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Fair Value Measurements | 3 Months Ended
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Apr. 04, 2015
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Note 4 – Fair Value Measurements Financial assets and liabilities are to be measured using inputs from three levels of the fair value hierarchy. Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Zebra uses a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. In addition we consider counterparty credit risk in the assessment of fair value. Financial assets and liabilities carried at fair value as of April 4, 2015, are classified below (in thousands):
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward contracts (1) |  | $ | 3,794 |  |  | $ | 10,280 |  |  | $ | 0 |  |  | $ | 14,074 |
Money market investments related to the deferred compensation plan |  |  | 7,254 |  |  |  | 0 |  |  |  | 0 |  |  |  | 7,254 |
Total assets at fair value |  | $ | 11,048 |  |  | $ | 10,280 |  |  | $ | 0 |  |  | $ | 21,328 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward interest rate swap contracts (2) |  | $ | 0 |  |  | $ | 26,762 |  |  | $ | 0 |  |  | $ | 26,762 |
Liabilities related to the deferred compensation plan |  |  | 7,254 |  |  |  | 0 |  |  |  | 0 |  |  |  | 7,254 |
Total liabilities at fair value |  | $ | 7,254 |  |  | $ | 26,762 |  |  | $ | 0 |  |  | $ | 34,016 |
Financial assets and liabilities carried at fair value as of December 31, 2014, are classified below (in thousands):
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and agency securities |  | $ | 10,720 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 10,720 |
Obligations of government-sponsored enterprises (3) |  |  | 0 |  |  |  | 705 |  |  |  | 0 |  |  |  | 705 |
State and municipal bonds |  |  | 0 |  |  |  | 5,179 |  |  |  | 0 |  |  |  | 5,179 |
Corporate securities |  |  | 0 |  |  |  | 7,781 |  |  |  | 0 |  |  |  | 7,781 |
Investments subtotal |  |  | 10,720 |  |  |  | 13,665 |  |  |  | 0 |  |  |  | 24,385 |
Forward contracts (1) |  |  | 2,039 |  |  |  | 7,279 |  |  |  | 0 |  |  |  | 9,318 |
Money market investments related to the deferred compensation plan |  |  | 6,008 |  |  |  | 0 |  |  |  | 0 |  |  |  | 6,008 |
Total assets at fair value |  | $ | 18,767 |  |  | $ | 20,944 |  |  | $ | 0 |  |  | $ | 39,711 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward interest rate swap contracts (2) |  | $ | 0 |  |  | $ | 16,718 |  |  | $ | 0 |  |  | $ | 16,718 |
Liabilities related to the deferred compensation plan |  |  | 6,008 |  |  |  | 0 |  |  |  | 0 |  |  |  | 6,008 |
Total liabilities at fair value |  | $ | 6,008 |  |  | $ | 16,718 |  |  | $ | 0 |  |  | $ | 22,726 |
1) | The fair value of forward contracts is calculated as follows:
| a. | Fair value of a collar or put option contract associated with forecasted sales hedges is calculated using bid and ask rates for similar contracts.
| b. | Fair value of regular forward contracts associated with forecasted sales hedges is calculated using the period-end exchange rate adjusted for current forward points.
| c. | Fair value of balance sheet hedges is 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.
2) | The fair value of forward interest rate swap contracts is 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.
3) | Includes investments in notes issued by the Federal Home Loan Mortgage Corporation and the Federal Home Loan Bank.
The following is a summary of investments (in thousands):
|  | As of December 31, 2014 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |
U.S. government and agency securities |  | $ | 10,720 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 10,720 |
Obligations of government-sponsored enterprises |  |  | 705 |  |  |  | 0 |  |  |  | 0 |  |  |  | 705 |
State and municipal bonds |  |  | 5,156 |  |  |  | 27 |  |  |  | (4 | ) |  |  | 5,179 |
Corporate securities |  |  | 7,779 |  |  |  | 12 |  |  |  | (10 | ) |  |  | 7,781 |
Total investments |  | $ | 24,360 |  |  | $ | 39 |  |  | $ | (14 | ) |  | $ | 24,385 |
The carrying value for Zebra’s financial instruments classified as current assets (other than short-term investments) and current liabilities approximate fair value due to their short maturities.

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- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
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