Item 1. Business The Company Zebra delivers products and solutions that improve our customers' ability to put their critical assets to work smarter by identifying tracking and managing assets transactions and people. We design, manufacture, and sell specialty printing devices that print variable information on demand at the point of issuance. These devices are used worldwide by manufacturers, service and retail organizations, and governments for automatic identification, data collection, and personal identification in applications that improve productivity, deliver better customer service, and provide more effective security. Our product range consists of direct thermal and thermal transfer label and receipt printers, passive radio frequency identification (RFID) printer/encoders, and dye sublimation card printers We also sell a comprehensive range of specialty supplies consisting of self-adhesive labels, thermal transfer ribbons, thermal printheads, batteries, and other accessories, including software for label design and printer network management. Note 7 Goodwill and Other Intangible Asset Data During the fourth quarter of 2008 , we determined that certain impairment indicators existed related to identified intangible assets and conducted an additional impairment test of intangibles Due to the deterioration of the economy and a significant reduction in the price of our stock, we determined that our goodwill and other intangible assets were impaired, requiring total estimated impairment charges of $157,600,000 at December 31,2008 . Note 17 Income Taxes The provision for income taxes differs from the amount computed by applying the U.S. statutory Federal income tax rate of 35% to income before income taxes The reconciliation of statutory and effective income taxes is presented below (in thousands): ZEBRA TECHNOLOGIES CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) Required: Using the Consolidated Statements of Operations and the excerpts from the Zebra Technologies Corporation Form 10-K, analyze the profitability of Zebra. Your analysis should include the following calculations for all three years: (a) Common-size income statements. (b) Gross profit margins for tangible products and services and software. (c) Growth rates of total net sales and total operating expenses. (d) Effective tax rates. Your written analysis and interpretation should include explanations for why trends have occurred