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