<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 11-K
[ X ] Annual Report Pursuant to Section 15(d) of
the Securities Exchange Act of 1934
For the year ended December 31, 1997
Commission File Number:
Zebra Technologies Corporation
(Exact name of registrant as specified in its charter)
Delaware 36-2675536
------------------------------ ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
333 Corporate Woods Parkway, Vernon Hills, IL 60061
-------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(847) 634-6700
--------------------------------------------------
(Registrant's telephone number, including area code)
Zebra Technologies Corporation
333 Corporate Woods Parkway, Vernon Hills, IL 60061
This document consists of 13 pages.
1
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Plan's Trustees
Zebra Technologies Corporation Profit Sharing and Savings Plan:
We have audited the accompanying statements of net assets available for
benefits of the Zebra Technologies Corporation Profit Sharing and Savings
Plan (the Plan) as of December 31, 1996 and 1997, and the related statements
of changes in net assets available for benefits for the years then ended.
These financial statements are the responsibility of the Plan's management.
Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as
of December 31, 1996 and 1997, and the changes in net assets available for
benefits for the years then ended in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information included
in schedules 1 and 2 is presented for the purpose of additional analysis and
is not required as part of the basic financial statements, but is
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The Fund Information in the statements of net assets
available for benefits and note 5 is presented for purposes of additional
analysis rather than to present the net assets available for plan benefits
and changes in net assets available for plan benefits of each fund. The
supplemental schedules and Fund Information have been subjected to the
auditing procedures applied in the audits of the basic financial statements
and, in our opinion, are fairly stated in all material respects in relation
to the basic financial statements taken as a whole.
/s/KPMG Peat Marwick LLP
June 23, 1998
2
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION
PROFIT SHARING AND SAVINGS PLAN
Statements of Net Assets Available for Benefits
December 31, 1996 and 1997
<TABLE>
<CAPTION>
____________________________________________________________________________________
1996 1997
____________________________________________________________________________________
<S> <C> <C>
Assets:
Investments, at fair value:
Strong Government Securities Fund $ 1,609,089 1,777,461
Alex Brown Money Market Fund 593,914 708,282
AIM Constellation Fund 2,372,191 -
AIM Value Fund 1,833,144 2,443,910
AIM Balanced Fund - 511,035
Fidelity Low Priced Fund - 330,408
Putnam New Opportunities Fund - 3,123,772
GAM International Fund 1,512,365 2,250,121
MAS Value Fund 3,175,161 4,540,910
Zebra Technologies Corporation Common Stock Fund 165,191 255,969
Participant loans receivable 502,854 749,393
_______________________________________________________________________________
Total investments 11,763,909 16,691,261
Receivables:
Employer contributions 499,448 671,697
Participant contributions 82,664 10,823
_______________________________________________________________________________
Total receivables 582,112 682,520
Cash and cash equivalents 32,266 17,978
_______________________________________________________________________________
Net assets available for benefits $12,378,287 17,391,759
_______________________________________________________________________________
_______________________________________________________________________________
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION
PROFIT SHARING AND SAVINGS PLAN
Statements of Changes in Net Assets Available for Benefits
Years ended December 31, 1996 and 1997
<TABLE>
<CAPTION>
_______________________________________________________________________________
1996 1997
_______________________________________________________________________________
<S> <C> <C>
Additions to net assets attributed to:
Investment income:
Interest $ 68,082 77,114
Dividends 472,709 1,069,531
Realized gain on investments 17,914 406,604
Unrealized appreciation of investments 809,115 1,093,556
_______________________________________________________________________________
1,367,820 2,646,805
Participant contributions (including rollovers) 1,261,952 1,606,500
Employer 401(k) contributions 427,927 537,506
Employer profit sharing contributions 499,448 671,697
_______________________________________________________________________________
Total additions 3,557,147 5,462,508
Deductions from net assets attributed to -
benefits paid to participants 570,918 449,036
_______________________________________________________________________________
Total deductions 570,918 449,036
_______________________________________________________________________________
Net increase 2,986,229 5,013,472
Net assets available for benefits:
Beginning of year 9,392,058 12,378,287
_______________________________________________________________________________
End of year $12,378,287 17,391,759
_______________________________________________________________________________
_______________________________________________________________________________
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION
PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements
December 31, 1996 and 1997
_______________________________________________________________________________
(1) DESCRIPTION OF PLAN
The following description of the Zebra Technologies Corporation Profit
Sharing and Savings Plan (the Plan) provides only general information.
Participants should refer to the Plan agreement for a more complete
description of the Plan's provisions.
GENERAL
The Plan is a defined contribution plan covering eligible employees of
Zebra Technologies Corporation (the Company) subject to certain service
requirements. It is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
CONTRIBUTIONS
Participants may contribute 1% to 15% of eligible compensation on a pretax
basis within certain specified limitations. The Plan permits discretionary
contributions by the Company. During 1996 and 1997, the Company
contributed approximately $499,000 and $672,000, respectively, to the
profit sharing portion of the Plan and approximately $428,000 and $538,000,
respectively, to the savings portion (401(k)) of the Plan. As of January
1, 1997, participants were able to allocate their funds among any
combination of the following:
- AIM Constellation Fund
- AIM Value Fund
- Alex Brown Money Market Fund
- GAM International Fund
- MAS Value Fund
- Strong Government Securities Fund
- Zebra Technologies Corporation Common
Stock Fund (limited to 10% of contributions)
During 1997, the AIM Constellation Fund was removed as a participant
selection. Also, during 1997, the following three funds were added as
participant selections:
- AIM Balanced Fund
- Fidelity Low Priced Fund
- Putnam New Opportunities Fund
5 (Continued)
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION
PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements
<TABLE>
<CAPTION>
____________________________________________________________________________________
During 1996 and 1997, participant and employer contributions by fund were as
follows:
____________________________________________________________________________________
1996 1997
____________________________________________________________________________________
<S> <C> <C>
Participant directed:
Strong Government Securities Fund $ 232,895 257,170
Alex Brown Money Market Fund 84,238 127,036
AIM Constellation Fund 406,551 15,892
AIM Value Fund 319,418 362,370
AIM Balanced Fund - 66,090
Fidelity Low Priced Fund - 100,561
Putnam New Opportunities Fund - 435,379
GAM International Fund 205,920 280,746
MAS Value Fund 309,415 425,527
Zebra Technologies Corporation Common
Stock Fund 48,778 62,412
Profit sharing contribution receivable 499,448 671,697
Due from participants 82,664 10,823
____________________________________________________________________________________
Total participant and employer
contributions $2,189,327 2,815,703
____________________________________________________________________________________
____________________________________________________________________________________
</TABLE>
NUMBER OF PARTICIPANTS
As of December 31, 1997 there were a total of 679 participants in the Plan.
The number of participants under each investment program were as follows:
_______________________________________________________________________________
<TABLE>
<CAPTION>
<S> <C>
Strong Government Securities Fund 318
Alex Brown Money Market Fund 222
AIM Value Fund 439
AIM Balanced Fund 131
Fidelity Low Priced Fund 159
Putnam New Opportunities Fund 459
GAM International Fund 383
MAS Value Fund 428
Zebra Technologies Corporation Common Stock Fund 226
_______________________________________________________________________________
</TABLE>
6 (Continued)
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION
PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements
_______________________________________________________________________________
VESTING
Participant contributions (plus actual earnings thereon) vest immediately.
Employer contributions vest as follows:
_______________________________________________________________________________
<TABLE>
<CAPTION>
Completed
years of service Vested percentage
____________________________________________________________________________________
<S> <C>
1 20%
2 40
3 60
4 80
5 or more (6 or more prior to January 1, 1997) 100
____________________________________________________________________________________
</TABLE>
PAYMENT OF BENEFITS
Payment of benefits shall, in every case, be in the form of a lump sum.
HARDSHIP/WITHDRAWALS
Participants may withdraw funds from their savings contribution account
after meeting certain criteria as defined in the Plan. The minimum
hardship distribution is $1,000.
LOANS TO PARTICIPANTS
Loans are available to plan participants at the prime interest rate (as
published by American National Bank of Chicago), under limited
circumstances as described in the Plan. Loans to plan participants are
secured by their vested balance in the Plan and may not exceed the lesser
of 50% of their vested balance or $50,000.
TERMINATION OF THE PLAN
Although the Company has not expressed any intent to terminate the Plan, it
may do so at any time, subject to the provisions of ERISA.
(2)SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying financial statements have been prepared on the accrual
basis of accounting and present the net assets available for plan benefits
and the changes in those net assets.
INVESTMENTS
Investments are maintained in independent funds which are managed by the
respective funds' money managers and overseen by the Plan's trustees.
Investments are carried at fair value plus accrued interest/dividends.
Purchases and sales of securities are recorded on a trade-date basis.
7 (Continued)
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION
PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements
_______________________________________________________________________________
CONTRIBUTIONS
Participants' contributions are recognized by the Plan when withheld from
the participants by the Company.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of additions and deductions
from net assets during the reporting period. Actual results could differ
from those estimates.
(3)FEDERAL INCOME TAXES
The Plan has received a favorable determination letter from the Internal
Revenue Service, dated August 17, 1993, indicating that it is qualified
under Section 401(a) of the Internal Revenue Code and therefore, the
related trust is exempt from tax under Section 501(a) of the Internal
Revenue Code. The Plan's trustees are not aware of any activity or
transactions that may adversely affect the qualified status of the Plan.
(4)ADMINISTRATIVE EXPENSES
Amounts forfeited by participants are used to offset administrative
expenses of the Plan. To the extent administrative expenses exceed
forfeitures, administrative expenses are paid by the Company.
(5)NET ASSETS OF INACTIVE PARTICIPANTS
At December 31, 1997, net assets available for benefits included $4,650 of
100% vested account balances of inactive participants who have terminated
or retired and who have requested distribution, but have not yet been paid.
8 (Continued)
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION
PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements
<TABLE>
<CAPTION>
__________________________________________________________________________________________________________________________________
(5) FUND INFORMATION
Separate fund information for the years ended December 31, 1996 and 1997 is shown below:
__________________________________________________________________________________________________________________________________
Net
realized and
unrealized Loans,
Net assets appreciation transfers, Net assets
at Contri- Benefits Investment (depreciation) and at
Jan.1,1997 butions paid income in fair value miscellaneous Dec.31,1997
__________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C>
Strong Government Securities Fund $ 1,437,869 232,895 - 78,611 (41,388) (98,898) 1,609,089
Alex Brown Money Market Fund 714,044 84,238 (4,874) 36,547 (48) (235,993) 593,914
AIM Constellation Fund 1,562,080 406,551 - 75,306 228,736 99,518 2,372,191
AIM Value Fund 1,260,095 319,418 - 87,985 138,084 27,562 1,833,144
GAM International Fund 1,143,326 205,920 - 5,720 111,812 45,587 1,512,365
MAS Value Fund 2,181,704 309,415 - 221,322 448,127 14,593 3,175,161
Zebra Technologies Corporation
Common Stock Fund 161,602 48,778 - - (58,294) 13,105 165,191
Participant loans 389,695 - (48,700) 33,344 - 128,515 502,854
_________________________________________________________________________________________________________________________
Total investment funds 8,850,415 1,607,215 (53,574) 538,835 827,029 (6,011) 11,763,909
_________________________________________________________________________________________________________________________
Profit sharing contribution receivable 452,782 499,448 - - - (452,782) 499,448
Due from participants 18,114 82,664 - - - (18,114) 82,664
Miscellaneous receivables 2,119 - - - - (2,119) -
Cash and cash equivalents 68,628 - (517,344) 1,956 - 479,026 32,266
_________________________________________________________________________________________________________________________
Total assets available for benefits $ 9,392,058 2,189,327 (570,918) 540,791 827,029 - 12,378,287
_________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________
</TABLE>
9 (Continued)
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION
PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements
<TABLE>
<CAPTION>
__________________________________________________________________________________________________________________________________
Net
realized and
unrealized Loans,
Net assets appreciation transfers, Net assets
at Contri- Benefits Investment (depreciation) and at
Jan.1,1997 butions paid income in fair value miscellaneous Dec.31,1997
__________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C>
Strong Government Securities Fund $ 1,609,089 257,170 210 101,329 40,482 (230,819) 1,777,461
Alex Brown Money Market Fund 593,914 127,036 (1,722) 36,764 (2,725) (44,985) 708,282
AIM Constellation Fund 2,372,191 15,892 - - 79,385 (2,467,468) -
AIM Value Fund 1,833,144 362,370 176 248,991 204,814 (205,585) 2,443,910
AIM Balanced Fund - 66,090 177 24,403 54,305 366,060 511,035
Fidelity Low Priced Fund - 100,561 120 21,104 26,191 182,432 330,408
Putnam New Opportunities Fund - 435,379 120 70,915 371,315 2,246,043 3,123,772
GAM International Fund 1,512,365 280,746 116 101,915 363,110 (8,131) 2,250,121
MAS Value Fund 3,175,161 425,527 173 492,241 310,485 137,323 4,540,910
Zebra Technologies Corporation
Common Stock Fund 165,191 62,412 - - 52,798 (24,432) 255,969
Participant loans 502,854 - (9,323) 48,216 - 207,646 749,393
_________________________________________________________________________________________________________________________
Total investment funds 11,763,909 2,133,183 (9,953) 1,145,878 1,500,160 158,084 16,691,261
_________________________________________________________________________________________________________________________
Profit sharing contribution receivable 499,448 671,697 - - - (499,448) 671,697
Due from participants 82,664 10,823 - - - (82,664) 10,823
Cash and cash equivalents 32,266 - (439,083) 767 - 424,028 17,978
_________________________________________________________________________________________________________________________
Total assets available for benefits $ 12,378,287 2,815,703 (499,036) 1,146,645 1,500,160 - 17,391,759
_________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________
</TABLE>
10 (Continued)
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION SCHEDULE 1
PROFIT SHARING AND SAVINGS PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1997
<TABLE>
<CAPTION>
_______________________________________________________________________________
Fair
Description Cost value
_______________________________________________________________________________
<S> <C> <C>
Strong Government Securities Fund $ 1,763,918 1,777,461
Alex Brown Money Market Fund 708,417 708,282
AIM Value Fund 2,238,033 2,443,910
AIM Balanced Fund 460,362 511,035
Fidelity Low Priced Fund 308,950 330,408
Putnam New Opportunities Fund 2,763,596 3,123,772
GAM International Fund 1,819,566 2,250,121
MAS Value Fund 4,027,505 4,540,910
Zebra Technologies Corporation Common Stock Fund 233,917 255,969
Participant loans (interest rates ranging from 5%
to 12%) 749,393 749,393
_______________________________________________________________________________
Total assets held for investment purposes $ 15,073,657 16,691,261
_______________________________________________________________________________
_______________________________________________________________________________
</TABLE>
See accompanying independent auditors' report.
11
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION SCHEDULE 2
PROFIT SHARING AND SAVINGS PLAN
Schedule of Reportable Transactions
Year ended December 31, 1997
<TABLE>
<CAPTION>
_______________________________________________________________________________________________________________________________
Current
value of
Expenses incurred with trades asset on
Purchase Selling ______________________________ Cost of transaction Net gain
Description of security price price Purchases Sales Total security date (loss)
_______________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Strong Government Securities Fund:
166 purchases $ 457,924 - 457,924 457,924 -
98 sales - 430,948 442,034 430,948 (11,086)
Alex Brown Money Market Fund:
121 purchases 496,513 - 496,513 496,513 -
97 sales - 417,429 417,430 417,429 (1)
AIM Constellation Fund:
19 purchases 64,979 - 64,979 64,979 -
31 sales - 2,516,398 2,308,417 2,516,398 207,981
AIM Value Fund:
186 purchases 690,364 - 690,364 690,364 -
92 sales - 610,638 555,250 610,638 55,388
AIM Balanced Fund:
185 purchases 559,621 - 559,621 559,621 -
40 sales - 115,063 114,076 115,063 987
Putnam New Opportunities Fund:
167 purchases 2,898,710 - 2,898,710 2,898,710 -
101 sales - 333,053 330,477 333,053 2,576
GAM International Fund:
207 purchases 578,488 - 578,488 578,488 -
111 sales - 348,332 289,282 348,332 59,050
MAS Value Fund:
243 purchases 1,015,330 - 1,015,330 1,015,330 -
100 sales - 418,924 362,112 418,924 56,812
Zebra Common Stock:
69 purchases 208,718 - 208,718 208,718 -
49 sales - 107,792 104,441 107,792 3,351
American National Bank Money Fund:
119 purchases 1,050,842 - 1,050,842 1,050,842 -
111 sales - 1,029,773 1,017,558 1,029,773 12,215
_______________________________________________________________________________________________________________________________
</TABLE>
See accompanying independent auditors' report.
12
<PAGE>
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the Plan's has duly caused this annual report to be signed on its
behalf by the undersigned thereunto duly authorized.
Zebra Technologies Corporation
Profit Sharing and Savings Plan
Date: July 9, 1998 By: /s/Edward L. Kaplan
---------------------
Edward L. Kaplan
Plan Trustee
13
<PAGE>
CONSENT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors
Zebra Technologies Corporation:
We consent to incorporation by reference in the registration statements on
Form S-8 of Zebra Technologies Corporation of our report dated June 23, 1998,
relating to the statements of net assets available for benefits of the Zebra
Technologies Corporation Profit Sharing and Savings Plan as of December 31,
1996 and 1997, and the related statements of changes in net assets available
for benefits for the years then ended, which report appears in the December
31, 1997 report on Form 11-K of the Zebra Technologies Corporation Profit
Sharing and Savings Plan.
/s/KPMG Peat Marwick LLP
Chicago, Illinois
July 9, 1998
