Fair Value Measurements (Tables)

3 Months Ended

Mar. 30, 2013

Financial Assets and Liabilities Carried at Fair Value

Financial assets and liabilities carried at fair value as of March 30, 2013, are classified below (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
U.S. government and agency securities	$	91,228	$	13,634	$	0	$	104,862
Obligations of government-sponsored enterprises (1)		0		11,046		0		11,046
State and municipal bonds		0		111,559		0		111,559
Corporate securities		0		137,881		2,588		140,469
Other investments		0		36		0		36
Investments subtotal		91,228		274,156		2,588		367,972
Forward contracts (2)		1,575		1,003		0		2,578
Money market investments related to the deferred compensation plan		3,917		0		0		3,917
Total assets at fair value	$	96,720	$	275,159	$	2,588	$	374,467
Liabilities:
Liabilities related to the deferred compensation plan	$	3,917	$	0	$	0	$	3,917
Total liabilities at fair value	$	3,917	$	0	$	0	$	3,917

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

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 at 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, for the following periods (in thousands):

	Three Months Ended
	March 30, 2013		March 31, 2012
Balance at beginning of the year	$	2,588	$	2,588
Transfers to Level 3		0		0
Total losses (realized or unrealized):
Included in earnings		0		0
Included in other comprehensive income (loss)		0		0
Purchases and settlements (net)		0		0
Balance at end of period	$	2,588	$	2,588
Total gains and (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 (in thousands):

	As of March 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government and agency securities	$	104,784	$	80	$	(2	)	$	104,862
Obligations of government-sponsored enterprises		11,035		11		0			11,046
State and municipal bonds		111,383		199		(23	)		111,559
Corporate securities		140,302		643		(476	)		140,469
Other investments		36		0		0			36
Total investments	$	367,540	$	933	$	(501	)	$	367,972

	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

Maturity Dates of Investments

The maturity dates of investments are as follows (in thousands):

	As of March 30, 2013
	Amortized Cost		Estimated Fair Value
Less than 1 year	$	168,127	$	168,361
1 to 5 years		195,556		196,168
6 to 10 years		3,857		3,443
Thereafter		0		0
Total	$	367,540	$	367,972