Fair Value Measurements (Tables)

9 Months Ended

Sep. 28, 2013

Financial Assets and Liabilities Carried at Fair Value

Financial assets and liabilities carried at fair value as of September 28, 2013, are classified below (in thousands):


	Level 1		Level 2		Level 3		Total
Assets:
U.S. Government and agency securities	$	94,064	$	0	$	0	$	94,064
Obligations of government-sponsored enterprises (1)		0		34,122		0		34,122
State and municipal bonds		0		90,444		0		90,444
Corporate securities		0		171,009		2,588		173,597
Other investments		0		9,902		0		9,902

Investments subtotal		94,064		305,477		2,588		402,129
Money market investments related to the deferred compensation plan		4,564		0		0		4,564

Total assets at fair value	$	98,628	$	305,477	$	2,588	$	406,693


Liabilities:
Forward contracts (2)	$	1,755	$	984	$	0	$	2,739
Liabilities related to the deferred compensation plan		4,564		0		0		4,564

Total liabilities at fair value	$	6,319	$	984	$	0	$	7,303

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	$	0	$	0	$	83,532
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		13,491		0		13,491

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 is calculated as follows:

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

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

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):


	Nine Months Ended
	September 28, 2013		September 29, 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 September 28, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Government and agency securities	$	94,027	$	41	$	(4	)	$	94,064
Obligations of government-sponsored enterprises		34,116		6		0			34,122
State and municipal bonds		90,417		115		(88	)		90,444
Corporate securities		173,900		456		(759	)		173,597
Other investments		9,891		13		(2	)		9,902

Total investments	$	402,351	$	631	$	(853	)	$	402,129


	As of December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Government and agency securities	$	83,499	$	33	$	0		$	83,532
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		13,450		44		(3	)		13,491

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 September 28, 2013
	Amortized Cost		Estimated Fair Value
Less than 1 year	$	173,413	$	173,542
1 to 5 years		220,002		220,184
6 to 10 years		8,936		8,403
Thereafter		0		0

Total	$	402,351	$	402,129

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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