Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

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 2013 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		18,095		112,028		130,123
After three years of service		149,420		75,766		225,186
Total		167,515		187,794		355,309

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:

	2013	2012	2011
Expected dividend yield	0%	0%	0%
Forfeiture rate	10.31%	10.21%	11.50%
Volatility	32.00%	35.90%	35.33%
Risk free interest rate	.82%	.94%	2.01%
- Range of interest rates	0.02% - 1.78%	0.07% - 1.95%	0.01% - 3.18%
Expected weighted-average life	5.42 years	5.48 years	5.42 years
Fair value of SARs granted	$4,528,000	$5,533,000	$5,495,000
Weighted-average grant date fair value of options and SARs granted     (per underlying share)	$13.86	$12.84	$14.29

Summary of Stock Option Activity

Stock option activity for the years ended December 31, 2013, 2012, and 2011, was as follows:

	2013					2012					2011
Options	Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price
Outstanding at beginning of year		1,531,844		$	41.69		1,702,650		$	40.43		2,340,959		$	37.35
Granted		0			0		0			0		0			0
Exercised		(543,922	)		39.54		(148,802	)		27.02		(490,715	)		26.63
Forfeited		0			0		(1,663	)		36.36		(63,714	)		32.29
Expired		(32,145	)		45.81		(20,341	)		43.63		(83,880	)		40.76
Outstanding at end of year		955,777		$	42.78		1,531,844		$	41.69		1,702,650		$	40.43
Exercisable at end of year		955,777		$	42.78		1,527,814		$	41.75		1,589,096		$	40.84
Intrinsic value of exercised options	$	4,300,000				$	1,700,000				$	6,400,000

Summary of Outstanding and Exercisable Options

The following table summarizes information about stock options outstanding at December 31, 2013:

	Outstanding	Exercisable
Aggregate intrinsic value	$    4,201,000	$    4,201,000
Weighted-average remaining contractual term	2.5 years	2.5 years

Summary of SAR Activity

SAR activity for the years ended December 31, 2013, 2012, and 2011, was as follows:

	2013					2012					2011
SARs	Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price		Shares			Weighted- Average Exercise Price
Outstanding at beginning of year		1,535,804			$ 31.66		1,287,724			$ 28.91		1,234,787			$ 23.82
Granted		326,811			46.13		431,040			38.51		387,847			41.14
Exercised		(376,673	)		25.44		(102,972	)		23.83		(95,672	)		22.20
Forfeited		(80,515	)		37.54		(75,978	)		34.10		(238,965	)		25.15
Expired		(2,643	)		33.70		(4,010	)		41.57		(273	)		19.56
Outstanding at end of year		1,402,784			$ 36.36		1,535,804			$ 31.66		1,287,724			$ 28.91
Exercisable at end of year		520,426			$ 30.51		514,787			$ 26.52		305,228			$ 23.27
Intrinsic value of exercised SARs		$ 7,900,000					$ 1,500,000					$ 1,700,000

Summary of Restricted Stock Award Activity

Restricted stock award activity, granted under the 2011 and 2006 Plans, for the years ended December 31, 2013, 2012 and 2011 was as follows:

	2013					2012					2011
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		444,362			$ 35.43		529,880			$ 28.20		594,090			$ 25.51
Granted		167,515			46.17		169,081			38.45		152,636			41.17
Released		(161,976	)		31.28		(235,580	)		21.39		(197,472	)		30.08
Forfeited		(14,524	)		40.79		(19,019	)		34.90		(19,374	)		29.08
Outstanding at end of year		435,377			$ 40.92		444,362			$ 35.43		529,880			$ 28.20

Summary of Performance Share Award Activity

Performance share award activity, granted under the 2011 and 2006 Plans, for the years ended December 31, 2013, 2012 and 2011 was as follows:

	2013					2012					2011
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		265,829			$ 35.55		306,261			$ 28.58		250,596			$ 25.35
Granted		187,794			35.17		72,470			38.68		62,874			41.47
Released		(253,484	)		27.90		(1,802	)		41.57		(7,209	)		28.79
Forfeited		(4,980	)		41.46		(111,100	)		23.06		0			0.0
Outstanding at end of year		195,159			$ 42.25		265,829			$ 35.55		306,261			$ 28.58

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.

	2013		2012		2011
Fair market value	$	42.45	$	35.43	$	34.77
Option price	$	40.33	$	33.66	$	33.03
Expected dividend yield		0%		0%		0%
Expected volatility		19%		21%		33%
Risk free interest rate		0.05%		0.07%		0.07%

Stock Appreciation Rights (SARs) [Member]

Summary of Outstanding and Exercisable Options

The following table summarizes information about SARs outstanding at December 31, 2013:

	Outstanding	Exercisable
Aggregate intrinsic value	$    14,144,000	$    8,282,000
Weighted-average remaining contractual term	7.6 years	6.6 years