Fair Value Measurements (Tables)

6 Months Ended

Jun. 28, 2014

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Carried at Fair Value

Financial assets and liabilities carried at fair value as of June 28, 2014, are classified below (in thousands):

	Level 1		Level 2			Level 3		Total
Assets:
U.S. government and agency securities	$	161,471	$	0		$	0	$	161,471
Obligations of government-sponsored enterprises (1)		0		27,298			0		27,298
State and municipal bonds		0		53,858			0		53,858
Corporate securities		0		191,771			2,588		194,359
Other investments		0		21,246			0		21,246
Investments subtotal		161,471		294,173			2,588		458,232
Forward contracts (2)	$	507	$	(106	)	$	0	$	401
Money market investments related to the deferred compensation plan		5,484		0			0		5,484
Total assets at fair value	$	167,462	$	294,067		$	2,588	$	464,117
Liabilities:
Forward interest rate swap contracts (3)	$	0	$	(2,433	)	$	0	$	(2,433	)
Liabilities related to the deferred compensation plan		5,484		0			0		5,484
Total liabilities at fair value	$	5,484	$	(2,433	)	$	0	$	3,051

Financial assets and liabilities carried at fair value as of December 31, 2013, are classified below (in thousands):

	Level 1		Level 2		Level 3		Total
Assets:
U.S. government and agency securities	$	89,626	$	0	$	0	$	89,626
Obligations of government-sponsored enterprises (1)		0		33,510		0		33,510
State and municipal bonds		0		51,627		0		51,627
Corporate securities		0		163,832		2,588		166,420
Other investments		0		11,785		0		11,785
Investments subtotal		89,626		260,754		2,588		352,968
Money market investments related to the deferred compensation plan		4,827		0		0		4,827
Total assets at fair value	$	94,453	$	260,754	$	2,588	$	357,795
Liabilities:
Forward contracts (2)	$	1,165	$	1,578	$	0	$	2,743
Liabilities related to the deferred compensation plan		4,827		0		0		4,827
Total liabilities at fair value	$	5,992	$	1,578	$	0	$	7,570

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.

3) The fair value of forward interest rate swap contracts are based upon a valuation model that uses relevant observable market inputs at quoted intervals, such as forward yield curves, and is adjusted for Zebra’s own credit risk and the interest rate swap terms.

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, for the following periods (in thousands):

	Six Months Ended
	June 28, 2014		June 29, 2013
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 June 28, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government and agency securities	$	161,385	$	86	$	0		$	161,471
Obligations of government-sponsored enterprises		27,294		4		0			27,298
State and municipal bonds		53,736		124		(2	)		53,858
Corporate securities		194,064		734		(439	)		194,359
Other investments		21,219		29		(2	)		21,246
Total investments	$	457,698	$	977	$	(443	)	$	458,232

	As of December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government and agency securities	$	89,617	$	27	$	(18	)	$	89,626
Obligations of government-sponsored enterprises		33,506		5		(1	)		33,510
State and municipal bonds		51,573		82		(28	)		51,627
Corporate securities		166,642		453		(675	)		166,420
Other investments		11,771		15		(1	)		11,785
Total investments	$	353,109	$	582	$	(723	)	$	352,968

Maturity Dates of Investment

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

	As of June 28, 2014
	Amortized Cost		Estimated Fair Value
Less than 1 year	$	108,570	$	108,664
1 to 5 years		346,128		346,980
6 to 10 years		3,000		2,588
Thereafter		0		0
Total	$	457,698	$	458,232