hills, Illinois, dated June 1, 1996.
10.10	(11)	Amendment to the lease between the Company and Unique Building Corporation for the Company’s facility in Vernon Hills, Illinois, dated June 2, 1996.
10.11	(12)	Amendment to the lease between the Company and Unique Building Corporation for the Company’s facility in Vernon Hills, Illinois, dated as of July 1, 1999.
10.12	(13)	2002 Non-Employee Director Stock Option Plan. +
10.13	(13)	Amendment No. 1 to 2002 Non-Employee Director Stock Option Plan. +
10.14	(15)	Non-Qualified Stock Option Agreement between the Company and Anders Gustafsson dated September 4, 2007. +
10.15	(17)	Employment Agreement between the Company and Hugh Gagnier dated December 12, 2007. +
10.16	(14)	Amendment No. 1 to Employment Agreement between the Company and Hugh Gagnier dated December 30, 2008. +
10.17	(32)	Employment Agreement between the Company and Michael H. Terzich dated November 16, 2007. +
10.18	(32)	Employment Agreement between the Company and Todd Naughton dated November 16, 2007. +
10.19	(16)	Employment Agreement between the Company and Phil Gerskovich dated November 16, 2007. +
10.20	(28)	Employment Agreement between Michael C. Smiley and the Company dated May 1, 2008. +
10.21	(14)	Form of Amendment No. 1 to Employment Agreement by and between the Company and each executive officer other than Messrs. Gustafsson and Gagnier, each dated December 30, 2008.+
10.22	(8)	Form of Stock Option Agreement under the 1997 Stock Option Plan for awards granted prior to February 6, 2006. +
10.23	(13)	Form of Stock Option Agreement under the 2002 Non-Employee Director Stock Option Plan for awards granted prior to February 6, 2006. +
10.24	(31)	Form of Amendment to outstanding Stock Option Agreements under the 2002 Non-Employee Director Stock Option Plan. +
10.25	(18)	Form of Stock Option Agreement under the 1997 Stock Option Plan for awards granted on or after February 6, 2006. +
10.26	(18)	Form of Stock Option Agreement under the 2002 Non-Employee Director Stock Option Plan for awards granted on or after February 6, 2006. +
10.27	(20)	Form of Stock Option Agreement under the 2006 Incentive Compensation Plan for awards granted prior to April 25, 2007. +
10.28	(21)	Form of Stock Option Agreement under the 2006 Incentive Compensation Plan for awards granted to executive officers on or after April 25, 2007 and prior to December 2, 2008. +
10.29	(25)	Form of indemnification agreement between Zebra Technologies Corporation and each director and executive officer. +
10.30	(29)	Form of Director Stock Option Agreement (1-Year Vesting) under the 2006 Incentive Compensation Plan for awards granted to directors on or after May 22, 2008 and prior to December 2, 2008. +
10.31	(29)	Form of Director Stock Option Agreement (4-Year Vesting) under the 2006 Incentive Compensation Plan for awards granted to directors on or after May 22, 2008 and prior to December 2, 2008. +
10.32	(31)	Form of Director Stock Option Agreement (1-Year Vesting) under the 2006 Incentive Compensation Plan for awards granted to directors on or after December 2, 2008. +
10.33	(31)	Form of Director Stock Option Agreement (4-Year Vesting) under the 2006 Incentive Compensation Plan for awards granted to directors on or after December 2, 2008. +
10.34	(31)	Amendment to outstanding Stock Option Agreements under the 2006 Incentive Compensation Plan, dated December 2, 2008. +
10.35	(31)	Form of Stock Option Agreement under the 2006 Incentive Compensation Plan for awards granted to executive officers on or after December 2, 2008. +

10.36	(26)	WhereNet Corp. 1997 Stock Option Plan. +
10.37	(26)	First Amendment to the WhereNet Corp. 1997 Option Plan. +
10.38	(27)	Manufacturing Services Agreement between Jabil Circuit, Inc. and the Company dated May 30, 2007 (portions of this exhibit have been omitted and have been filed separately with the Commission pursuant to a request for confidential treatment.)
10.39	(1)	Amendment to Manufacturing Services Agreement between Jabil Circuit, Inc. and Zebra Technologies Corporation dated May 30, 2007.
10.40	(30)	J.P. Morgan Credit Agreement dated as of October 12, 2012.
10.41	(23)	2006 Incentive Compensation Plan. +
10.42	(31)	Amendment to the 2006 Incentive Compensation Plan dated December 2, 2008. +
10.43	(24)	2011 Long-Term Incentive Plan. +
10.44	(24)	2011 Short-Term Incentive Plan. +
10.45	(27)	2005 Executive Deferred Compensation Plan, as amended. +
10.46	(22)	Form of Amendment to Employment Agreement between Zebra Technologies Corporation and executive officers. +
10.47	(25)	Amended and Restated Employment Agreement between Zebra Technologies Corporation and Anders Gustafsson dated as of May 6, 2010. +
10.48	(25)	Letter Agreement between Zebra Technologies Corporation and Anders Gustafsson dated as of May 6, 2010. +
10.49	(25)	Form of 2010 - 2011 time-vested stock appreciation rights agreement for employees other than CEO. +
10.50	(25)	Form of 2010 - 2011 time-vested restricted stock agreement for employees other than CEO. +
10.51	(25)	Form of 2010 - 2011 performance-based restricted stock agreement for employees other than CEO. +
10.52	(25)	Form of 2010 time-vested stock appreciation rights agreement for CEO. +
10.53	(25)	Form of 2010 time-vested restricted stock agreement for CEO. +
10.54	(25)	Form of 2010 – 2011 performance-based restricted stock agreement for CEO. +
10.55	(25)	Form of 2009 time-vested stock appreciation rights agreement for non-employee directors. +
10.56	(25)	Form of 2010 time-vested stock appreciation rights agreement for non-employee directors. +
10.57	(33)	Form of 2011 time-vested stock appreciation rights agreement for CEO. +
10.58	(33)	Form of 2011 time-vested restricted stock agreement for CEO. +
10.59	(3)	Form of 2011 time-vested stock appreciation rights agreement for non-employee directors. +
10.60	(34)	Form of 2012 time-vested stock appreciation rights agreement for employees other than CEO. +
10.61	(34)	Form of 2012 time-vested restricted stock agreement for employees other than CEO. +
10.62	(34)	Form of 2012 performance-based restricted stock agreement for employees other than CEO. +
10.63	(34)	Form of 2012 time-vested stock appreciation rights agreement for CEO. +
10.64	(34)	Form of 2012 time-vested restricted stock agreement for CEO. +
10.65	(34)	Form of 2012 performance-based restricted stock agreement for CEO. +
10.66	(34)	Form of 2012 stock appreciation rights agreement for non-employee directors. +
21.1		Subsidiaries of the Company.
23.1		Consent of Ernst & Young LLP, independent registered public accounting firm.
31.1		Certification pursuant to Rule 13a-14(a)/15d-14(a).
31.2		Certification pursuant to Rule 13a-14(a)/15d-14(a).
32.1		Certification Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certification Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		The following financial information from Zebra Technologies Corporation Annual Report on Form 10-K, for the year ended December 31, 2012, formatted in XBRL (Extensible Business Reporting Language): (i) the consolidated balance sheets; (ii) the consolidated statements of earnings (loss); (iii) the consolidated statements of comprehensive income (loss); (iv) the consolidated statements of stockholders equity; (v) the consolidated statements of cash flows; and (vi) notes to consolidated financial statements.

(1	)	Incorporated by reference from Annual Report on Form 10-K for the year ended December 31, 2010.
(2	)	Incorporated by reference from Form 10-K for fiscal year ended December 31, 2006.
(3	)	Incorporated by reference from Current Report on Form 8-K dated May 19, 2011.
(4	)	Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended October 3, 2009.
(5	)	Incorporated by reference from Registration Statement on Form S-1, File No. 33-41576.
(6	)	Incorporated by reference from Current Report on Form 8-K dated August 1, 2012.
(7	)	Incorporated by reference from Form 10-K for the fiscal year ended December 31, 1997.
(8	)	Incorporated by reference from Registration Statement on Form S-8, File No. 333-63009.
(9	)	Incorporated by reference from Registration Statement on Form S-8, File No. 333-84512.
(10	)	Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended September 28, 2002.

(11	)	Incorporated by reference from Form 10-K for the fiscal year ended December 31, 1996.
(12	)	Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended April 1, 2000.
(13	)	Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended June 29, 2002.
(14	)	Incorporated by reference from Current Report on Form 8-K dated January 5, 2009.
(15	)	Incorporated by reference from Current Report on Form 8-K dated on September 4, 2007.
(16	)	Incorporated by reference from Current Report on Form 8-K filed on November 21, 2007.
(17	)	Incorporated by reference from Current Report on Form 8-K filed on December 17, 2007.
(18	)	Incorporated by reference from Current Report on Form 8-K filed on February 10, 2006.
(20	)	Incorporated by reference from Current Report on Form 8-K filed on October 26, 2006.
(21	)	Incorporated by reference from Current Report on Form 8-K filed on May 1, 2007.
(22	)	Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended October 2, 2010.
(23	)	Incorporated by reference from Current Report on Form 8-K filed on May 15, 2006.
(24	)	Incorporated by reference from Proxy Statement dated April 15, 2011 for the 2011 Annual Meeting of Stockholders.
(25	)	Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended April 3, 2010.
(26	)	Incorporated by reference from Registration Statement on Form S-8 filed on January 25, 2007, File No. 333-140207.
(27	)	Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended March 29, 2008.
(28	)	Incorporated by reference from Current Report on Form 8-K filed on May 7, 2008.
(29	)	Incorporated by reference from Current Report on Form 8-K filed on May 29, 2008.
(30	)	Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended September 29, 2012.
(31	)	Incorporated by reference from Current Report on Form 8-K filed on December 8, 2008.
(32	)	Incorporated by reference from Form 10-K for fiscal year ended December 31, 2008.
(33	)	Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended April 2, 2011.
(34	)	Incorporated by reference from Quarterly Report on Form 10-Q for the quarter ended June 30, 2012.
(35	)	Incorporated by reference from Current Report on Form 8-K dated January 7, 2013.
+		Management contract or compensatory plan or arrangement required to be filed as an exhibit to this Annual Report on Form 10-K.

EX-21.1

Exhibit 21.1

Subsidiaries of Registrant

Zebra Technologies Corporation, a Delaware corporation (NASDAQ listing: ZBRA)

DDD, LLC - a Delaware limited liability company

Genuine Zebra Technologies Trading (Shanghai) Co., Ltd. - a PRC limited liability company

LaserBand LLC - a Missouri limited liability company

LaserBand UK Limited - a private UK company limited by shares

Multispectral Solutions, Inc. - a Delaware corporation

StepOne Systems, LLC - a Pennsylvania limited liability company

Zebra Diamond Holdings, a UK company

Zebra Enterprise Solutions B.V.B.A. (fka WhereNet Europe) - a Belgian limited liability company

Zebra Enterprise Solutions Corp. - (fka WhereNet Corp) a California corporation

Zebra Jersey Holdings I Limited - a Jersey private limited liability company

Zebra Jersey Holdings II Limited - a Jersey private limited liability company

Zebra Luxco I S.a.r.l. - a Luxembourg private limited liability company

Zebra Luxco II S.a.r.l. - a Luxembourg private limited liability company

Zebra Technical Services (Guangzhou) Co., Ltd. - a PRC limited liability company

Zebra Technologies (Thailand) Ltd. - a Bangkok company (ZT Thailand LLC, ZIH and ZTAP Pte owners)

Zebra Technologies AB - a Swedish corporation

Zebra Technologies Argentina, LLC - a Delaware limited liability company

Zebra Technologies Asia Holding Limited - a Mauritius company

Zebra Technologies Asia Pacific Pte. Ltd. - a Singapore limited liability company

Zebra Technologies Asia Pacific, LLC - a Delaware limited liability company

Zebra Technologies Australia Pty Ltd - a Victoria corporation

Zebra Technologies B.V. - a Netherlands limited liability company

Zebra Technologies Brazil, LLC - a Delaware limited liability company

Zebra Technologies Columbia, LLC - a Delaware limited liability company

Zebra Technologies de México, S. de R.L. de C.V. - a Mexican limited liability company (w/ ZIH Corp)

Zebra Technologies do Brasil - Comércio de Produtos de Informática Ltda. - a Brazilian limited liability company

Zebra Technologies Europe Limited - a private UK company limited by shares

Zebra Technologies India LLC, a Delaware limited liability company

Zebra Technologies India Ltd, a Indian limited liability company

Zebra Technologies International, LLC - an Illinois limited liability company

Zebra Technologies Latin America, LLC - a Delaware limited liability company

Zebra Technologies Malaysia Sdn. Bhd, - a Malaysian company

Zebra Technologies Mexico, LLC - a Delaware limited liability company

Zebra Technologies Services Sp. Zoo - a Polish corporation

Zebra Technologies Sp. Zoo - a Polish corporation

Zebra Technologies Thailand LLC, a Delaware limited liability company

ZIH Corp. - a Delaware corporation

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the registration statements on Form S-8 (333-63009, 333-84512, 333-102050, 333-135179, 333-140207 and 333-174616) of Zebra Technologies Corporation of our reports dated February 21, 2013, with respect to the consolidated financial statements and schedule listed at Item 15, of Zebra Technologies Corporation and the effectiveness of internal control over financial reporting of Zebra Technologies Corporation, included in this Annual Report (Form 10-K) for the year ended December 31, 2012.

/s/Ernst & Young LLP

Chicago, Illinois

February 21, 2013

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Anders Gustafsson, certify that:

1. I have reviewed this report on Form 10-K of Zebra Technologies Corporation (the “Company”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and the internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially effect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 21, 2013	By:	/s/ Anders Gustafsson
		Anders Gustafsson
		Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Michael C. Smiley, certify that:

1. I have reviewed this report on Form 10-K of Zebra Technologies Corporation (the “Company”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and the internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially effect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 21, 2013	By:	/s/ Michael C. Smiley
		Michael C. Smiley
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Zebra Technologies Corporation (the “Company”) on Form 10-K for the period that ended December 31, 2012, as filed with the Securities and Exchange Commission on the date hereof, I, Anders Gustafsson, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 21, 2013	By:	/s/ Anders Gustafsson
		Anders Gustafsson
		Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Zebra Technologies Corporation (the “Company”) on Form 10-K for the period that ended December 31, 2012, as filed with the Securities and Exchange Commission on the date hereof, I, Michael C. Smiley, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 21, 2013	By:	/s/ Michael C. Smiley
		Michael C. Smiley
		Chief Financial Officer

XML

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

Components of Property and Equipment

Property and equipment, which includes assets under capital leases, is comprised of the following (in thousands):

	As of December 31,
	2012		2011
Buildings	$	2,134	$	2,086
Land		504		504
Machinery, equipment and tooling		88,222		81,464
Furniture and office equipment		12,672		12,003
Computers and software		130,357		111,793
Automobiles		18		18
Leasehold improvements		16,380		15,494
Projects in progress – computers and software		2,217		9,135
Projects in progress - other		15,561		11,332
		268,065		243,829
Less accumulated depreciation and amortization		(166,716)		(146,007)
Net property and equipment	$	101,349	$	97,822

Other Items Related to Property and Equipment

Other items related to property and equipment are as follows (in thousands):

	As of December 31,
	2012		2011
Unamortized computer software costs	$	48,873	$	42,134

Depreciation and Amortization Related to Property and Equipment

	Year Ended December 31,
	2012		2011		2010
Amortization of capitalized software	$	7,912	$	6,180	$	5,624
Total depreciation expense charged to income		21,504		20,680		20,291

XML

Income Taxes - Summary of Deferred Tax Asset Valuation Allowances (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Reconciliation Of Nol Deferred Tax Assets Valuation Allowance [Line Items]
Balance at the beginning of the year	$ 267	$ 267	$ 0
Additions	0	0	267
Subtractions	0	0	0
Balance at the end of the period	$ 267	$ 267	$ 267

XML

Quarterly Results of Operations (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Quarterly Financial Information

	2012
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Net Sales
Net sales of tangible products	$	232,476		$	234,708		$	239,786		$	241,257
Revenue from services and software		11,399			12,369			12,251			11,922
Total net sales		243,875			247,077			252,037			253,179
Cost of Sales
Cost of sales of tangible products		119,033			119,980			118,751			121,869
Cost of sales services and software		4,959			6,720			6,362			6,850
Cost of sales		123,992			126,700			125,113			128,719
Gross Profit		119,883			120,377			126,924			124,460
Operating expenses:
Selling and marketing		32,114			32,158			32,321			33,313
Research and development		20,416			22,336			22,007			22,605
General and administrative		24,320			24,402			22,481			20,964
Amortization of intangible assets		770			770			1,670			1,463
Acquisition costs		254			1,252			566			1,037
Exit and restructuring costs		0			0			0			960
Asset impairment charge		0			0			9,114			0
Total operating expenses		77,874			80,918			88,159			80,342
Operating income		42,009			39,459			38,765			44,118
Other income (loss)
Investment income		592			826			541			526
Foreign exchange loss		(342	)		(80	)		(514	)		(5)
Other, net		(364	)		(486	)		(294	)		(577)
Total other income (loss)		(114	)		260			(267	)		(56)
Income from continuing operations before income taxes		41,895			39,719			38,498			44,062
Income taxes		11,731			9,366			11,917			9,263
Income from continuing operations		30,164			30,353			26,581			34,799
Income from discontinued operations, net of tax		0			300			516			191
Net income	$	30,164		$	30,653		$	27,097		$	34,990
Basic earnings per share:
Income from continuing operations	$	0.58		$	0.58		$	0.52		$	0.69
Income from discontinued operations		0.00			0.01			0.01			0.00
Net Income	$	0.58		$	0.59		$	0.53		$	0.69
Diluted earnings per share:
Income from continuing operations	$	0.58		$	0.58		$	0.51		$	0.68
Income from discontinued operations		0.00			0.01			0.01			0.00
Net Income	$	0.58		$	0.59		$	0.52		$	0.68
Basic weighted average shares outstanding		51,998			51,771			51,566			50,968
Diluted weighted average and equivalent shares outstanding		52,301			52,030			51,809			51,262

	2011
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Net Sales
Net sales of tangible products	$	226,120		$	232,762		$	241,686		$	235,714
Revenue from services and software		11,181			12,779			11,652			11,594
Total net sales		237,301			245,541			253,338			247,308
Cost of Sales
Cost of sales of tangible products		110,781			117,732			122,529			118,792
Cost of sales services and software		6,522			6,111			7,256			6,996
Cost of sales		117,303			123,843			129,785			125,788
Gross Profit		119,998			121,698			123,553			121,520
Operating expenses:
Selling and marketing		28,528			30,950			31,942			36,377
Research and development		21,681			22,487			22,584			23,174
General and administrative		22,706			20,688			18,978			18,973
Amortization of intangible assets		835			836			843			806
Acquisition costs		0			0			188			116
Exit and restructuring costs		1,886			66			138			(49)
Total operating expenses		75,636			75,027			74,673			79,397
Operating income		44,362			46,671			48,880			42,123
Other income (loss)
Investment income		560			656			134			594
Foreign exchange loss		(294	)		(833	)		(173	)		(706)
Other, net		(254	)		(243	)		(859	)		(899)
Total other income (loss)		12			(420	)		(898	)		(1,011)
Income from continuing operations before income taxes		44,374			46,251			47,982			41,112
Income taxes		14,246			13,082			13,795			8,253
Income from continuing operations		30,128			33,169			34,187			32,859
Income (loss) from discontinued operations, net of tax		31,506			(205	)		10,814			2,185
Net income	$	61,634		$	32,964		$	45,001		$	35,044
Basic earnings per share:
Income from continuing operations	$	0.54		$	0.60		$	0.64		$	0.63
Income from discontinued operations		0.57			0.00			0.20			0.04
Net Income	$	1.11		$	0.60		$	0.84		$	0.67
Diluted earnings per share:
Income from continuing operations	$	0.54		$	0.60		$	0.64		$	0.63
Income from discontinued operations		0.56			0.00			0.20			0.04
Net Income	$	1.10		$	0.60		$	0.84		$	0.67
Basic weighted average shares outstanding		55,353			54,546			53,339			52,108
Diluted weighted average and equivalent shares outstanding		55,774			54,958			53,628			52,354

XML

Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Shares of Time-Vested Restricted Stock Granted and Vesting Schedules of Restricted Stock Awards

The following table shows the number of shares of time-vested restricted stock granted in 2012 and the vesting schedules of the restricted stock awards that were granted under the Plan to certain executive officers and other members of management.

Vesting period	RSA’s		PSA’s		Total
At grant		6,955		0		6,955
After three years of service		162,126		72,470		234,596
Total		169,081		72,470		241,551

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:

	2012	2011	2010
Expected dividend yield	0%	0%	0%
Forfeiture rate	10.21%	11.50%	9.78%
Volatility	35.90%	35.33%	39.50%
Risk free interest rate	.94%	2.01%	2.26%
- Range of interest rates	0.07% - 1.95%	0.01% - 3.18%	0.06% - 3.41%
Expected weighted-average life	5.48 years	5.42 years	5.36 years
Fair value of SARs granted	$5,533,000	$5,495,000	$6,527,000
Weighted-average grant date fair value of options and SARs granted     (per underlying share)	$12.84	$14.29	$10.64

Summary of Stock Option Activity

Stock option activity for the years ended December 31, 2012, 2011, and 2010, was as follows:

	2012					2011					2010
Options	Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price
Outstanding at beginning of year		1,702,650		$	40.43		2,340,959		$	37.35		2,767,887		$	35.98
Granted		0			0		0			0		0			0
Exercised		(148,802	)		27.02		(490,715	)		26.63		(273,564	)		23.43
Forfeited		(1,663	)		36.36		(63,714	)		32.29		(62,798	)		35.87
Expired		(20,341	)		43.63		(83,880	)		40.76		(90,566	)		35.08
Outstanding at end of year		1,531,844		$	41.69		1,702,650		$	40.43		2,340,959		$	37.35
Exercisable at end of year		1,527,814		$	41.75		1,589,096		$	40.84		1,893,346		$	37.50
Intrinsic value of exercised options	$	1,700,000				$	6,400,000				$	2,214,000

Summary of Outstanding and Exercisable Options

The following table summarizes information about stock options outstanding at December 31, 2012:

	Outstanding	Exercisable
Aggregate intrinsic value	$    1,379,000	$    1,306,000
Weighted-average remaining contractual term	3.4 years	3.4 years

Summary of SAR Activity

SAR activity for the years ended December 31, 2012, 2011, and 2010, was as follows:

	2012					2011					2010
SARs	Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price
Outstanding at beginning of year		1,287,724			$ 28.91		1,234,787			$ 23.82		684,058			$ 19.97
Granted		431,040			38.51		387,847			41.14		612,681			27.82
Exercised		(102,972	)		23.83		(95,672	)		22.20		(31,001	)		19.56
Forfeited		(75,978	)		34.10		(238,965	)		25.15		(30,678	)		22.14
Expired		(4,010	)		41.57		(273	)		19.56		(273	)		19.56
Outstanding at end of year		1,535,804			$ 31.66		1,287,724			$ 28.91		1,234,787			$ 23.82
Exercisable at end of year		514,787			$ 26.52		305,228			$ 23.27		149,318			$ 20.19
Intrinsic value of exercised SARs		$ 1,500,000					$ 1,700,000					$ 353,000

Summary of Restricted Stock Award Activity

Restricted stock award activity, granted under the 2011 and 2006 Plans, for the years ended December 31, 2012, 2011 and 2010 was as follows:

	2012					2011					2010
Restricted Stock Awards	Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Grant Date Fair Value
Outstanding at beginning of year		529,880			$ 28.20		594,090			$ 25.51		406,682			$ 24.43
Granted		169,081			38.45		152,636			41.17		225,985			27.85
Released		(235,580	)		21.39		(197,472	)		30.08		(22,325	)		29.11
Forfeited		(19,019	)		34.90		(19,374	)		29.08		(16,252	)		26.19
Outstanding at end of year		444,362			$ 35.43		529,880			$ 28.20		594,090			$ 25.51

Summary of Performance Share Award Activity

Performance share award activity, granted under the 2011 and 2006 Plans, for the years ended December 31, 2012, 2011 and 2010 was as follows:

	2012					2011					2010
Performance Share Awards	Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Grant Date Fair Value		Shares		Weighted-Average Grant Date Fair Value
Outstanding at beginning of year		306,261			$  28.58		250,596			$  25.35		100,660		$  21.68
Granted		72,470			38.68		62,874			41.47		149,936		27.82
Released		(1,802	)		41.57		(7,209	)		28.79		0		0.0
Forfeited		(111,100	)		23.06		0			0.0		0		0.0
Outstanding at end of year		265,829			$  35.55		306,261			$  28.58		250,596		$  25.35

Weighted-Average Assumptions Used for Employee Purchase Rights Granted Under Stock Purchase Plan

The fair value of the purchase rights issued to Zebra 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.

	2012		2011		2010
Fair market value	$	35.43	$	34.77	$	27.95
Option price	$	33.66	$	33.03	$	26.55
Expected dividend yield		0%		0%		0%
Expected volatility		21%		33%		25%
Risk free interest rate		0.07%		0.07%		0.14%

Stock Appreciation Rights (SARs) [Member]

Summary of Outstanding and Exercisable Options

The following table summarizes information about SARs outstanding at December 31, 2012:

	Outstanding	Exercisable
Aggregate intrinsic value	$    10,551,000	$    5,926,000
Weighted-average remaining contractual term	7.7 years	6.9 years

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Quarterly Results of Operations - Schedule of Quarterly Financial Information (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	1 Months Ended	3 Months Ended								12 Months Ended
	Sep. 29, 2012	Dec. 31, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Quarterly Results Of Operations [Line Items]
Net sales of tangible products		$ 241,257	$ 239,786	$ 234,708	$ 232,476	$ 235,714	$ 241,686	$ 232,762	$ 226,120	$ 948,227	$ 936,282	$ 849,530
Revenue from services and software		11,922	12,251	12,369	11,399	11,594	11,652	12,779	11,181	47,941	47,206	44,829
Total net sales		253,179	252,037	247,077	243,875	247,308	253,338	245,541	237,301	996,168	983,488	894,359
Cost of sales of tangible products		121,869	118,751	119,980	119,033	118,792	122,529	117,732	110,781	479,633	469,834	450,630
Cost of sales services and software		6,850	6,362	6,720	4,959	6,996	7,256	6,111	6,522	24,891	26,885	22,954
Total cost of sales		128,719	125,113	126,700	123,992	125,788	129,785	123,843	117,303	504,524	496,719	473,584
Gross Profit		124,460	126,924	120,377	119,883	121,520	123,553	121,698	119,998	491,644	486,769	420,775
Selling and marketing		33,313	32,321	32,158	32,114	36,377	31,942	30,950	28,528	129,906	127,797	112,365
Research and development		22,605	22,007	22,336	20,416	23,174	22,584	22,487	21,681	87,364	89,926	82,575
General and administrative		20,964	22,481	24,402	24,320	18,973	18,978	20,688	22,706	92,167	81,345	73,229
Amortization of intangible assets		1,463	1,670	770	770	806	843	836	835	4,673	3,320	3,211
Acquisition costs		1,037	566	1,252	254	116	188	0	0	3,109	304	0
Exit and restructuring costs		960	0	0	0	(49)	138	66	1,886	960	2,041	2,262
Asset impairment charge	9,114	0	9,114	0	0					9,114	0	0
Total operating expenses		80,342	88,159	80,918	77,874	79,397	74,673	75,027	75,636	327,293	304,733	272,560
Operating income		44,118	38,765	39,459	42,009	42,123	48,880	46,671	44,362	164,351	182,036	148,215
Investment income		526	541	826	592	594	134	656	560	2,485	1,944	2,678
Foreign exchange (loss)		(5)	(514)	(80)	(342)	(706)	(173)	(833)	(294)	(941)	(2,006)	(169)
Other, net		(577)	(294)	(486)	(364)	(899)	(859)	(243)	(254)	(1,721)	(2,255)	(1,117)
Total other income (loss)		(56)	(267)	260	(114)	(1,011)	(898)	(420)	12	(177)	(2,317)	1,392
Income from continuing operations before income taxes		44,062	38,498	39,719	41,895	41,112	47,982	46,251	44,374	164,174	179,719	149,607
Income taxes		9,263	11,917	9,366	11,731	8,253	13,795	13,082	14,246	42,277	49,376	44,993
Income from continuing operations		34,799	26,581	30,353	30,164	32,859	34,187	33,169	30,128	121,897	130,343	104,614
Income (loss) from discontinued operations, net of tax		191	516	300	0	2,185	10,814	(205)	31,506	1,007	44,300	(2,836)
Net income		$ 34,990	$ 27,097	$ 30,653	$ 30,164	$ 35,044	$ 45,001	$ 32,964	$ 61,634	$ 122,904	$ 174,643	$ 101,778
Income from continuing operations		$ 0.69	$ 0.52	$ 0.58	$ 0.58	$ 0.63	$ 0.64	$ 0.60	$ 0.54	$ 2.36	$ 2.42	$ 1.83
Income from discontinued operations		$ 0.00	$ 0.01	$ 0.01	$ 0.00	$ 0.04	$ 0.20	$ 0.00	$ 0.57	$ 0.02	$ 0.82	$ (0.05)
Net Income		$ 0.69	$ 0.53	$ 0.59	$ 0.58	$ 0.67	$ 0.84	$ 0.60	$ 1.11	$ 2.38	$ 3.24	$ 1.78
Income from continuing operations		$ 0.68	$ 0.51	$ 0.58	$ 0.58	$ 0.63	$ 0.64	$ 0.60	$ 0.54	$ 2.35	$ 2.40	$ 1.82
Income from discontinued operations		$ 0.00	$ 0.01	$ 0.01	$ 0.00	$ 0.04	$ 0.20	$ 0.00	$ 0.56	$ 0.02	$ 0.82	$ (0.05)
Net Income		$ 0.68	$ 0.52	$ 0.59	$ 0.58	$ 0.67	$ 0.84	$ 0.60	$ 1.10	$ 2.37	$ 3.22	$ 1.77
Basic weighted average shares outstanding		50,968	51,566	51,771	51,998	52,108	53,339	54,546	55,353	51,566	53,854	57,143
Diluted weighted average and equivalent shares outstanding		51,262	51,809	52,030	52,301	52,354	53,628	54,958	55,774	51,843	54,191	57,428

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Accounts Receivable - Components of Accounts Receivable (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	$ 169,401	$ 156,790
Accounts receivable reserves	(669)	(1,560)
Accounts receivable, net	$ 168,732	$ 155,230

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Discontinued Operations - Components of Cash Flows of Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net cash (used) by operating activities	$ 0	$ (1,301)	$ (2,164)
Net cash provided by (used in) by investing activities	0	0	0
Net cash provided by (used in) by financing activities	0	0	0
Effect of exchange rate changes on cash	0	0	1,771
Net decrease in cash and cash equivalents	0	(1,301)	(393)
Cash balance of discontinued operations at beginning of period	0	1,301	1,694
Cash balance of discontinued operations at end of period	$ 0	$ 0	$ 1,301

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Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2012

Summary Results for Discontinued Operations in Consolidated Statement of Earnings

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

	Year Ended December 31
	2012		2011		2010
Net sales	$	0	$	13,945	$	62,489
Loss from discontinued operations	$	(141)	$	(13,971)	$	(4,673)
Income tax benefit		218		1,299		1,837
Gain on sale of discontinued operations		930		68,745		0
Income tax expense on sale		0		(11,773)		0
Income (loss) from discontinued operations	$	1,007	$	44,300	$	(2,836)

Components of Cash Flows of Discontinued Operations

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

	Year Ended December  31
	2012		2011			2010
Cash flows from discontinued operations:
Net cash (used) by operating activities	$	0	$	(1,301	)	$	(2,164)
Net cash provided by (used in) by investing activities		0		0			0
Net cash provided by (used in) by financing activities		0		0			0
Effect of exchange rate changes on cash		0		0			1,771
Net decrease in cash and cash equivalents		0		(1,301	)		(393)
Cash and cash equivalents at beginning of period		0		1,301			1,694
Cash and cash equivalents at end of period	$	0	$	0		$	1,301

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Goodwill and Other Intangible Asset Data - Schedule of Intangible Assets Including Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Schedule Of Goodwill Non Amortizable And Amortizable Intangible Assets [Line Items]
Goodwill at gross cost	$ 205,084	$ 180,731
Impairment charges	(110,142)	(101,028)
Goodwill	$ 94,942	$ 79,703

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Equity-Based Compensation - Summary of Performance Share Award Activity (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Granted	241,551
Performance Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding at beginning of year	306,261	250,596	100,660
Shares, Granted	72,470	62,874	149,936
Shares, Released	(1,802)	(7,209)	0
Shares, Forfeited	(111,100)	0	0
Shares, Outstanding at end of period	265,829	306,261	250,596
Weighted-Average Grant Date Fair Value, Outstanding at beginning of year	$ 28.58	$ 25.35	$ 21.68
Weighted-Average Grant Date Fair Value, Granted	$ 38.68	$ 41.47	$ 27.82
Weighted-Average Grant Date Fair Value, Released	$ 41.57	$ 28.79	$ 0.00
Weighted-Average Grant Date Fair Value, Forfeited	$ 23.06	$ 0.00	$ 0.00
Weighted-Average Grant Date Fair Value, Outstanding at end of period	$ 35.55	$ 28.58	$ 25.35

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Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2012

Share Count and Par Value Data Related to Stockholders' Equity

Share count and par value data related to stockholders’ equity are as follows:

	As of
	December 31,     2012		December 31,     2011
Preferred Stock
Par value per share	$	0.01	$	0.01
Shares authorized		10,000,000		10,000,000
Shares outstanding		0		0
Common Stock—Class A
Par value per share	$	0.01	$	0.01
Shares authorized		150,000,000		150,000,000
Shares issued		72,151,857		72,151,857
Shares outstanding		50,908,267		52,095,166
Treasury stock
Shares held		21,243,590		20,056,691

Roll forward of Class A Common Shares Outstanding

A roll forward of Class A common shares outstanding is as follows:

	Year Ended December 31,
	2012		2011
Balance at the beginning of the year		52,095,166		55,711,325
Repurchases		(1,473,863)		(4,353,801)
Stock options, rights and ESPP issuances		246,625		593,574
Restricted share issuances		242,238		215,510
Restricted share forfeitures		(130,119)		(17,138)
Shares withheld for tax obligations		(71,780)		(54,304)
Balance at the end of the period		50,908,267		52,095,166

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Description of Business (Policies)

12 Months Ended

Dec. 31, 2012

Reclassifications

Reclassifications. Prior-period amounts will differ from amounts previously reported because certain immaterial amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation.

Principles of Consolidation

Principles of Consolidation. These consolidated financial statements were prepared on a consolidated basis to include the accounts of Zebra and its wholly owned subsidiaries. All significant intercompany accounts, transactions and unrealized profit were eliminated in consolidation.

Fiscal Calendar

Fiscal Calendar. Zebra operates on a 4 week/4 week/5 week fiscal quarter, and each fiscal quarter ends on a Saturday. The fiscal year always begins on January 1 and ends on December 31. This fiscal calendar results in some fiscal quarters being either greater than or less than 13 weeks, depending on the days of the week those dates fall. During the 2012 fiscal year, our quarter end dates were as follows:

• March 31,

• June 30,

• September 29, and

• December 31.

Use of Estimates

Use of Estimates. These consolidated financial statements were prepared using estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents. Cash consists primarily of deposits with banks. In addition, Zebra considers highly liquid short-term investments with original maturities of less than three months to be cash equivalents. These highly liquid short-term investments are readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of a change in value because of changes in interest rates.

Investments and Marketable Securities

Investments and Marketable Securities. Investments and marketable securities at December 31, 2012, consisted of U.S. government and agency securities, state and municipal bonds, corporate bonds, and other security interests. Trading securities are bought and held principally for the purpose of selling them in the near term. Held-to-maturity securities are those debt securities that Zebra has the ability and intent to hold until maturity. All securities not included in trading or held-to-maturity are classified as available-for-sale. Trading and available-for-sale securities are recorded at fair value. Held-to-maturity securities are recorded at amortized cost, adjusted for the amortization or accretion of discounts or premiums. Unrealized holding gains and losses on trading securities are included in earnings. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of stockholders’ equity until realized, unless we determine them to be other-than-temporarily impaired.

Zebra’s investments and marketable securities are classified as available-for-sale securities except for securities held in Zebra’s deferred compensation plan which are considered trading securities. Investments in marketable debt securities are classified based on intent and ability to sell investment securities. Zebra’s available-for-sale securities are used to fund further acquisitions and other operating needs and therefore can be sold prior to maturity. Investments in marketable debt securities for which Zebra intends to sell within the next year are classified as current and those that we intend to hold in excess of one-year are classified as non-current.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable consist primarily of amounts due to us from our normal business activities. Collateral on trade accounts receivable is generally not required. Zebra maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on our assessment of known delinquent accounts. Accounts are written off against the allowance account when they are determined to be no longer collectible.

Inventories

Inventories. Inventories are stated at the lower of cost or market, and cost is determined by the first-in, first-out (FIFO) method. Manufactured inventories consist of the following costs: component, direct labor and manufacturing overhead. Purchased inventories consist of purchased costs and purchasing overhead.

Property and Equipment

Property and Equipment. Property and equipment is stated at cost. Depreciation and amortization is computed primarily using the straight-line method over the estimated useful lives of the various classes of property and equipment, which are 30 years for buildings and range from 3 to 10 years for other property. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset.

Income Taxes

Income Taxes. Zebra’s continuing practice is to recognize interest and penalties related to income tax matters as part of income tax expense. During 2012 Zebra recognized an increase of $680,000 in the liability for tax benefits related to the foreign restructuring.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at January 1, 2011	$	4,000
Additions based on tax positions related to 2011		0
Additions based on tax positions related to 2012		680
Balance at December 31, 2012	$	4,680

Goodwill and Other Intangibles

Goodwill and Other Intangibles. Goodwill represents the unamortized excess of the cost of acquiring a business over the fair values of the net assets received at the date of acquisition.

Goodwill of a reporting unit should be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Examples of such events or circumstances include:

• Significant adverse change in legal factors or in the business climate,

• Adverse action or assessment by a regulator,

• Unanticipated competition,

• Loss of key personnel,

• More-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of,

• Testing for recoverability under ASC 360 of a significant asset group within a reporting unit,

• Recognition of a goodwill impairment loss in the financial statement of a subsidiary that is a component of a reporting unit, or

• Allocation of a portion of goodwill to a business to be disposed of.

We evaluate the impairment of identifiable intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered that might trigger an impairment review consist of:

• Significant underperformance relative to expected historical or projected future operating results,

• Significant changes in the manner of use of the acquired assets or the strategy for the overall business,

• Significant negative industry or economic trends,

• Significant decline in Zebra’s stock price for a sustained period, and

• Significant decline in market capitalization relative to net book value.

If we believe that one or more of the above indicators of impairment have occurred, we perform an impairment test. The performance of the test involves a two-step process. The first step of the impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. We generally determine the fair value of our reporting units using three valuation methods: Income Approach – Discounted Cash Flow Analysis, Market Approach – Guideline Public Company Method, and Market Approach – Comparative Transactions Method. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, we perform the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit’s goodwill with the carrying value of that goodwill.

We performed our annual impairment test in June 2012 and determined that our goodwill was not impaired as of the end of May 2012. Zebra has two reporting units required for its annual goodwill impairment test. As of our May 2012 testing date, the larger of the two reporting units’ fair value exceeded its carrying value by a significant amount. The fair value amount by which the second smaller reporting unit exceeded the carrying value ranged from approximately 8% under the Income Approach and 31% under the Market Approach. Key assumptions used in the first step of the goodwill impairment test were determined by management utilizing the internal operating plan. The key assumptions utilized included forecasted growth rates for revenues and operating expenses as well as a discount rate which is determined by looking at current risk-free rates of capital, current market interest rates, and the evaluation of a risk premium relevant to the business segment. Due to the deterioration in the smaller reporting unit’s operating results during the third quarter our fair value calculation for the smaller reporting unit changed and we determined our goodwill associated with the smaller reporting unit to be impaired. The above impairment indicators led us to conclude an interim goodwill test was necessary. Zebra performed the first step of the impairment test which failed. As a result, Zebra also performed a second step analysis and recorded a goodwill impairment charge of $9,114,000 as of September 29, 2012. After this impairment charge, there is no remaining goodwill in the smaller reporting unit.

Other intangible assets capitalized consist primarily of current technology, customer relationships, patents and patent rights. These assets are recorded at cost and amortized on a straight-line basis over a weighted-average life of 5.3 years, which approximates the estimated useful lives. Weighted average lives remaining by intangible asset class are as follows: Current technology 4.0 years; Patent and patent rights 4.4 years; Customer relationships 7.3 years.

Revenue Recognition

Revenue Recognition. Revenue includes sales of hardware, supplies, software and services (including repair services, extended service contracts, and professional services). Product revenue is recognized once four criteria are met: (1) we have persuasive evidence that an arrangement exits; (2) delivery has occurred and title has passed to the customer, which happens at the point of shipment provided that no significant obligations remain; (3) the price is fixed and determinable; and (4) collectability is reasonably assured. We provide for an estimate of product returns based on historical experience. Revenue related to extended warranty and service contracts is recorded as deferred revenue and recognized over the life of the contract. Professional services revenue is recorded when performed. Zebra enters into sales transactions that include more than one product type. This bundle of products might include printers, current or future supplies, and services. When this type of transaction occurs, we allocate the purchase price to each product type based on the fair value of the individual products determined by vendor specific objective evidence. The revenue for each individual product is then recognized when the earning process for that product is complete. We enter into post-contract maintenance and support agreements. Revenues are recognized ratably over the service period and the cost of providing these services is expensed as incurred.

Zebra records payments to resellers of its product as reductions to revenue unless these payments meet the requirements for operating expense treatment under ASC 605. See the market development funds accounting policy for further details.

Revenue includes all customer billings for shipping and handling charges. The related costs of shipping and handling revenue are recorded as cost of goods sold.

Research and Development Costs

Research and Development Costs. Research and development costs are expensed as incurred. These costs include:

• Salaries, benefits, and other R&D personnel related costs,

• Consulting and other outside services used in the R&D process,

• Engineering supplies,

• Engineering related information systems costs, and

• Allocation of building and related costs.

Advertising

Advertising. Advertising is expensed as incurred. Advertising costs totaled $8,983,000 for the year ended December 31, 2012, $8,070,000 for the year ended December 31, 2011 and $6,836,000 for the year ended December 31, 2010.

Market Development Funds

Market Development Funds. Zebra makes market development funds available to its resellers to support demand generation activity by the resellers. These funds require the reseller to provide specific services or benefits to Zebra and substantiate the fair value of such services rendered. Zebra reimburses resellers for agreed activities up to the amounts approved by Zebra. These payments are treated as marketing costs consistent with the requirements of ASC 605. Any payments to resellers that do not meet these requirements are recorded as reductions to revenue.

Warranty

Warranty. In general, Zebra provides warranty coverage of one year on printers against defects in material and workmanship. Printheads are warranted for nine months and batteries are warranted for twelve months. Battery based products, such as location tags, are covered by a 30 day warranty. A provision for warranty expense is recorded at the time of sale and adjusted quarterly based on historical warranty experience. The following table is a summary of Zebra’s accrued warranty obligation (in thousands):

	Year Ended December 31,
Warranty Reserve	2012		2011		2010
Balance at the beginning of the year	$	4,613	$	4,554	$	3,813
Warranty expense		6,828		5,856		6,427
Warranty payments		(7,189)		(5,797)		(5,686)
Balance at the end of the period	$	4,252	$	4,613	$	4,554

Fair Value of Financial Instruments

Fair Value of Financial Instruments. Zebra estimates the fair value of its financial instruments as follows:

Instrument	Method for determining fair  value
Cash, cash equivalents, restricted cash, accounts receivable and accounts payable	Cost, which approximates fair value due to the short- term nature of these instruments
Investments in marketable debt securities	Market quotes from independent pricing services
Investments in auction rate securities	Broker quotations, discounted cash flow analysis or other types of valuation adjustment methodologies
Foreign currency forward contracts	Estimated using market quoted rates for foreign currency at the balance sheet date
Foreign currency option contracts	Estimated using market quoted rates for foreign currency at the balance sheet date and application of such rates subject to the option terms

In accordance with ASC 815 we recognize derivative instruments and hedging activities as either assets or liabilities on the balance sheet and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. See Note 11 for additional information on our derivatives and hedging activities.

Equity-Based Compensation

Equity-Based Compensation. At December 31, 2012, Zebra had a general equity-based compensation plan and a stock purchase plan under which shares of our common stock were available for future grants and sales, and which are described more fully in Note 16. We account for these plans in accordance with ASC 505 and ASC 718. Zebra recognizes compensation costs using the straight-line method over the vesting period of upon grant to up to 5 years.

The compensation expense and the related income tax benefit for share-based payments were included in the Consolidated Statement of Earnings as follows (in thousands):

	For the years ended December 31,
Compensation costs and related income tax benefit:	2012		2011		2010
Cost of sales	$	1,061	$	1,029	$	882
Selling and marketing		1,792		1,463		1,368
Research and development		1,593		1,387		1,282
General and administration		10,281		9,228		6,580
Total compensation expense	$	14,727	$	13,107	$	10,112
Income tax benefit	$	5,132	$	4,522	$	3,489

ASC 505 and ASC 718 requires the cash flows resulting from the tax benefits from tax deductions in excess of the compensation cost recognized (excess tax benefits) to be classified as cash flows from financing activities. Cash flows resulting from the tax benefits of tax deductions in excess of the compensation cost recognized (excess tax benefits) are classified as financing cash flows in the statement of cash flows. The tax benefits classified as financing cash flows was $1,578,000 as of December 31, 2012, $1,392,000 as of December 31, 2011, and $244,000 as of December 31, 2010.

Deferred Compensation Plan

Deferred Compensation Plan. Zebra has a deferred compensation plan that permits directors, management and highly compensated employees to defer portions of their compensation. Zebra immediately pays deferred amounts into a Rabbi Trust, and plan participants select a method of investing these funds into hypothetical investments. Zebra tracks the performance of these hypothetical investments in order to determine the value of each participant’s deferral. Zebra accrues the deferred compensation liability in other long-term liabilities as the amount that is actually owed to the participants.

Foreign Currency Translation

Foreign Currency Translation. The consolidated balance sheets of Zebra’s foreign subsidiaries, not having a U.S. dollar functional currency, are translated into U.S. dollars using the year-end exchange rate, and statement of earnings items are translated using the average exchange rate for the year. The resulting translation gains or losses are recorded in stockholders’ equity as a cumulative translation adjustment, which is a component of accumulated other comprehensive income (loss).

Acquisition Costs

Acquisition Costs. Zebra expenses acquisition costs as incurred.

Concentration risks

Concentration risks. Final assembly of our thermal printers is performed by Jabil Circuit, a third-party electronics manufacturer. We are now dependent on Jabil for the manufacture of such printers. A failure by Jabil to provide manufacturing services to Zebra as Zebra now requires, or any disruption in such manufacturing services, may adversely affect Zebra’s business results. Because we rely on a third-party provider such as Jabil to manufacture its products, Zebra may incur increased business continuity risks.

Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of

Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of. Zebra accounts for long-lived assets in accordance with the provisions of ASC 350. The statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposition of the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. See Note 8 for further information related to impairment charges.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements.

In June 2011, the FASB issued update 2011-05, ASC 220, Comprehensive Income: Presentation of Comprehensive Income and in December 2011, the FASB issued update 2011-12, ASC 220, Comprehensive Income: Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU No. 2011-12 is to defer only those changes in ASU No. 2011-05 that relate to the presentation of reclassification adjustments. Entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before ASU No. 2011-05. All other requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. This standard is effective for interim and annual periods beginning after December 15, 2011. The adoption of this standard moved the Other Comprehensive Income statement disclosure from our footnote to its own financial statement for our 10-Q filings in 2012.

In September 2011, the FASB issued update 2011-08, ASC 350, Intangibles Goodwill and Other: Testing Goodwill for Impairment. This updated guidance simplifies how companies test goodwill for impairment. Essentially, companies are no longer required to calculate the fair value of a reporting unit unless the entity determines that it is more-likely-than-not that its fair value is less than its carrying amount using a qualitative assessment. This standard is effective for fiscal years beginning after December 15, 2011. The adoption of this standard did not have any effect upon our consolidated financial statements.

In July 2012, the FASB issued update 2012-03, ASC 350, Intangibles Goodwill and Other: Testing Indefinite-Lived Intangible Assets for Impairment. This updated guidance provides entities with the option to make qualitative assessments about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. This standard is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of this standard did not have any effect upon our consolidated financial statements.

Subsequent events

Subsequent events. We have evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued.

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Other Assets - Components of Other Assets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Other Assets Non Current [Line Items]
Money market investments related to the deferred compensation plan	$ 3,553	$ 3,199
Long-term equity securities	9,195	80
Deposits	898	917
Total	$ 13,646	$ 4,196

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Geographic Data - Net Sales by Country (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
Total net sales	$ 253,179	$ 252,037	$ 247,077	$ 243,875	$ 247,308	$ 253,338	$ 245,541	$ 237,301	$ 996,168	$ 983,488	$ 894,359
Hardware [Member]
Segment Reporting Information [Line Items]
Total net sales									730,489	743,308	676,738
Supplies [Member]
Segment Reporting Information [Line Items]
Total net sales									212,499	187,457	167,633
Service And Software [Member]
Segment Reporting Information [Line Items]
Total net sales									47,941	47,206	44,829
Shipping And Handling [Member]
Segment Reporting Information [Line Items]
Total net sales									$ 5,239	$ 5,517	$ 5,159

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Business Combinations - Allocation of Purchase Price to Identifiable Tangible and Acquisition of Intangible Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	1 Months Ended	12 Months Ended
	Jul. 13, 2012	Dec. 31, 2012
Business Acquisition [Line Items]
Intangible Assets ,Amount	$ 29,560
Intangible Assets Useful life		5 years 3 months 18 days
Current Technology [Member]
Business Acquisition [Line Items]
Intangible Assets ,Amount	6,260
Intangible Assets Useful life	5 years
Patent and Patent Rights [Member]
Business Acquisition [Line Items]
Intangible Assets ,Amount	4,580
Intangible Assets Useful life	7 years
Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible Assets ,Amount	$ 18,720
Minimum [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible Assets Useful life	5 years
Maximum [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible Assets Useful life	9 years

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Property and Equipment - Other Items Related to Property and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Property, Plant and Equipment [Line Items]
Unamortized computer software costs	$ 48,873	$ 42,134
Amortization of capitalized software	7,912	6,180	5,624
Total depreciation expense charged to income	$ 21,504	$ 20,680	$ 20,291

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Commitments and Contingencies - Additional Information (Detail) (USD $)	12 Months Ended							1 Months Ended
	Dec. 31, 2012 Y	Dec. 31, 2012 Prime and Federal Fund Rate [Member]	Dec. 31, 2012 Prime and Federal Fund Rate [Member] Minimum [Member]	Dec. 31, 2012 Prime and Federal Fund Rate [Member] Maximum [Member]	Dec. 31, 2012 London Interbank Offered Rate (LIBOR) [Member]	Dec. 31, 2012 London Interbank Offered Rate (LIBOR) [Member] Minimum [Member]	Dec. 31, 2012 London Interbank Offered Rate (LIBOR) [Member] Maximum [Member]	Oct. 10, 2012 Revolving Credit Agreement [Member] Y	Aug. 14, 2008 Revolving Credit Agreement [Member] Y	Dec. 31, 2012 Letter Of Credit [Member]
Loss Contingencies [Line Items]
Operating lease term range, minimum years	1
Operating lease term range, maximum years	9
Contingent liability of Zebra										$ 482,000
Revolving credit agreement in years								5	5
Revolving credit agreement								250,000,000	100,000,000
Spread on federal funds effective rate		0.50%
Spread in effect at closing for LIBOR-based loans		0.00%			1.00%
Ratio to total debt to EBITDA		Ranges from 0.25% to 1.75%			Ranges from 1.00% to 1.75%
Percentage of total debt to EBITDA			0.25%	1.75%		1.00%	1.75%
Revolving credit agreement amount										$ 2,300,000

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Description of Business - Additional Information (Detail)	Dec. 31, 2012
Product Information [Line Items]
Sales Revenue, Goods, Net, Percentage	10.00%

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Income Taxes - Components of Provision for Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Components Of Income Tax Expense Benefit [Line Items]
Current, Federal									$ 17,744	$ 7,250	$ 25,795
Current, State									1,324	1,191	3,108
Current, Foreign									14,258	28,175	17,157
Total current									33,326	36,616	46,060
Deferred, Federal									8,656	12,477	(3,591)
Deferred, State									375	405	2,524
Deferred, Foreign									(80)	(122)	0
Deferred income taxes									8,951	12,760	(1,067)
Provision for income taxes	$ 9,263	$ 11,917	$ 9,366	$ 11,731	$ 8,253	$ 13,795	$ 13,082	$ 14,246	$ 42,277	$ 49,376	$ 44,993

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Goodwill and Other Intangible Asset Data - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Goodwill And Other Intangible Assets [Line Items]
Intangible asset commitments accrued	$ 3,500,000	$ 1,232,000	$ 3,497,000
Minimum [Member]
Goodwill And Other Intangible Assets [Line Items]
Estimated useful life of Intangible Assets	5 years
Maximum [Member]
Goodwill And Other Intangible Assets [Line Items]
Estimated useful life of Intangible Assets	9 years
Patents And Other Intellectual Property [Member]
Goodwill And Other Intangible Assets [Line Items]
Acquired intangible assets	31,157,000	6,232,000
Intangible asset commitments accrued amount		$ 5,000,000

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Derivative Instruments - Forward Contract Amounts Recorded in Consolidated Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Derivatives, Fair Value [Line Items]
Total Assets	$ 0	$ 9,210
Total Liabilities	2,045	0
Prepaid Expenses And Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Total Assets	0	9,210
Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total Liabilities	$ 2,045	$ 0

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Costs Associated with Exit or Disposal Activities - Summary of Exit and Restructuring Costs Incurred (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011 ZES [Member]	Dec. 31, 2012 Severance, stay bonuses, and other employee-related expenses [Member]	Dec. 31, 2011 Severance, stay bonuses, and other employee-related expenses [Member] ZES [Member]	Dec. 31, 2012 Professional services [Member]	Dec. 31, 2011 Professional services [Member] ZES [Member]	Dec. 31, 2012 Relocation and transition costs [Member]	Dec. 31, 2011 Relocation and transition costs [Member] ZES [Member]	Dec. 31, 2012 Location Solution And Manufacturing Operations [Member]
Restructuring Cost and Reserve [Line Items]
Severance, stay bonuses, and other employee-related expenses	$ 960	$ 1,113
Professional services	0	890
Relocation and transition costs	0	38
Total	960	2,041
Additional costs expected to be incurred		0	4,590	0	310	0	480	0	5,380
Total costs expected to be incurred		$ 2,041	$ 5,550	$ 1,113	$ 310	$ 890	$ 480	$ 38	$ 6,340

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Commitments and Contingencies - Schedule of Minimum Future Obligations Under All Non-Cancelable Operating Leases (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
Loss Contingencies [Line Items]
2013	$ 10,699
2014	7,336
2015	3,788
2016	2,501
2017	2,074
Thereafter	5,099
Total minimum lease payments	$ 31,497

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Goodwill and Other Intangible Assets Data - Carrying Value Amount of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Goodwill [Line Items]
Goodwill beginning balance	$ 79,703
Goodwill at gross cost	205,084	180,731
Acquisitions - LaserBand	24,353
Impairment charge	(9,114)	(101,028)
Goodwill ending balance	$ 94,942	$ 79,703

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Inventories - Components of Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Inventories [Line Items]
Raw material	$ 31,350	$ 45,795
Work in process	921	872
Deferred costs of long-term contracts	604	220
Finished goods	104,137	101,111
Total inventories, gross	137,012	147,998
Inventory reserves	(13,655)	(14,710)
Total inventories, net	$ 123,357	$ 133,288

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Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes

Note 18 Income Taxes

The geographical sources of income before income taxes were as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
United States	$	60,388	$	78,593	$	72,298
Outside United States		103,786		101,126		77,309
Total	$	164,174	$	179,719	$	149,607

Zebra earns a significant amount of our operating income outside the U.S., which is deemed to be permanently reinvested in foreign jurisdictions. Zebra does not currently foresee a need to repatriate funds, however, should Zebra require more capital in the U.S. than is generated by our operations locally, Zebra could elect to repatriate funds held in foreign jurisdictions or raise capital in the U.S. through debt or equity issuances. These alternatives could result in higher effective tax rates or increased interest expense.

Deferred income taxes are not provided on undistributed earnings of foreign subsidiaries, aggregating approximately $256,000,000 at December 31, 2012 and $175,000,000 at December 31, 2011.

The provision for income taxes consists of the following (in thousands):

	Year Ended December 31,
	2012			2011			2010
Current:
Federal	$	17,744		$	7,250		$	25,795
State		1,324			1,191			3,108
Foreign		14,258			28,175			17,157
Total current		33,326			36,616			46,060
Deferred:
Federal		8,656			12,477			(3,591)
State		375			405			2,524
Foreign		(80	)		(122	)		0
Total deferred		8,951			12,760			(1,067)
Total	$	42,277		$	49,376		$	44,993

The provision for income taxes differs from the amount computed by applying the U.S. statutory Federal income tax rate of 35% to income before income taxes. The reconciliation of statutory and effective income taxes is presented below (in thousands):

	Year Ended December 31,
	2012		2011		2010
Provision computed at statutory rate	$	57,461	$	62,905	$	51,714
State income tax, net of Federal tax benefit		1,353		1,432		1,884
Asset impairment charge		3,190		0		0
Tax-exempt interest income		(8,118)		(334)		(554)
Acquisition related items		322		0		(315)
Domestic manufacturing deduction		(105)		(212)		(70)
Research and experimental credit		0		(508)		(713)
Foreign rate differential		(13,710)		(13,899)		(8,134)
Other		1,884		(8)		1,181
Provision for income taxes	$	42,277	$	49,376	$	44,993

In conjunction with the opening of Zebra’s Singapore distribution center and the establishment of Singapore as a regional headquarter location in 2009, Zebra negotiated a 10% income tax rate with the Singapore Economic Development Board. The negotiated rate is a reduction from the then current statutory rate of 17%. The 10% rate expires at the end of 2014 unless Zebra meets agreed commitments for employees and business expenditures in Singapore. If these requirements are met, the 10% rate extends through 2018. This agreement reduced Zebra’s consolidated income taxes by $2,002,000 in 2012, $2,030,000 in 2011, and $1,247,000 in 2010.

Deferred income taxes reflect the impact of temporary differences between the amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. Based on management’s assessment, it is more likely than not that the deferred tax assets will be realized through future taxable earnings.

Tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows (in thousands):

	As of December 31,
	2012			2011
Deferred tax assets:
Deferred rent	$	508		$	623
Accrued vacation		2,480			1,926
Accrued bonus		2,747			4,342
Deferred compensation		1,497			1,451
Inventory items		6,967			7,072
Allowance for doubtful accounts and other receivables		211			355
Other accruals		6,531			7,355
Equity based compensation expense		16,620			16,124
Unrealized gain on securities		438			288
Unrealized loss on other investments		419			0
Net operating loss carry-forwards		2,462			4,511
Valuation allowance		(267	)		(267)
Total deferred tax assets		40,613			43,780
Deferred tax liabilities:
Unrealized loss on other investments		0			(931)
Depreciation and amortization		(24,527	)		(17,052)
Total deferred tax liabilities		(24,527	)		(17,983)
Net deferred tax assets	$	16,086		$	25,797

On January 1, 2007, Zebra adopted ASC 740 (formerly FASB Interpretation (FIN) No. 48, Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109). According to ASC 740, Zebra identified, evaluated, and measured the amount of income tax benefits to be recognized for all of its income tax positions. During 2008, Zebra recognized an increase of approximately $4,000,000 in the liability for unrecognized tax benefits related to an acquisition. During 2012 Zebra recognized an increase of $680,000 in one of its UK subsidiaries.

Included in deferred tax assets are amounts related to federal and state net operating losses that resulted from our acquisition of WhereNet Corp. As of December 31, 2012, Zebra had approximately $2,518,000 of federal net operating loss carryforwards available to offset future taxable income which expire in 2022 through 2027. As of December 31, 2011, Zebra also had approximately $27,391,000 of state net operating loss carryforwards which expire in 2013 through 2021. Zebra’s intention is to utilize these net operating loss carryforwards to offset future income tax expense. Under the United States Tax Reform Act of 1986, the amounts of benefits from net operating loss carryforwards may be impaired or limited in certain circumstances, including significant changes in ownership interests.

Deferred tax asset valuation allowances included in the temporary differences above are as follows (in thousands):

	Year Ended December 31,
Valuation allowance	2012		2011		2010
Balance at the beginning of the year	$	267	$	267	$	0
Additions		0		0		267
Subtractions		0		0		0
Balance at the end of the period	$	267	$	267	$	267

Zebra’s deferred tax valuation allowance is the result of uncertainties regarding the future realization of recorded tax benefits on state income tax loss carry-forwards. The addition in 2010 is primarily related to state income tax law changes in 2011 for that year and tax years going forward.

An audit of U.S. federal tax returns for years 2008 through 2010 was completed in 2012. The tax years 2008 through 2010 remain open to examination by multiple state taxing jurisdictions. Tax authorities in the United Kingdom have completed income tax audits for tax years through 2009.

Zebra’s continuing practice is to recognize interest and/or penalties related to income tax matters as part of income tax expense. For the years ended December 31, 2012, 2011 and 2010, Zebra did not accrue any interest or penalties into income tax expense.

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components of Income (Loss) Before Income Taxes

The geographical sources of income before income taxes were as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
United States	$	60,388	$	78,593	$	72,298
Outside United States		103,786		101,126		77,309
Total	$	164,174	$	179,719	$	149,607

Components of Provision for Income Taxes

The provision for income taxes consists of the following (in thousands):

	Year Ended December 31,
	2012			2011			2010
Current:
Federal	$	17,744		$	7,250		$	25,795
State		1,324			1,191			3,108
Foreign		14,258			28,175			17,157
Total current		33,326			36,616			46,060
Deferred:
Federal		8,656			12,477			(3,591)
State		375			405			2,524
Foreign		(80	)		(122	)		0
Total deferred		8,951			12,760			(1,067)
Total	$	42,277		$	49,376		$	44,993

Reconciliation of Statutory and Effective Income Taxes

The reconciliation of statutory and effective income taxes is presented below (in thousands):

	Year Ended December 31,
	2012		2011		2010
Provision computed at statutory rate	$	57,461	$	62,905	$	51,714
State income tax, net of Federal tax benefit		1,353		1,432		1,884
Asset impairment charge		3,190		0		0
Tax-exempt interest income		(8,118)		(334)		(554)
Acquisition related items		322		0		(315)
Domestic manufacturing deduction		(105)		(212)		(70)
Research and experimental credit		0		(508)		(713)
Foreign rate differential		(13,710)		(13,899)		(8,134)
Other		1,884		(8)		1,181
Provision for income taxes	$	42,277	$	49,376	$	44,993

Components of Deferred Tax Assets and Liabilities

Tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows (in thousands):

	As of December 31,
	2012			2011
Deferred tax assets:
Deferred rent	$	508		$	623
Accrued vacation		2,480			1,926
Accrued bonus		2,747			4,342
Deferred compensation		1,497			1,451
Inventory items		6,967			7,072
Allowance for doubtful accounts and other receivables		211			355
Other accruals		6,531			7,355
Equity based compensation expense		16,620			16,124
Unrealized gain on securities		438			288
Unrealized loss on other investments		419			0
Net operating loss carry-forwards		2,462			4,511
Valuation allowance		(267	)		(267)
Total deferred tax assets		40,613			43,780
Deferred tax liabilities:
Unrealized loss on other investments		0			(931)
Depreciation and amortization		(24,527	)		(17,052)
Total deferred tax liabilities		(24,527	)		(17,983)
Net deferred tax assets	$	16,086		$	25,797

Summary of Deferred Tax Asset Valuation Allowances

Deferred tax asset valuation allowances included in the temporary differences above are as follows (in thousands):

	Year Ended December 31,
Valuation allowance	2012		2011		2010
Balance at the beginning of the year	$	267	$	267	$	0
Additions		0		0		267
Subtractions		0		0		0
Balance at the end of the period	$	267	$	267	$	267

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Costs Associated with Exit or Disposal Activities (Tables)

12 Months Ended

Dec. 31, 2012

Location Solution And Manufacturing Operations [Member]

Summary of Exit and Restructuring Costs Incurred

As of December 31, 2012, we have incurred the following exit and restructuring costs related to the location solutions business management structure and manufacturing operations relocation and restructuring (in thousands):

Type of Cost	Costs incurred for the year ended December 31, 2012		Additional costs expected to be incurred		Total costs     expected to be     incurred
Severance, stay bonuses, and other employee-related expenses	$	960	$	4,590	$	5,550
Professional services		0		310		310
Relocation and transition costs		0		480		480
Total	$	960	$	5,380	$	6,340

ZES [Member]

Summary of Exit and Restructuring Costs Incurred

As of December 31, 2012, we have incurred the following exit and restructuring costs related to consolidating the former ZES administrative and accounting function into our corporate facilities (in thousands):

Type of Cost	Costs incurred for the year ended December 31, 2011		Costs incurred for the year ended December 31, 2012		Total costs     incurred as of     2012
Severance, stay bonuses, and other employee-related expenses	$	1,113	$	0	$	1,113
Professional services		890		0		890
Relocation and transition costs		38		0		38
Total	$	2,041	$	0	$	2,041

Liabilities and Expenses Related to Exit and Restructuring Activities

Liabilities and expenses related to exit activities were as follows (in thousands):

	Year Ended December 31,
	2012		2011
Balance at beginning of period	$	1,048	$	1,479
Charged to earnings		960		2,041
Cash paid		(1,041)		(2,472)
Balance at the end of period	$	967	$	1,048

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Goodwill and Other Intangible Asset Data - Estimated Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Schedule Of Estimated Future Amortization Expense [Line Items]
For the year ended December 31, 2013	$ 7,382
For the year ended December 31, 2014	7,133
For the year ended December 31, 2015	6,669
For the year ended December 31, 2016	6,231
For the year ended December 31, 2017	5,000
Thereafter	6,736
Net Amount	$ 39,151	$ 12,667

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Equity-Based Compensation - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Granted
Unearned compensation costs related to awards granted	$ 18,534,000
Unearned compensation cost, expected to be recognized over period (years)	2 years 4 months 24 days
Expected weighted-average life	5 years 5 months 23 days	5 years 5 months 1 day	5 years 4 months 10 days
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period (in years)	10 years
Shares expected to vest	20,155
Stock Appreciation Rights (SARs) [Member] | Vest After One Year [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares expected to vest		16,045
Stock Appreciation Rights (SARs) [Member] | Vest Annually In Each Of First Four Anniversaries [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares expected to vest	410,885	371,802
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected weighted-average life	3 months
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected weighted-average life	1 year
Stock Option And Stock Appreciation Rights (SARs) [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		4 years
Stock Option And Stock Appreciation Rights (SARs) [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		5 years
2011 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance of awards	5,500,000
Shares available for grant	4,805,599
Options outstanding	438,671
Expiration period (in years)		10 years
2002 Director Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period (in years)	10 years
Shares outstanding and exercisable	80,000
2001 Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Minimum working hours per week		20
Maximum percentage of compensation deductions		10.00%
Stock purchase plan expense	$ 242,000	321,000	315,000
2001 Stock Purchase Plan [Member] | Date Of The Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of purchase price on fair market value		95.00%
2001 Stock Purchase Plan [Member] | Date Of Purchase [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of purchase price on fair market value		95.00%
RSA [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
RSA [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	5 years
2006 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period (in years)	10 years
Expiration period, if employee is terminated involuntarily other than for cause (days)	90
Expiration period, if employee voluntarily terminates his or her employment (days)	30
Expiration period, if employee's employment terminates due to death, disability, or retirement (Years)	1
Shares outstanding and exercisable	1,830,544
1997 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding and exercisable	705,445
WhereNet Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding and exercisable	12,988

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Accounts Receivable Reserves (Tables)

12 Months Ended

Dec. 31, 2012

Components of Accounts Receivable

The components of accounts receivable are as follows (in thousands):

	As of
	December 31, 2012		December 31, 2011
Gross accounts receivable	$	169,401	$	156,790
Accounts receivable reserves		(669)		(1,560)
Accounts receivable, net	$	168,732	$	155,230

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Geographic Data (Tables)

12 Months Ended

Dec. 31, 2012

Information Regarding Operations by Geographic Area

Information regarding Zebra’s operations by geographic area is contained in the following table. These amounts (in thousands) are reported in the geographic area of the destination of the final sale. We manage our business based on these regions rather than by individual countries.

	North America		Europe, Middle East & Africa		Latin America		Asia		Total
2012
Net sales	$	435,520	$	322,970	$	100,101	$	137,577	$	996,168
Long-lived assets		90,363		7,522		538		2,926		101,349
2011
Net sales	$	409,208	$	342,578	$	89,715	$	141,987	$	983,488
Long-lived assets		88,382		5,965		362		3,113		97,822
2010
Net sales	$	394,865	$	305,659	$	80,679	$	113,156	$	894,359
Long-lived assets		78,938		6,566		332		1,257		87,093

Net Sales by Country

Net sales by country that are greater than 10% of total net sales are as follows (in thousands):
	United States		United Kingdom		Singapore		Other		Total
2012	$	539,504	$	317,793	$	134,349	$	4,522	$	996,168
2011	$	504,283	$	339,027	$	136,757	$	3,421	$	983,488
2010	$	482,891	$	303,604	$	105,286	$	2,578	$	894,359

Net Sales by Major Product Category

Net sales by major product category are as follows (in thousands):
	Hardware		Supplies		Service and Software		Shipping and Handling		Total
2012	$	730,489	$	212,499	$	47,941	$	5,239	$	996,168
2011	$	743,308	$	187,457	$	47,206	$	5,517	$	983,488
2010	$	676,738	$	167,633	$	44,829	$	5,159	$	894,359

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Investments and Marketable Securities - Aggregate Market Value and Unrealized Losses of Investments (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Number of investments, Unrealized Loss Less 12 months	56	56
Aggregate Market Value, Unrealized Loss Less 12 months	$ 45,577	$ 60,616
Unrealized Losses, Unrealized Loss Less 12 months	(53)	(865)
Number of investments, Unrealized Loss Greater 12 months	16	70
Aggregate Market Value, Unrealized Loss Greater 12 months	10,144	42,377
Unrealized Losses, Unrealized Loss Greater 12 months	(446)	(572)
Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of investments, Unrealized Loss Less 12 months	4	5
Aggregate Market Value, Unrealized Loss Less 12 months	5,179	4,599
Unrealized Losses, Unrealized Loss Less 12 months	(3)	(3)
Number of investments, Unrealized Loss Greater 12 months	1	6
Aggregate Market Value, Unrealized Loss Greater 12 months	1,790	6,708
Unrealized Losses, Unrealized Loss Greater 12 months	0	(4)
State And Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of investments, Unrealized Loss Less 12 months	19	16
Aggregate Market Value, Unrealized Loss Less 12 months	24,969	24,556
Unrealized Losses, Unrealized Loss Less 12 months	(27)	(7)
Number of investments, Unrealized Loss Greater 12 months	1	11
Aggregate Market Value, Unrealized Loss Greater 12 months	1,092	18,612
Unrealized Losses, Unrealized Loss Greater 12 months	(1)	(36)
Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of investments, Unrealized Loss Less 12 months	33	35
Aggregate Market Value, Unrealized Loss Less 12 months	15,429	31,461
Unrealized Losses, Unrealized Loss Less 12 months	(23)	(855)
Number of investments, Unrealized Loss Greater 12 months	14	53
Aggregate Market Value, Unrealized Loss Greater 12 months	7,262	17,057
Unrealized Losses, Unrealized Loss Greater 12 months	$ (445)	$ (532)

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Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Schedule Of Deferred Tax Assets And Liabilities [Line Items]
Deferred rent	$ 508	$ 623
Accrued vacation	2,480	1,926
Accrued bonus	2,747	4,342
Deferred compensation	1,497	1,451
Inventory items	6,967	7,072
Allowance for doubtful accounts and other receivables	211	355
Other accruals	6,531	7,355
Equity based compensation expense	16,620	16,124
Unrealized gain on securities	438	288
Unrealized loss on other investments	419	0
Net operating loss carry-forwards	2,462	4,511
Valuation allowance	(267)	(267)	(267)	0
Total deferred tax assets	40,613	43,780
Unrealized loss on other investments	0	(931)
Depreciation and amortization	(24,527)	(17,052)
Total deferred tax liabilities	(24,527)	(17,983)
Net deferred tax assets	$ 16,086	$ 25,797

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Summary of Significant Accounting Policies - Compensation Expense and Related Tax Benefit for Equity Based Payments (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	$ 14,727	$ 13,107	$ 10,112
Income tax benefit	5,132	4,522	3,489
Cost Of Sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	1,061	1,029	882
Selling And Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	1,792	1,463	1,368
Research And Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	1,593	1,387	1,282
General And Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	$ 10,281	$ 9,228	$ 6,580

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Earnings (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2012

Computation of Earnings (Loss) Per Share

For the years ended December 31, 2012, 2011, and 2010, earnings (loss) per share were computed as follows (in thousands, except per-share amounts):

	Year Ended December 31,
	2012		2011		2010
Weighted average shares:
Weighted average common shares outstanding		51,566		53,854		57,143
Effect of dilutive securities outstanding		277		337		285
Diluted weighted average shares outstanding		51,843		54,191		57,428
Earnings (loss):
Income from continuing operations	$	121,897	$	130,343	$	104,614
Income (loss) from discontinued operations		1,007		44,300		(2,836)
Net Income	$	122,904	$	174,643	$	101,778
Basic per share amounts:
Income from continuing operations	$	2.36	$	2.42	$	1.83
Income (loss) from discontinued operations		0.02		0.82		(0.05)
Net Income	$	2.38	$	3.24	$	1.78
Diluted per share amounts:
Income from continuing operations	$	2.35	$	2.40	$	1.82
Income (loss) from discontinued operations		0.02		0.82		(0.05)
Net Income	$	2.37	$	3.22	$	1.77

Potentially Dilutive Securities Excluded From Earnings Per Share Calculation

The potentially dilutive securities that were excluded from the earnings (loss) per share calculation consist of stock options and stock appreciation rights (SARs) with an exercise price greater than the average market price of the Class A Common Stock. These options were as follows:

	Year Ended December 31,
	2012		2011		2010
Potentially dilutive shares		1,753,311		1,425,880		1,844,038

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Summary of Significant Accounting Policies

Note 2 Summary of Significant Accounting Policies

Principles of Consolidation. These consolidated financial statements were prepared on a consolidated basis to include the accounts of Zebra and its wholly owned subsidiaries. All significant intercompany accounts, transactions and unrealized profit were eliminated in consolidation.

Fiscal Calendar. Zebra operates on a 4 week/4 week/5 week fiscal quarter, and each fiscal quarter ends on a Saturday. The fiscal year always begins on January 1 and ends on December 31. This fiscal calendar results in some fiscal quarters being either greater than or less than 13 weeks, depending on the days of the week those dates fall. During the 2012 fiscal year, our quarter end dates were as follows:

• March 31,

• June 30,

• September 29, and

• December 31.

Use of Estimates. These consolidated financial statements were prepared using estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents. Cash consists primarily of deposits with banks. In addition, Zebra considers highly liquid short-term investments with original maturities of less than three months to be cash equivalents. These highly liquid short-term investments are readily convertible to known amounts of cash and are so near their maturity that they present insignificant risk of a change in value because of changes in interest rates.

Investments and Marketable Securities. Investments and marketable securities at December 31, 2012, consisted of U.S. government and agency securities, state and municipal bonds, corporate bonds, and other security interests. Trading securities are bought and held principally for the purpose of selling them in the near term. Held-to-maturity securities are those debt securities that Zebra has the ability and intent to hold until maturity. All securities not included in trading or held-to-maturity are classified as available-for-sale. Trading and available-for-sale securities are recorded at fair value. Held-to-maturity securities are recorded at amortized cost, adjusted for the amortization or accretion of discounts or premiums. Unrealized holding gains and losses on trading securities are included in earnings. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of stockholders’ equity until realized, unless we determine them to be other-than-temporarily impaired.

Zebra’s investments and marketable securities are classified as available-for-sale securities except for securities held in Zebra’s deferred compensation plan which are considered trading securities. Investments in marketable debt securities are classified based on intent and ability to sell investment securities. Zebra’s available-for-sale securities are used to fund further acquisitions and other operating needs and therefore can be sold prior to maturity. Investments in marketable debt securities for which Zebra intends to sell within the next year are classified as current and those that we intend to hold in excess of one-year are classified as non-current.

Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable consist primarily of amounts due to us from our normal business activities. Collateral on trade accounts receivable is generally not required. Zebra maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on our assessment of known delinquent accounts. Accounts are written off against the allowance account when they are determined to be no longer collectible.

Inventories. Inventories are stated at the lower of cost or market, and cost is determined by the first-in, first-out (FIFO) method. Manufactured inventories consist of the following costs: component, direct labor and manufacturing overhead. Purchased inventories consist of purchased costs and purchasing overhead.

Property and Equipment. Property and equipment is stated at cost. Depreciation and amortization is computed primarily using the straight-line method over the estimated useful lives of the various classes of property and equipment, which are 30 years for buildings and range from 3 to 10 years for other property. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset.

Income Taxes. Zebra’s continuing practice is to recognize interest and penalties related to income tax matters as part of income tax expense. During 2012 Zebra recognized an increase of $680,000 in the liability for tax benefits related to the foreign restructuring.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at January 1, 2011	$	4,000
Additions based on tax positions related to 2011		0
Additions based on tax positions related to 2012		680
Balance at December 31, 2012	$	4,680

Goodwill and Other Intangibles. Goodwill represents the unamortized excess of the cost of acquiring a business over the fair values of the net assets received at the date of acquisition.

Goodwill of a reporting unit should be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Examples of such events or circumstances include:

• Significant adverse change in legal factors or in the business climate,

• Adverse action or assessment by a regulator,

• Unanticipated competition,

• Loss of key personnel,

• More-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of,

• Testing for recoverability under ASC 360 of a significant asset group within a reporting unit,

• Recognition of a goodwill impairment loss in the financial statement of a subsidiary that is a component of a reporting unit, or

• Allocation of a portion of goodwill to a business to be disposed of.

We evaluate the impairment of identifiable intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered that might trigger an impairment review consist of:

• Significant underperformance relative to expected historical or projected future operating results,

• Significant changes in the manner of use of the acquired assets or the strategy for the overall business,

• Significant negative industry or economic trends,

• Significant decline in Zebra’s stock price for a sustained period, and

• Significant decline in market capitalization relative to net book value.

If we believe that one or more of the above indicators of impairment have occurred, we perform an impairment test. The performance of the test involves a two-step process. The first step of the impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. We generally determine the fair value of our reporting units using three valuation methods: Income Approach – Discounted Cash Flow Analysis, Market Approach – Guideline Public Company Method, and Market Approach – Comparative Transactions Method. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, we perform the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit’s goodwill with the carrying value of that goodwill.

We performed our annual impairment test in June 2012 and determined that our goodwill was not impaired as of the end of May 2012. Zebra has two reporting units required for its annual goodwill impairment test. As of our May 2012 testing date, the larger of the two reporting units’ fair value exceeded its carrying value by a significant amount. The fair value amount by which the second smaller reporting unit exceeded the carrying value ranged from approximately 8% under the Income Approach and 31% under the Market Approach. Key assumptions used in the first step of the goodwill impairment test were determined by management utilizing the internal operating plan. The key assumptions utilized included forecasted growth rates for revenues and operating expenses as well as a discount rate which is determined by looking at current risk-free rates of capital, current market interest rates, and the evaluation of a risk premium relevant to the business segment. Due to the deterioration in the smaller reporting unit’s operating results during the third quarter our fair value calculation for the smaller reporting unit changed and we determined our goodwill associated with the smaller reporting unit to be impaired. The above impairment indicators led us to conclude an interim goodwill test was necessary. Zebra performed the first step of the impairment test which failed. As a result, Zebra also performed a second step analysis and recorded a goodwill impairment charge of $9,114,000 as of September 29, 2012. After this impairment charge, there is no remaining goodwill in the smaller reporting unit.

Other intangible assets capitalized consist primarily of current technology, customer relationships, patents and patent rights. These assets are recorded at cost and amortized on a straight-line basis over a weighted-average life of 5.3 years, which approximates the estimated useful lives. Weighted average lives remaining by intangible asset class are as follows: Current technology 4.0 years; Patent and patent rights 4.4 years; Customer relationships 7.3 years.

Revenue Recognition. Revenue includes sales of hardware, supplies, software and services (including repair services, extended service contracts, and professional services). Product revenue is recognized once four criteria are met: (1) we have persuasive evidence that an arrangement exits; (2) delivery has occurred and title has passed to the customer, which happens at the point of shipment provided that no significant obligations remain; (3) the price is fixed and determinable; and (4) collectability is reasonably assured. We provide for an estimate of product returns based on historical experience. Revenue related to extended warranty and service contracts is recorded as deferred revenue and recognized over the life of the contract. Professional services revenue is recorded when performed. Zebra enters into sales transactions that include more than one product type. This bundle of products might include printers, current or future supplies, and services. When this type of transaction occurs, we allocate the purchase price to each product type based on the fair value of the individual products determined by vendor specific objective evidence. The revenue for each individual product is then recognized when the earning process for that product is complete. We enter into post-contract maintenance and support agreements. Revenues are recognized ratably over the service period and the cost of providing these services is expensed as incurred.

Zebra records payments to resellers of its product as reductions to revenue unless these payments meet the requirements for operating expense treatment under ASC 605. See the market development funds accounting policy for further details.

Revenue includes all customer billings for shipping and handling charges. The related costs of shipping and handling revenue are recorded as cost of goods sold.

Research and Development Costs. Research and development costs are expensed as incurred. These costs include:

• Salaries, benefits, and other R&D personnel related costs,

• Consulting and other outside services used in the R&D process,

• Engineering supplies,

• Engineering related information systems costs, and

• Allocation of building and related costs.

Advertising. Advertising is expensed as incurred. Advertising costs totaled $8,983,000 for the year ended December 31, 2012, $8,070,000 for the year ended December 31, 2011 and $6,836,000 for the year ended December 31, 2010.

Market Development Funds. Zebra makes market development funds available to its resellers to support demand generation activity by the resellers. These funds require the reseller to provide specific services or benefits to Zebra and substantiate the fair value of such services rendered. Zebra reimburses resellers for agreed activities up to the amounts approved by Zebra. These payments are treated as marketing costs consistent with the requirements of ASC 605. Any payments to resellers that do not meet these requirements are recorded as reductions to revenue.

Warranty. In general, Zebra provides warranty coverage of one year on printers against defects in material and workmanship. Printheads are warranted for nine months and batteries are warranted for twelve months. Battery based products, such as location tags, are covered by a 30 day warranty. A provision for warranty expense is recorded at the time of sale and adjusted quarterly based on historical warranty experience. The following table is a summary of Zebra’s accrued warranty obligation (in thousands):

	Year Ended December 31,
Warranty Reserve	2012		2011		2010
Balance at the beginning of the year	$	4,613	$	4,554	$	3,813
Warranty expense		6,828		5,856		6,427
Warranty payments		(7,189)		(5,797)		(5,686)
Balance at the end of the period	$	4,252	$	4,613	$	4,554

Fair Value of Financial Instruments. Zebra estimates the fair value of its financial instruments as follows:

Instrument	Method for determining fair  value
Cash, cash equivalents, restricted cash, accounts receivable and accounts payable	Cost, which approximates fair value due to the short- term nature of these instruments
Investments in marketable debt securities	Market quotes from independent pricing services
Investments in auction rate securities	Broker quotations, discounted cash flow analysis or other types of valuation adjustment methodologies
Foreign currency forward contracts	Estimated using market quoted rates for foreign currency at the balance sheet date
Foreign currency option contracts	Estimated using market quoted rates for foreign currency at the balance sheet date and application of such rates subject to the option terms

In accordance with ASC 815 we recognize derivative instruments and hedging activities as either assets or liabilities on the balance sheet and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. See Note 11 for additional information on our derivatives and hedging activities.

Equity-Based Compensation. At December 31, 2012, Zebra had a general equity-based compensation plan and a stock purchase plan under which shares of our common stock were available for future grants and sales, and which are described more fully in Note 16. We account for these plans in accordance with ASC 505 and ASC 718. Zebra recognizes compensation costs using the straight-line method over the vesting period of upon grant to up to 5 years.

The compensation expense and the related income tax benefit for share-based payments were included in the Consolidated Statement of Earnings as follows (in thousands):

	For the years ended December 31,
Compensation costs and related income tax benefit:	2012		2011		2010
Cost of sales	$	1,061	$	1,029	$	882
Selling and marketing		1,792		1,463		1,368
Research and development		1,593		1,387		1,282
General and administration		10,281		9,228		6,580
Total compensation expense	$	14,727	$	13,107	$	10,112
Income tax benefit	$	5,132	$	4,522	$	3,489

ASC 505 and ASC 718 requires the cash flows resulting from the tax benefits from tax deductions in excess of the compensation cost recognized (excess tax benefits) to be classified as cash flows from financing activities. Cash flows resulting from the tax benefits of tax deductions in excess of the compensation cost recognized (excess tax benefits) are classified as financing cash flows in the statement of cash flows. The tax benefits classified as financing cash flows was $1,578,000 as of December 31, 2012, $1,392,000 as of December 31, 2011, and $244,000 as of December 31, 2010.

Deferred Compensation Plan. Zebra has a deferred compensation plan that permits directors, management and highly compensated employees to defer portions of their compensation. Zebra immediately pays deferred amounts into a Rabbi Trust, and plan participants select a method of investing these funds into hypothetical investments. Zebra tracks the performance of these hypothetical investments in order to determine the value of each participant’s deferral. Zebra accrues the deferred compensation liability in other long-term liabilities as the amount that is actually owed to the participants.

Foreign Currency Translation. The consolidated balance sheets of Zebra’s foreign subsidiaries, not having a U.S. dollar functional currency, are translated into U.S. dollars using the year-end exchange rate, and statement of earnings items are translated using the average exchange rate for the year. The resulting translation gains or losses are recorded in stockholders’ equity as a cumulative translation adjustment, which is a component of accumulated other comprehensive income (loss).

Acquisition Costs. Zebra expenses acquisition costs as incurred.

Concentration risks. Final assembly of our thermal printers is performed by Jabil Circuit, a third-party electronics manufacturer. We are now dependent on Jabil for the manufacture of such printers. A failure by Jabil to provide manufacturing services to Zebra as Zebra now requires, or any disruption in such manufacturing services, may adversely affect Zebra’s business results. Because we rely on a third-party provider such as Jabil to manufacture its products, Zebra may incur increased business continuity risks.

Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of. Zebra accounts for long-lived assets in accordance with the provisions of ASC 350. The statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposition of the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. See Note 8 for further information related to impairment charges.

Recently Issued Accounting Pronouncements.

In June 2011, the FASB issued update 2011-05, ASC 220, Comprehensive Income: Presentation of Comprehensive Income and in December 2011, the FASB issued update 2011-12, ASC 220, Comprehensive Income: Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU No. 2011-12 is to defer only those changes in ASU No. 2011-05 that relate to the presentation of reclassification adjustments. Entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before ASU No. 2011-05. All other requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. This standard is effective for interim and annual periods beginning after December 15, 2011. The adoption of this standard moved the Other Comprehensive Income statement disclosure from our footnote to its own financial statement for our 10-Q filings in 2012.

In September 2011, the FASB issued update 2011-08, ASC 350, Intangibles Goodwill and Other: Testing Goodwill for Impairment. This updated guidance simplifies how companies test goodwill for impairment. Essentially, companies are no longer required to calculate the fair value of a reporting unit unless the entity determines that it is more-likely-than-not that its fair value is less than its carrying amount using a qualitative assessment. This standard is effective for fiscal years beginning after December 15, 2011. The adoption of this standard did not have any effect upon our consolidated financial statements.

In July 2012, the FASB issued update 2012-03, ASC 350, Intangibles Goodwill and Other: Testing Indefinite-Lived Intangible Assets for Impairment. This updated guidance provides entities with the option to make qualitative assessments about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. This standard is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of this standard did not have any effect upon our consolidated financial statements.

Subsequent events. We have evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through the date the financial statements were issued.

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Geographic Data - Information Regarding Operations by Geographic Area (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales	$ 253,179	$ 252,037	$ 247,077	$ 243,875	$ 247,308	$ 253,338	$ 245,541	$ 237,301	$ 996,168	$ 983,488	$ 894,359
Long-lived assets	101,349				97,822				101,349	97,822	87,093
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales									435,520	409,208	394,865
Long-lived assets	90,363				88,382				90,363	88,382	78,938
Europe, Middle East & Africa [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales									322,970	342,578	305,659
Long-lived assets	7,522				5,965				7,522	5,965	6,566
Latin America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales									100,101	89,715	80,679
Long-lived assets	538				362				538	362	332
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total net sales									137,577	141,987	113,156
Long-lived assets	$ 2,926				$ 3,113				$ 2,926	$ 3,113	$ 1,257

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Fair Value Measurements - Financial Assets and Liabilities Carried at Fair Value (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	$ 329,335	$ 290,277
Total assets at fair value	332,888	302,686
Total liabilities at fair value	5,598	3,199
U.S. Government Corporation and Agency Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	96,987	50,847
Obligations of Government- Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	4,840	16,612
State And Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	96,516	142,873
Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	130,956	79,909
Other Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	36	36
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	3,553	3,199
Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		9,210
Total liabilities at fair value	2,045
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	3,553	3,199
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	83,532	25,540
Total assets at fair value	87,085	31,365
Total liabilities at fair value	4,727	3,199
Level 1 [Member] | U.S. Government Corporation and Agency Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	83,532	25,540
Level 1 [Member] | Obligations of Government- Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	0	0
Level 1 [Member] | State And Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	0	0
Level 1 [Member] | Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	0	0
Level 1 [Member] | Other Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	0	0
Level 1 [Member] | 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	3,553	3,199
Level 1 [Member] | Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		2,626
Total liabilities at fair value	1,174
Level 1 [Member] | 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	3,553	3,199
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	243,215	262,149
Total assets at fair value	243,215	268,733
Total liabilities at fair value	871	0
Level 2 [Member] | U.S. Government Corporation and Agency Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	13,455	25,307
Level 2 [Member] | Obligations of Government- Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	4,840	16,612
Level 2 [Member] | State And Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	96,516	142,873
Level 2 [Member] | Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	128,368	77,321
Level 2 [Member] | Other Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	36	36
Level 2 [Member] | 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	0	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		6,584
Total liabilities at fair value	871
Level 2 [Member] | 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	0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	2,588	2,588
Total assets at fair value	2,588	2,588
Total liabilities at fair value	0	0
Level 3 [Member] | U.S. Government Corporation and Agency Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	0	0
Level 3 [Member] | Obligations of Government- Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	0	0
Level 3 [Member] | State And Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	0	0
Level 3 [Member] | Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	2,588	2,588
Level 3 [Member] | Other Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments subtotal	0	0
Level 3 [Member] | 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	0	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
Total liabilities at fair value	0
Level 3 [Member] | 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	$ 0	$ 0

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Valuation and Qualifying Accounts (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Valuation Account for Accounts Receivable [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 1,560	$ 1,459	$ 1,406
Charged to Costs and Expenses	0	343	315
Deductions / (Recoveries)	891	242	262
Balance at End of Period	669	1,560	1,459
Valuation Accounts for Inventories [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	14,710	9,837	9,054
Charged to Costs and Expenses	6,758	8,762	5,470
Deductions / (Recoveries)	7,813	3,889	4,687
Balance at End of Period	$ 13,655	$ 14,710	$ 9,837

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Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Financial Information Related to Hedging of Net Assets Included in Consolidated Statement of Earnings

Summary financial information related to these activities included in our consolidated statement of earnings as other income (expense) is as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Change in gains (losses) from foreign exchange derivatives	$	(1,347)	$	(825)	$	5,074
Gain (loss) on net foreign currency assets		406		(1,181)		(5,243)
Net foreign exchange loss	$	(941)	$	(2,006)	$	(169)
	As of
	December 31, 2012		December 31, 2011
Notional balance of outstanding contracts:
Euro/US dollar	€	37,598	€	36,684
Pound/US dollar	£	3,810	£	6,016
Net fair value of outstanding contracts	$	18	$	(54)

Financial Information Related to Cash Flow Hedges

Summary financial information related to the cash flow hedges is as follows (in thousands):

	As of
	December 31, 2012		December 31, 2011
Net unrealized gains (losses) in other comprehensive income:
Gross	$	(9,936)	$	8,878
Income tax expense (benefit)		(2,695)		2,669
Net	$	(7,241)	$	6,209

Financial Information Related to Cash Flow Hedges of Future Revenues

Summary financial information related to the cash flow hedges of future revenues follows (in thousands, except percentages):

	As of
	December 31, 2012		December 31, 2011
Notional balance of outstanding contracts versus the dollar	€	88,680	€	85,105
Hedge effectiveness		100%		100%

	Year Ended December 31,
		2012		2011		2010
Net gains and (losses) included in revenue	$	4,201	$	(4,159)	$	(630)

Forward Contract Amounts Recorded in Consolidated Balance Sheet

The amounts recorded on our consolidated balance sheets are as follows (in thousands):

	As of
	December 31, 2012		December 31, 2011
Assets:
Prepaid expenses and other current assets	$	0	$	9,210
Total	$	0	$	9,210
Liabilities:
Accrued liabilities	$	2,045	$	0
Total	$	2,045	$	0

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Quarterly Results of Operations

12 Months Ended

Dec. 31, 2012

Quarterly Results of Operations

Note 22 Quarterly Results of Operations (unaudited)

(Amounts in thousands, except per share data)

	2012
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Net Sales
Net sales of tangible products	$	232,476		$	234,708		$	239,786		$	241,257
Revenue from services and software		11,399			12,369			12,251			11,922
Total net sales		243,875			247,077			252,037			253,179
Cost of Sales
Cost of sales of tangible products		119,033			119,980			118,751			121,869
Cost of sales services and software		4,959			6,720			6,362			6,850
Cost of sales		123,992			126,700			125,113			128,719
Gross Profit		119,883			120,377			126,924			124,460
Operating expenses:
Selling and marketing		32,114			32,158			32,321			33,313
Research and development		20,416			22,336			22,007			22,605
General and administrative		24,320			24,402			22,481			20,964
Amortization of intangible assets		770			770			1,670			1,463
Acquisition costs		254			1,252			566			1,037
Exit and restructuring costs		0			0			0			960
Asset impairment charge		0			0			9,114			0
Total operating expenses		77,874			80,918			88,159			80,342
Operating income		42,009			39,459			38,765			44,118
Other income (loss)
Investment income		592			826			541			526
Foreign exchange loss		(342	)		(80	)		(514	)		(5)
Other, net		(364	)		(486	)		(294	)		(577)
Total other income (loss)		(114	)		260			(267	)		(56)
Income from continuing operations before income taxes		41,895			39,719			38,498			44,062
Income taxes		11,731			9,366			11,917			9,263
Income from continuing operations		30,164			30,353			26,581			34,799
Income from discontinued operations, net of tax		0			300			516			191
Net income	$	30,164		$	30,653		$	27,097		$	34,990
Basic earnings per share:
Income from continuing operations	$	0.58		$	0.58		$	0.52		$	0.69
Income from discontinued operations		0.00			0.01			0.01			0.00
Net Income	$	0.58		$	0.59		$	0.53		$	0.69
Diluted earnings per share:
Income from continuing operations	$	0.58		$	0.58		$	0.51		$	0.68
Income from discontinued operations		0.00			0.01			0.01			0.00
Net Income	$	0.58		$	0.59		$	0.52		$	0.68
Basic weighted average shares outstanding		51,998			51,771			51,566			50,968
Diluted weighted average and equivalent shares outstanding		52,301			52,030			51,809			51,262

	2011
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Net Sales
Net sales of tangible products	$	226,120		$	232,762		$	241,686		$	235,714
Revenue from services and software		11,181			12,779			11,652			11,594
Total net sales		237,301			245,541			253,338			247,308
Cost of Sales
Cost of sales of tangible products		110,781			117,732			122,529			118,792
Cost of sales services and software		6,522			6,111			7,256			6,996
Cost of sales		117,303			123,843			129,785			125,788
Gross Profit		119,998			121,698			123,553			121,520
Operating expenses:
Selling and marketing		28,528			30,950			31,942			36,377
Research and development		21,681			22,487			22,584			23,174
General and administrative		22,706			20,688			18,978			18,973
Amortization of intangible assets		835			836			843			806
Acquisition costs		0			0			188			116
Exit and restructuring costs		1,886			66			138			(49)
Total operating expenses		75,636			75,027			74,673			79,397
Operating income		44,362			46,671			48,880			42,123
Other income (loss)
Investment income		560			656			134			594
Foreign exchange loss		(294	)		(833	)		(173	)		(706)
Other, net		(254	)		(243	)		(859	)		(899)
Total other income (loss)		12			(420	)		(898	)		(1,011)
Income from continuing operations before income taxes		44,374			46,251			47,982			41,112
Income taxes		14,246			13,082			13,795			8,253
Income from continuing operations		30,128			33,169			34,187			32,859
Income (loss) from discontinued operations, net of tax		31,506			(205	)		10,814			2,185
Net income	$	61,634		$	32,964		$	45,001		$	35,044
Basic earnings per share:
Income from continuing operations	$	0.54		$	0.60		$	0.64		$	0.63
Income from discontinued operations		0.57			0.00			0.20			0.04
Net Income	$	1.11		$	0.60		$	0.84		$	0.67
Diluted earnings per share:
Income from continuing operations	$	0.54		$	0.60		$	0.64		$	0.63
Income from discontinued operations		0.56			0.00			0.20			0.04
Net Income	$	1.10		$	0.60		$	0.84		$	0.67
Basic weighted average shares outstanding		55,353			54,546			53,339			52,108
Diluted weighted average and equivalent shares outstanding		55,774			54,958			53,628			52,354

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Major Customers

12 Months Ended

Dec. 31, 2012

Major Customers

Note 21 Major Customers

Our net sales to significant customers as a percentage of total net sales were as follows:

	Year Ended December 31,
	2012		2011		2010
Customer A		20.4%		20.7%		19.8%
Customer B		11.4%		10.5%		9.8%
Customer C		10.3%		8.9%		8.0%

All three of the above customers are distributors and not end users. No other customer accounted for 10% or more of total net sales during these years.

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Equity-Based Compensation - Summary of Stock Option Activity (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Granted
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding at beginning of year	1,702,650	2,340,959	2,767,887
Shares, Granted	0	0	0
Shares, Exercised	(148,802)	(490,715)	(273,564)
Shares, Forfeited	(1,663)	(63,714)	(62,798)
Shares, Expired	(20,341)	(83,880)	(90,566)
Shares, Outstanding at end of period	1,531,844	1,702,650	2,340,959
Shares, Exercisable at end of period	1,527,814	1,589,096	1,893,346
Weighted-Average Exercise Price, Outstanding at beginning of year	$ 40.43	$ 37.35	$ 35.98
Weighted-Average Exercise Price, Granted	$ 0	$ 0	$ 0
Weighted-Average Exercise Price, Exercised	$ 27.02	$ 26.63	$ 23.43
Weighted-Average Exercise Price, Forfeited	$ 36.36	$ 32.29	$ 35.87
Weighted-Average Exercise Price, Expired	$ 43.63	$ 40.76	$ 35.08
Weighted-Average Exercise Price, Outstanding at end of year	$ 41.69	$ 40.43	$ 37.35
Weighted-Average Exercise Price, Exercisable at end of year	$ 41.75	$ 40.84	$ 37.50
Intrinsic value of exercised options and SARs	$ 1,700,000	$ 6,400,000	$ 2,214,000

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Business Combinations (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Estimated Fair Value of Assets and Liabilities

The following table (in thousands) summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition:

	As of
	July 13, 2012
Current assets	$	7,017
Property and equipment		46
Other assets		17
Goodwill		24,353
Other intangibles		29,560
Total assets acquired	$	60,993
Current liabilities		1,119
Net assets acquired	$	59,874

Summary of Intangible Assets

The intangible assets of $29,560,000 consist of the following (in thousands):

	Amount		Useful life
Current technology	$	6,260	5 years
Patents and patent rights		4,580	7 years
Customer relationships		18,720	5 to 9 years
Acquired other intangibles	$	29,560

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Minimum Future Obligations Under All Non-Cancelable Operating Leases

Leases. Minimum future obligations under all non-cancelable operating leases as of December 31, 2012 are as follows (in thousands):

	Operating     Leases
2013	$	10,699
2014		7,336
2015		3,788
2016		2,501
2017		2,074
Thereafter		5,099
Total minimum lease payments	$	31,497

Schedule of Rent Expense for Operating Leases

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

	Year Ended December 31,
		2012		2011		2010
Rent expense	$	15,254	$	13,907	$	11,469

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Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations

Note 23 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. As of December 31, 2011, Zebra had a short term receivable from the buyer in the amount of $27,580,000 which represented funds held in escrow, of which, we received $13,790,000 in the first quarter of 2012 and the remaining $13,790,000 in the third quarter of 2012.

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 was due on August 3, 2012 and bore 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. On June 29, 2012 F Two NV (a Belgium company) sold the business and assigned the revolving loan to OBQ SA (a Luxembourg company) with Zebra’s consent. The revolving loan commitment was reduced to a lesser amount of up to €526,058. The due date for borrowings under the agreement was extended from August 3, 2012 to December 31, 2012. The interest rate remains unchanged at 6.5%. In 2012, Zebra realized a gain of $930,000 related to payments received under the loan agreement. The balance of the loan outstanding at December 31, 2012 was € 376,058.

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 Navis and proveo assets and liabilities, and the operating results of these businesses for the years ended December 31, 2012, 2011 and 2010. With the Navis sale, Zebra consolidated the remaining ZES location solutions operations.

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

	Year Ended December 31
	2012		2011		2010
Net sales	$	0	$	13,945	$	62,489
Loss from discontinued operations	$	(141)	$	(13,971)	$	(4,673)
Income tax benefit		218		1,299		1,837
Gain on sale of discontinued operations		930		68,745		0
Income tax expense on sale		0		(11,773)		0
Income (loss) from discontinued operations	$	1,007	$	44,300	$	(2,836)

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

	Year Ended December  31
	2012		2011			2010
Cash flows from discontinued operations:
Net cash (used) by operating activities	$	0	$	(1,301	)	$	(2,164)
Net cash provided by (used in) by investing activities		0		0			0
Net cash provided by (used in) by financing activities		0		0			0
Effect of exchange rate changes on cash		0		0			1,771
Net decrease in cash and cash equivalents		0		(1,301	)		(393)
Cash and cash equivalents at beginning of period		0		1,301			1,694
Cash and cash equivalents at end of period	$	0	$	0		$	1,301

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Business Combinations

12 Months Ended

Dec. 31, 2012

Business Combinations

Note 24 Business Combinations

LaserBand LLC. On July 13, 2012, Zebra acquired all of the outstanding membership interests in LaserBand LLC (a Missouri limited liability company) for a cash purchase price of $59,874,000, included in this amount is cash acquired of $1,431,000. As part of the acquisition closing, an escrow balance of approximately $8,700,000 was established against the total purchase price.

LaserBand LLC is based in St. Louis, Missouri, and is a leader in patient identification wristbands and related products. LaserBand strengthens Zebra’s product and patent portfolio and enables Zebra to offer a wider array of products to hospitals, other healthcare organizations and other wristband customers. The consolidated financial statements include the operating results of LaserBand from the date of acquisition. Pro forma results have not been presented because the effect of the acquisition is not material to the company’s financial results.

The following table (in thousands) summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of acquisition:

	As of
	July 13, 2012
Current assets	$	7,017
Property and equipment		46
Other assets		17
Goodwill		24,353
Other intangibles		29,560
Total assets acquired	$	60,993
Current liabilities		1,119
Net assets acquired	$	59,874

On a preliminary basis pending the receipt of final valuations, 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 $24,353,000. The intangible assets of $29,560,000 consist of the following (in thousands):

	Amount		Useful life
Current technology	$	6,260	5 years
Patents and patent rights		4,580	7 years
Customer relationships		18,720	5 to 9 years
Acquired other intangibles	$	29,560

The goodwill is deductible for tax purposes.

StepOne Systems. On December 21, 2012, Zebra acquired StepOne Systems for a cash purchase price of $1,543,000, included in this amount is cash acquired of $110,000. The cash purchase price is subject to certain working capital conditions. As part of the closing, an escrow balance of $320,000 was established against the total purchase price. StepOne is a specialty software company focused on solving business retailer’s challenges through mobile technology. StepOne is located in Pittsburgh, Pennsylvania.

StepOne has been able to increase sales via customer facing technologies, reduced out-of-stock, labor cost reduction, increased inventory/shipping accuracy and reduction in manual errors. Retail is an important part of our strategy to further penetrate existing markets. Retail organizations worldwide are increasingly embracing technology to improve the customer experience, build brand loyalty and enhance operational efficiency in the front and back of the store. This investment gives Zebra’s a more comprehensive solution in mobile POS and makes Zebra more competitive in this market space.

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Description of Business

12 Months Ended

Dec. 31, 2012

Description of Business

Note 1 Description of Business

Zebra Technologies Corporation and its wholly-owned subsidiaries (Zebra) design, manufacture, sell and support a broad range of direct thermal and thermal transfer label printers, radio frequency identification printer/encoders, dye sublimation card printers, real-time locating solutions, related accessories and support software. These products are used principally in automatic identification (auto ID), data collection and personal identification applications and are distributed world-wide through a network of resellers, distributors and end users representing a wide cross-section of industrial, service and government organizations.

In 2008 and 2007, we acquired WhereNet Corp., proveo AG, Navis Holdings, LLC (Navis) and Multispectral Solutions Inc., which we referred to as Zebra Enterprise Solutions Group (ZES). On January 31, 2011, we announced a definitive agreement to sell the Navis operations and certain other assets of ZES. Upon completion of the transaction we consolidated the remaining operations of ZES and no longer report ZES as a separate segment since it is not greater than 10% of Zebra’s consolidated totals.

Reclassifications. Prior-period amounts will differ from amounts previously reported because certain immaterial amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation.

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Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2012

Valuation and Qualifying Accounts

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES

Schedule II

Valuation and Qualifying Accounts

(Amounts in thousands)

Description	Balance at Beginning of Period		Charged to Costs and Expenses		Deductions / (Recoveries)		Balance at End of Period
Valuation account for accounts receivable:
Year ended December 31, 2012	$	1,560	$	0	$	891	$	669
Year ended December 31, 2011	$	1,459	$	343	$	242	$	1,560
Year ended December 31, 2010	$	1,406	$	315	$	262	$	1,459
Valuation accounts for inventories:
Year ended December 31, 2012	$	14,710	$	6,758	$	7,813	$	13,655
Year ended December 31, 2011	$	9,837	$	8,762	$	3,889	$	14,710
Year ended December 31, 2010	$	9,054	$	5,470	$	4,687	$	9,837

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Derivative Instruments - Financial Information Related to Hedging of Net Assets Included in Consolidated Statement of Earnings (Detail) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012 USD ($)	Sep. 29, 2012 USD ($)	Jun. 30, 2012 USD ($)	Mar. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Oct. 01, 2011 USD ($)	Jul. 02, 2011 USD ($)	Apr. 02, 2011 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2012 Pound/US Dollar [Member] GBP (£)	Dec. 31, 2011 Pound/US Dollar [Member] GBP (£)	Dec. 31, 2012 Euro/US Dollar [Member] EUR (€)	Dec. 31, 2011 Euro/US Dollar [Member] EUR (€)
Derivative [Line Items]
Change in gains (losses) from foreign exchange derivatives									$ (1,347)	$ (825)	$ 5,074
Gain (loss) on net foreign currency assets									406	(1,181)	(5,243)
Net foreign exchange loss	(5)	(514)	(80)	(342)	(706)	(173)	(833)	(294)	(941)	(2,006)	(169)
Notional balance of outstanding contracts versus the dollar												3,810	6,016	37,598	36,684
Net fair value of outstanding contracts	$ 18				$ (54)				$ 18	$ (54)

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Other Comprehensive Income (Loss) - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Other Comprehensive Income Loss [Line Items]
Unrealized gains (losses) on hedging transactions included in net income	$ 7,203,000	$ (5,109,000)	$ 3,689,000

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Goodwill and Other Intangible Asset Data (Tables)

12 Months Ended

Dec. 31, 2012

Amortized Intangible Assets

Intangible asset data are as follows (in thousands):

	As of December 31, 2012
	Gross Amount		Accumulated Amortization			Net Amount
Amortized intangible assets
Current technology	$	18,978	$	(12,391	)	$	6,587
Patent and patent rights		29,569		(14,618	)		14,951
Customer relationships		20,493		(2,880	)		17,613
Total	$	69,040	$	(29,889	)	$	39,151
Amortization expense for the year ended December 31, 2012			$	4,673

Amortized intangible assets	As of December 31, 2011
	Gross Amount		Accumulated Amortization			Net Amount
Current technology	$	12,718	$	(11,403	)	$	1,315
Patent and patent rights		23,392		(12,079	)		11,313
Customer relationships		1,773		(1,734	)		39
Total	$	37,883	$	(25,216	)	$	12,667
Amortization expense for the year ended December 31, 2011			$	3,320

Estimated Amortization Expense

Estimated amortization expense:
For the year ended December 31, 2013	$	7,382
For the year ended December 31, 2014		7,133
For the year ended December 31, 2015		6,669
For the year ended December 31, 2016		6,231
For the year ended December 31, 2017		5,000
Thereafter		6,736
Total	$	39,151

Carrying Value Amount of Goodwill

Changes in the net carrying value amount of goodwill were as follows (in thousands):

	Total
Unamortized intangible assets:
Goodwill at gross cost	$	180,731
Impairment charge – 2008		(101,028	)
Goodwill as of December 31, 2011		79,703
Acquisitions – LaserBand		24,353
Impairment charge – 2012		(9,114	)
Goodwill as of December 31, 2012	$	94,942

Schedule of Intangible Assets Including Goodwill

	As of December 31,
	2012			2011
Unamortized intangible assets
Goodwill at gross cost	$	205,084		$	180,731
Impairment charges		(110,142	)		(101,028	)
Goodwill	$	94,942		$	79,703

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Major Customers (Tables)

12 Months Ended

Dec. 31, 2012

Major Customers

Our net sales to significant customers as a percentage of total net sales were as follows:

	Year Ended December 31,
	2012		2011		2010
Customer A		20.4%		20.7%		19.8%
Customer B		11.4%		10.5%		9.8%
Customer C		10.3%		8.9%		8.0%

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Property and Equipment - Components of Property and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	$ 268,065	$ 243,829
Less accumulated depreciation and amortization	(166,716)	(146,007)
Net property and equipment	101,349	97,822
Buildings [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	2,134	2,086
Land [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	504	504
Machinery, Equipment and Tooling [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	88,222	81,464
Furniture and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	12,672	12,003
Computers and Software [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	130,357	111,793
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	18	18
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	16,380	15,494
Projects In Progress - Computers and Software [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	2,217	9,135
Projects in Progress - Other [Member]
Property, Plant and Equipment [Line Items]
Gross Property and Equipment	$ 15,561	$ 11,332

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 64,740	$ 36,418
Investments and marketable securities	324,140	182,398
Accounts receivable, net	168,732	155,230
Receivable from buyer	0	27,580
Inventories, net	123,357	133,288
Deferred income taxes	13,484	13,931
Income tax receivable	0	13,111
Prepaid expenses and other current assets	16,410	22,917
Total current assets	710,863	584,873
Property and equipment at cost, less accumulated depreciation and amortization	101,349	97,822
Long-term deferred income taxes	2,602	11,866
Goodwill	94,942	79,703
Other intangibles, net	39,151	12,667
Long-term investments and marketable securities	5,195	107,879
Other assets	13,646	4,196
Total assets	967,748	899,006
Current liabilities:
Accounts payable	23,045	33,273
Accrued liabilities	57,234	64,612
Deferred revenue	13,326	11,089
Income taxes payable	1,609	0
Total current liabilities	95,214	108,974
Deferred rent	1,303	1,592
Other long-term liabilities	14,229	11,515
Total liabilities	110,746	122,081
Stockholders' equity:
Preferred Stock	0	0
Class A Common Stock	722	722
Additional paid-in capital	139,523	131,422
Treasury stock	(641,438)	(596,622)
Retained earnings	1,368,520	1,245,616
Accumulated other comprehensive loss	(10,325)	(4,213)
Total stockholders' equity	857,002	776,925
Total liabilities and stockholders' equity	$ 967,748	$ 899,006

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Savings and Profit Sharing Plans (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Company Contributions to Retirement Savings and Investment Plan

Company contributions to these plans, which were charged to operations, approximated the following (in thousands):

	Year Ended December 31,
	2012		2011		2010
401(k)	$	5,138	$	4,813	$	4,586
Total	$	5,138	$	4,813	$	4,586

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Earnings Per Share - Potentially Dilutive Securities Excluded from Earnings Per Share Calculation (Detail)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Earnings Per Share [Line Items]
Potentially dilutive shares	1,753,311	1,425,880	1,844,038

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Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) Gross and Net of Income Tax (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Other Comprehensive Income Loss [Line Items]
Changes in unrealized gains and (losses) on foreign currency hedging activities, Gross	$ (9,936)	$ 8,878	$ (1,522)
Changes in unrealized gains and (losses) on foreign currency hedging activities, Income tax (benefit)	(2,695)	2,669	(573)
Unrealized gain (loss) on hedging transactions, net of income taxes	(7,241)	6,209	(949)
Changes in unrealized gains and (losses) on investments classified as available-for-sale, Gross	1,337	(597)	(652)
Changes in unrealized gains and (losses) on investments classified as available-for-sale, Income tax (benefit)	450	(212)	(246)
Unrealized holding gains (losses) on investments, net of income taxes	887	(385)	(406)
Foreign currency translation adjustment	$ 242	$ (688)	$ 67

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (Parenthetical)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Repurchase of Class A Common Stock, shares	1,473,863	4,353,801	3,349,286
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards, shares	488,863	809,084	765,078
Additional Paid-in Capital [Member]
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards, shares	488,863	809,084	765,078
Treasury Stock [Member]
Repurchase of Class A Common Stock, shares	1,473,863	4,353,801	3,349,286
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards, shares	488,863	809,084	765,078

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Stockholders' Equity - Roll Forward of Class A Common Shares Outstanding (Detail)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Balance at the beginning of the year	52,095,166	55,711,325
Repurchases	(1,473,863)	(4,353,801)	(3,349,286)
Stock options, rights and ESPP issuances	246,625	593,574
Restricted share issuances	242,238	215,510
Restricted share forfeitures	(130,119)	(17,138)
Shares withheld for tax obligations	(71,780)	(54,304)
Balance at the end of the period	50,908,267	52,095,166	55,711,325

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Summary of Significant Accounting Policies - Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2008
Unrecognized Tax Benefits [Line Items]
Additions based on tax positions related to 2012	$ 680
Balance at January 1, 2011		4,000	4,000
Balance at December 31, 2012	4,680		4,000
Additions based on tax positions related to prior years		$ 0

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Equity-Based Compensation - Weighted-Average Assumptions Used for Grants of Stock Options and SARs (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Expected dividend yield	0.00%	0.00%	0.00%
Forfeiture rate	10.21%	11.50%	9.78%
Risk free interest rate, minimum	0.07%	0.01%	0.06%
Risk free interest rate, maximum	1.95%	3.18%	3.41%
Expected weighted-average life	5 years 5 months 23 days	5 years 5 months 1 day	5 years 4 months 10 days
Fair value of options and SARs granted	$ 5,533,000	$ 5,495,000	$ 6,527,000
Weighted-average grant date fair value of options and SARs granted (per underlying share)	$ 12.84	$ 14.29	$ 10.64
Stock Option And Stock Appreciation Rights (SARs) [Member]
Volatility	35.90%	35.33%	39.50%
Risk free interest rate	0.94%	2.01%	2.26%

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

Financial Assets and Liabilities Carried at Fair Value

Financial assets and liabilities carried at fair value as of December 31, 2012, are classified below (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
U.S. government and agency securities	$	83,532	$	13,455	$	0	$	96,987
Obligations of government-sponsored enterprises (1)		0		4,840		0		4,840
State and municipal bonds		0		96,516		0		96,516
Corporate securities		0		128,368		2,588		130,956
Other investments		0		36		0		36
Investments subtotal		83,532		243,215		2,588		329,335
Money market investments related to the deferred compensation plan		3,553		0		0		3,553
Total assets at fair value	$	87,085	$	243,215	$	2,588	$	332,888
Liabilities:
Forward contracts (2)	$	1,174	$	871	$	0	$	2,045
Liabilities related to the deferred compensation plan		3,553		0		0		3,553
Total liabilities at fair value	$	4,727	$	871	$	0	$	5,598

Financial assets and liabilities carried at fair value as of December 31, 2011, are classified below (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
U.S. government and agency securities	$	25,540	$	25,307	$	0	$	50,847
Obligations of government-sponsored enterprises (1)		0		16,612		0		16,612
State and municipal bonds		0		142,873		0		142,873
Corporate securities		0		77,321		2,588		79,909
Other investments		0		36		0		36
Investments subtotal		25,540		262,149		2,588		290,277
Forward contracts (2)		2,626		6,584		0		9,210
Money market investments related to the deferred compensation plan		3,199		0		0		3,199
Total assets at fair value	$	31,365	$	268,733	$	2,588	$	302,686
Liabilities:
Liabilities related to the deferred compensation plan	$	3,199	$	0	$	0	$	3,199
Total liabilities at fair value	$	3,199	$	0	$	0	$	3,199

1) Includes investments in notes issued by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Federal Farm Credit Banks and the Federal Home Loan Bank.

2) The fair value of forward contracts are calculated as follows:

a. Fair value of a collar or put option contract associated with forecasted sales hedges are calculated using bid and ask rates for similar contracts.

b. Fair value of regular forward contracts associated with forecasted sales hedges are calculated using the period-end exchange rate adjusted for current forward points.

c. Fair value of balance sheet hedges are 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.

Assets Measured Fair Value on Recurring Basis

The following table presents Zebra’s activity for assets measured at fair value on a recurring basis using significant unobservable inputs, Level 3 as defined in ASC 820 for the years ended December 31 (in thousands):

	Year Ended
	December 31, 2012		December 31, 2011
Balance at beginning of the year	$	2,588	$	5,597
Transfers to Level 3		0		0
Total losses (realized or unrealized):
Included in earnings		0		(255	)
Included in other comprehensive income (loss)		0		317
Purchases and settlements (net)		0		(3,071	)
Balance at end of period	$	2,588	$	2,588
Total gains (losses) for the period included in earnings attributable to the change in unrealized losses relating to assets still held at end of period	$	0	$	0

Summary of Short-Term and Long-Term Investments

The following is a summary of short-term and long-term investments at December 31, 2012 and December 31, 2011 (in thousands):

	As of December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government and agency securities	$	96,913	$	77	$	(3	)	$	96,987
Obligations of government-sponsored enterprises		4,830		10		0			4,840
State and municipal bonds		96,383		161		(28	)		96,516
Corporate securities		130,634		790		(468	)		130,956
Other investments		36		0		0			36
Total investments	$	328,796	$	1,038	$	(499	)	$	329,335
	As of December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government and agency securities	$	50,738	$	115	$	(6	)	$	50,847
Obligations of government-sponsored enterprises		16,581		32		(1	)		16,612
State and municipal bonds		142,586		330		(43	)		142,873
Corporate securities		81,132		164		(1,387	)		79,909
Other investments		36		0		0			36
Total investments	$	291,073	$	641	$	(1,437	)	$	290,277

Maturity Dates of Investment

The maturity dates of investments as of December 31, 2012 are as follows (in thousands):

	As of December 31, 2012
	Amortized Cost		Estimated Fair Value
Less than 1 year	$	323,210	$	324,140
1 to 5 years		0		0
6 to 10 years		5,586		5,195
Thereafter		0		0
Total	$	328,796	$	329,335

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Fair Value Measurements - Maturity Dates of Investments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Fair Value Measurements, Maturity Dates Of Investments [Line Items]
Amortized Cost	$ 328,796	$ 291,073
Estimated Fair Value	329,335	290,277
Less Than 1 Year [Member]
Fair Value Measurements, Maturity Dates Of Investments [Line Items]
Amortized Cost	323,210
Estimated Fair Value	324,140
1 To 5 Years [Member]
Fair Value Measurements, Maturity Dates Of Investments [Line Items]
Amortized Cost	0
Estimated Fair Value	0
6 To 10 Years [Member]
Fair Value Measurements, Maturity Dates Of Investments [Line Items]
Amortized Cost	5,586
Estimated Fair Value	5,195
Thereafter [Member]
Fair Value Measurements, Maturity Dates Of Investments [Line Items]
Amortized Cost	0
Estimated Fair Value	$ 0

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Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2012

Earnings (Loss) Per Share

Note 15 Earnings (Loss) Per Share

For the years ended December 31, 2012, 2011, and 2010, earnings (loss) per share were computed as follows (in thousands, except per-share amounts):

	Year Ended December 31,
	2012		2011		2010
Weighted average shares:
Weighted average common shares outstanding		51,566		53,854		57,143
Effect of dilutive securities outstanding		277		337		285
Diluted weighted average shares outstanding		51,843		54,191		57,428
Earnings (loss):
Income from continuing operations	$	121,897	$	130,343	$	104,614
Income (loss) from discontinued operations		1,007		44,300		(2,836)
Net Income	$	122,904	$	174,643	$	101,778
Basic per share amounts:
Income from continuing operations	$	2.36	$	2.42	$	1.83
Income (loss) from discontinued operations		0.02		0.82		(0.05)
Net Income	$	2.38	$	3.24	$	1.78
Diluted per share amounts:
Income from continuing operations	$	2.35	$	2.40	$	1.82
Income (loss) from discontinued operations		0.02		0.82		(0.05)
Net Income	$	2.37	$	3.22	$	1.77

The potentially dilutive securities that were excluded from the earnings (loss) per share calculation consist of stock options and stock appreciation rights (SARs) with an exercise price greater than the average market price of the Class A Common Stock. These options were as follows:

	Year Ended December 31,
	2012		2011		2010
Potentially dilutive shares		1,753,311		1,425,880		1,844,038

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Investments and Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2012

Changes in Unrealized Gains and Losses on Available-for-sale Securities

Changes in unrealized gains and losses on available-for-sale securities are included in these financial statements as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Changes in unrealized gains and losses on available-for- sale securities, net of tax, recorded in accumulated other comprehensive income (loss)	$	887	$	(385)	$	(406)

Aggregate Market Value and Unrealized Losses of Investment

The following table shows the number, aggregate market value and unrealized losses (in thousands) of investments with market values that were less than amortized cost as of December 31, 2012. These lower market values are primarily caused by fluctuations in credit spreads. Market values are expected to recover to the amortized cost prior to maturity.

	Unrealized Loss < 12 months					Unrealized Loss > 12 months
	Number of investments	Aggregate Market Value		Unrealized     Losses		Number of investments	Aggregate Market Value		Unrealized     Losses
Government securities	4	$	5,179	$	(3)	1	$	1,790	$	(0)
State and municipal bonds	19		24,969		(27)	1		1,092		(1)
Corporate Securities	33		15,429		(23)	14		7,262		(445)
Total	56	$	45,577	$	(53)	16	$	10,144	$	(446)

As of December 31, 2011, the number, aggregate market value and unrealized losses (in thousands) of investments with market values that were less than amortized cost were:

	Unrealized Loss < 12 months					Unrealized Loss > 12 months
	Number of investments	Aggregate Market Value		Unrealized Losses		Number of investments	Aggregate Market Value		Unrealized Losses
Government securities	5	$	4,599	$	(3)	6	$	6,708	$	(4)
State and municipal bonds	16		24,556		(7)	11		18,612		(36)
Corporate Securities	35		31,461		(855)	53		17,057		(532)
Total	56	$	60,616	$	(865)	70	$	42,377	$	(572)

Schedule of Realized Gains on the Sales of Available-For-Sale Securities

Using the specific identification method, the proceeds and realized gains on the sales of available-for-sale securities were as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
Proceeds	$	164,410		$	303,801		$	102,485
Realized gains		423			388			458
Realized losses		(78	)		(306	)		(198)
Net realized gains (losses) included in other comprehensive income (loss) as of the end of the prior year		285			159			(264)

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Equity-Based Compensation - Shares of Time-Vested Restricted Stock Granted and Vesting Schedules of Restricted Stock Awards (Detail)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	241,551
At Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	6,955
After Three Years Of Service [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	234,596
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	169,081	152,636	225,985
Restricted Stock Awards [Member] | At Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	6,955
Restricted Stock Awards [Member] | After Three Years Of Service [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	162,126
Performance Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	72,470	62,874	149,936
Performance Share Awards [Member] | At Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	0
Performance Share Awards [Member] | After Three Years Of Service [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	72,470

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Discontinued Operations - Summary Results for Discontinued Operations in Consolidated Statement of Earnings (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net sales									$ 0	$ 13,945	$ 62,489
Loss from discontinued operations									(141)	(13,971)	(4,673)
Income tax benefit									218	1,299	1,837
Gain on sale of discontinued operations									930	68,745	0
Income tax expense on sale									0	(11,773)	0
Income (loss) from discontinued operations	$ 191	$ 516	$ 300	$ 0	$ 2,185	$ 10,814	$ (205)	$ 31,506	$ 1,007	$ 44,300	$ (2,836)

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Deferred Compensation Plan

12 Months Ended

Dec. 31, 2012

Deferred Compensation Plan

Note 17 Deferred Compensation Plan

Zebra offers a deferred compensation plan that permits directors and executive management employees to defer portions of their compensation and to select a method of investing these funds. The salaries that have been deferred since the plan’s inception have been accrued and the only expense, other than salaries, related to this plan is the gain or loss from the changes to the deferred compensation liability, which is charged to compensation expense. To fund this plan, Zebra purchases mutual funds in the form of stock or bond funds.

The following table shows the income, asset and liability amounts related to this plan (in thousands):

	As of December 31,
	2012		2011
Mutual funds included in other assets	$	3,553	$	3,199
Deferred compensation liability included in other long-term liabilities	$	3,553	$	3,199

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Investments and Marketable Securities - Schedule of Realized Gains on Sales of Available-for-Sale Securities (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule of Available-for-sale Securities [Line Items]
Proceeds	$ 164,410	$ 303,801	$ 102,485
Realized gains	423	388	458
Realized losses	(78)	(306)	(198)
Net realized gains (losses) included in other comprehensive income (loss) as of the end of the prior year	$ 285	$ 159	$ (264)

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Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended				12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2008	Dec. 31, 2012 U K Subsidiaries [Member]	Dec. 31, 2012 Singapore Economic Development Board [Member]	Dec. 31, 2011 Singapore Economic Development Board [Member]	Dec. 31, 2010 Singapore Economic Development Board [Member]	Dec. 31, 2009 Singapore Economic Development Board [Member]	Dec. 31, 2012 Federal [Member]	Dec. 31, 2012 State [Member]
Income Taxes [Line Items]
Deferred income taxes undistributed foreign earnings	$ 256,000,000	$ 175,000,000
Effective tax rate	35.00%								17.00%
Income tax rate									10.00%
Expiration of tax rate if agreed commitments are not met						2014
Extended tax rate expiration date if requirements are met						2018
Reduction in consolidated income taxes						2,002,000	2,030,000	1,247,000
Unrecognized tax benefits related to an acquisition	4,680,000		4,000,000	4,000,000
Increase in tax liability benefits					680,000
Net operating loss carryforwards, federal	2,518,000
Net operating loss carryforwards, state		$ 27,391,000
Net operating loss carryforwards, expire										2022 through 2027	2013 through 2021
Open tax years by major tax jurisdiction	The tax years 2008 through 2010 remain open to examination by multiple state taxing jurisdictions

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net income	$ 122,904	$ 174,643	$ 101,778
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	26,177	24,000	31,209
Equity-based compensation	14,727	14,095	11,871
Asset impairment charges	9,114	0	0
Impairment of investments	0	219	0
Excess tax benefit from share-based compensation	(1,578)	(1,392)	(244)
Loss on sale of property and equipment	311	284	(58)
Gain on sale of business	(930)	(68,745)	0
Deferred income taxes	8,067	10,796	(1,347)
Changes in assets and liabilities, net of businesses acquired:
Accounts receivable, net	(8,647)	(3,269)	(4,603)
Inventories, net	11,530	(19,545)	(33,884)
Other assets	7,304	(12,721)	(2,615)
Accounts payable	(14,605)	(5,439)	6,619
Accrued liabilities	(4,193)	(11,086)	15,386
Deferred revenue	4,351	(14,131)	3,414
Income taxes	16,335	(14,983)	16,980
Other operating activities	(7,536)	5,582	(2,669)
Net cash provided by operating activities	183,331	78,308	141,837
Cash flows from investing activities:
Purchases of property and equipment	(22,443)	(26,918)	(30,721)
Proceeds from the sale of business	27,580	161,206	0
Acquisition of businesses, net of cash acquired	(59,876)	0	0
Acquisition of intangible assets	(3,500)	(1,232)	(3,497)
Purchases of long-term investments	(9,125)	0	0
Purchases of investments and marketable securities	(347,609)	(991,633)	(382,091)
Maturities of investments and marketable securities	145,028	607,996	274,208
Proceeds from sales of investments and marketable securities	164,410	303,801	102,485
Net cash provided by (used in) investing activities	(105,535)	53,220	(39,616)
Cash flows from financing activities:
Purchase of treasury stock	(54,373)	(160,200)	(102,091)
Proceeds from exercise of stock options and stock purchase plan purchases	3,361	13,009	8,975
Excess tax benefit from equity-based compensation	1,578	1,392	244
Net cash used in financing activities	(49,434)	(145,799)	(92,872)
Effect of exchange rate changes on cash	(40)	1,835	562
Net increase (decrease) in cash and cash equivalents	28,322	(12,436)	9,911
Cash balance of discontinued operations at beginning of period	0	1,301	1,694
Cash balance of discontinued operations at end of period	0	0	1,301
Cash and cash equivalents at beginning of period	36,418	47,553	37,249
Cash and cash equivalents at end of period	64,740	36,418	47,553
Supplemental disclosures of cash flow information:
Income taxes paid	$ 20,059	$ 65,364	$ 26,563

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CONSOLIDATED STATEMENTS OF EARNINGS (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net sales
Net sales of tangible products	$ 948,227	$ 936,282	$ 849,530
Revenue from services and software	47,941	47,206	44,829
Total net sales	996,168	983,488	894,359
Cost of sales
Cost of sales of tangible products	479,633	469,834	450,630
Cost of services and software	24,891	26,885	22,954
Total cost of sales	504,524	496,719	473,584
Gross profit	491,644	486,769	420,775
Operating expenses:
Selling and marketing	129,906	127,797	112,365
Research and development	87,364	89,926	82,575
General and administrative	92,167	81,345	73,229
Amortization of intangible assets	4,673	3,320	3,211
Acquisition costs	3,109	304	0
Litigation settlement	0	0	(1,082)
Exit and restructuring costs	960	2,041	2,262
Asset impairment charge	9,114	0	0
Total operating expenses	327,293	304,733	272,560
Operating income	164,351	182,036	148,215
Other income (expense):
Investment income	2,485	1,944	2,678
Foreign exchange loss	(941)	(2,006)	(169)
Other, net	(1,721)	(2,255)	(1,117)
Total other income (expense)	(177)	(2,317)	1,392
Income from continuing operations before income taxes	164,174	179,719	149,607
Income taxes	42,277	49,376	44,993
Income from continuing operations	121,897	130,343	104,614
Income (loss) from discontinued operations, net of tax	1,007	44,300	(2,836)
Net income	$ 122,904	$ 174,643	$ 101,778
Basic earnings per share
Income from continuing operations	$ 2.36	$ 2.42	$ 1.83
Income (loss) from discontinued operations	$ 0.02	$ 0.82	$ (0.05)
Net Income	$ 2.38	$ 3.24	$ 1.78
Diluted earnings per share
Income from continuing operations	$ 2.35	$ 2.40	$ 1.82
Income (loss) from discontinued operations	$ 0.02	$ 0.82	$ (0.05)
Net Income	$ 2.37	$ 3.22	$ 1.77
Basic weighted average shares outstanding	51,566	53,854	57,143
Diluted weighted average and equivalent shares outstanding	51,843	54,191	57,428

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Costs Associated with Exit or Disposal Activities

12 Months Ended

Dec. 31, 2012

Costs Associated with Exit or Disposal Activities

Note 10 Costs Associated with Exit or Disposal Activities

In December 2012, Zebra began a plan to restructure its Location Solutions business management structure and announced a project to further optimize our manufacturing operations costs, which includes the consolidation and relocation of support functions. The costs below incurred for the year ended December 31, 2012 represent the costs related to the restructuring of Location solutions business management structure. The costs expected to be incurred relate to the restructuring of Zebra’s manufacturing operations and relocation of this portion of Zebra’s business from the U.S. to China and consolidating some activities domestically.

As of December 31, 2012, we have incurred the following exit and restructuring costs related to the location solutions business management structure and manufacturing operations relocation and restructuring (in thousands):

Type of Cost	Costs incurred for the year ended December 31, 2012		Additional costs expected to be incurred		Total costs     expected to be     incurred
Severance, stay bonuses, and other employee-related expenses	$	960	$	4,590	$	5,550
Professional services		0		310		310
Relocation and transition costs		0		480		480
Total	$	960	$	5,380	$	6,340

In January 2011, we announced an agreement to sell Navis, to Cargotec Corporation. Following the transaction which was completed on March 18, 2011, we retained the location solutions products from the former ZES, which includes active RFID real-time location solutions and associated tags and readers. In the first quarter of 2011, we also announced a plan to consolidate any remaining administrative and accounting functions from the former ZES into our corporate facilities in Illinois. The costs below incurred for the year ended December 31, 2011, represent the costs related to the consolidation and relocation of the administrative and accounting functions. There are no costs in 2012 related to this restructuring as this project was completed in 2011.

As of December 31, 2012, we have incurred the following exit and restructuring costs related to consolidating the former ZES administrative and accounting function into our corporate facilities (in thousands):

Type of Cost	Costs incurred for the year ended December 31, 2011		Costs incurred for the year ended December 31, 2012		Total costs     incurred as of     2012
Severance, stay bonuses, and other employee-related expenses	$	1,113	$	0	$	1,113
Professional services		890		0		890
Relocation and transition costs		38		0		38
Total	$	2,041	$	0	$	2,041

Liabilities and expenses related to exit activities were as follows (in thousands):

	Year Ended December 31,
	2012		2011
Balance at beginning of period	$	1,048	$	1,479
Charged to earnings		960		2,041
Cash paid		(1,041)		(2,472)
Balance at the end of period	$	967	$	1,048

Liabilities related to exit activities are included in the accrued liabilities line item on the balance sheet. Exit costs are included in operating expenses under the line item exit and restructuring costs.

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Equity-Based Compensation - Summary of Restricted Stock Award Activity (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Granted	241,551
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding at beginning of year	529,880	594,090	406,682
Shares, Granted	169,081	152,636	225,985
Shares, Released	(235,580)	(197,472)	(22,325)
Shares, Forfeited	(19,019)	(19,374)	(16,252)
Shares, Outstanding at end of period	444,362	529,880	594,090
Weighted-Average Grant Date Fair Value, Outstanding at beginning of year	$ 28.20	$ 25.51	$ 24.43
Weighted-Average Grant Date Fair Value, Granted	$ 38.45	$ 41.17	$ 27.85
Weighted-Average Grant Date Fair Value, Released	$ 21.39	$ 30.08	$ 29.11
Weighted-Average Grant Date Fair Value, Forfeited	$ 34.90	$ 29.08	$ 26.19
Weighted-Average Grant Date Fair Value, Outstanding at end of period	$ 35.43	$ 28.20	$ 25.51

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Stockholders' Equity - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Stockholders Equity [Line Items]
Shares purchased under share repurchase plan, shares	1,473,863	4,353,801	3,349,286
Shares purchased under share repurchase plan, value	$ 54,373	$ 160,200	$ 102,091

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Savings and Profit Sharing Plans - Schedule of Company Contributions to Retirement Savings and Investment Plan (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Company contribution to the plans	$ 5,138	$ 4,813	$ 4,586
401(k) Plan [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Company contribution to the plans	$ 5,138	$ 4,813	$ 4,586

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Discontinued Operations - Additional Information (Detail)	3 Months Ended	12 Months Ended			1 Months Ended	3 Months Ended		1 Months Ended	12 Months Ended
	Aug. 03, 2011	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Mar. 18, 2011 Navis, LLC [Member] USD ($)	Mar. 31, 2012 Navis, LLC [Member] USD ($)	Sep. 30, 2012 Navis, LLC [Member] USD ($)	Aug. 03, 2011 Proveo AG [Member] USD ($)	Dec. 31, 2012 Proveo AG [Member] USD ($)	Dec. 31, 2012 Proveo AG [Member] EUR (€)	Jun. 30, 2012 Proveo AG [Member] EUR (€)	Aug. 03, 2011 Proveo AG [Member] EUR (€)
Proceeds from the sale of business		$ 27,580,000	$ 161,206,000	$ 0	$ 188,588,000
Short-term receivable from buyer		0	27,580,000				13,790,000
Receivable from Previously escrowed funds						13,790,000
Gain (loss) recorded upon divestiture		930,000	68,745,000	0				1,248,000	930,000
Loan agreed to provide to the buyer											526,058	1,000,000
Loan, duration (date)	Aug. 03, 2012	Dec. 31, 2012
Loan, interest rate											6.50%	6.50%
Tax benefits realized		0	11,773,000	0				13,308,000
Outstanding Loan										€ 376,058

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Major Customers - Significant Customers as Percentage of Total Net Sales (Detail)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenue, Major Customer [Line Items]
Percentage of total net sales	10.00%
Customer A [Member]
Revenue, Major Customer [Line Items]
Percentage of total net sales	20.40%	20.70%	19.80%
Customer B [Member]
Revenue, Major Customer [Line Items]
Percentage of total net sales	11.40%	10.50%	9.80%
Customer C [Member]
Revenue, Major Customer [Line Items]
Percentage of total net sales	10.30%	8.90%	8.00%

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2012	Feb. 08, 2013	Jun. 30, 2012
Entity Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Trading Symbol	ZBRA
Entity Registrant Name	ZEBRA TECHNOLOGIES CORP
Entity Central Index Key	0000877212
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		50,951,204
Entity Public Float			$ 1,775,843,000

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Business Combinations - Additional Information (Detail) (USD $)	Jul. 13, 2012	Dec. 21, 2012 StepOne Systems [Member]
Business Acquisition [Line Items]
Business acquisition ,net of cash	$ 59,874,000	$ 1,543,000
Escrow balance established against the total purchase price	8,700,000	320,000
Cash acquired in business combination	1,431,000	110,000
Business acquisition goodwill amount	24,353,000
Business acquisition intangible assets	$ 29,560,000

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Derivative Instruments

12 Months Ended

Dec. 31, 2012

Derivative Instruments

Note 11 Derivative Instruments

Portions of our operations are subject to fluctuations in currency values. We manage these risks using derivative financial instruments. We conduct business on a multinational basis in a wide variety of foreign currencies. Our exposure to market risk for changes in foreign currency exchange rates arises from international financing activities between subsidiaries, foreign currency denominated monetary assets and liabilities and transactions arising from international trade. Our objective is to preserve the economic value of non-functional currency denominated cash flows. We attempt 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.

Credit and market risk

Financial instruments, including derivatives, expose us to counter party credit risk for nonperformance and to market risk related to interest and currency exchange rates. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. Our counterparties in derivative transactions are commercial banks with significant experience using derivative instruments. We monitor the impact of market risk on the fair value and cash flows of our derivative and other financial instruments considering reasonably possible changes in interest rates and currency exchange rates and restrict the use of derivative financial instruments to hedging activities. We continually monitor the creditworthiness of our customers to which we grant credit terms in the normal course of business. The terms and conditions of our credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer.

Fair Value of Derivative Instruments

Zebra 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 do we use leveraged derivative financial instruments. Our 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

We use forward contracts to manage exposure related to our pound and euro denominated net assets. Forward contracts typically mature within three months after execution of the contracts. We record gains and losses on these contracts and options in income each quarter along with the transaction gains and losses related to our net asset positions, which would ordinarily offset each other.

Summary financial information related to these activities included in our consolidated statement of earnings as other income (expense) is as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Change in gains (losses) from foreign exchange derivatives	$	(1,347)	$	(825)	$	5,074
Gain (loss) on net foreign currency assets		406		(1,181)		(5,243)
Net foreign exchange loss	$	(941)	$	(2,006)	$	(169)
	As of
	December 31, 2012		December 31, 2011
Notional balance of outstanding contracts:
Euro/US dollar	€	37,598	€	36,684
Pound/US dollar	£	3,810	£	6,016
Net fair value of outstanding contracts	$	18	$	(54)

Hedging of Anticipated Sales

We can manage the exchange rate risk of anticipated euro-denominated sales using purchased options, forward contracts, and participating forwards. We designate 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 gains or losses will then be reported as an increase or decrease to sales.

Summary financial information related to the cash flow hedges is as follows (in thousands):

	As of
	December 31, 2012		December 31, 2011
Net unrealized gains (losses) in other comprehensive income:
Gross	$	(9,936)	$	8,878
Income tax expense (benefit)		(2,695)		2,669
Net	$	(7,241)	$	6,209

Summary financial information related to the cash flow hedges of future revenues follows (in thousands, except percentages):

	As of
	December 31, 2012		December 31, 2011
Notional balance of outstanding contracts versus the dollar	€	88,680	€	85,105
Hedge effectiveness		100%		100%

	Year Ended December 31,
		2012		2011		2010
Net gains and (losses) included in revenue	$	4,201	$	(4,159)	$	(630)

Forward Contracts

We record our forward contracts at fair value on our consolidated balance sheet as either long-term other assets or long-term other liabilities depending upon the fair value calculation as detailed in Note 3 of Zebra’s financial statements. The amounts recorded on our consolidated balance sheets are as follows (in thousands):

	As of
	December 31, 2012		December 31, 2011
Assets:
Prepaid expenses and other current assets	$	0	$	9,210
Total	$	0	$	9,210
Liabilities:
Accrued liabilities	$	2,045	$	0
Total	$	2,045	$	0

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Other Assets - Additional Information (Detail) (USD $)			12 Months Ended
	Jul. 13, 2012	Dec. 31, 2012 Venture Capital Investments [Member]	Dec. 31, 2012 Minimum [Member]	Dec. 31, 2012 Maximum [Member]
Other Assets Non Current [Line Items]
Percentage of interest acquired			4.70%	19.70%
Venture capital investment, business acquisitions	$ 59,874,000	$ 9,125,000

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Savings and Profit Sharing Plans - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2012
Savings And Profit Sharing Plans [Line Items]
Qualified employees participation contribution, percentage of gross earnings	15.00%
100% Matching Contribution [Member]
Savings And Profit Sharing Plans [Line Items]
Matching contribution rate by the employer	100.00%
Percentage of gross eligible earnings for matching contribution	2.00%
50% Matching Contribution [Member]
Savings And Profit Sharing Plans [Line Items]
Matching contribution rate by the employer	50.00%
Percentage of gross eligible earnings for matching contribution	4.00%

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net income	$ 122,904	$ 174,643	$ 101,778
Other comprehensive income (loss):
Unrealized gain (loss) on hedging transactions, net of income taxes	(7,241)	6,209	(949)
Unrealized holding gain (loss) on investments, net of income taxes	887	(385)	(406)
Foreign currency translation adjustment	242	(688)	67
Comprehensive income	$ 116,792	$ 179,779	$ 100,490

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Accounts Receivable Reserves

12 Months Ended

Dec. 31, 2012

Accounts Receivable Reserves

Note 5 Accounts Receivable Reserves

The components of accounts receivable are as follows (in thousands):

	As of
	December 31, 2012		December 31, 2011
Gross accounts receivable	$	169,401	$	156,790
Accounts receivable reserves		(669)		(1,560)
Accounts receivable, net	$	168,732	$	155,230

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Investments and Marketable Securities

12 Months Ended

Dec. 31, 2012

Investments and Marketable Securities

Note 4 Investments and Marketable Securities

Investments in marketable debt securities are classified based on intent and ability to sell investment securities. Zebra’s available-for-sale securities are used to fund further acquisitions and other operating needs and therefore can be sold prior to maturity. Investments in marketable debt securities for which Zebra intends to sell within the next year are classified as current and those that we intend to hold in excess of one-year are classified as non-current.

Changes in the market value of available-for-sale securities are reflected in the accumulated other comprehensive income caption of stockholders’ equity in the balance sheet, until we dispose of the securities. Once these securities are disposed of, either by sale or maturity, the accumulated changes in market value are transferred to investment income. On the statement of cash flows, changes in the balances of available-for-sale securities are shown as purchases, sales and maturities of investments and marketable securities under investing activities.

Changes in market value of trading securities would be recorded in investment income as they occur, and the related cash flow statement includes changes in the balances of trading securities as operating cash flows.

Changes in unrealized gains and losses on available-for-sale securities are included in these financial statements as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Changes in unrealized gains and losses on available-for- sale securities, net of tax, recorded in accumulated other comprehensive income (loss)	$	887	$	(385)	$	(406)

The following table shows the number, aggregate market value and unrealized losses (in thousands) of investments with market values that were less than amortized cost as of December 31, 2012. These lower market values are primarily caused by fluctuations in credit spreads. Market values are expected to recover to the amortized cost prior to maturity.

	Unrealized Loss < 12 months					Unrealized Loss > 12 months
	Number of investments	Aggregate Market Value		Unrealized     Losses		Number of investments	Aggregate Market Value		Unrealized     Losses
Government securities	4	$	5,179	$	(3)	1	$	1,790	$	(0)
State and municipal bonds	19		24,969		(27)	1		1,092		(1)
Corporate Securities	33		15,429		(23)	14		7,262		(445)
Total	56	$	45,577	$	(53)	16	$	10,144	$	(446)

As of December 31, 2011, the number, aggregate market value and unrealized losses (in thousands) of investments with market values that were less than amortized cost were:

	Unrealized Loss < 12 months					Unrealized Loss > 12 months
	Number of investments	Aggregate Market Value		Unrealized Losses		Number of investments	Aggregate Market Value		Unrealized Losses
Government securities	5	$	4,599	$	(3)	6	$	6,708	$	(4)
State and municipal bonds	16		24,556		(7)	11		18,612		(36)
Corporate Securities	35		31,461		(855)	53		17,057		(532)
Total	56	$	60,616	$	(865)	70	$	42,377	$	(572)

Using the specific identification method, the proceeds and realized gains on the sales of available-for-sale securities were as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
Proceeds	$	164,410		$	303,801		$	102,485
Realized gains		423			388			458
Realized losses		(78	)		(306	)		(198)
Net realized gains (losses) included in other comprehensive income (loss) as of the end of the prior year		285			159			(264)

Included in Zebra’s cash, restricted cash, investments and marketable securities are amounts held by foreign subsidiaries which are generally invested in U.S. dollar-denominated holdings. Zebra had $173,483,000 as of December 31, 2012, and $96,829,000 as of December 31, 2011 of foreign cash and investments. Amounts held by foreign subsidiaries are generally subject to U.S. income taxation upon repatriation, however, Zebra does not see a need to repatriate these funds.

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Equity-Based Compensation

12 Months Ended

Dec. 31, 2012

Equity-Based Compensation

Note 16 Equity-Based Compensation

As of December 31, 2012, Zebra had a general equity-based compensation plan and a stock purchase plan under which shares of our common stock were available for future grants and sales, and which are described below.

On May 19, 2011, Zebra’s stockholders approved the 2011 Zebra Technologies Corporation Long Term Incentive Plan (the 2011 Plan), which included authorization for issuance of awards of 5,500,000 shares under the 2011 Plan. The 2011 Plan became effective immediately and superseded the 2006 Incentive Compensation Plan (the 2006 Plan), the 1997 Stock Option Plan (the 1997 Plan) and the 2002 Non-Employee Director Stock Option Plan (the 2002 Director Plan), except that the prior plans will remain in effect with respect to awards granted under the prior plans until such awards have been exercised, forfeited, cancelled, expired or otherwise terminated in accordance with the terms of such grants. The types of awards available under the 2011 Plan are incentive stock options, nonqualified stock options, stock appreciation rights (SARs), restricted stock, performance shares and units and performance-based cash bonuses. Employees, directors and consultants of Zebra and its subsidiaries are eligible to participate in the 2011 Plan. The Compensation Committee of the Board of Directors administers the plan. As of December 31, 2012, 4,805,599 shares were available for grant under the plan, and options for 438,671 shares were outstanding under the 2011 Plan.

The options and SARs granted under the 2011 Plan have an exercise or grant price equal to the closing market price of Zebra’s stock on the date of grant. Options and SAR’s generally vest over a four or five-year period. These awards expire on the earlier of (a) ten years following the grant date, (b) immediately if the employee is terminated for cause, (c) ninety days after termination of employment if the employee is terminated involuntarily other than for cause, (d) thirty days after termination of employment if the employee voluntarily terminates his or her employment, or (e) one year after termination of employment if the employee’s employment terminates due to death, disability, or retirement.

Zebra’s time-vested restricted stock grants consist of restricted stock awards (RSA’s) and performance share awards (PSA’s). The following table shows the number of shares of time-vested restricted stock granted in 2012 and the vesting schedules of the restricted stock awards that were granted under the Plan to certain executive officers and other members of management.

Vesting period	RSA’s		PSA’s		Total
At grant		6,955		0		6,955
After three years of service		162,126		72,470		234,596
Total		169,081		72,470		241,551

These RSA’s will vest at each vesting date if the employee remains employed by Zebra throughout the applicable time period, but will vest in whole or in part (as set forth in each Restricted Stock Agreement) before the end of the each vesting period in the event of death, disability, resignation for good reason, a change in control (as defined in the 2011 Plan), or termination by Zebra other than for Cause, as defined in the Restricted Stock Agreement entered into by Zebra with each employee who was granted restricted stock. The restricted stock is forfeited in certain situations specified in the Restricted Stock Agreement, including, if the employee’s employment is terminated by Zebra for Cause or if the employee resigns for other than good reason. Zebra’s restricted stock awards are expensed over the vesting period of the related award, which is typically three to five years. However, some recent awards vested upon grant. Compensation cost is calculated as the market date fair value on grant date multiplied by the number of shares granted.

The 2006 Plan was superseded by the 2011 Plan. As of December 31, 2012, options and SARs for 1,830,544 shares were outstanding and exercisable under the 2006 Plan. These options and SARs expire on the earlier of (a) ten years following the grant date, or (b) immediately if the employee is terminated for cause, (c) ninety days after termination of employment if the employee is terminated involuntarily other than for cause, (d) thirty days after termination of employment if the employee voluntarily terminates his or her employment, or (e) one year after termination of employment if the employee’s employment terminates due to death, disability, or retirement.

The 1997 Plan was superseded by the 2006 Plan. As of December 31, 2012, options for 705,445 shares were outstanding and exercisable under the 1997 Plan. These options terms are the same as noted in the paragraph above in the 2006 Plan.

The 2002 Director Plan was superseded by the 2006 Plan. As of December 31, 2012, options for 80,000 shares were outstanding and exercisable under the 2002 Director Plan. Unless otherwise provided in an option agreement, options granted under the 2002 Director Plan become exercisable in five equal increments beginning on the date of the grant and continuing on each of the four anniversaries thereafter. All such options expire on the earlier of (a) ten years following the grant date, (b) the first anniversary of the termination date of the non-employee director’s directorship for any reason other than the termination of the non-employee director’s directorship by Zebra’s stockholders for cause, or resignation for cause, in each case as defined in the option agreement.

In connection with Zebra’s acquisition of WhereNet, Zebra assumed existing unvested stock options exercisable for shares of WhereNet’s common stock and converted them into options exercisable for Zebra common stock. These converted options have exercise prices and vesting dates based on their previous terms and all of these options that are outstanding are fully vested. As of December 31, 2012, outstanding WhereNet options were exercisable into 12,988 shares of Zebra Class A Common Stock.

On May 19, 2011 Zebra’s stockholders adopted the 2011 Employee Stock Purchase Plan (which replaced the 2001 Stock Purchase plan) under which employees who work a minimum of 20 hours per week may elect to withhold up to 10% of their cash compensation through regular payroll deductions to purchase shares of Class A Common Stock from Zebra over a period not to exceed 12 months at a purchase price per share which is equal to the lesser of: (1) 95% of the fair market value of the shares as of the date of the grant, or (2) 95% of the fair market value of the shares as of the date of purchase. Stock purchase plan expense for the year ended December 31, 2012 was $242,000. Stock purchase plan expense for the year ended December 31, 2011 was $321,000 and for the year ended December 31, 2010 was $315,000.

For purposes of calculating the compensation cost, the fair value 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 Zebra’s stock prices over our entire stock history. Stock option grants in the table below include both stock options, all of which were non-qualified, and stock appreciation rights (SAR) that will be settled in Zebra stock. 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:

	2012	2011	2010
Expected dividend yield	0%	0%	0%
Forfeiture rate	10.21%	11.50%	9.78%
Volatility	35.90%	35.33%	39.50%
Risk free interest rate	.94%	2.01%	2.26%
- Range of interest rates	0.07% - 1.95%	0.01% - 3.18%	0.06% - 3.41%
Expected weighted-average life	5.48 years	5.42 years	5.36 years
Fair value of SARs granted	$5,533,000	$5,495,000	$6,527,000
Weighted-average grant date fair value of options and SARs granted     (per underlying share)	$12.84	$14.29	$10.64

The forfeiture rate is based on the historical annualized forfeiture rate, which is consistent with prior year rates. This rate includes only pre-vesting forfeitures. Volatility is based on an average of the implied volatility in the open market and the annualized volatility of Zebra’s stock prices over our entire stock history. The risk free interest rate used is the implied yield currently available from the U.S. Treasury zero-coupon yield curve over the contractual term of the options. The expected weighted-average life is based on historical exercise behavior, which combines the average life of the options that have already been exercised or cancelled with the exercise life of all unexercised options. The exercise life of unexercised options assumes that the option will be exercised at the midpoint of the vesting date and the full contractual term. These assumptions are consistent with the assumptions used in prior years.

Stock option activity for the years ended December 31, 2012, 2011, and 2010, was as follows:

	2012					2011					2010
Options	Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price
Outstanding at beginning of year		1,702,650		$	40.43		2,340,959		$	37.35		2,767,887		$	35.98
Granted		0			0		0			0		0			0
Exercised		(148,802	)		27.02		(490,715	)		26.63		(273,564	)		23.43
Forfeited		(1,663	)		36.36		(63,714	)		32.29		(62,798	)		35.87
Expired		(20,341	)		43.63		(83,880	)		40.76		(90,566	)		35.08
Outstanding at end of year		1,531,844		$	41.69		1,702,650		$	40.43		2,340,959		$	37.35
Exercisable at end of year		1,527,814		$	41.75		1,589,096		$	40.84		1,893,346		$	37.50
Intrinsic value of exercised options	$	1,700,000				$	6,400,000				$	2,214,000

There were no stock options granted in 2012, 2011 or 2010.

The following table summarizes information about stock options outstanding at December 31, 2012:

	Outstanding	Exercisable
Aggregate intrinsic value	$    1,379,000	$    1,306,000
Weighted-average remaining contractual term	3.4 years	3.4 years

SAR activity for the years ended December 31, 2012, 2011, and 2010, was as follows:

	2012					2011					2010
SARs	Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price
Outstanding at beginning of year		1,287,724			$ 28.91		1,234,787			$ 23.82		684,058			$ 19.97
Granted		431,040			38.51		387,847			41.14		612,681			27.82
Exercised		(102,972	)		23.83		(95,672	)		22.20		(31,001	)		19.56
Forfeited		(75,978	)		34.10		(238,965	)		25.15		(30,678	)		22.14
Expired		(4,010	)		41.57		(273	)		19.56		(273	)		19.56
Outstanding at end of year		1,535,804			$ 31.66		1,287,724			$ 28.91		1,234,787			$ 23.82
Exercisable at end of year		514,787			$ 26.52		305,228			$ 23.27		149,318			$ 20.19
Intrinsic value of exercised SARs		$ 1,500,000					$ 1,700,000					$ 353,000

The terms of the SARs are established under the applicable Plan and the applicable SAR agreement. Once vested, a SAR entitles the holder to receive a payment equal to the difference between the per-share grant price of the SAR and the fair market value of a share of Zebra stock on the date the SAR is exercised, multiplied by the number of shares covered by the SAR. Exercised SARs will be settled in whole shares of Zebra stock, and any fraction of a share will be settled in cash. Vesting of SARs granted in 2012 is as follows: 20,155 SARs vested upon grant and 410,885 SARs vest annually in four equal amounts on each of the first four anniversaries of the grant date. Vesting of SARs granted in 2011 is as follows: 16,045 SARs vested after one year, 371,802 SARs vest annually in four equal amounts on each of the first four anniversaries of the grant date. All SARs expire 10 years after the grant date.

The following table summarizes information about SARs outstanding at December 31, 2012:

	Outstanding	Exercisable
Aggregate intrinsic value	$    10,551,000	$    5,926,000
Weighted-average remaining contractual term	7.7 years	6.9 years

Restricted stock award activity, granted under the 2011 and 2006 Plans, for the years ended December 31, 2012, 2011 and 2010 was as follows:

	2012					2011					2010
Restricted Stock Awards	Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Grant Date Fair Value
Outstanding at beginning of year		529,880			$ 28.20		594,090			$ 25.51		406,682			$ 24.43
Granted		169,081			38.45		152,636			41.17		225,985			27.85
Released		(235,580	)		21.39		(197,472	)		30.08		(22,325	)		29.11
Forfeited		(19,019	)		34.90		(19,374	)		29.08		(16,252	)		26.19
Outstanding at end of year		444,362			$ 35.43		529,880			$ 28.20		594,090			$ 25.51

Performance share award activity, granted under the 2011 and 2006 Plans, for the years ended December 31, 2012, 2011 and 2010 was as follows:

	2012					2011					2010
Performance Share Awards	Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Grant Date Fair Value		Shares		Weighted-Average Grant Date Fair Value
Outstanding at beginning of year		306,261			$  28.58		250,596			$  25.35		100,660		$  21.68
Granted		72,470			38.68		62,874			41.47		149,936		27.82
Released		(1,802	)		41.57		(7,209	)		28.79		0		0.0
Forfeited		(111,100	)		23.06		0			0.0		0		0.0
Outstanding at end of year		265,829			$  35.55		306,261			$  28.58		250,596		$  25.35

As of December 31, 2012, there was $18,534,000 of unearned compensation cost related to awards granted under Zebra’s equity-based compensation plans, which is expected to be recognized over a weighted-average period of 2.4 years.

The fair value of the purchase rights issued to Zebra 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.

	2012		2011		2010
Fair market value	$	35.43	$	34.77	$	27.95
Option price	$	33.66	$	33.03	$	26.55
Expected dividend yield		0%		0%		0%
Expected volatility		21%		33%		25%
Risk free interest rate		0.07%		0.07%		0.14%

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies

Note 12 Commitments and Contingencies

Leases. Minimum future obligations under all non-cancelable operating leases as of December 31, 2012 are as follows (in thousands):

	Operating     Leases
2013	$	10,699
2014		7,336
2015		3,788
2016		2,501
2017		2,074
Thereafter		5,099
Total minimum lease payments	$	31,497

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

	Year Ended December 31,
		2012		2011		2010
Rent expense	$	15,254	$	13,907	$	11,469

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 9 years with breaking periods specified in the lease agreements.

Letters of Credit. In connection with various customer contracts, Zebra has entered into two letters of credit agreements with a bank. The contingent liability of Zebra under these agreements as of December 31, 2012, is $482,000. See below for letters of credit related to our revolving credit agreement.

Revolving Credit Agreement. On October 10, 2012, Zebra entered into a revolving credit agreement for a five-year $250,000,000 revolving credit facility with a syndicate of banks led by J. P. Morgan Securities LLC as Administrative Agent. 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 a spread over the base rate, which base rate is the greater of: the prime rate, the Federal Funds Effective Rate plus one-half of one percent (0.50%), or an adjusted LIBOR rate, plus one percent (1%). The spread is dependent on Zebra’s ratio of Total Debt to EBITDA, and ranges from 0.25% to 1.75%. The spread in effect at closing for prime rate and Federal Funds based loans was 0.00%. The spread for LIBOR-based loans ranges from 1.00% to 1.75%. The spread in effect at closing for LIBOR-based loans was 1.00%. Zebra did not make any barrow any monies under the New Credit Agreement at the time of closing.

The credit agreement includes customary representations, warranties, affirmative and negative covenants and events of default. It also contains financial covenants tied to Zebra’s leverage ratio and interest coverage ratio. As of December 31, 2012, we had established letters of credit amounting to $2,300,000, which reduce the funds available for borrowing under the agreement. As of December 31, 2012 and 2011, no amounts were outstanding under the company’s credit agreement.

The credit agreement above replaced Zebra’s August 2008 five year $100,000,000 credit agreement.

Legal Proceedings. 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.

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Derivative Instruments - Financial Information Related to Cash Flow Hedges (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Derivative [Line Items]
Unrealized losses on hedging transactions, Gross	$ (2,581)	$ 7,355
Unrealized losses on hedging transactions, Income tax expense (benefit)	(599)	2,096
Unrealized losses on hedging transactions, Net	(1,982)	5,259
Cash Flow Hedging [Member]
Derivative [Line Items]
Unrealized losses on hedging transactions, Gross	(9,936)	8,878
Unrealized losses on hedging transactions, Income tax expense (benefit)	(2,695)	2,669
Unrealized losses on hedging transactions, Net	$ (7,241)	$ 6,209

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Goodwill and Other Intangible Asset Data

12 Months Ended

Dec. 31, 2012

Goodwill and Other Intangible Asset Data

Note 8 Goodwill and Other Intangible Asset Data

Intangible asset data are as follows (in thousands):

	As of December 31, 2012
	Gross Amount		Accumulated Amortization			Net Amount
Amortized intangible assets
Current technology	$	18,978	$	(12,391	)	$	6,587
Patent and patent rights		29,569		(14,618	)		14,951
Customer relationships		20,493		(2,880	)		17,613
Total	$	69,040	$	(29,889	)	$	39,151
Amortization expense for the year ended December 31, 2012			$	4,673

Estimated amortization expense:
For the year ended December 31, 2013	$	7,382
For the year ended December 31, 2014		7,133
For the year ended December 31, 2015		6,669
For the year ended December 31, 2016		6,231
For the year ended December 31, 2017		5,000
Thereafter		6,736
Total	$	39,151

In 2012, we acquired intangible assets in the amount of $31,157,000 for patents, technology and customer relationships. These intangible assets have an estimated useful life ranging from 5 to 9 years. See Note 24 Business Combinations for specific information regarding the acquisition. In 2011, we acquired intangible assets in the amount of $6,232,000 for patents and other intellectual property, of which, $5,000,000 was accrued as of December 31, 2011. During 2012, Zebra paid $3,500,000 towards intangible asset commitments previously accrued.

	As of December 31, 2011
	Gross Amount		Accumulated Amortization			Net Amount
Amortized intangible assets
Current technology	$	12,718	$	(11,403	)	$	1,315
Patent and patent rights		23,392		(12,079	)		11,313
Customer relationships		1,773		(1,734	)		39
Total	$	37,883	$	(25,216	)	$	12,667
Amortization expense for the year ended December 31, 2011			$	3,320

Changes in the net carrying value amount of goodwill were as follows (in thousands):

	Total
Unamortized intangible assets:
Goodwill at gross cost	$	180,731
Impairment charge – 2008		(101,028	)
Goodwill as of December 31, 2011		79,703
Acquisitions – LaserBand		24,353
Impairment charge – 2012		(9,114	)
Goodwill as of December 31, 2012	$	94,942

	As of December 31,
	2012			2011
Unamortized intangible assets
Goodwill at gross cost	$	205,084		$	180,731
Impairment charges		(110,142	)		(101,028	)
Goodwill	$	94,942		$	79,703

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Summary of Significant Accounting Policies - Summary of Accrued Warranty Obligation (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Product Warranty [Line Items]
Balance at the beginning of the year	$ 4,613	$ 4,554	$ 3,813
Warranty expense	6,828	5,856	6,427
Warranty payments	(7,189)	(5,797)	(5,686)
Balance at the end of the period	$ 4,252	$ 4,613	$ 4,554

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Income Taxes - Reconciliation of Statutory and Effective Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule Of Effective Income Tax Rate Reconciliation [Line Items]
Provision computed at statutory rate									$ 57,461	$ 62,905	$ 51,714
State income tax, net of Federal tax benefit									1,353	1,432	1,884
Asset impairment charge									3,190	0	0
Tax-exempt interest income									(8,118)	(334)	(554)
Acquisition related items									322	0	(315)
Domestic manufacturing deduction									(105)	(212)	(70)
Research and experimental credit									0	(508)	(713)
Foreign rate differential									(13,710)	(13,899)	(8,134)
Other									1,884	(8)	1,181
Provision for income taxes	$ 9,263	$ 11,917	$ 9,366	$ 11,731	$ 8,253	$ 13,795	$ 13,082	$ 14,246	$ 42,277	$ 49,376	$ 44,993

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Inventories

12 Months Ended

Dec. 31, 2012

Inventories

Note 6 Inventories

The components of inventories are as follows (in thousands):

	As of
	December 31, 2012		December 31, 2011
Raw material	$	31,350	$	45,795
Work in process		921		872
Deferred costs of long-term contracts		604		220
Finished goods		104,137		101,111
Total inventories, gross		137,012		147,998
Inventory reserves		(13,655)		(14,710)
Total inventories, net	$	123,357	$	133,288

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Property and Equipment

12 Months Ended

Dec. 31, 2012

Property and Equipment

Note 7 Property and Equipment

Property and equipment, which includes assets under capital leases, is comprised of the following (in thousands):

	As of December 31,
	2012		2011
Buildings	$	2,134	$	2,086
Land		504		504
Machinery, equipment and tooling		88,222		81,464
Furniture and office equipment		12,672		12,003
Computers and software		130,357		111,793
Automobiles		18		18
Leasehold improvements		16,380		15,494
Projects in progress – computers and software		2,217		9,135
Projects in progress - other		15,561		11,332
		268,065		243,829
Less accumulated depreciation and amortization		(166,716)		(146,007)
Net property and equipment	$	101,349	$	97,822

Other items related to property and equipment are as follows (in thousands):

	As of December 31,
	2012		2011
Unamortized computer software costs	$	48,873	$	42,134

	Year Ended December 31,
	2012		2011		2010
Amortization of capitalized software	$	7,912	$	6,180	$	5,624
Total depreciation expense charged to income		21,504		20,680		20,291

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Other Assets

12 Months Ended

Dec. 31, 2012

Other Assets

Note 9 Other Assets

Other assets consist of the following (in thousands):

	As of December 31,
	2012		2011
Money market investments related to the deferred compensation plan (See Note 17)	$	3,553	$	3,199
Long-term investments		9,195		80
Deposits		898		917
Total	$	13,646	$	4,196

During 2012, Zebra acquired interests ranging from 4.7% to 19.7% in several venture capital technology companies for $9,125,000 during the year. These investments are classified as long term.

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Fair Value Measurements - Summary of Short-Term and Long-Term Investments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized Cost	$ 328,796	$ 291,073
Gross Unrealized Gains	1,038	641
Gross Unrealized Losses	(499)	(1,437)
Estimated Fair Value	329,335	290,277
U.S. Government Corporation and Agency Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized Cost	96,913	50,738
Gross Unrealized Gains	77	115
Gross Unrealized Losses	(3)	(6)
Estimated Fair Value	96,987	50,847
Obligations of Government- Sponsored Enterprises [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized Cost	4,830	16,581
Gross Unrealized Gains	10	32
Gross Unrealized Losses	0	(1)
Estimated Fair Value	4,840	16,612
State And Municipal Bonds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized Cost	96,383	142,586
Gross Unrealized Gains	161	330
Gross Unrealized Losses	(28)	(43)
Estimated Fair Value	96,516	142,873
Corporate Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized Cost	130,634	81,132
Gross Unrealized Gains	790	164
Gross Unrealized Losses	(468)	(1,387)
Estimated Fair Value	130,956	79,909
Other Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized Cost	36	36
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 36	$ 36

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Major Customers - Additional Information (Detail)	Dec. 31, 2012
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items]
Percentage of total net sales	10.00%

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Derivative Instruments - Financial Information Related to Cash Flow Hedges of Future Revenues (Detail)	12 Months Ended
	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2012 Cash Flow Hedging [Member] USD ($)	Dec. 31, 2011 Cash Flow Hedging [Member] USD ($)	Dec. 31, 2010 Cash Flow Hedging [Member] USD ($)	Dec. 31, 2012 Cash Flow Hedging [Member] EUR (€)	Dec. 31, 2011 Cash Flow Hedging [Member] EUR (€)
Derivative [Line Items]
Notional balance of outstanding contracts versus the dollar							€ 88,680,000	€ 85,105,000
Hedge effectiveness							100.00%	100.00%
Net gains and (losses) included in revenue	$ 7,203,000	$ (5,109,000)	$ 3,689,000	$ 4,201,000	$ (4,159,000)	$ (630,000)

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Investments and Marketable Securities - Schedule of Available-for-Sale Securities (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule of Available-for-sale Securities [Line Items]
Changes in unrealized gains and losses on available-for-sale securities, net of tax, recorded in accumulated other comprehensive income (loss)	$ 887	$ (385)	$ (406)

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Equity-Based Compensation - Summary of SAR Activity (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Granted
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding at beginning of year	1,287,724	1,234,787	684,058
Shares, Granted	431,040	387,847	612,681
Shares, Exercised	(102,972)	(95,672)	(31,001)
Shares, Forfeited	(75,978)	(238,965)	(30,678)
Shares, Expired	(4,010)	(273)	(273)
Shares, Outstanding at end of period	1,535,804	1,287,724	1,234,787
Shares, Exercisable at end of period	514,787	305,228	149,318
Weighted-Average Exercise Price, Outstanding at beginning of year	$ 28.91	$ 23.82	$ 19.97
Weighted-Average Exercise Price, Granted	$ 38.51	$ 41.14	$ 27.82
Weighted-Average Exercise Price, Exercised	$ 23.83	$ 22.20	$ 19.56
Weighted-Average Exercise Price, Forfeited	$ 34.10	$ 25.15	$ 22.14
Weighted-Average Exercise Price, Expired	$ 41.57	$ 19.56	$ 19.56
Weighted-Average Exercise Price, Outstanding at end of year	$ 31.66	$ 28.91	$ 23.82
Weighted-Average Exercise Price, Exercisable at end of year	$ 26.52	$ 23.27	$ 20.19
Intrinsic value of exercised options and SARs	$ 1,500,000	$ 1,700,000	$ 353,000

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Fair Value Measurements - Assets Measured Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at beginning of the year	$ 2,588	$ 5,597
Transfers to Level 3	0	0
Included in earnings	0	(255)
Included in other comprehensive income (loss)	0	317
Purchases and settlements (net)	0	(3,071)
Balance at end of period	2,588	2,588
Total gains (losses) for the period included in earnings attributable to the change in unrealized losses relating to assets still held at end of period	$ 0	$ 0

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Stockholders' Equity - Share Count and Par Value Data Related to Stockholders' Equity (Detail) (USD $)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Stockholders Equity [Line Items]
Preferred stock, par value per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares outstanding	0	0
Common stock-class A, par value per share	$ 0.01	$ 0.01
Common stock-class A, shares authorized	150,000,000	150,000,000
Common stock-class A, shares issued	72,151,857	72,151,857
Common stock-class A, shares outstanding	50,908,267	52,095,166	55,711,325
Treasury stock, shares held	21,243,590	20,056,691

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at January 1, 2011	$	4,000
Additions based on tax positions related to 2011		0
Additions based on tax positions related to 2012		680
Balance at December 31, 2012	$	4,680

Summary of Accrued Warranty Obligation

The following table is a summary of Zebra’s accrued warranty obligation (in thousands):

	Year Ended December 31,
Warranty Reserve	2012		2011		2010
Balance at the beginning of the year	$	4,613	$	4,554	$	3,813
Warranty expense		6,828		5,856		6,427
Warranty payments		(7,189)		(5,797)		(5,686)
Balance at the end of the period	$	4,252	$	4,613	$	4,554

Compensation Expense and Related Tax Benefit for Equity Based Payments

The compensation expense and the related income tax benefit for share-based payments were included in the Consolidated Statement of Earnings as follows (in thousands):

	For the years ended December 31,
Compensation costs and related income tax benefit:	2012		2011		2010
Cost of sales	$	1,061	$	1,029	$	882
Selling and marketing		1,792		1,463		1,368
Research and development		1,593		1,387		1,282
General and administration		10,281		9,228		6,580
Total compensation expense	$	14,727	$	13,107	$	10,112
Income tax benefit	$	5,132	$	4,522	$	3,489

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Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2012

Components of Other Comprehensive Income (Loss) Gross and Net of Income Tax

The components of other comprehensive income (loss) included in the Consolidated Statements of Comprehensive Income (Loss) are as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Changes in unrealized gains and (losses) on hedging transactions:
Gross	$	(9,936)	$	8,878	$	(1,522)
Income tax (benefit)		(2,695)		2,669		(573)
Net	$	(7,241)	$	6,209	$	(949)
Changes in unrealized holding gains and (losses) on investments classified as available-for-sale:
Gross	$	1,337	$	(597)	$	(652)
Income tax (benefit)		450		(212)		(246)
Net	$	887	$	(385)	$	(406)
Foreign currency translation adjustments	$	242	$	(688)	$	67

Components of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) included in the Consolidated Balance Sheets are as follows (in thousands):

	As of December 31,
	2012		2011
Unrealized gains and (losses) on hedging transactions:
Gross	$	(2,581)	$	7,355
Income tax expense (benefit)		(599)		2,096
Net		(1,982)		5,259
Unrealized gains and (losses) on investments classified as available-for-sale:
Gross		540		(797)
Income tax expense (benefit)		162		(288)
Net		378		(509)
Foreign currency translation adjustments		(8,721)		(8,963)
Total accumulated other comprehensive income (loss)	$	(10,325)	$	(4,213)

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Stockholders' Equity

12 Months Ended

Dec. 31, 2012

Stockholders' Equity

Note 14 Stockholders’ Equity

Share count and par value data related to stockholders’ equity are as follows:

	As of
	December 31,     2012		December 31,     2011
Preferred Stock
Par value per share	$	0.01	$	0.01
Shares authorized		10,000,000		10,000,000
Shares outstanding		0		0
Common Stock—Class A
Par value per share	$	0.01	$	0.01
Shares authorized		150,000,000		150,000,000
Shares issued		72,151,857		72,151,857
Shares outstanding		50,908,267		52,095,166
Treasury stock
Shares held		21,243,590		20,056,691

During the year ended December 31, 2012, Zebra purchased 1,473,863 shares of common stock for $54,373,000 under board authorized share repurchase plans compared to the year ended December 31, 2011, in which Zebra purchased 4,353,801 shares of common stock for $160,200,000. During the year ended December 31, 2010, Zebra purchased 3,349,286 shares of common stock for $102,091,000.

A roll forward of Class A common shares outstanding is as follows:

	Year Ended December 31,
	2012		2011
Balance at the beginning of the year		52,095,166		55,711,325
Repurchases		(1,473,863)		(4,353,801)
Stock options, rights and ESPP issuances		246,625		593,574
Restricted share issuances		242,238		215,510
Restricted share forfeitures		(130,119)		(17,138)
Shares withheld for tax obligations		(71,780)		(54,304)
Balance at the end of the period		50,908,267		52,095,166

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Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Accumulated Other Comprehensive Income Loss [Line Items]
Unrealized gains and (losses) on hedging transactions, Gross	$ (2,581)	$ 7,355
Unrealized gains and (losses) on hedging transactions, Income tax expense (benefit)	(599)	2,096
Unrealized gains and (losses) on hedging transactions, Net	(1,982)	5,259
Unrealized gains and (losses) on investments classified as available-for-sale, Gross	540	(797)
Unrealized gains and (losses) on investments classified as available-for-sale, Income tax expense (benefit)	162	(288)
Unrealized gains and (losses) on investments classified as available-for-sale, Net	378	(509)
Foreign currency translation adjustments	(8,721)	(8,963)
Total accumulated other comprehensive income (loss)	$ (10,325)	$ (4,213)

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Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2012

Other Comprehensive Income (Loss)

Note 19 Other Comprehensive Income (Loss)

Stockholders’ equity contains certain items classified as other comprehensive income (loss), including:

• Foreign currency translation adjustments related to our non-U.S. subsidiary companies that have designated a functional currency other than the dollar. We are required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, month-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustments component of other comprehensive income (loss).

• Unrealized holding gains (losses) on foreign currency hedging activities relate to derivative instruments used to hedge the currency exchange rates for forecasted euro sales. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transaction occurs. See Note 11 for more details.

• Unrealized gains (losses) on investments classified as available-for-sale are deferred from income statement recognition. See Note 4 for more details.

The components of other comprehensive income (loss) included in the Consolidated Statements of Comprehensive Income (Loss) are as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Changes in unrealized gains and (losses) on hedging transactions:
Gross	$	(9,936)	$	8,878	$	(1,522)
Income tax (benefit)		(2,695)		2,669		(573)
Net	$	(7,241)	$	6,209	$	(949)
Changes in unrealized holding gains and (losses) on investments classified as available-for-sale:
Gross	$	1,337	$	(597)	$	(652)
Income tax (benefit)		450		(212)		(246)
Net	$	887	$	(385)	$	(406)
Foreign currency translation adjustments	$	242	$	(688)	$	67

Changes in unrealized gains (losses) on hedging transactions included in net income totaled $7,203,000 for the year ended December 31, 2012, $(5,109,000) for the year ended December 31, 2011, and $3,689,000 for the year ended December 31, 2010.

The components of accumulated other comprehensive income (loss) included in the Consolidated Balance Sheets are as follows (in thousands):

	As of December 31,
	2012		2011
Unrealized gains and (losses) on hedging transactions:
Gross	$	(2,581)	$	7,355
Income tax expense (benefit)		(599)		2,096
Net		(1,982)		5,259
Unrealized gains and (losses) on investments classified as available-for-sale:
Gross		540		(797)
Income tax expense (benefit)		162		(288)
Net		378		(509)
Foreign currency translation adjustments		(8,721)		(8,963)
Total accumulated other comprehensive income (loss)	$	(10,325)	$	(4,213)

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Earnings (Loss) Per Share - Computation of Earnings (Loss) Per Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Earnings Per Share [Line Items]
Weighted average common shares outstanding	50,968	51,566	51,771	51,998	52,108	53,339	54,546	55,353	51,566	53,854	57,143
Effect of dilutive securities outstanding									277	337	285
Diluted weighted average shares outstanding	51,262	51,809	52,030	52,301	52,354	53,628	54,958	55,774	51,843	54,191	57,428
Income from continuing operations	$ 34,799	$ 26,581	$ 30,353	$ 30,164	$ 32,859	$ 34,187	$ 33,169	$ 30,128	$ 121,897	$ 130,343	$ 104,614
Income (loss) from discontinued operations, net of tax	191	516	300	0	2,185	10,814	(205)	31,506	1,007	44,300	(2,836)
Net income	$ 34,990	$ 27,097	$ 30,653	$ 30,164	$ 35,044	$ 45,001	$ 32,964	$ 61,634	$ 122,904	$ 174,643	$ 101,778
Income from continuing operations	$ 0.69	$ 0.52	$ 0.58	$ 0.58	$ 0.63	$ 0.64	$ 0.60	$ 0.54	$ 2.36	$ 2.42	$ 1.83
Income (loss) from discontinued operations	$ 0.00	$ 0.01	$ 0.01	$ 0.00	$ 0.04	$ 0.20	$ 0.00	$ 0.57	$ 0.02	$ 0.82	$ (0.05)
Net income, Basic per share amounts	$ 0.69	$ 0.53	$ 0.59	$ 0.58	$ 0.67	$ 0.84	$ 0.60	$ 1.11	$ 2.38	$ 3.24	$ 1.78
Income from continuing operations	$ 0.68	$ 0.51	$ 0.58	$ 0.58	$ 0.63	$ 0.64	$ 0.60	$ 0.54	$ 2.35	$ 2.40	$ 1.82
Income (loss) from discontinued operations	$ 0.00	$ 0.01	$ 0.01	$ 0.00	$ 0.04	$ 0.20	$ 0.00	$ 0.56	$ 0.02	$ 0.82	$ (0.05)
Net income, Diluted per share amounts	$ 0.68	$ 0.52	$ 0.59	$ 0.58	$ 0.67	$ 0.84	$ 0.60	$ 1.10	$ 2.37	$ 3.22	$ 1.77

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Deferred Compensation Plan (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Deferred Compensation Plan Asset and Liability

The following table shows the income, asset and liability amounts related to this plan (in thousands):

	As of December 31,
	2012		2011
Mutual funds included in other assets	$	3,553	$	3,199
Deferred compensation liability included in other long-term liabilities	$	3,553	$	3,199

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Equity-Based Compensation - Weighted Average Assumptions Used for Employee Purchase Rights Granted Under Stock Purchase Plan (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%	0.00%
Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair market value	35.43	34.77	27.95
Option price	33.66	33.03	26.55
Expected dividend yield	0.00%	0.00%	0.00%
Expected volatility	21.00%	33.00%	25.00%
Risk free interest rate	0.07%	0.07%	0.14%

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Other Assets (Tables)

12 Months Ended

Dec. 31, 2012

Components of Other Assets

Other assets consist of the following (in thousands):

	As of December 31,
	2012		2011
Money market investments related to the deferred compensation plan (See Note 17)	$	3,553	$	3,199
Long-term investments		9,195		80
Deposits		898		917
Total	$	13,646	$	4,196

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Income Taxes - Components of Income (Loss) Before Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Loss From Operations Before Provision Benefit For Income Taxes [Line Items]
United States									$ 60,388	$ 78,593	$ 72,298
Outside United States									103,786	101,126	77,309
Income from continuing operations before income taxes	$ 44,062	$ 38,498	$ 39,719	$ 41,895	$ 41,112	$ 47,982	$ 46,251	$ 44,374	$ 164,174	$ 179,719	$ 149,607

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (USD $) In Thousands	Total	Class A Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Dec. 31, 2009	$ 712,129	$ 722	$ 136,104	$ (385,831)	$ 969,195	$ (8,061)
Repurchase of Class A Common Stock	(102,091)			(102,091)
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards	8,975		(16,918)	25,893
Additional tax benefit resulting from exercise of options	(1,342)		(1,342)
Equity-based compensation	11,871		11,871
Net income	101,778				101,778
Unrealized holding gains (losses) on investments, net of income taxes	(406)					(406)
Unrealized gain (loss) on hedging transactions, net of income taxes	(949)					(949)
Foreign currency translation adjustment	67					67
Ending Balance at Dec. 31, 2010	730,032	722	129,715	(462,029)	1,070,973	(9,349)
Repurchase of Class A Common Stock	(160,200)			(160,200)
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards	13,009		(12,598)	25,607
Additional tax benefit resulting from exercise of options	210		210
Equity-based compensation	14,095		14,095
Net income	174,643				174,643
Unrealized holding gains (losses) on investments, net of income taxes	(385)					(385)
Unrealized gain (loss) on hedging transactions, net of income taxes	6,209					6,209
Foreign currency translation adjustment	(688)					(688)
Ending Balance at Dec. 31, 2011	776,925	722	131,422	(596,622)	1,245,616	(4,213)
Repurchase of Class A Common Stock	(54,373)			(54,373)
Issuance of treasury shares upon exercise of stock options, purchases under stock purchase plan and grants of restricted stock awards	3,361		(6,196)	9,557
Additional tax benefit resulting from exercise of options	(430)		(430)
Equity-based compensation	14,727		14,727
Net income	122,904				122,904
Unrealized holding gains (losses) on investments, net of income taxes	887					887
Unrealized gain (loss) on hedging transactions, net of income taxes	(7,241)					(7,241)
Foreign currency translation adjustment	242					242
Ending Balance at Dec. 31, 2012	$ 857,002	$ 722	$ 139,523	$ (641,438)	$ 1,368,520	$ (10,325)

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Commitments and Contingencies - Schedule of Rent Expense for Operating Leases (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Loss Contingencies [Line Items]
Rent expense	$ 15,254	$ 13,907	$ 11,469

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Fair Value Measurements

12 Months Ended

Dec. 31, 2012

Fair Value Measurements

Note 3 Fair Value Measurements

Financial assets and liabilities are to be measured using inputs from three levels of the fair value hierarchy. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Zebra uses a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels:

Level 1:	Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. (i.e. U.S. Treasuries and money market funds)
Level 2:	Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.
Level 3:	Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in the assessment of fair value. Included in our investment portfolio at December 31, 2012, is an auction rate security which is classified as available for sale and is reflected at fair value. Due to events in credit markets, however, the auction event for the instrument held by Zebra is failed. Therefore, the fair value of this security is estimated utilizing broker quotations, discounted cash flow analysis or other types of valuation adjustment methodologies at December 31, 2012. These analyses consider, among other items, the collateral underlying the security instruments, the creditworthiness of the counterparty, the timing of expected future cash flows, estimates of the next time the security is expected to have a successful auction, and Zebra’s intent and ability to hold such securities until credit markets improve. The security was also compared, when possible, to other securities with similar characteristics.

The decline in the market value of the auction rate security is considered temporary and has been recorded in accumulated other comprehensive income (loss) on Zebra’s balance sheet. Since Zebra has the intent and ability to hold this auction rate security until it is sold at auction, redeemed at carrying value or reach maturity, we have classified it as a long-term investment on the balance sheet.

Financial assets and liabilities carried at fair value as of December 31, 2012, are classified below (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
U.S. government and agency securities	$	83,532	$	13,455	$	0	$	96,987
Obligations of government-sponsored enterprises (1)		0		4,840		0		4,840
State and municipal bonds		0		96,516		0		96,516
Corporate securities		0		128,368		2,588		130,956
Other investments		0		36		0		36
Investments subtotal		83,532		243,215		2,588		329,335
Money market investments related to the deferred compensation plan		3,553		0		0		3,553
Total assets at fair value	$	87,085	$	243,215	$	2,588	$	332,888
Liabilities:
Forward contracts (2)	$	1,174	$	871	$	0	$	2,045
Liabilities related to the deferred compensation plan		3,553		0		0		3,553
Total liabilities at fair value	$	4,727	$	871	$	0	$	5,598

Financial assets and liabilities carried at fair value as of December 31, 2011, are classified below (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
U.S. government and agency securities	$	25,540	$	25,307	$	0	$	50,847
Obligations of government-sponsored enterprises (1)		0		16,612		0		16,612
State and municipal bonds		0		142,873		0		142,873
Corporate securities		0		77,321		2,588		79,909
Other investments		0		36		0		36
Investments subtotal		25,540		262,149		2,588		290,277
Forward contracts (2)		2,626		6,584		0		9,210
Money market investments related to the deferred compensation plan		3,199		0		0		3,199
Total assets at fair value	$	31,365	$	268,733	$	2,588	$	302,686
Liabilities:
Liabilities related to the deferred compensation plan	$	3,199	$	0	$	0	$	3,199
Total liabilities at fair value	$	3,199	$	0	$	0	$	3,199

1) Includes investments in notes issued by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Federal Farm Credit Banks and the Federal Home Loan Bank.

2) The fair value of forward contracts are calculated as follows:

a. Fair value of a collar or put option contract associated with forecasted sales hedges are calculated using bid and ask rates for similar contracts.

b. Fair value of regular forward contracts associated with forecasted sales hedges are calculated using the period-end exchange rate adjusted for current forward points.

c. Fair value of balance sheet hedges are 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.

The following table presents Zebra’s activity for assets measured at fair value on a recurring basis using significant unobservable inputs, Level 3 as defined in ASC 820 for the years ended December 31 (in thousands):

	Year Ended
	December 31, 2012		December 31, 2011
Balance at beginning of the year	$	2,588	$	5,597
Transfers to Level 3		0		0
Total losses (realized or unrealized):
Included in earnings		0		(255	)
Included in other comprehensive income (loss)		0		317
Purchases and settlements (net)		0		(3,071	)
Balance at end of period	$	2,588	$	2,588
Total gains (losses) for the period included in earnings attributable to the change in unrealized losses relating to assets still held at end of period	$	0	$	0

As of December 31, 2012 and December 31, 2011, there were no other Level 3 unrealized losses that Zebra believes to be other-than-temporary. No realized gains or losses were recorded for the years ended December 31, 2012 and 2011.

The following is a summary of short-term and long-term investments at December 31, 2012 and December 31, 2011 (in thousands):

	As of December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government and agency securities	$	96,913	$	77	$	(3	)	$	96,987
Obligations of government-sponsored enterprises		4,830		10		0			4,840
State and municipal bonds		96,383		161		(28	)		96,516
Corporate securities		130,634		790		(468	)		130,956
Other investments		36		0		0			36
Total investments	$	328,796	$	1,038	$	(499	)	$	329,335
	As of December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government and agency securities	$	50,738	$	115	$	(6	)	$	50,847
Obligations of government-sponsored enterprises		16,581		32		(1	)		16,612
State and municipal bonds		142,586		330		(43	)		142,873
Corporate securities		81,132		164		(1,387	)		79,909
Other investments		36		0		0			36
Total investments	$	291,073	$	641	$	(1,437	)	$	290,277

The maturity dates of investments as of December 31, 2012 are as follows (in thousands):

	As of December 31, 2012
	Amortized Cost		Estimated Fair Value
Less than 1 year	$	323,210	$	324,140
1 to 5 years		0		0
6 to 10 years		5,586		5,195
Thereafter		0		0
Total	$	328,796	$	329,335

The carrying value for Zebra’s financial instruments classified as current assets (other than short-term investments) and current liabilities approximate fair value due to short term maturities.

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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended				12 Months Ended													12 Months Ended			12 Months Ended
	Sep. 29, 2012	Dec. 31, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2012 Segment	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012 Printers [Member] Y	Dec. 31, 2012 Printheads [Member] M	Dec. 31, 2012 Batteries [Member] M	Dec. 31, 2012 Battery Based Products [Member] D	Dec. 31, 2012 Buildings [Member]	Dec. 31, 2012 Current Technology [Member]	Dec. 31, 2012 Patent and Patent Rights [Member]	Dec. 31, 2012 Customer Relationships [Member]	Dec. 31, 2012 Minimum [Member]	May 31, 2012 Minimum [Member]	Dec. 31, 2012 Minimum [Member] Property, Plant and Equipment, Other Types [Member]	Dec. 31, 2012 Maximum [Member]	May 31, 2012 Maximum [Member]	Dec. 31, 2012 Maximum [Member] Equity-Based Compensation [Member]	Dec. 31, 2012 Maximum [Member] Property, Plant and Equipment, Other Types [Member]
Summary Of Significant Accounting Policies [Line Items]
Property and equipment, estimated useful lives													30 years						3 years				10 years
Increase in tax liability benefits from foreign restructuring						$ 680,000
Number of reporting units						2
Fair value exceeding the carrying value																		8.00%			31.00%
Goodwill impairment charges	9,114,000	0	9,114,000	0	0	9,114,000	0	0
Intangible assets, weighted-average useful life						5 years 3 months 18 days								4 years	4 years 4 months 24 days	7 years 3 months 18 days
Advertising expenses						8,983,000	8,070,000	6,836,000
Product warranty Period									1	9	12	30
Expected weighted-average life						5 years 5 months 23 days	5 years 5 months 1 day	5 years 4 months 10 days									3 months			1 year		5 years
Excess tax benefits in Financing activities						$ 1,578,000	$ 1,392,000	$ 244,000

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Costs Associated with Exit or Disposal Activities - Liabilities and Expenses Related to Exit Activities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Restructuring Reserve Disclosures [Abstract]
Balance at beginning of period				$ 1,048				$ 1,479	$ 1,048	$ 1,479
Charged to earnings	960	0	0	0	(49)	138	66	1,886	960	2,041	2,262
Cash paid									(1,041)	(2,472)
Balance at the end of period	$ 967				$ 1,048				$ 967	$ 1,048	$ 1,479

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Deferred Compensation Plan - Schedule of Deferred Compensation Plan Asset and Liability (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Mutual funds included in other assets	$ 3,553	$ 3,199
Deferred compensation liability included in other long-term liabilities	$ 3,553	$ 3,199

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Investments and Marketable Securities - Additional Information (Detail) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Schedule of Investments [Line Items]
Foreign cash and investments	$ 173,483,000	$ 96,829,000

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Geographic Data

12 Months Ended

Dec. 31, 2012

Geographic Data

Note 20 Geographic Data

Information regarding Zebra’s operations by geographic area is contained in the following table. These amounts (in thousands) are reported in the geographic area of the destination of the final sale. We manage our business based on these regions rather than by individual countries.

	North America		Europe, Middle East & Africa		Latin America		Asia		Total
2012
Net sales	$	435,520	$	322,970	$	100,101	$	137,577	$	996,168
Long-lived assets		90,363		7,522		538		2,926		101,349
2011
Net sales	$	409,208	$	342,578	$	89,715	$	141,987	$	983,488
Long-lived assets		88,382		5,965		362		3,113		97,822
2010
Net sales	$	394,865	$	305,659	$	80,679	$	113,156	$	894,359
Long-lived assets		78,938		6,566		332		1,257		87,093
Net sales by country that are greater than 10% of total net sales are as follows (in thousands):
	United States		United Kingdom		Singapore		Other		Total
2012	$	539,504	$	317,793	$	134,349	$	4,522	$	996,168
2011	$	504,283	$	339,027	$	136,757	$	3,421	$	983,488
2010	$	482,891	$	303,604	$	105,286	$	2,578	$	894,359
Net sales by major product category are as follows (in thousands):
	Hardware		Supplies		Service and Software		Shipping and Handling		Total
2012	$	730,489	$	212,499	$	47,941	$	5,239	$	996,168
2011	$	743,308	$	187,457	$	47,206	$	5,517	$	983,488
2010	$	676,738	$	167,633	$	44,829	$	5,159	$	894,359

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Geographic Data - Net Sales by Major Product Category (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenue from External Customer [Line Items]
Total net sales	$ 253,179	$ 252,037	$ 247,077	$ 243,875	$ 247,308	$ 253,338	$ 245,541	$ 237,301	$ 996,168	$ 983,488	$ 894,359
United States [Member]
Revenue from External Customer [Line Items]
Total net sales									539,504	504,283	482,891
United Kingdom [Member]
Revenue from External Customer [Line Items]
Total net sales									317,793	339,027	303,604
Singapore [Member]
Revenue from External Customer [Line Items]
Total net sales									134,349	136,757	105,286
Other [Member]
Revenue from External Customer [Line Items]
Total net sales									$ 4,522	$ 3,421	$ 2,578

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Business Combinations - Summary of Estimated Fair Value of Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Jul. 13, 2012
Business Acquisition [Line Items]
Current assets	$ 7,017
Property and equipment	46
Other assets	17
Goodwill	24,353
Other intangibles	29,560
Total assets acquired	60,993
Current liabilities	1,119
Net assets acquired	$ 59,874

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Goodwill and Other Intangible Asset Data - Amortized Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Oct. 01, 2011	Jul. 02, 2011	Apr. 02, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Finite-Lived Intangible Assets [Line Items]
Gross Amount	$ 69,040				$ 37,883				$ 69,040	$ 37,883
Accumulated Amortization	(29,889)				(25,216)				(29,889)	(25,216)
Net Amount	39,151				12,667				39,151	12,667
Amortization expense	1,463	1,670	770	770	806	843	836	835	4,673	3,320	3,211
Current Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	18,978				12,718				18,978	12,718
Accumulated Amortization	(12,391)				(11,403)				(12,391)	(11,403)
Net Amount	6,587				1,315				6,587	1,315
Patent and Patent Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	29,569				23,392				29,569	23,392
Accumulated Amortization	(14,618)				(12,079)				(14,618)	(12,079)
Net Amount	14,951				11,313				14,951	11,313
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Amount	20,493				1,773				20,493	1,773
Accumulated Amortization	(2,880)				(1,734)				(2,880)	(1,734)
Net Amount	$ 17,613				$ 39				$ 17,613	$ 39

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Inventories (Tables)

12 Months Ended

Dec. 31, 2012

Components of Inventories

The components of inventories are as follows (in thousands):

	As of
	December 31, 2012		December 31, 2011
Raw material	$	31,350	$	45,795
Work in process		921		872
Deferred costs of long-term contracts		604		220
Finished goods		104,137		101,111
Total inventories, gross		137,012		147,998
Inventory reserves		(13,655)		(14,710)
Total inventories, net	$	123,357	$	133,288

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Savings and Profit Sharing Plans

12 Months Ended

Dec. 31, 2012

Savings and Profit Sharing Plans

Note 13 Savings and Profit Sharing Plans

Zebra has a Retirement Savings and Investment Plan (401(k) Plan), which is intended to qualify under Section 401(k) of the Internal Revenue Code. Qualified employees may participate in Zebra’s 401(k) Plan by contributing up to 15% of their gross earnings to the plan subject to certain Internal Revenue Service restrictions. Zebra matches 100% of the first 2% of gross eligible earnings, and also match the next 4% of gross eligible earnings at the rate of 50%. Zebra may contribute additional amounts to its 401(k) Plan at the discretion of the Board of Directors, subject to certain legal limits.

Company contributions to these plans, which were charged to operations, approximated the following (in thousands):

	Year Ended December 31,
	2012		2011		2010
401(k)	$	5,138	$	4,813	$	4,586
Total	$	5,138	$	4,813	$	4,586

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Equity-Based Compensation - Summary of Outstanding and Exercisable Options and SARs (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012
Stock Option [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Aggregate intrinsic value, Outstanding	$ 1,379,000
Aggregate intrinsic value, Exercisable	1,306,000
Weighted-average remaining contractual term, Outstanding	3 years 4 months 24 days
Weighted-average remaining contractual term, Exercisable	3 years 4 months 24 days
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Aggregate intrinsic value, Outstanding	10,551,000
Aggregate intrinsic value, Exercisable	$ 5,926,000
Weighted-average remaining contractual term, Outstanding	7 years 8 months 12 days
Weighted-average remaining contractual term, Exercisable	6 years 10 months 24 days