x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE
|
Cayman
Islands
(State
or other jurisdiction
of
incorporation or organization)
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98-0229227
(I.R.S.
Employer Identification No.)
|
|
P.O.
Box 10670, Grand Cayman KY1-1006
Suite
3206B, 45 Market Street, Gardenia Court
Camana
Bay, Cayman Islands
(Address
of principal executive offices)
|
N/A
(Zip
Code)
|
Common
Shares, $0.005 Per Share Par Value
|
NASDAQ
Global Select Market
|
|
(Title
of each class)
|
(Name
of each exchange on which
registered)
|
Large
Accelerated Filer þ
|
Accelerated
Filer o
|
|
Non-accelerated
Filer o
|
|
Smaller
reporting company o
|
(Do
not check if a smaller reporting
company)
|
Document
|
Part of Form 10-K into
which Incorporated
|
|
Company's Definitive Proxy Statement
for the 2010 Annual Meeting of Shareholders which will be filed no later
than 120 days after December 26, 2009.
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Part
III
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Cautionary
Statement With Respect To Forward-Looking Comments
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3
|
||
Part
I
|
|||
Item
1.
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Business
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3
|
|
Item
1A.
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Risk
Factors
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23
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Item
1B.
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Unresolved
Staff Comments
|
34
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|
Item
2.
|
Properties
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34
|
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Item
3.
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Legal
Proceedings
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35
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Item
4.
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Submission
of Matters to a Vote of Security Holders
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38
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Executive
Officers of the Registrant
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38
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||
Part
II
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|||
Item
5.
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Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of
|
||
Equity
Securities
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40
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||
Item
6.
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Selected
Financial Data
|
42
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Item
7.
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Management's
Discussion and Analysis of Financial Condition and Results
of
|
||
Operations
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44
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||
Item
7A.
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Quantitative
and Qualitative Disclosures About Market Risk
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60
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Item
8.
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Financial
Statements and Supplementary Data
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62
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Item
9.
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Changes
in and Disagreements with Accountants on Accounting and
Financial
|
||
Disclosure
|
90
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||
Item
9A.
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Controls
and Procedures
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91
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Item
9B.
|
Other
Information
|
93
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Part
III
|
|||
Item
10.
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Directors,
Executive Officers and Corporate Governance
|
94
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Item
11.
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Executive
Compensation
|
95
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Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder
|
||
Matters
|
95
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||
Item
13.
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Certain
Relationships and Related Transactions, and Director
Independence
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96
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Item
14.
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Principal
Accounting Fees and Services
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96
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Part
IV
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|||
Item
15.
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Exhibits,
Financial Statement Schedules
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97
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Signatures
|
102
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Item
1.
|
Business
|
nüvi®
|
||
(25
models)
|
The
nüvi is Garmin’s popular thin-profile personal navigation device
(PND). All nüvi models combine a full-featured GPS navigator
(with built-in maps) with a currency and measurement converter, world
clock and digital photo organizer. Different nüvi models and
optional add-ons offer different feature sets, including a wide screen
display, integrated traffic receiver for traffic data, spoken street
names, voice recognition, speed limit indication, lane assist, 3-D
building view, , junction view, Bluetooth® hands-free capability, MP3
player, built-in maps of Europe, and the ability to add custom points of
interest. The nüvi model 1690 offers Garmin’s nüLink!™ service,
which is a subscription service (a free two-year subscription is provided
with the nüvi 1690) that provides certain real-time information delivered
wirelessly to the device, including Google™ local search, traffic
information, weather, fuel prices, movie listings, flight status, local
events, and white page telephone listings. Numerous newer nüvi
models also offer a feature called ecoRoute™, which is a feature designed
to help improve the vehicle’s fuel efficiency by suggesting route
calculations based upon less fuel usage and a driving challenge program
that helps reinforce fuel-efficient driving practices. In fiscal years
2009, 2008, and 2007, the nüvi class of products represented approximately
63%, 64%, and 52% respectively of Garmin’s total consolidated
revenues.
|
nüvifone
™
|
||
(2
models)
|
The
nüvifoneTM G60
— a touchscreen smartphone that integrates a mobile phone, web browser and
PND all in one device — was introduced in 2009 by Garmin and ASUSTek
Computer Inc. through the Garmin-Asus alliance, a co-branded alliance
between Garmin and ASUSTek Computer Inc. AT&T is the
exclusive mobile phone carrier for the nüvifone G60 in the United
States. It is also available for purchase in Belgium, France,
Switzerland, Poland, Czech Republic, Taiwan, Singapore and
Malaysia. The nüvifone M20 smartphone operates on a Windows
Mobile® 6.5 operating system and is sold in Taiwan and Hong
Kong.
|
|
zūmo®
|
||
(4
models)
|
Motorcycle-specific
navigators with features including a glove-friendly touch screen with high
bright sunlight-readable display, motorcycle mount, vibration-tested
design, and Bluetooth wireless technology. An SD (secure
digital) card slot allows riders to share their favorite places and
rides with fellow zūmo riders. The zūmo 660 features 3-D
building view and lane assist and a digital fuel gauge. The
zūmo 220 and 665 were announced in January 2010 as the latest zūmo models
(expected delivery of first quarter 2010). The zūmo 220 offers
a smaller form factor than previous models, while the 665 includes an
antenna for XM Satellite Radio®, XM NavWeather® and XM NavTraffic®
(subscription is required for XM content).
|
|
Garmin
Mobile® for
|
||
BlackBerry
|
Garmin
Mobile for BlackBerry is a subscription-based software application that
lets compatible BlackBerry devices function as versatile GPS
navigators.
|
|
Garmin
Mobile XT
|
Garmin
Mobile XT is a data card that turns many smartphones into full-featured
navigators. Users can simply plug the microSD card into a
compatible phone and begin navigating. No network coverage or
subscription is
required.
|
Forerunner®
|
||
(9
models)
|
Compact,
lightweight training assistants for athletes with integrated GPS sensor
(except for FR60 fitness watch) that provide time, speed, distance, pace
and other data. Some models also offer a heart rate monitoring function.
The Forerunner 60 is an entry-level advanced fitness watch that allows
runners and walkers to track their workouts and automatically upload their
data (via a wireless USB ANT™ Stick) to a personal
computer. The Forerunner 405 is a compact-sized, wrist-worn
GPS-enabled device that allows runners and joggers to track their speed,
distance, heart rate and location, access their training history or
challenge a Virtual Partner™ and automatically upload their data
wirelessly to a personal computer. The Forerunner 405CX adds
heart-rate based calorie computation and improved comfort to the numerous
features available on the Forerunner 405. The Forerunner 310XT
model, which was designed specifically for triathletes, is water-resistant
to 50m and tracks biking and running data (and optional heart rate
data).
|
Edge®
|
||
(5
models)
|
Integrated
personal training systems designed for cyclists. The Edge 205 measures
speed, distance, time, calories burned, climb and descent, altitude and
more. The Edge 305 adds a heart rate monitor and/or wireless
speed/pedaling cadence sensor. The Edge 605 and 705 provide
mapping capabilities (including street navigation) and a 2.2” color
display in addition to tracking vertical profiles, climb and descent,
altitude, speed, distance, and time. The newest model — the
Edge 500 — is geared toward performance-driven cyclists by offering the
ability to track even more performance data in a streamlined form
factor.
|
|
Dakota™
|
||
(2
models)
|
The
Dakota series is Garmin’s entry level series of handheld GPS navigators
with built-in mapping. The Dakota 10 is a rugged, palm-sized
navigator that offers a touchscreen display, high-sensitivity GPS, and a
built-in worldwide basemap. The Dakota 20 adds a barometric
altimeter, 3-axis electronic compass, and a microSD™ card slot for
optional customized maps. The 20 model also allows a user to
share waypoints, tracks, routes and geocaches wirelessly with other
compatible Dakota, Foretrex®, Oregon® and Colorado®
users.
|
|
Colorado®
|
||
(4
models)
|
The
Colorado series features Garmin’s Rock ‘n Roller™ wheel, which
allows the user to operate many of the units’ features with the user’s
thumb. The Colorado 300 features a worldwide basemap with
shaded relief. The Colorado 400c provides marine chart coverage
for the coastal U.S. and Bahamas. The Colorado 400i offers
shoreline details, depth contours and boat ramps for U.S. inland lakes and
rivers. The Colorado 400t gives hikers 3-D elevation perspective and
preloaded U.S. topographic maps. All Colorado models are equipped with a
barometric altimeter and electronic compass.
|
|
Oregon®
|
||
(9
models)
|
The
Oregon series combines a bright 3 inch color touchscreen, rugged design
and a variety of preloaded mapping options. The entry-level Oregon 200
comes with a built-in Worldwide basemap. The Oregon 300
includes a worldwide basemap with shaded relief. The Oregon
400t gives hikers preloaded U.S. topographic maps with 3-D elevation
perspective. The Oregon 400i offers shoreline details, depth contours and
boat ramps for U.S. inland lakes and navigable rivers. The Oregon 400c
features chart coverage for the coastal U.S. and Bahamas. The high-end
Oregon 550 and 550t each come with a built-in 3.2 megapixel autofocus
digital camera with 4x digital zoom, and each photo taken by these devices
is automatically geotagged with the location of where it was taken,
allowing the user to navigate back to that exact spot in the
future. In January 2010, Garmin announced the Oregon 450 and
Oregon 450t, the newest members of the Oregon product family (expected
availability of first quarter 2010). The 450 and 450t do not
include the built-in camera, but offer many other upgrades over other
Oregon models, including an easier-to-read display and enhanced track
navigation.
|
Rino®
|
||
(5
models)
|
Handheld
two-way Family Radio Service (FRS) and General Mobile Radio Service (GMRS)
radios that integrate two-way voice communications with GPS
navigation. Features include patented “peer-to-peer position
reporting” so you can transmit your location to another Rino
radio. The Rino 110 offers an FRS/GMRS radio plus basic GPS
navigator. The Rino 120 adds an internal basemap and MapSource
compatibility for street-level mapping. The Rino 130 has 24 MB
of internal memory, built-in electronic compass, barometric sensor, and
National Oceanic and Atmospheric Administration (NOAA) weather radio
receiver. The Rino 520HCx has a high sensitivity GPS receiver,
5 watts of transmit power, color display, mini-USB interface, and a
turn-by turn automatic route calculation for use in
automobiles. The Rino 530HCx has all of the features of the
Rino 520HCx, plus a seven-channel weather receiver, electronic compass,
and barometric altimeter.
|
|
Approach™
G5
|
||
(2
models)
|
The
Approach G5 is a waterproof, touchscreen, handheld GPS for golfers that
features over 12,000 preloaded golf course maps. Approach G5 uses a
high-sensitivity GPS receiver to measure individual shot distances and
show the exact yardage to fairways, hazards and greens. The
Approach G3 was announced in January 2010 as a smaller, lighter version of
the Approach, yet still offers over 12,000 preloaded
courses. Neither model requires any ongoing subscription
fees.
|
|
Astro®
|
High
sensitivity GPS-enabled dog tracking system. The Astro is
designed to pinpoint up to ten dogs’ positions at one time through
all-weather collars and a handheld system. The system also
provides a Dog Tracker page and a Covey Countertm
to assist the hunter. It is loaded with many of the
features of our outdoor devices including: barometric
altimeter, electronic compass, microSD slot, area calculator and a
waterproof
exterior.
|
GPSMAP® 7000 series | ||
(4
models)
|
The
latest generation in Garmin’s large-format multi-function
displays. The GPSMAP 7000 series introduced Garmin’s G Motion
technology, which represents an upgrade in speed, smoothness and clarity
over prior plotters. G Motion technology delivers ultra-smooth
map panning and zooming with virtually seamless graphical updating in all
dimensions. The 7000 series chartplotters also feature a
low-level backlight display and a backlit keypad for use in low-light
conditions without compromising vision. The GPSMAP 7x15 series
offers a huge 15-inch diagonal XGA (1024 x 768 pixel) sunlight readable
touchscreen display, and is offered in two models – the GPSMAP 7015 with
an enhanced worldwide satellite imagery basemap; and the GPSMAP 7215,
which comes pre-loaded with highly detailed U.S. coastal charts and
Explorer Charts for the Bahamas. Mariners can also opt for the same
XGA resolution in a 12-inch diagonal screen configuration with the GPSMAP
7012 and GPSMAP 7212 models, which offer a worldwide basemap and coastal
charts respectively. All models are compatible with an optional
wireless remote and a wireless mouse for additional flexibility and also
offer expanded “plug-and-play” access to onboard sensors, with NMEA 2000
and Garmin Marine Network connectivity (the Garmin Marine Network is a
system that combines GPS, radar, XM WX Satellite Weather, sonar, and other
data).
|
GPSMAP® 6000
series
|
||
(4
models)
|
Like
the 7000 series, the 6000 series models also offer Garmin’s new G Motion
technology and the features to improve visibility in low-light
conditions. The GPSMAP 6x12 series features a traditional
soft-key interface with an alphanumeric keypad and a 12-inch diagonal XGA
(1024 x 768 pixel) sunlight readable display. Within this
family, Garmin offers the GPSMAP 6012 with an enhanced worldwide satellite
imagery basemap; and the GPSMAP 6212 with highly detailed U.S. coastal
charts and Explorer Charts for the Bahamas preloaded. For a
smaller display, the GPSMAP 6x08 series offers an 8-inch VGA (640 x 480)
sunlight readable display with a soft-key interface. The models
in the GPSMAP 6000 series are all compatible with an optional wireless
remote and also offer expanded “plug-and-play” access to onboard sensors,
with NMEA 2000 and Garmin Marine Network connectivity.
|
|
GPSMAP®
5000 series
|
||
(6
models)
|
These
touch-screen multifunction displays for the Garmin Marine Network (a
system that combines GPS, radar, XM WX Satellite Weather, sonar, and other
data) offer ease of use and video-quality resolution and
color. The 5212 and 5208 come pre-loaded with detailed U.S.
coastal charts, including Explorer Charts, and are compatible with
Garmin’s BlueChart® g2 Vision™ charts (sold separately) which offer
high-resolution satellite imagery, 3-D map perspective, aerial reference
photos, and auto guidance. The 5215 and 5015 offer 15-inch
diagonal sunlight-readable touchscreen displays.
|
|
GPSMAP®
4000 series/
|
||
4200
series (6 models)
|
These
multifunction displays for the Garmin Marine Network offer ease of use and
video-quality resolution and color. The 4212 and 4208 come
pre-loaded with detailed U.S. coastal charts, including Explorer Charts,
and are compatible with Garmin’s BlueChart® g2 Vision™ charts (sold
separately) which offer high-resolution satellite imagery, 3-D map
perspective, aerial reference photos, and auto guidance. The
4210 and 4010 feature 10.4-inch diagonal sunlight- readable displays and
Garmin’s new marine user interface.
|
|
GPSMAP®
3000
|
||
(2
models)
|
These
configurable chartplotter/multifunction displays (MFDs) are
network-enabled and come in either a 10.4” or 6.4”
display.
|
|
GPSMAP®
4x0 and 5x0
|
||
and
7x0 series
|
||
(5
models)
|
The
4x0 and 5x0 chartplotters and chartplotter/sonar units
feature highly-detailed pre-loaded marine cartography and offer
a wide variety of display sizes and networking options. All
units are compatible with Garmin’s BlueChart® g2™ data cards. The 7x0
models are the newest in this family of products and are the first
touchscreen controlled stand-alone marine chartplotters to offer radar
capability and built-in sonar at an affordable
price.
|
GPSMAP®
5x6 and 5x1
|
||
series
(6 models)
|
Building
upon the success of the GPSMAP 400 and 500 series, the new chartplotters
in the GPSMAP 5x6, 5x1 and 4x1 series come standard with an internal
high-sensitivity GPS receiver that allows for faster acquisition times and
better satellite tracking so that boaters are able to acquire and maintain
a GPS fix more easily. In addition, these units boast an improved,
high-speed digital design that will increase map drawing and panning
speeds. Many of the new models in this series are also NMEA
2000 certified and can interface with Garmin’s full lineup of NMEA 2000
marine sensors and autopilots, as well as many other third-party
sensors.
|
|
GPSMAP® 4x1
|
||
series
(3 models)
|
With
a 4-inch QVGA sunlight-readable display, the GPSMAP 4x1 series was
designed for the boater who wants high performance in a small
package. These units feature a high-sensitivity GPS receiver
and faster processors, and are offered with the same cartography
configuration as the GPSMAP 5x1 series. Likewise, the GPSMAP 4x1s series
is also available with a built-in sonar with a 500-watt RMS dual-frequency
transducer for offshore use and a 400-watt RMS with a dual beam transducer
for inland use. For satellite weather and radio data, the
GPSMAP 441 and 421 are also compatible with the GXM 51
receiver.
|
|
GSD
21 and 22
|
These
“black-box” sounders interface with Garmin display units and chartplotters
and enhance their utility by providing the depth sounder and fish finder
functions in a remote mounted package.
|
|
GMS
10
|
The
GMS 10 Network Port Expander is the "nerve center" of the Garmin Marine
Network. This 100-Mbit switch is designed to support the
connection of multiple sensors to the Garmin Marine
Network.
|
|
Other
Marine Products
|
||
GMI
10
|
The
GMI 10 is a NMEA 2000 and NMEA 0183 compliant instrument that displays
data from multiple remote sensors on one screen. Mariners can
use the GMI 10 to display instrument data such as depth, speed through the
water, water temperature, fuel flow rate, engine data, fuel level, wind
direction and more, depending upon what sensors are
connected.
|
|
VHF
Marine Radios
|
||
(4
models)
|
This
series of marine radios offers differing feature sets for the radio needs
of all types of mariners. The VHF 100 is an entry-level, NMEA
0183 compatible VHF marine radio. The VHF 200 is NMEA 2000
compatible. The next step up is the VHF 300, which is designed
for 35+ foot boats and is NMEA 2000 and NMEA 0183 compatible and offers
multi-station support. Also designed for 35+ foot boats, the
VHF 300 AIS is NMEA 2000 and NMEA 0183 compatible, offers multi-station
support, and monitors all AIS channels at the same
time.
|
Marine
|
||
Autopilot
Systems
|
||
(3
models)
|
The
GHP 10’s patented Shadow Drive™ technology automatically disengages the
autopilot if the helm is turned, allowing the helmsman to maneuver the
boat. The autopilot automatically re-engages when a steady course is held
by the helmsman. The TR-1 Gold Marine Autopilot offers worry-free remote
steering and speed control to operators of small gasoline outboard motor
boats up to 20 horsepower. Finally, the GHP 10V Autopilot
System for Volvo Penta IPS and Sterndrive Joystick Systems is approved for
use with boats that have an integrated Volvo Penta IPS steering and
propulsion system and features Garmin’s proven and innovative Shadow
Drive™ technology – a patented capability that automatically disengages
the autopilot if the helm is turned, allowing for quick and safe manual
maneuvers without manually disengaging the autopilot.
|
|
Fishfinders
|
||
(5
models)
|
Garmin
offers five different fishfinder options spanning various price points.
All models feature Garmin’s Ultrascroll™ technology, which allows boaters
to get a faster refresh rate on their sonar display, and dual-beam
transducer operation. Four of the models offer color
displays. The Fishfinder 400C comes with dual beam or dual
frequency transducers for easy adaptability to either freshwater or
saltwater fishing. It also offers a new, easy-to-use interface
and built in CANet connectivity to enable sonar data to be shared with
compatible Garmin chartplotters.
|
|
Radar
|
||
(11
models)
|
Garmin
offers both radomes and open array radar products with compatibility to
any network-compatible Garmin chartplotter so that the chartplotter can
double as the radar screen. The GMR™ 18 and 24 models are
digital radome products in various sizes and power
specifications. The GMR 404 and 406 open array radar scanners
provide even greater clarity and a 72 nautical mile range. The
GMR 18 HD and GMR 24 HD radomes feature digital signal processing
providing sharper radar imagery and improved target separation. The newest
generation of open-array digital radar scanners and the GMR™ 1204/1206 xHD
and the GMR 604/606 xHD models, which transmit with 12 and 6 kilowatts of
power respectively. All four of these open-array scanners have
a maximum effective range of 72 nautical miles and offer selectable
rotation speeds from 24 RPM to 48 RPM for rapid target
updates. These new xHD scanners provide up to eight times more
sampling data than Garmin’s current open-array
offerings,
|
Handheld
and portable aviation products:
|
||
aera™
series
|
||
(4
models)
|
Garmin’s
newest aviation handheld series combines the latest aviation portable with
a full-featured automotive GPS, allowing pilots to transition between
aviation to automotive mode with one touch. Featuring a crisp
4.3-inch QVGA wide-format display with touchscreen interface, all four
aera models come with preloaded automotive maps, a built-in
terrain/obstacles aviation database, patented Panel Page instrument
display, and other features. When in aviation mode, pilots see
colorful icons that use intuitive pictures and labels to indicate their
function. The exterior of each aera model (500, 510, 550 and 560) are
identical, but the software features of each model are tailored to those
seeking an entry, mid or high-level aviation handheld.
|
|
GPSMAP
495/496
|
The
GPSMAP 496 expands on the GPSMAP 396 by adding such additional features as
Garmin’s SafeTaxi™ airport diagrams, Aircraft Owners and Pilots
Association (AOPA) Airport directory data, Garmin’s Smart Airspace
enhanced high-resolution terrain database, accelerated GPS update rate,
and pre-loaded automotive maps of North America. The GPSMAP 495 offers
many of the same features as the GPSMAP 496 at a lower price
point.
|
|
GPSMAP
695/696
|
The
GPSMAP 696 expands on the features of the GPSMAP 496 by adding a 7 inch
screen, preloaded detailed electronic charts, preloaded airways and IFR
map mode. The GPSMAP 696 has a receiver for XM radio and XM WX Satellite
Weather (U.S. customers only) that gives next generation radar (NEXRAD),
aviation routine weather reports (METARs), terminal aerodrome forecasts
(TAFs), temporary flight restrictions (TFRs), lightning, winds aloft,
turbulence forecasts, and several other important weather products. The
GPSMAP 695 has the same features except for XM radio and
weather.
|
Pilot
My-CastSM
|
Pilot
My-Cast by Garmin is a premium flight planning, flight plan filing, and
pre-flight weather application for display on compatible mobile
phones. Compared to other aviation weather cell phone
applications, Pilot My-Cast is unique because it receives aviation data
directly from the National Weather Service, Environment Canada, and
Federal Aviation Administration.
|
|
Integrated
avionics systems:
|
||
G3000™
|
Announced
in October 2009, the G3000, which is designed for use in FAR Part 23
turbine aircraft, is the first touchscreen-controlled integrated
flightdeck for light turbine aircraft. It features extra-wide
14.1-inch displays with split-screen MFD viewing functionality and PFD
terrain simulation in 3-D perspective with SVT™ Synthetic Vision
Technology.
|
|
G1000®
|
The
G1000 integrates navigation, communication, attitude, weather, terrain,
traffic, surveillance and engine information on large high-resolution
color displays. The G1000 offers general aviation airplane manufacturers
an easy-to-install solution for flight displays and provides the aircraft
owner the benefits of a state-of-the-art avionics system which relies on
modern technologies such as solid state components and bright,
sunlight-readable TFT displays.
|
|
G600™
|
The
G600 brings the style and function of an all-glass integrated avionics
suite to the retrofit market for FAR Part 23 Class I, II or III
aircraft. The G600 incorporates two individual displays – a PFD
and MFD – in a customized package specifically designed for easy retrofit
installation. The G600 is designed to communicate and integrate with
Garmin’s WAAS enabled panel mount products, and provides essential
information such as attitude, air data, weather, terrain and
traffic. Garmin has received the FAA’s Approved Model List
Supplemental Type Certification (AML STC) for the G600, which will
simplify certification for over 300 different aircraft
models.
|
|
G500™
|
Designed
specifically for FAR Part 23 Class I/Class II aircraft (singles and twins
under 6,000 lbs.), the G500 is an affordable, dual-screen electronic
flight display that works with a pilot’s separate Garmin avionics stack to
provide a fully TSO’d “glass cockpit” retrofit option. The G500
does not include all of the same standard functionality as the G600 (for
example, the G500 does not offer SVT (Synthetic Vision Technology) or a
standard GAD 43 interface adapter.
|
|
G900X™
|
An
all-glass integrated avionics system specifically designed for kitplane
builders of the Lancair and Van’s RV-series aircraft.G3X™ The G3X is a
fully-customizable glass cockpit for installation in experimental/kitbuilt
and light sport aircraft. The G3X offers a customizable PFD/MFD
combination that features one, two or three all-glass displays;
magnetometer; ADAHRS (combined air data and AHRS unit) and engine
monitoring.
|
GDU
370/375
|
Multifunction
displays for the light sport retrofit and experimental aircraft markets
(expected to be available in the second quarter of
2009).
|
|
Panel-mount
aviation products:
|
||
400W
Series
|
||
(3
models)
|
The
GNS 430W is the Wide Area Augmentation System (WAAS) successor to Garmin’s
popular GNS 430, which was the world’s first ‘‘all-in-one’’ IFR certified
GPS navigation receiver/traditional VHF navigation receiver/instrument
landing systems receiver and VHF communication transmitter/receiver.
Features available in different 400 series models include 4-color map
graphics, GPS, communication and navigation
capabilities. .
|
|
500
W Series
|
||
(2
models)
|
These
units combine the features of the 400W series along with a larger 5” color
display. The 530W Series comes standard with Wide Area
Augmentation System (WAAS) capability and may be ordered with or upgraded
to Class B Terrain Awareness and Warning System (TAWS-B)
capability.
|
|
GTS™
TAS and
|
||
TCAS
I Systems
|
The
GTS 800 series of traffic avoidance products combines active and passive
surveillance data to pinpoint specific traffic threats. The systems use
Garmin’s patent-pending CLEAR CAS™ technology and correlates automatic
dependent surveillance broadcast (ADS-B) with radar targets. The GTS 800 TAS is a
lower-cost system, offering 40 watts of transmit power and a range of up
to 12 nautical miles. The GTS 820 TAS delivers 250 watts of transmit power
and up to 40 nautical miles of interrogation range. The GTS 850 TCAS I
satisfies all TCAS I collision avoidance criteria for higher-capability
turboprops and jets. It features the same 250 watt performance
as the GTS 820, and also meets the FAA’s TCAS I certification
criteria
|
|
GI-102A
& 106A
|
Course
deviation indicators (CDIs). The GI-106A features an instrument landing
system receiver to aid in landing.
|
|
GMA
240, 340 & 347
|
The
GMA 340 is a feature-rich audio panel with six-place stereo intercom and
independent pilot/co-pilot communications capabilities. The GMA
347 has automatic squelch, digital clearance recorder, and a full-duplex
telephone interface. The GMA 240 is a versatile, non-TSO’d
audio panel designed for experimental and light sport
aircraft.
|
|
GTX™
330 & 330D
|
FAA-certified
Mode S transponders with data link capability, including local air traffic
information at FAA radar sites equipped with Traffic Information Service
(TIS). These transponders may also be optionally upgraded to
provide 1090 MHz Extended Squitter (ES) transmission capabilities, which
will increase situational awareness once the Automatic Dependent
Surveillance-Broadcast (ADS-B) system is fully
implemented.
|
|
GTX
320A,327 & 328
|
FAA-certified
transponders which transmit altitude or flight identification to air
traffic control radar systems or other aircraft’s air traffic avoidance
devices and feature solid-state construction for longer
life. The GTX 327 offers a digital display with timing
functions. The 328 is designed exclusively for Europe and
satisfies the European requirement for a Mode S solution that meets the
reduced certification requirements for the VFR Mode S
mandate.
|
GDL
90
|
The
GDL 90 is the first airborne Automatic Dependent Surveillance-Broadcast
(ADS-B) product certified by the FAA to TSO C145A
standards. The GDL 90 allows pilots in the cockpit and air
traffic controllers on the ground to “see” aircraft traffic with much more
precision than has ever been possible before without the costly
infrastructure of ground based tracking radar. The GDL 90
relies on the infrastructure that is part of the FAA’s Safe Flight 21
program. This program is currently under development with
implementation of the ground-based portion of the ADS-B network taking
place along the East Coast and other selected areas of the
U.S.A. Additional installations of the ADS-B ground stations
are planned. The ground stations can track aircraft movement
and eventually are expected to be used to broadcast traffic and weather
services. Pilots equipped with the GDL 90 and operating within
the ground station coverage area will receive aircraft traffic and
real-time weather information free of charge.
|
|
GDL
69 and 69A
|
The
GDL 69 offers the ability to provide real-time weather information to the
aircraft which can be displayed on one of several panel-mounted devices,
such as the GNS 430, GNS 530, MX20, and G1000 systems. The GDL 69 and GDL
69A receive real-time weather information broadcast by the XM WX Satellite
radio system. In addition, the GDL 69A expands the utility of
the system by providing CD quality audio provided by XM Satellite Radio
(separate subscriptions for weather data and audio
required).
|
|
GMX
200™
|
A
large (6.5 inch) sunlight-readable, high-resolution, multi-function
display.
|
|
SL
30 and SL 40
|
The
SL30 is a compact VHF navigation and communications unit that combines a
760-channel VHF communications radio with 200-channel glideslope and
localizer receivers. The SL40 is a 760-channel VHF
communications radio only. Both the SL30 and SL40 feature 10
watt communications transmitters.
|
|
GWX™
68
|
The
GWX 68 is an all-in-one antenna/receiver/transmitter that brings real-time
weather to Garmin’s newest multi-function
displays.
|
|
·
|
Best Buy—one of the
largest U.S. and Canadian electronics
retailers;
|
|
·
|
Amazon.com—internet
retailer;
|
|
·
|
Costco—an international
chain of membership warehouses that carry quality, brand name
merchandise;
|
|
·
|
Halford’s—a large
European retailer specializing in car parts and
accessories;
|
|
·
|
Petra—a large
distributor who sells to a wide range of
dealers;
|
|
·
|
Target— one of the
nation’s largest general merchandise
retailers;
|
|
·
|
Wal-Mart—the world’s
largest mass retailer; and
|
|
·
|
Wynit—a large
distributor who sells to a wide range of dealers, including Radio
Shack.
|
December
26,
|
December
27,
|
December
29,
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
($'s
in thousands)
|
||||||||||||
Research
and development
|
$ | 238,378 | $ | 206,109 | $ | 159,406 | ||||||
Percent
of net sales
|
8.1 | % | 5.9 | % | 5.0 | % |
Ÿ
|
If
demand increases beyond what we forecast, we would have to rapidly
increase production. We would depend on suppliers to provide additional
volumes of components and those suppliers might not be able to increase
production rapidly enough to meet unexpected
demand.
|
Ÿ
|
Rapid increases in
production levels to meet unanticipated demand could result in higher
costs for manufacturing and supply of components and other
expenses. These higher costs could lower our profit
margins. Further, if production is increased rapidly,
manufacturing quality could decline, which may also lower our margins and
reduce customer
satisfaction.
|
Ÿ
|
If
forecasted demand does not develop, we could have excess production
resulting in higher inventories of finished products and components, which
would use cash and could lead to write-offs of some or all of the excess
inventories. Lower than forecasted demand could also result in
excess manufacturing capacity or reduced manufacturing efficiencies at our
facilities, which could result in lower
margins.
|
|
·
|
announcements
and rumors of developments related to our business, our competitors, our
suppliers or the markets in which we
compete;
|
|
·
|
quarterly
fluctuations in our actual or anticipated operating
results;
|
|
·
|
the
availability, pricing and timeliness of delivery of components, such as
flash memory and liquid crystal displays, used in
our products;
|
|
·
|
general
conditions in the worldwide economy, including fluctuations in interest
rates;
|
|
·
|
announcements
of technological innovations;
|
|
·
|
new
products or product enhancements by us or our
competitors;
|
|
·
|
product
obsolescence and our ability to manage product
transitions;
|
|
·
|
developments
in patents or other intellectual property rights and
litigation;
|
|
·
|
developments
in our relationships with our customers and
suppliers;
|
|
·
|
research
reports or opinions issued by securities analysts or brokerage houses
related to Garmin, our competitors, our suppliers or our customers;
and
|
|
·
|
any
significant acts of terrorism against the United States, Taiwan or
significant markets where we sell our
products.
|
|
•
|
the
statutory provisions as to majority vote have been complied
with;
|
|
•
|
the
shareholders have been fairly represented at the meeting in
question;
|
|
•
|
the
scheme of arrangement is such as a businessman would reasonably approve;
and
|
|
•
|
the
scheme of arrangement is not one that would more properly be sanctioned
under some other provision of the Companies Law (2009
Revision)
|
Year Ended
|
||||||||||||||||
December 26, 2009
|
December 27, 2008
|
|||||||||||||||
High
|
Low
|
High
|
Low
|
|||||||||||||
First
Quarter
|
$ | 23.48 | $ | 15.17 | $ | 97.00 | $ | 53.10 | ||||||||
Second
Quarter
|
$ | 25.99 | $ | 19.74 | $ | 56.41 | $ | 40.90 | ||||||||
Third
Quarter
|
$ | 37.23 | $ | 22.67 | $ | 48.70 | $ | 32.11 | ||||||||
Fourth
Quarter
|
$ | 39.58 | $ | 26.84 | $ | 34.34 | $ | 15.22 |
Maximum Number of Shares (or
|
||||||||||||
Approx. Dollar Value of Shares
|
||||||||||||
Total # of
|
Average Price
|
in Thousands) That May Yet Be
|
||||||||||
Period
|
Shares Purchased
|
Paid Per Share
|
Purchased Under the Plans or Programs
|
|||||||||
October 2009
|
- | - | $ | 256,469 | ||||||||
November
2009
|
590,000 | $ | 27.95 | $ | 239,978 | |||||||
December 2009
|
- | - | $ | - | ||||||||
Total
|
590,000 | $ | 27.95 | $ | - |
|
This
performance graph shall not be deemed ‘‘filed’’ with the SEC or subject to
Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed
incorporated by reference in any of our filings under the Securities Act
of 1933, as amended.
|
12/04 | 12/05 | 12/06 | 12/07 | 12/08 | 12/09 | |||||||||||||||||||
Garmin
Ltd.
|
100.00 | 110.03 | 186.45 | 327.36 | 67.55 | 110.79 | ||||||||||||||||||
NASDAQ
Composite
|
100.00 | 101.33 | 114.01 | 123.71 | 73.11 | 105.61 | ||||||||||||||||||
NASDAQ-100
|
100.00 | 100.18 | 112.25 | 134.51 | 81.33 | 122.06 |
Years ended (1)
|
||||||||||||||||||||
Dec. 26,
2009
|
Dec. 27,
2008
|
Dec. 29,
2007
|
Dec. 30,
2006
|
Dec. 31,
2005
|
||||||||||||||||
(in thousands, except per share data)
|
||||||||||||||||||||
Consolidated
Statements of Income Data:
|
||||||||||||||||||||
Net
sales
|
$ | 2,946,440 | $ | 3,494,077 | $ | 3,180,319 | $ | 1,774,000 | $ | 1,027,773 | ||||||||||
Cost
of goods sold
|
1,502,329 | 1,940,562 | 1,717,064 | 891,614 | 492,703 | |||||||||||||||
Gross
profit
|
1,444,111 | 1,553,515 | 1,463,255 | 882,386 | 535,070 | |||||||||||||||
Operating
expenses:
|
||||||||||||||||||||
Advertising
expense
|
155,521 | 208,177 | 206,948 | 114,749 | 59,309 | |||||||||||||||
Selling,
general and administrative
|
264,202 | 277,212 | 189,550 | 99,764 | 62,712 | |||||||||||||||
Research
and development
|
238,378 | 206,109 | 159,406 | 113,314 | 74,879 | |||||||||||||||
Total
operating expenses
|
658,101 | 691,498 | 555,904 | 327,827 | 196,900 | |||||||||||||||
Operating
income
|
786,010 | 862,017 | 907,351 | 554,559 | 338,170 | |||||||||||||||
Other
income/(expense), net (2), (3), (4)
|
22,641 | 52,349 | 70,922 | 39,995 | 34,430 | |||||||||||||||
Income
before income taxes
|
808,651 | 914,366 | 978,273 | 594,554 | 372,600 | |||||||||||||||
Income
tax provision
|
104,701 | 181,518 | 123,262 | 80,431 | 61,381 | |||||||||||||||
Net
income
|
$ | 703,950 | $ | 732,848 | $ | 855,011 | $ | 514,123 | $ | 311,219 | ||||||||||
Net
income per share: (5)
|
||||||||||||||||||||
Basic
|
$ | 3.51 | $ | 3.51 | $ | 3.95 | $ | 2.38 | $ | 1.44 | ||||||||||
Diluted
|
$ | 3.50 | $ | 3.48 | $ | 3.89 | $ | 2.35 | $ | 1.43 | ||||||||||
Weighted
average common shares outstanding: (5)
|
||||||||||||||||||||
Basic
|
200,395 | 208,993 | 216,524 | 216,340 | 216,294 | |||||||||||||||
Diluted
|
201,161 | 210,680 | 219,875 | 218,845 | 218,236 | |||||||||||||||
Cash
dividends per share (5)
|
$ | 0.75 | $ | 0.75 | $ | 0.75 | $ | 0.50 | $ | 0.25 | ||||||||||
Balance
Sheet Data (at end of Period):
|
||||||||||||||||||||
Cash
and cash equivalents
|
$ | 1,091,581 | $ | 696,335 | $ | 707,689 | $ | 337,321 | $ | 334,352 | ||||||||||
Marketable
securities
|
766,047 | 274,895 | 424,505 | 480,876 | 376,723 | |||||||||||||||
Total
assets
|
3,825,874 | 2,934,421 | 3,291,460 | 1,897,020 | 1,362,235 | |||||||||||||||
Total
debt
|
- | - | - | 248 | - | |||||||||||||||
Total
stockholders' equity
|
2,836,447 | 2,225,854 | 2,350,614 | 1,557,899 | 1,157,264 |
(1)
|
Our
fiscal year-end is the last Saturday of the calendar year and does not
always fall on December
31.
|
(2)
|
Other
income/(expense), net mainly consists of gain and/or loss on sale of
equity securities, interest income, interest expense, and foreign currency
gain (loss)
|
(3)
|
Includes
$23.0 million, $0.6 million and $15.3 million for foreign currency gains
in 2007, 2006 and 2005 respectively, and $6.0 million and $35.3 million
for foreign currency losses in 2009 and 2008
respectively.
|
(4)
|
Includes
a $72.4 million gain on sale of equity securities primarily related to the
sale of our equity interest in Tele Atlas N.V. and related foreign
currency exchange effects in
2008.
|
(5)
|
All
prior period common stock and applicable share and per share amounts have
been retroactively adjusted to reflect a 2-for-1 split of the Company's
common stock effective August 15,
2006.
|
|
·
|
salaries
for sales and marketing personnel;
|
|
·
|
salaries
and related costs for executives and administrative
personnel;
|
|
·
|
marketing,
and other brand building costs;
|
|
·
|
accounting
and legal costs;
|
|
·
|
information
systems and infrastructure costs;
|
|
·
|
travel
and related costs; and
|
|
·
|
occupancy
and other overhead costs.
|
Fiscal
Years Ended
|
||||||||||||
Dec.
26,
|
Dec.
27,
|
Dec.29,
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
Net
sales
|
100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost
of goods sold
|
51.0 | % | 55.5 | % | 54.0 | % | ||||||
Gross
profit
|
49.0 | % | 44.5 | % | 46.0 | % | ||||||
Operating
expenses:
|
||||||||||||
Advertising
|
5.3 | % | 6.0 | % | 6.5 | % | ||||||
Selling,
general and administrative
|
8.9 | % | 7.9 | % | 6.0 | % | ||||||
Research
and development
|
8.1 | % | 5.9 | % | 5.0 | % | ||||||
Total
operating expenses
|
22.3 | % | 19.8 | % | 17.5 | % | ||||||
Operating
income
|
26.7 | % | 24.7 | % | 28.5 | % | ||||||
Other
income / (expense) , net
|
0.7 | % | 1.5 | % | 2.2 | % | ||||||
Income
before income taxes
|
27.4 | % | 26.2 | % | 30.7 | % | ||||||
Provision
for income taxes
|
3.5 | % | 5.2 | % | 3.9 | % | ||||||
Net
income
|
23.9 | % | 21.0 | % | 26.8 | % |
Outdoor/
|
Automotive/
|
|||||||||||||||
Fiscal
year ended December 26, 2009
|
Fitness
|
Marine
|
Mobile
|
Aviation
|
||||||||||||
Net
sales
|
$ | 468,924 | $ | 177,644 | $ | 2,054,127 | $ | 245,745 | ||||||||
Cost
of goods sold
|
162,082 | 72,429 | 1,192,227 | 75,591 | ||||||||||||
Gross
profit
|
306,842 | 105,215 | 861,900 | 170,154 | ||||||||||||
Advertising
|
23,262 | 9,682 | 118,713 | 3,864 | ||||||||||||
Research
and development
|
23,776 | 21,448 | 110,907 | 82,247 | ||||||||||||
Selling,
general and administrative expenses
|
47,799 | 18,177 | 172,473 | 25,753 | ||||||||||||
Total
expenses
|
94,837 | 49,307 | 402,093 | 111,864 | ||||||||||||
Operating
income
|
212,005 | 55,908 | 459,807 | 58,290 | ||||||||||||
Other
income / (expense), net
|
(5,963 | ) | 1,522 | 28,777 | (1,695 | ) | ||||||||||
Income
before income taxes
|
$ | 206,042 | $ | 57,430 | $ | 488,584 | $ | 56,595 |
Outdoor/
|
Automotive/
|
|||||||||||||||
Fiscal
year ended December 27, 2008
|
Fitness
|
Marine
|
Mobile
|
Aviation
|
||||||||||||
Net
sales
|
$ | 427,783 | $ | 204,477 | $ | 2,538,411 | $ | 323,406 | ||||||||
Cost
of goods sold
|
181,037 | 93,052 | 1,560,816 | 105,657 | ||||||||||||
Gross
profit
|
246,746 | 111,425 | 977,595 | 217,749 | ||||||||||||
Advertising
|
27,932 | 14,532 | 160,926 | 4,787 | ||||||||||||
Research
and development
|
25,419 | 19,374 | 85,610 | 75,706 | ||||||||||||
Selling,
general and administrative expenses
|
32,800 | 17,536 | 206,954 | 19,922 | ||||||||||||
Total
expenses
|
86,151 | 51,442 | 453,490 | 100,415 | ||||||||||||
Operating
income
|
160,595 | 59,983 | 524,105 | 117,334 | ||||||||||||
Other
income / (expense), net
|
5,391 | 3,921 | 41,634 | 1,403 | ||||||||||||
Income
before income taxes
|
$ | 165,986 | $ | 63,904 | $ | 565,739 | $ | 118,737 |
Outdoor/
|
Automotive/
|
|||||||||||||||
Fiscal
year ended December 29, 2007
|
Fitness
|
Marine
|
Mobile
|
Aviation
|
||||||||||||
Net
sales
|
$ | 339,741 | $ | 203,399 | $ | 2,342,184 | $ | 294,995 | ||||||||
Cost
of goods sold
|
155,086 | 93,230 | 1,368,979 | 99,769 | ||||||||||||
Gross
profit
|
184,655 | 110,169 | 973,205 | 195,226 | ||||||||||||
Advertising
|
17,170 | 11,387 | 172,910 | 5,481 | ||||||||||||
Research
and development
|
23,302 | 16,879 | 59,390 | 59,835 | ||||||||||||
Selling,
general and administrative expenses
|
23,949 | 14,527 | 132,155 | 18,919 | ||||||||||||
Total
expenses
|
64,421 | 42,793 | 364,455 | 84,235 | ||||||||||||
Operating
income
|
120,234 | 67,376 | 608,750 | 110,991 | ||||||||||||
Other
income / (expense), net
|
7,570 | 4,544 | 56,392 | 2,416 | ||||||||||||
Income
before income taxes
|
$ | 127,804 | $ | 71,920 | $ | 665,142 | $ | 113,407 |
52-weeks
ended
December
26, 2009
|
52-weeks
ended
December
27, 2008
|
Year
over Year
|
||||||||||||||||||||||
Net
Sales
|
%
of Revenues
|
Net
Sales
|
%
of Revenues
|
$
Change
|
%
Change
|
|||||||||||||||||||
Outdoor/Fitness
|
$ | 468,924 | 15.9 | % | $ | 427,783 | 12.2 | % | $ | 41,141 | 9.6 | % | ||||||||||||
Marine
|
177,644 | 6.0 | % | 204,477 | 5.9 | % | (26,833 | ) | -13.1 | % | ||||||||||||||
Automotive/Mobile
|
2,054,127 | 69.7 | % | 2,538,411 | 72.6 | % | (484,284 | ) | -19.1 | % | ||||||||||||||
Aviation
|
245,745 | 8.4 | % | 323,406 | 9.3 | % | (77,661 | ) | -24.0 | % | ||||||||||||||
Total
|
$ | 2,946,440 | 100.0 | % | $ | 3,494,077 | 100.0 | % | $ | (547,637 | ) | -15.7 | % |
52-weeks ended
December 26, 2009
|
52-weeks ended
December 27, 2008
|
Year over Year
|
||||||||||||||||||||||
Gross
Profit
|
%
of Revenues
|
Gross
Profit
|
%
of Revenues
|
$
Change
|
%
Change
|
|||||||||||||||||||
Outdoor/Fitness
|
$ | 306,842 | 65.4 | % | $ | 246,746 | 57.7 | % | $ | 60,096 | 24.4 | % | ||||||||||||
Marine
|
105,215 | 59.2 | % | 111,425 | 54.5 | % | (6,210 | ) | -5.6 | % | ||||||||||||||
Automotive/Mobile
|
861,900 | 42.0 | % | 977,595 | 38.5 | % | (115,695 | ) | -11.8 | % | ||||||||||||||
Aviation
|
170,154 | 69.2 | % | 217,749 | 67.3 | % | (47,595 | ) | -21.9 | % | ||||||||||||||
Total
|
$ | 1,444,111 | 49.0 | % | $ | 1,553,515 | 44.5 | % | $ | (109,404 | ) | -7.0 | % |
52-weeks
ended
December
26, 2009
|
52-weeks
ended
December
27, 2008
|
|||||||||||||||||||||||
Advertising
|
Advertising
|
Year
over Year
|
||||||||||||||||||||||
Expense
|
%
of Revenues
|
Expense
|
%
of Revenues
|
$
Change
|
%
Change
|
|||||||||||||||||||
Outdoor/Fitness
|
$ | 23,262 | 5.0 | % | $ | 27,932 | 6.5 | % | $ | (4,670 | ) | -16.7 | % | |||||||||||
Marine
|
9,682 | 5.5 | % | 14,532 | 7.1 | % | (4,850 | ) | -33.4 | % | ||||||||||||||
Automotive/Mobile
|
118,713 | 5.8 | % | 160,926 | 6.3 | % | (42,213 | ) | -26.2 | % | ||||||||||||||
Aviation
|
3,864 | 1.6 | % | 4,787 | 1.5 | % | (923 | ) | -19.3 | % | ||||||||||||||
Total
|
$ | 155,521 | 5.3 | % | $ | 208,177 | 6.0 | % | $ | (52,656 | ) | -25.3 | % |
52-weeks
ended
December
26, 2009
|
52-weeks
ended
December
27, 2008
|
|||||||||||||||||||||||
Selling,
General &
|
Selling,
General &
|
Year
over Year
|
||||||||||||||||||||||
Admin.
Expenses
|
%
of Revenues
|
Admin.
Expenses
|
%
of Revenues
|
$
Change
|
%
Change
|
|||||||||||||||||||
Outdoor/Fitness
|
$ | 47,799 | 10.2 | % | $ | 32,800 | 7.7 | % | $ | 14,999 | 45.7 | % | ||||||||||||
Marine
|
18,177 | 10.2 | % | 17,536 | 8.6 | % | 641 | 3.7 | % | |||||||||||||||
Automotive/Mobile
|
172,473 | 8.4 | % | 206,954 | 8.2 | % | (34,481 | ) | -16.7 | % | ||||||||||||||
Aviation
|
25,753 | 10.5 | % | 19,922 | 6.2 | % | 5,831 | 29.3 | % | |||||||||||||||
Total
|
$ | 264,202 | 9.0 | % | $ | 277,212 | 7.9 | % | $ | (13,010 | ) | -4.7 | % |
52-weeks
ended
December
26, 2009
|
52-weeks
ended
December
27, 2008
|
|||||||||||||||||||||||
Research
&
|
Research
&
|
Year
over Year
|
||||||||||||||||||||||
Development
|
%
of Revenues
|
Development
|
%
of Revenues
|
$
Change
|
%
Change
|
|||||||||||||||||||
Outdoor/Fitness
|
$ | 23,776 | 5.1 | % | $ | 25,419 | 5.9 | % | $ | (1,643 | ) | -6.5 | % | |||||||||||
Marine
|
21,448 | 12.1 | % | 19,374 | 9.5 | % | 2,074 | 10.7 | % | |||||||||||||||
Automotive/Mobile
|
110,907 | 5.4 | % | 85,610 | 3.4 | % | 25,297 | 29.5 | % | |||||||||||||||
Aviation
|
82,247 | 33.5 | % | 75,706 | 23.4 | % | 6,541 | 8.6 | % | |||||||||||||||
Total
|
$ | 238,378 | 8.1 | % | $ | 206,109 | 5.9 | % | $ | 32,269 | 15.7 | % |
52-weeks
ended
|
52-weeks
ended
|
|||||||
December
26, 2009
|
December
27, 2008
|
|||||||
Interest
Income
|
$ | 23,519 | $ | 35,535 | ||||
Foreign
Currency Exchange
|
(6,040 | ) | (35,286 | ) | ||||
Gain
on sale of equity securities
|
- | 50,884 | ||||||
Other
|
5,162 | 1,216 | ||||||
Total
|
$ | 22,641 | $ | 52,349 |
52-weeks
ended
December
27, 2008
|
52-weeks
ended
December
29, 2007
|
Year
over Year
|
||||||||||||||||||||||
Net
Sales
|
%
of Revenues
|
Net
Sales
|
%
of Revenues
|
$
Change
|
%
Change
|
|||||||||||||||||||
Outdoor/Fitness
|
$ | 427,783 | 12.2 | % | $ | 339,741 | 10.7 | % | $ | 88,042 | 25.9 | % | ||||||||||||
Marine
|
204,477 | 5.9 | % | 203,399 | 6.4 | % | 1,078 | 0.5 | % | |||||||||||||||
Automotive/Mobile
|
2,538,411 | 72.6 | % | 2,342,184 | 73.6 | % | 196,227 | 8.4 | % | |||||||||||||||
Aviation
|
323,406 | 9.3 | % | 294,995 | 9.3 | % | 28,411 | 9.6 | % | |||||||||||||||
Total
|
$ | 3,494,077 | 100.0 | % | $ | 3,180,319 | 100.0 | % | $ | 313,758 | 9.9 | % |
52-weeks
ended
December
27, 2008
|
52-weeks
ended
December
29, 2007
|
Year
over Year
|
||||||||||||||||||||||
Gross
Profit
|
%
of Revenues
|
Gross
Profit
|
%
of Revenues
|
$
Change
|
%
Change
|
|||||||||||||||||||
Outdoor/Fitness
|
$ | 246,746 | 57.7 | % | $ | 184,655 | 54.4 | % | $ | 62,091 | 33.6 | % | ||||||||||||
Marine
|
111,425 | 54.5 | % | 110,169 | 54.2 | % | 1,256 | 1.1 | % | |||||||||||||||
Automotive/Mobile
|
977,595 | 38.5 | % | 973,205 | 41.6 | % | 4,390 | 0.5 | % | |||||||||||||||
Aviation
|
217,749 | 67.3 | % | 195,226 | 66.2 | % | 22,523 | 11.5 | % | |||||||||||||||
Total
|
$ | 1,553,515 | 44.5 | % | $ | 1,463,255 | 46.0 | % | $ | 90,260 | 6.2 | % |
52-weeks
ended
December
27, 2008
|
52-weeks
ended
December
29, 2007
|
|||||||||||||||||||||||
Advertising
|
Advertising
|
Year
over Year
|
||||||||||||||||||||||
Expense
|
%
of Revenues
|
Expense
|
%
of Revenues
|
$
Change
|
%
Change
|
|||||||||||||||||||
Outdoor/Fitness
|
$ | 27,932 | 6.5 | % | $ | 17,170 | 5.1 | % | $ | 10,762 | 62.7 | % | ||||||||||||
Marine
|
14,532 | 7.1 | % | 11,387 | 5.6 | % | 3,145 | 27.6 | % | |||||||||||||||
Automotive/Mobile
|
160,926 | 6.3 | % | 172,910 | 7.4 | % | (11,984 | ) | -6.9 | % | ||||||||||||||
Aviation
|
4,787 | 1.5 | % | 5,481 | 1.9 | % | (694 | ) | -12.7 | % | ||||||||||||||
Total
|
$ | 208,177 | 6.0 | % | $ | 206,948 | 6.5 | % | $ | 1,229 | 0.6 | % |
52-weeks
ended
December
27, 2008
|
52-weeks
ended
December
29, 2007
|
|||||||||||||||||||||||
Selling,
General &
|
Selling,
General &
|
Year
over Year
|
||||||||||||||||||||||
Admin.
Expenses
|
%
of Revenues
|
Admin.
Expenses
|
%
of Revenues
|
$
Change
|
%
Change
|
|||||||||||||||||||
Outdoor/Fitness
|
$ | 32,800 | 7.7 | % | $ | 23,949 | 7.0 | % | $ | 8,851 | 37.0 | % | ||||||||||||
Marine
|
17,536 | 8.6 | % | 14,527 | 7.1 | % | 3,009 | 20.7 | % | |||||||||||||||
Automotive/Mobile
|
206,954 | 8.2 | % | 132,155 | 5.6 | % | 74,799 | 56.6 | % | |||||||||||||||
Aviation
|
19,922 | 6.2 | % | 18,919 | 6.4 | % | 1,003 | 5.3 | % | |||||||||||||||
Total
|
$ | 277,212 | 7.9 | % | $ | 189,550 | 6.0 | % | $ | 87,662 | 46.2 | % |
52-weeks
ended
December
27, 2008
|
52-weeks
ended
December
29, 2007
|
|||||||||||||||||||||||
Research
&
|
Research
&
|
Year
over Year
|
||||||||||||||||||||||
Development
|
%
of Revenues
|
Development
|
%
of Revenues
|
$
Change
|
%
Change
|
|||||||||||||||||||
Outdoor/Fitness
|
$ | 25,419 | 5.9 | % | $ | 23,302 | 6.9 | % | $ | 2,117 | 9.1 | % | ||||||||||||
Marine
|
19,374 | 9.5 | % | 16,879 | 8.3 | % | 2,495 | 14.8 | % | |||||||||||||||
Automotive/Mobile
|
85,610 | 3.4 | % | 59,390 | 2.5 | % | 26,220 | 44.1 | % | |||||||||||||||
Aviation
|
75,706 | 23.4 | % | 59,835 | 20.3 | % | 15,871 | 26.5 | % | |||||||||||||||
Total
|
$ | 206,109 | 5.9 | % | $ | 159,406 | 5.0 | % | $ | 46,703 | 29.3 | % |
52-weeks
ended
|
52-weeks
ended
|
|||||||
December
27, 2008
|
December
29, 2007
|
|||||||
Interest
Income
|
$ | 35,535 | $ | 41,995 | ||||
Foreign
Currency Exchange
|
(35,286 | ) | 22,964 | |||||
Gain
on sale of equity securities
|
50,884 | 5,101 | ||||||
Other
|
1,216 | 862 | ||||||
Total
|
$ | 52,349 | $ | 70,922 |
Payments
due by period
|
||||||||||||||||||||
Less
than
|
More
than
|
|||||||||||||||||||
Contractual
Obligations
|
Total
|
1
year
|
1-3
years
|
3-5
years
|
5
years
|
|||||||||||||||
Operating
Leases
|
$ | 41,343 | $ | 9,105 | $ | 14,476 | $ | 10,906 | $ | 6,856 | ||||||||||
Purchase
Obligations
|
$ | 30,560 | $ | 25,681 | $ | 2,307 | $ | 2,572 | $ | 0 | ||||||||||
Total
|
$ | 71,903 | $ | 34,787 | $ | 16,783 | $ | 13,478 | $ | 6,856 |
Report
of Ernst & Young LLP, Independent Registered Public Accounting
Firm
|
63
|
Consolidated
Balance Sheets at December 26, 2009 and December 27, 2008
|
64
|
Consolidated
Statements of Income for the Years Ended December 26, 2009, December 27,
2008 and December 29, 2007
|
65
|
Consolidated
Statements of Stockholders’ Equity for the Years Ended December 26, 2009,
December 27, 2008 and December 29, 2007
|
66
|
Consolidated
Statements of Cash Flows for the Years December 26, 2009, December 27,
2008 and December 29, 2007
|
67
|
Notes
to Consolidated Financial Statements
|
69
|
/s/
Ernst & Young LLP
|
December 26,
|
December 27,
|
|||||||
2009
|
2008
|
|||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 1,091,581 | $ | 696,335 | ||||
Marketable
securities ( Note
3)
|
19,583 | 12,886 | ||||||
Accounts
receivable, less allowance for doubtful accounts of $36,673 in 2009
and $42,409 in 2008
|
874,110 | 741,321 | ||||||
Inventories,
net
|
309,938 | 425,312 | ||||||
Deferred
income taxes (Note
6)
|
59,189 | 49,825 | ||||||
Prepaid
expenses and other current assets
|
39,470 | 58,746 | ||||||
Total
current assets
|
2,393,871 | 1,984,425 | ||||||
Property
and equipment, net
|
||||||||
Land
and improvements
|
92,088 | 88,272 | ||||||
Building
and improvements
|
268,011 | 244,804 | ||||||
Office
furniture and equipment
|
84,544 | 72,665 | ||||||
Manufacturing
equipment
|
115,179 | 113,956 | ||||||
Engineering
equipment
|
65,240 | 59,009 | ||||||
Vehicles
|
15,247 | 14,698 | ||||||
640,309 | 593,404 | |||||||
Accumulated
depreciation
|
(198,971 | ) | (148,152 | ) | ||||
441,338 | 445,252 | |||||||
Restricted
cash (Note
4)
|
2,047 | 1,941 | ||||||
Marketable
securities (Note
3)
|
746,464 | 262,009 | ||||||
License
agreements, net
|
15,400 | 16,013 | ||||||
Noncurrent
deferred income tax (Note
6)
|
20,498 | 9,840 | ||||||
Other
intangible assets
|
206,256 | 214,941 | ||||||
Total
assets
|
$ | 3,825,874 | $ | 2,934,421 | ||||
Liabilities
and Stockholders' Equity
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 203,388 | $ | 160,094 | ||||
Salaries
and benefits payable
|
45,236 | 34,241 | ||||||
Accrued
warranty costs
|
87,424 | 87,408 | ||||||
Accrued
sales program costs
|
119,150 | 90,337 | ||||||
Deferred
revenue
|
27,910 | 680 | ||||||
Accrued
royalty costs
|
103,195 | 30,941 | ||||||
Accrued
advertising expense
|
34,146 | 31,071 | ||||||
Other
accrued expenses
|
40,373 | 24,329 | ||||||
Income
taxes payable
|
22,846 | 20,075 | ||||||
Total
current liabilities
|
683,668 | 479,176 | ||||||
Deferred
income taxes (Note
6)
|
10,170 | 13,910 | ||||||
Non-current
income taxes
|
255,748 | 214,366 | ||||||
Non-current
deferred revenue
|
38,574 | - | ||||||
Other
liabilities
|
1,267 | 1,115 | ||||||
Stockholders'
equity:
|
||||||||
Common
stock, $0.005 par value, 1,000,000,000 shares authorized (Notes 9, 10, and
11):
|
||||||||
Issued
and outstanding shares - 200,274,000 in 2009, and 200,363,000 in
2008
|
1,001 | 1,002 | ||||||
Additional
paid-in capital
|
32,221 | - | ||||||
Retained
earnings (Note 2)
|
2,816,607 | 2,262,503 | ||||||
Accumulated
other comprehensive gain/(loss)
|
(13,382 | ) | (37,651 | ) | ||||
Total
stockholders' equity
|
2,836,447 | 2,225,854 | ||||||
Total
liabilities and stockholders' equity
|
$ | 3,825,874 | $ | 2,934,421 |
Fiscal Year Ended
|
||||||||||||
December 26,
|
December 27,
|
December 29,
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
Net
sales
|
$ | 2,946,440 | $ | 3,494,077 | $ | 3,180,319 | ||||||
Cost of
goods sold
|
1,502,329 | 1,940,562 | 1,717,064 | |||||||||
Gross
profit
|
1,444,111 | 1,553,515 | 1,463,255 | |||||||||
Advertising
expense
|
155,521 | 208,177 | 206,948 | |||||||||
Selling,
general and administrative expenses
|
264,202 | 277,212 | 189,550 | |||||||||
Research
and development expense
|
238,378 | 206,109 | 159,406 | |||||||||
658,101 | 691,498 | 555,904 | ||||||||||
Operating
income
|
786,010 | 862,017 | 907,351 | |||||||||
Other
income (expense):
|
||||||||||||
Interest
income
|
23,519 | 35,535 | 41,995 | |||||||||
Interest
expense
|
- | (607 | ) | (207 | ) | |||||||
Foreign
currency
|
(6,040 | ) | (35,286 | ) | 22,964 | |||||||
Gain
on sale of equity securities
|
2,741 | 50,884 | 5,101 | |||||||||
Other
|
2,421 | 1,823 | 1,069 | |||||||||
22,641 | 52,349 | 70,922 | ||||||||||
Income
before income taxes
|
808,651 | 914,366 | 978,273 | |||||||||
Income
tax provision (benefit): (Note
6)
|
||||||||||||
Current
|
128,036 | 136,252 | 179,355 | |||||||||
Deferred
|
(23,335 | ) | 45,266 | (56,093 | ) | |||||||
104,701 | 181,518 | 123,262 | ||||||||||
Net
income
|
$ | 703,950 | $ | 732,848 | $ | 855,011 | ||||||
Basic
net income per share
(Note 10)
|
$ | 3.51 | $ | 3.51 | $ | 3.95 | ||||||
Diluted
net income per share
(Note 10)
|
$ | 3.50 | $ | 3.48 | $ | 3.89 |
Accumulated
|
||||||||||||||||||||||||
Additional
|
Other
|
|||||||||||||||||||||||
Common Stock
|
Paid-In
|
Retained
|
Comprehensive
|
|||||||||||||||||||||
Shares
|
Dollars
|
Capital
|
Earnings
|
Gain/(Loss)
|
Total
|
|||||||||||||||||||
Balance
at December 30, 2006
|
216,098 | $ | 1,082 | $ | 83,438 | $ | 1,478,654 | $ | (5,275 | ) | $ | 1,557,899 | ||||||||||||
Net
income
|
– | – | – | 855,011 | – | 855,011 | ||||||||||||||||||
Translation
adjustment
|
– | – | – | – | 992 | 992 | ||||||||||||||||||
Adjustment
related to unrealized gains (losses) on available-for-sale securities, net
of income tax effects of $31
|
– | – | – | – | 50,413 | 50,413 | ||||||||||||||||||
Comprehensive
income
|
906,415 | |||||||||||||||||||||||
Dividends
paid
|
– | – | – | (162,531 | ) | – | (162,531 | ) | ||||||||||||||||
Tax
benefit from exercise of employee stock options
|
– | – | 17,434 | – | – | 17,434 | ||||||||||||||||||
Issuance
of common stock from exercise of stock options
|
819 | 4 | 11,278 | – | – | 11,282 | ||||||||||||||||||
Stock
appreciation rights
|
– | – | 22,164 | – | – | 22,164 | ||||||||||||||||||
Purchase
and retirement of common stock
|
(57 | ) | – | (7,780 | ) | – | – | (7,780 | ) | |||||||||||||||
Issuance
of common stock through stock purchase plan
|
120 | – | 5,730 | – | – | 5,730 | ||||||||||||||||||
Balance
at December 29, 2007
|
216,980 | $ | 1,086 | $ | 132,264 | $ | 2,171,134 | $ | 46,130 | $ | 2,350,614 | |||||||||||||
Net
income
|
– | – | – | 732,848 | – | 732,848 | ||||||||||||||||||
Translation
adjustment
|
– | – | (3,053 | ) | (1,595 | ) | (14,991 | ) | (19,639 | ) | ||||||||||||||
Adjustment
related to unrealized gains (losses) on available-for-sale securities, net
of income tax effects of $150
|
– | – | – | – | (68,790 | ) | (68,790 | ) | ||||||||||||||||
Comprehensive
income
|
644,419 | |||||||||||||||||||||||
Dividends
paid
|
– | – | – | (150,251 | ) | – | (150,251 | ) | ||||||||||||||||
Tax
benefit from exercise of employee stock options
|
– | – | 2,143 | – | – | 2,143 | ||||||||||||||||||
Issuance
of common stock from exercise of stock options
|
158 | 2 | 2,873 | – | – | 2,875 | ||||||||||||||||||
Stock
appreciation rights
|
– | – | 38,872 | – | – | 38,872 | ||||||||||||||||||
Purchase
and retirement of common stock
|
(17,138 | ) | (86 | ) | (182,128 | ) | (489,633 | ) | – | (671,847 | ) | |||||||||||||
Issuance
of common stock through stock purchase plan
|
363 | – | 9,029 | – | – | 9,029 | ||||||||||||||||||
Balance
at December 27, 2008
|
200,363 | $ | 1,002 | $ | 0 | $ | 2,262,503 | $ | (37,651 | ) | $ | 2,225,854 | ||||||||||||
Net
income
|
– | – | – | 703,950 | – | 703,950 | ||||||||||||||||||
Translation
adjustment
|
– | – | – | – | 24,537 | 24,537 | ||||||||||||||||||
Adjustment
related to unrealized gains (losses) on available-for-sale securities, net
of income tax effects of $150
|
– | – | – | – | (268 | ) | (268 | ) | ||||||||||||||||
Comprehensive
income
|
728,219 | |||||||||||||||||||||||
Dividends
paid
|
– | – | – | (149,846 | ) | – | (149,846 | ) | ||||||||||||||||
Tax
benefit from exercise of employee stock options
|
– | – | 1,366 | – | – | 1,366 | ||||||||||||||||||
Issuance
of common stock from exercise of stock options
|
409 | 3 | 3,781 | – | – | 3,784 | ||||||||||||||||||
Stock
appreciation rights
|
– | – | 43,616 | – | – | 43,616 | ||||||||||||||||||
Purchase
and retirement of common stock
|
(708 | ) | (4 | ) | (20,254 | ) | – | – | (20,258 | ) | ||||||||||||||
Issuance
of common stock through stock purchase plan
|
210 | – | 3,712 | – | – | 3,712 | ||||||||||||||||||
Balance
at December 26, 2009
|
200,274 | $ | 1,001 | $ | 32,221 | $ | 2,816,607 | $ | (13,382 | ) | $ | 2,836,447 |
Fiscal Year Ended
|
||||||||||||
December 26,
|
December 27,
|
December 29,
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
Operating
Activities:
|
||||||||||||
Net
income
|
$ | 703,950 | $ | 732,848 | $ | 855,011 | ||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||
Depreciation
|
56,695 | 46,910 | 35,524 | |||||||||
Amortization
|
39,791 | 31,507 | 28,513 | |||||||||
Loss
on sale of property and equipment
|
(14 | ) | 124 | 560 | ||||||||
Provision
for doubtful accounts
|
(1,332 | ) | 32,355 | 3,617 | ||||||||
Provision
for obsolete and slow-moving inventories
|
61,323 | 24,461 | 34,975 | |||||||||
Unrealized
foreign currency losses/(gains)
|
7,480 | 15,887 | (926 | ) | ||||||||
Deferred
income taxes
|
(25,096 | ) | 50,887 | (57,843 | ) | |||||||
Stock
compensation
|
43,616 | 38,872 | 22,164 | |||||||||
Realized
gains on marketable securities
|
(2,741 | ) | (50,884 | ) | (5,101 | ) | ||||||
Changes
in operating assets and liabilities, net of acquisition:
|
||||||||||||
Accounts
receivable
|
(131,978 | ) | 206,101 | (477,108 | ) | |||||||
Inventories
|
61,189 | 83,035 | (224,180 | ) | ||||||||
Prepaid
expenses and other current assets
|
2,740 | (4,356 | ) | 6,213 | ||||||||
License
fees
|
(13,735 | ) | (15,289 | ) | (23,569 | ) | ||||||
Accounts
payable
|
38,875 | (236,287 | ) | 174,781 | ||||||||
Other
current and non-current liabilities
|
172,215 | (4,507 | ) | 253,909 | ||||||||
Deferred
revenue
|
65,706 | 680 | - | |||||||||
Income
taxes payable
|
15,772 | (90,180 | ) | 55,548 | ||||||||
Net
cash provided by operating activities
|
1,094,456 | 862,164 | 682,088 | |||||||||
Investing
activities:
|
||||||||||||
Purchases
of property and equipment
|
(49,199 | ) | (119,623 | ) | (156,777 | ) | ||||||
Proceeds
from sale of property and equipment
|
5 | 19 | 5 | |||||||||
Purchase
of intangible assets
|
(7,573 | ) | (6,971 | ) | (2,918 | ) | ||||||
Purchase
of marketable securities
|
(776,966 | ) | (373,580 | ) | (1,672,041 | ) | ||||||
Redemption
of marketable securities
|
285,970 | 504,324 | 1,784,816 | |||||||||
Acquistions,
net of cash acquired
|
- | (60,131 | ) | (128,751 | ) | |||||||
Change
in restricted cash
|
(106 | ) | (387 | ) | (29 | ) | ||||||
Net
cash used in investing activities
|
(547,869 | ) | (56,349 | ) | (175,695 | ) | ||||||
Financing
activities:
|
||||||||||||
Dividends
|
(149,846 | ) | (150,251 | ) | (162,531 | ) | ||||||
Payment
on long-term debt
|
- | - | (248 | ) | ||||||||
Proceeds
from issuance of common stock through stock purchase
plan
|
3,712 | 9,029 | 5,730 | |||||||||
Proceeds
from issuance of common stock from
|
||||||||||||
exercise
of stock options
|
3,783 | 2,875 | 11,278 | |||||||||
Tax
benefit related to stock option exercise
|
1,366 | 2,143 | 17,434 | |||||||||
Purchase
of common stock
|
(20,258 | ) | (671,847 | ) | (7,780 | ) | ||||||
Net
cash used in financing activities
|
(161,243 | ) | (808,051 | ) | (136,117 | ) | ||||||
Effect
of exchange rate changes on cash and cash equivalents
|
9,902 | (9,118 | ) | 92 | ||||||||
Net
increase/(decrease) in cash and cash equivalents
|
395,246 | (11,354 | ) | 370,368 | ||||||||
Cash
and cash equivalents at beginning of year
|
696,335 | 707,689 | 337,321 | |||||||||
Cash
and cash equivalents at end of year
|
$ | 1,091,581 | $ | 696,335 | $ | 707,689 |
Fiscal Year Ended
|
||||||||||||
December 26,
|
December 27,
|
December 29,
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
Supplemental
disclosures of cash flow information
|
||||||||||||
Cash
paid during the year for income taxes
|
$ | 69,186 | $ | 134,421 | $ | 54,963 | ||||||
Cash
received during the year from income tax refunds
|
$ | 2,934 | $ | 177 | $ | 779 | ||||||
Cash
paid during the year for interest
|
$ | - | $ | 607 | $ | 207 | ||||||
Supplemental
disclosure of non-cash investing and financing activities
|
||||||||||||
Change
in marketable securities related to unrealized appreciation
(depreciation)
|
$ | 408 | $ | (68,668 | ) | $ | 51,210 | |||||
Fair
value of assets acquired
|
$ | - | $ | 136,952 | $ | 256,609 | ||||||
Liabilities
assumed
|
- | (60,336 | ) | (106,654 | ) | |||||||
Less: cash
acquired
|
- | (16,485 | ) | (21,204 | ) | |||||||
Net
cash paid
|
$ | - | $ | 60,131 | $ | 128,751 |
December 26,
|
December 27,
|
|||||||
2009
|
2008
|
|||||||
Raw
materials
|
$ | 80,963 | $ | 151,132 | ||||
Work-in-process
|
32,587 | 28,759 | ||||||
Finished
goods
|
235,286 | 268,625 | ||||||
Inventory
reserves
|
(38,898 | ) | (23,204 | ) | ||||
$ | 309,938 | $ | 425,312 |
Buildings
and improvements
|
39 | |||
Office
furniture and equipment
|
5 | |||
Manufacturing
and engineering equipment
|
5 | |||
Vehicles
|
5 |
December 26,
|
December 27,
|
|||||||
2009
|
2008
|
|||||||
Balance
at beginning of year
|
$ | 214.4 | $ | 126.6 | ||||
Additions
based on tax positions related to prior years
|
14.2 | 14.2 | ||||||
Reductions
based on tax positions related to prior years
|
(16.2 | ) | (4.6 | ) | ||||
Additions
based on tax positions related to current period
|
63.1 | 83.8 | ||||||
Reductions
based on tax positions related to current period
|
- | - | ||||||
Reductions
related to settelements with tax authorities
|
- | - | ||||||
Expiration
of statute of limitations
|
(19.8 | ) | (5.6 | ) | ||||
Balance
at end of year
|
$ | 255.7 | $ | 214.4 |
Level
1
|
Unadjusted
quoted prices in active markets for identical assets or
liability
|
Level
2
|
Unadjusted
quoted prices in active markets for similar assets or liabilities, or
Unadjusted quoted prices for identical or similar
assets
|
Level
3
|
Unobservable
inputs for the asset or liability
|
Fair Value Measurements as
|
||||||||||||||||
of December 26, 2009
|
||||||||||||||||
Description
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Available
for-sale securities
|
$ | 695,795 | $ | 695,795 | $ | - | $ | - | ||||||||
Failed
Auction rate securities
|
$ | 70,252 | $ | 70,252 | ||||||||||||
Total
|
$ | 766,047 | $ | 695,795 | $ | - | $ | 70,252 |
Fair Value Measurements as
|
||||||||||||||||
of December 27, 2008
|
||||||||||||||||
Description
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Available
for-sale securities
|
$ | 203,592 | $ | 203,592 | $ | - | $ | - | ||||||||
Failed
Auction rate securities
|
$ | 71,303 | $ | 71,303 | ||||||||||||
Total
|
$ | 274,895 | $ | 203,592 | $ | - | $ | 71,303 |
Fair Value Measurements Using
|
||||||||
Significant Unobservable Inputs (Level 3)
|
||||||||
52-Weeks Ended
|
52-Weeks Ended
|
|||||||
December 27, 2008
|
December 26, 2009
|
|||||||
Beginning
balance of auction rate securities
|
$ | 0 | $ | 71,303 | ||||
Total
unrealized gains included in other comprehensive income
|
92,850 | 99 | ||||||
Purchases
in and/or out of Level 3
|
(21,547 | ) | (1,150 | ) | ||||
Transfers
in and/or out of Level 3
|
- | - | ||||||
Ending
balance of auction rate securities
|
$ | 71,303 | $ | 70,252 |
Gross
|
Gross
|
Other Than
|
Estimated Fair
|
|||||||||||||||||
Unrealized
|
Unrealized
|
Temporary
|
Value (Net
|
|||||||||||||||||
Amortized Cost
|
Gains
|
Losses
|
Impairment
|
Carrying Amount)
|
||||||||||||||||
Mortgage-backed
securities
|
$ | 515,200 | $ | 2,682 | $ | (4,674 | ) | $ | - | $ | 513,208 | |||||||||
Auction
Rate Securities
|
91,700 | - | (21,448 | ) | - | $ | 70,252 | |||||||||||||
Obligations
of states and political subdivisions
|
112,419 | 908 | (181 | ) | - | $ | 113,146 | |||||||||||||
U.S.
corporate bonds
|
35,883 | 768 | (701 | ) | (1,274 | ) | $ | 34,676 | ||||||||||||
Other
|
33,903 | 1,070 | (208 | ) | - | $ | 34,765 | |||||||||||||
Total
|
$ | 789,105 | $ | 5,428 | $ | (27,212 | ) | $ | (1,274 | ) | $ | 766,047 |
Gross
|
Other Than
|
Estimated Fair
|
||||||||||||||||||
Gross
|
Unrealized
|
Temporary
|
Value (Net Carrying
|
|||||||||||||||||
Amortized Cost
|
Unrealized Gains
|
Losses
|
Impairment
|
Amount)
|
||||||||||||||||
Mortgage-backed
securities
|
$ | 137,854 | $ | 1,184 | $ | (140 | ) | $ | - | $ | 138,898 | |||||||||
Auction
Rate Securities
|
92,850 | - | (21,547 | ) | - | $ | 71,303 | |||||||||||||
Obligations
of states and political subdivisions
|
40,336 | 960 | (12 | ) | - | $ | 41,284 | |||||||||||||
U.S.
corporate bonds
|
16,545 | 200 | (2,707 | ) | - | $ | 14,038 | |||||||||||||
Other
|
9,502 | 79 | (209 | ) | - | $ | 9,372 | |||||||||||||
Total
|
$ | 297,087 | $ | 2,423 | $ | (24,615 | ) | $ | - | $ | 274,895 |
Estimated
|
||||||||
Cost
|
Fair Value
|
|||||||
Due
in one year or less (2010)
|
$ | 19,426 | $ | 19,583 | ||||
Due
after one year through five years (2011-2015)
|
252,535 | 252,849 | ||||||
Due
after five years through ten years (2016-2020)
|
215,618 | 213,511 | ||||||
Due
after ten years (2021 and thereafter)
|
277,662 | 255,310 | ||||||
Other
(No contractual maturity dates)
|
23,864 | 24,794 | ||||||
$ | 789,105 | $ | 766,047 |
Year
|
Amount
|
|||
2010
|
$ | 9,105 | ||
2011
|
7,789 | |||
2012
|
6,687 | |||
2013
|
5,882 | |||
2014
|
5,024 | |||
Thereafter
|
6,856 | |||
Total
|
$ | 41,343 |
Fiscal Year Ended
|
||||||||||||
December 26,
|
December 27,
|
December 29,
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
Federal:
|
||||||||||||
Current
|
$ | 104,186 | $ | 90,655 | $ | 132,452 | ||||||
Deferred
|
(12,021 | ) | 23,639 | (42,193 | ) | |||||||
92,165 | 114,294 | 90,259 | ||||||||||
State:
|
||||||||||||
Current
|
5,381 | 1,318 | 12,569 | |||||||||
Deferred
|
(947 | ) | 1,090 | (2,916 | ) | |||||||
4,434 | 2,408 | 9,653 | ||||||||||
Foreign:
|
||||||||||||
Current
|
18,469 | 44,279 | 34,334 | |||||||||
Deferred
|
(10,367 | ) | 20,537 | (10,984 | ) | |||||||
8,102 | 64,816 | 23,350 | ||||||||||
Total
|
$ | 104,701 | $ | 181,518 | $ | 123,262 |
Fiscal Year Ended
|
||||||||||||
December 26,
|
December 27,
|
December 29,
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
Federal
income tax expense at U.S. statutory rate
|
$ | 287,228 | $ | 332,278 | $ | 342,396 | ||||||
State
income tax expense, net of federal tax effect
|
2,604 | 2,030 | 5,922 | |||||||||
Foreign
tax rate differential
|
(219,482 | ) | (233,928 | ) | (230,243 | ) | ||||||
Taiwan
tax holiday benefit
|
(18,556 | ) | (24,904 | ) | (44,128 | ) | ||||||
Net
change in uncertain tax postions
|
41,400 | 87,800 | 56,100 | |||||||||
Other
foreign taxes less incentives and credits
|
10,379 | 20,428 | (117 | ) | ||||||||
Other,
net
|
1,128 | (2,186 | ) | (6,668 | ) | |||||||
Income
tax expense
|
$ | 104,701 | $ | 181,518 | $ | 123,262 |
December 26,
|
December 27,
|
December 29,
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
Deferred
tax assets:
|
||||||||||||
Product
warranty accruals
|
$ | 1,642 | $ | 1,696 | $ | 18,975 | ||||||
Allowance
for doubtful accounts
|
15,346 | 15,098 | 2,430 | |||||||||
Inventory
reserves
|
10,145 | 5,331 | 7,699 | |||||||||
Sales
program allowances
|
12,902 | 14,471 | 42,832 | |||||||||
Reserve
for sales returns
|
- | 2,914 | 5,565 | |||||||||
Other
accruals
|
5,414 | 5,411 | 3,911 | |||||||||
Unrealized
intercompany profit in inventory
|
12,967 | 3,601 | 30,006 | |||||||||
Unrealized
foreign currency loss
|
248 | - | - | |||||||||
Stock
option compensation
|
31,034 | 20,375 | 8,887 | |||||||||
Tax
credit carryforwards, net
|
36,834 | 36,406 | 15,198 | |||||||||
Net
operating losses of subsidiaries
|
3,480 | 2,809 | 1,800 | |||||||||
Other
|
3,211 | 5,022 | 4,649 | |||||||||
Valuation
allowance related to loss carryforward and tax credits
|
(35,617 | ) | (34,487 | ) | (15,491 | ) | ||||||
97,606 | 78,647 | 126,461 | ||||||||||
Deferred
tax liabilities:
|
||||||||||||
Depreciation
|
13,839 | 12,872 | 9,209 | |||||||||
Prepaid
expenses
|
2,014 | 3,031 | 6,498 | |||||||||
Unrealized
foreign currency loss
|
- | 522 | 161 | |||||||||
Book
basis in excess of tax basis for acquired entities
|
11,201 | 15,936 | 14,867 | |||||||||
Unrealized
investment gain
|
833 | 153 | 31 | |||||||||
Other
|
202 | 378 | 254 | |||||||||
28,089 | 32,892 | 31,020 | ||||||||||
Net
deferred tax assets
|
$ | 69,517 | $ | 45,755 | $ | 95,441 |
December 26, 2009
|
December 27, 2008
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
Cash
and cash equivalents
|
$ | 1,091,581 | $ | 1,091,581 | $ | 696,335 | $ | 696,335 | ||||||||
Restricted
cash
|
2,047 | 2,047 | 1,941 | 1,941 | ||||||||||||
Marketable
securities
|
766,047 | 766,047 | 274,895 | 274,895 |
Fiscal Year Ended December 26, 2009
|
||||||||||||||||||||
Outdoor/
|
Auto/
|
|||||||||||||||||||
Aviation
|
Fitness
|
Marine
|
Mobile
|
Total
|
||||||||||||||||
Net
sales to external customers
|
$ | 245,745 | $ | 468,924 | $ | 177,644 | $ | 2,054,127 | $ | 2,946,440 | ||||||||||
Allocated
interest income
|
737 | 1,836 | 1,469 | 19,477 | 23,519 | |||||||||||||||
Allocated
interest expense
|
0 | 0 | 0 | 0 | 0 | |||||||||||||||
Income
before income taxes
|
56,595 | 206,042 | 57,430 | 488,584 | 808,651 | |||||||||||||||
Assets:
|
||||||||||||||||||||
Accounts
receivable
|
72,904 | 139,114 | 52,701 | 609,391 | 874,110 | |||||||||||||||
Inventories
|
25,850 | 49,326 | 18,687 | 216,075 | 309,938 |
Fiscal Year Ended December 27, 2008
|
||||||||||||||||||||
Outdoor/
|
Auto/
|
|||||||||||||||||||
Aviation
|
Fitness
|
Marine
|
Mobile
|
Total
|
||||||||||||||||
Net
sales to external customers
|
$ | 323,406 | $ | 427,783 | $ | 204,477 | $ | 2,538,411 | $ | 3,494,077 | ||||||||||
Allocated
interest income
|
957 | 5,006 | 1,867 | 27,705 | 35,535 | |||||||||||||||
Allocated
interest expense
|
(109 | ) | (23 | ) | (104 | ) | (371 | ) | (607 | ) | ||||||||||
Income
before income taxes
|
118,737 | 165,986 | 63,904 | 565,739 | 914,366 | |||||||||||||||
Assets:
|
||||||||||||||||||||
Accounts
receivable
|
68,615 | 90,761 | 43,383 | 538,562 | 741,321 | |||||||||||||||
Inventories
|
39,366 | 52,071 | 24,890 | 308,985 | 425,312 |
Fiscal Year Ended December 29, 2007
|
||||||||||||||||||||
Outdoor/
|
Auto/
|
|||||||||||||||||||
Aviation
|
Fitness
|
Marine
|
Mobile
|
Total
|
||||||||||||||||
Net
sales to external customers
|
$ | 294,995 | $ | 339,741 | $ | 203,399 | $ | 2,342,184 | $ | 3,180,319 | ||||||||||
Allocated
interest income
|
2,258 | 4,661 | 3,127 | 31,949 | 41,995 | |||||||||||||||
Allocated
interest expense
|
(3 | ) | (92 | ) | (10 | ) | (102 | ) | (207 | ) | ||||||||||
Income
before income taxes
|
113,407 | 127,804 | 71,920 | 665,142 | 978,273 | |||||||||||||||
Assets:
|
||||||||||||||||||||
Accounts
receivable
|
88,352 | 101,753 | 60,918 | 701,490 | 952,513 | |||||||||||||||
Inventories
|
46,885 | 53,997 | 32,327 | 372,258 | 505,467 |
North
|
||||||||||||||||
America
|
Asia
|
Europe
|
Total
|
|||||||||||||
December
26, 2009
|
||||||||||||||||
Net
sales to external customers
|
$ | 1,972,451 | $ | 149,920 | $ | 824,069 | $ | 2,946,440 | ||||||||
Long
lived assets
|
233,573 | 153,878 | 53,887 | 441,338 | ||||||||||||
Net
assets
|
1,177,849 | 1,467,903 | 190,695 | 2,836,447 | ||||||||||||
December
27, 2008
|
||||||||||||||||
Net
sales to external customers
|
$ | 2,333,585 | $ | 144,740 | $ | 1,015,752 | $ | 3,494,077 | ||||||||
Long
lived assets
|
221,158 | 168,528 | 55,566 | 445,252 | ||||||||||||
Net
assets
|
687,638 | 1,371,240 | 166,976 | 2,225,854 | ||||||||||||
December
29, 2007
|
||||||||||||||||
Net
sales to external customers
|
$ | 2,066,823 | $ | 144,155 | $ | 969,341 | $ | 3,180,319 | ||||||||
Long-lived
assets
|
185,838 | 143,181 | 45,128 | 374,147 | ||||||||||||
Net
assets
|
908,267 | 1,309,783 | 132,564 | 2,350,614 |
Stock Options and SARs
|
||||||||
Weighted-Average
|
||||||||
Exercise Price
|
Number of Shares
|
|||||||
(In Thousands)
|
||||||||
Outstanding
at December 30, 2006
|
$ | 29.24 | 7,726 | |||||
Granted
|
$ | 84.61 | 2,864 | |||||
Exercised
|
$ | 18.29 | (934 | ) | ||||
Forfeited
|
$ | 38.11 | (125 | ) | ||||
Outstanding
at December 29, 2007
|
$ | 46.82 | 9,531 | |||||
Granted
|
$ | 51.00 | 1,470 | |||||
Exercised
|
$ | 22.35 | (226 | ) | ||||
Forfeited
|
$ | 53.89 | (249 | ) | ||||
Outstanding
at December 27, 2008
|
$ | 47.76 | 10,526 | |||||
Granted
|
$ | 23.09 | 35 | |||||
Exercised
|
$ | 18.08 | (278 | ) | ||||
Forfeited
|
$ | 59.55 | (174 | ) | ||||
Outstanding
at December 26, 2009
|
$ | 48.28 | 10,109 | |||||
Exercisable
at December 26, 2009
|
$ | 39.37 | 6,148 |
Stock Options and SARs as of December 26, 2009
|
||||||||||||
Exercise
|
Options
|
Remaining
|
Options
|
|||||||||
Price
|
Outstanding
|
Life (Years)
|
Exercisable
|
|||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||
$7.00
-$20.00
|
1,801 | 3.42 | 1,797 | |||||||||
$20.01
- $40.00
|
2,069 | 5.21 | 1,728 | |||||||||
$40.01
- $60.00
|
3,548 | 7.33 | 1,546 | |||||||||
$60.01
- $80.00
|
1,314 | 7.36 | 526 | |||||||||
$80.01
- $100.00
|
7 | 7.81 | 3 | |||||||||
$100.01
- $120.00
|
1,366 | 7.88 | 547 | |||||||||
$120.01
- $140.00
|
4 | 7.78 | 1 | |||||||||
10,109 | 6.28 | 6,148 |
Restricted Stock Units
|
||||||||
Weighted-Average
|
||||||||
Grant/Release Price
|
Number of Shares
|
|||||||
(In Thousands)
|
||||||||
Outstanding
at December 29, 2007
|
- | - | ||||||
Granted
|
$ | 19.59 | 1,044 | |||||
Released
|
- | - | ||||||
Cancelled
|
- | (1 | ) | |||||
Outstanding
at December 27, 2008
|
$ | 19.59 | 1,043 | |||||
Granted
|
$ | 30.44 | 501 | |||||
Released
|
$ | 30.14 | (204 | ) | ||||
Cancelled
|
- | (24 | ) | |||||
Outstanding
at December 26, 2009
|
1,316 |
2009
|
2008
|
2007
|
||||||||||
Weighted
average fair value of options granted
|
$ | 7.32 | $ | 18.47 | $ | 33.81 | ||||||
Expected
volatility
|
0.4286 | 0.3845 | 0.3677 | |||||||||
Dividend
yield
|
2.42 | % | 3.75 | % | 0.76 | % | ||||||
Expected
life of options in years
|
6.2 | 6.0 | 6.0 | |||||||||
Risk-free
interest rate
|
3 | % | 2 | % | 4 | % |
Fiscal Year Ended
|
||||||||||||
December 26,
|
December 27,
|
December 29,
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
Numerator
(in thousands):
|
||||||||||||
Numerator
for basic and diluted net income per share - net income
|
$ | 703,950 | $ | 732,848 | $ | 855,011 | ||||||
Denominator
(in thousands):
|
||||||||||||
Denominator
for basic net income per share -weighted-average common
shares
|
200,395 | 208,993 | 216,524 | |||||||||
Effect
of dilutive securities -employee stock-based awards
|
766 | 1,687 | 3,351 | |||||||||
Denominator
for diluted net income per share -weighted-average common
shares
|
201,161 | 210,680 | 219,875 | |||||||||
Basic
net income per share
|
$ | 3.51 | $ | 3.51 | $ | 3.95 | ||||||
Diluted
net income per share
|
$ | 3.50 | $ | 3.48 | $ | 3.89 |
Fiscal Year Ended December 26, 2009
|
||||||||||||||||
Quarter Ending
|
||||||||||||||||
March 28
|
June 27
|
September 26
|
December 26
|
|||||||||||||
Net
sales
|
$ | 436,699 | $ | 669,104 | $ | 781,254 | $ | 1,059,383 | ||||||||
Gross
profit
|
195,995 | 351,614 | 409,742 | 486,760 | ||||||||||||
Net
income
|
48,538 | 161,871 | 215,133 | 278,408 | ||||||||||||
Basic
net income per share
|
$ | 0.24 | $ | 0.81 | $ | 1.07 | $ | 1.39 |
Fiscal Year Ended December 27, 2008
|
||||||||||||||||
Quarter Ending
|
||||||||||||||||
March 29
|
June 28
|
September 27
|
December 27
|
|||||||||||||
Net
sales
|
$ | 663,805 | $ | 911,671 | $ | 870,355 | $ | 1,048,246 | ||||||||
Gross
profit
|
320,115 | 417,128 | 385,639 | 430,633 | ||||||||||||
Net
income
|
147,779 | 256,092 | 171,244 | 157,733 | ||||||||||||
Basic
net income per share
|
$ | 0.68 | $ | 1.20 | $ | 0.83 | $ | 0.78 |
Fiscal Year Ended
|
||||||||||||
December
26,
|
December
27,
|
December
29,
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
Balance
- beginning of period
|
$ | 87,408 | $ | 71,636 | $ | 37,639 | ||||||
Accrual
for products sold during the period
|
164,909 | 132,644 | 98,702 | |||||||||
Expenditures
|
(164,893 | ) | (116,872 | ) | (64,705 | ) | ||||||
Balance
- end of period
|
$ | 87,424 | $ | 87,408 | $ | 71,636 |
(a)
|
Directors
of the Company
|
(b)
|
Executive
Officers of the Company
|
(c)
|
Compliance
with Section 16(a) of the Exchange
Act
|
(d)
|
Audit
Committee and Audit Committee Financial
Expert
|
(e)
|
Code
of Ethics
|
A
|
B
|
C
|
||||||||||
Number of securities
|
||||||||||||
remaining available for
|
||||||||||||
Plan Category
|
Number of securities to be
|
Weighted-average
|
future issuance under
|
|||||||||
issued upon exercise of
|
exercise price of
|
equity compensation
|
||||||||||
outstanding options,
|
outstanding options,
|
plans (excluding
|
||||||||||
warrants and rights
|
warrants and rights
|
securities reflected in
|
||||||||||
column A)
|
||||||||||||
Equity
compensation plans approved by shareholders
|
10,109,311 | $ | 48.28 | 2,183,757 | ||||||||
Equity
compensation plans not approved by shareholders
|
— | — | — | |||||||||
Total
|
10,109,311 | $ | 48.28 | 2,183,757 |
(a)
|
List
of Documents filed as part of this
Report
|
(1)
|
Consolidated
Financial Statements
|
(2)
|
Schedule
II Valuation and Qualifying
Accounts
|
(3)
|
Exhibits
— The following exhibits are filed as part of, or incorporated by
reference into, this Annual Report on Form
10-K:
|
EXHIBIT
|
||
NUMBER
|
DESCRIPTION
|
|
3.1
|
Memorandum
and Articles of Association of Garmin Ltd. and Notice of Resolution
(incorporated by reference to Exhibit 3.1 of the Registrant’s Quarterly
Report on Form 10-Q filed on August 9, 2006 ).
|
|
4.1
|
Specimen
share certificate (incorporated by reference to Exhibit 4.1 of the
Registrant’s Registration Statement on Form S-1 filed December 6, 2000
(Commission File No. 333-45514)).
|
|
4.2
|
Shareholder
Rights Agreement (incorporated by reference to Exhibit 4 of the
Registrant’s Current Report on Form 8-K filed on October 26,
2001).
|
|
4.3
|
Amendment
to Shareholder Rights Agreement (incorporated by reference to Exhibit 1.1
of the Registrant’s Amendment No.1 to Registration Statement on Form
8-A12G/A filed on November 14, 2005).
|
|
10.1
|
Garmin
Ltd. 2000 Equity Incentive Plan (incorporated by reference to Exhibit 10.1
of the Registrant’s Registration Statement on Form S-1 filed December 6,
2000 (Commission File No. 333-45514)).
|
|
10.2
|
Form
of Stock Option Agreement pursuant to the Garmin Ltd. 2000 Equity
Incentive Plan for Employees of Garmin International, Inc. (incorporated
by reference to Exhibit 10.1of the Registrant’s Current Report on Form 8-K
filed on September 7, 2004).
|
|
10.3
|
Form
of Stock Option Agreement pursuant to the Garmin Ltd. 2000 Equity
Incentive Plan for Employees of Garmin Corporation (incorporated by
reference to Exhibit 10.3 of the Registrant’s Current Report on Form 8-K
filed on September 7, 2004).
|
|
10.4
|
Form
of Stock Option Agreement pursuant to the Garmin Ltd. 2000 Equity
Incentive Plan for UK-Approved Stock Options for Employees of Garmin
(Europe) Ltd. (incorporated by reference to Exhibit 10.4 of the
Registrant’s Current Report on Form 8-K filed on September 7,
2004).
|
10.5
|
Form
of Stock Option Agreement pursuant to the Garmin Ltd. 2000 Equity
Incentive Plan for Non UK-Approved Stock Options for Employees of Garmin
(Europe) Ltd. (incorporated by reference to Exhibit 10.5 of the
Registrant’s Current Report on Form 8-K filed on September 7,
2004).
|
|
10.6
|
Garmin
Ltd. 2000 Non-Employee Directors’ Option Plan (incorporated by reference
to Exhibit 10.2 of the Registrant’s Registration Statement on Form S-1
filed December 6, 2000 (Commission File No.
333-45514)).
|
|
10.7
|
Form
of Stock Option Agreement pursuant to the Garmin Ltd. Non-Employee
Directors’ Option Plan for Non-Employee Directors of Garmin Ltd.
(incorporated by reference to Exhibit 10.2 of the Registrant’s Current
Report on Form 8-K filed on September 7, 2004).
|
|
10.8
|
Garmin
Ltd. Amended and Restated Employee Stock Purchase Plan (incorporated by
reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form
10-Q filed August 9, 2006).
|
|
10.9
|
First
Amendment to Garmin Ltd. Employee Stock Purchase Plan (incorporated by
reference to Exhibit 10.4 of the Registrant’s Annual Report on Form 10-K
filed on March 27, 2002).
|
|
10.10
|
Second
Amendment to Garmin Ltd. Employee Stock Purchase Plan (incorporated by
reference to Exhibit 10.1 of the Registrant’s Quarterly Report on Form
10-Q filed on August 13, 2003).
|
|
10.11
|
Garmin
Ltd. 2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.1
of the Registrant’s Current Report on Form 8-K filed on June 7,
2005).
|
|
10.12
|
Form
of Stock Option Agreement pursuant to the Garmin Ltd. 2005 Equity
Incentive Plan (incorporated by reference to Exhibit 10.2 of the
Registrant’s Current Report on Form 8-K filed on June 7,
2005).
|
|
10.13
|
Form
of Stock Appreciation Rights Agreement pursuant to the Garmin Ltd. 2005
Equity Incentive Plan (incorporated by reference to Exhibit 10.3 of the
Registrant’s Current Report on Form 8-K filed on June 7,
2005).
|
|
10.14
|
Form
of Stock Appreciation Rights Agreement pursuant to the Garmin Ltd. 2000
Equity Incentive Plan (incorporated by reference to Exhibit 10.4 of the
Registrant’s Quarterly Report on Form 10-Q filed on May 8,
2007).
|
|
10.15
|
Amended
and Restated Garmin Ltd. Employee Stock Purchase Plan effective January 1,
2008 (incorporated by reference to Exhibit 10.15 of the Registrant’s
Annual Report on Form 10-K filed on February 25, 2009).
|
|
10.16
|
Form
of Time Vested Restricted Stock Unit Award Agreement under the Garmin Ltd.
2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 of
the Registrant’s Current Report on Form 8-K filed on December 17,
2008).
|
|
10.17
|
Form
of Performance Shares Award Agreement under the Garmin Ltd. 2005 Equity
Incentive Plan (incorporated by reference to Exhibit 10.2 of the
Registrant’s Current Report on Form 8-K filed on December 17,
2008).
|
10.18
|
Garmin
Ltd. 2009 Cash Incentive Bonus Plan (incorporated by reference to Exhibit
10.18 of the Registrant’s Annual Report on Form 10-K filed on February 25,
2009).
|
|
10.19
|
Vendor
Agreement dated February 27, 2004 between Best Buy Purchasing LLC and
Garmin USA, Inc. (incorporated by reference to Exhibit 10.19 of the
Registrant’s Annual Report on Form 10-K filed on February 25,
2009).
|
|
10.20
|
Best
Buy Vendor Program Agreement dated February 29, 2008 (incorporated by
reference to Exhibit 10.20 of the Registrant’s Annual Report on Form 10-K
filed on February 25, 2009).
|
|
10.21
|
Best
Buy Vendor Program Agreement and Addendum thereto dated March 30, 2009
(incorporated by reference to Exhibit 10.1 of the Registrant’s Quarterly
Report on Form 10-Q filed on August 5, 2009).
|
|
10.22
|
Amended
and Restated Garmin Ltd. Employee Stock Purchase Plan, effective January
1, 2010.
|
|
10.23
|
Form
of Time Vested Restricted Stock Unit Award Agreement under the Garmin Ltd.
2005 Equity Incentive Plan, as revised by the Registrant’s Board of
Directors on December 11, 2009.
|
|
10.24
|
Form
of Performance Shares Award Agreement under the Garmin Ltd. 2005 Equity
Incentive Plan, as revised by the Registrant’s Board of Directors on
December 11, 2009.
|
|
10.25
|
Garmin
Ltd. 2005 Equity Incentive Plan (as Amended and Restated Effective June 5,
2009) (incorporated by reference to Schedule 1 of the Registrant’s Proxy
Statement on Schedule 14A filed on April 21, 2009).
|
|
10.26
|
Garmin
Ltd. Amended and Restated 2000 Non-Employee Directors’ Option Plan,
Effective June 5, 2009 (incorporated by reference to Schedule 2 of the
Registrant’s Proxy Statement on Schedule 14A filed on April 21,
2009).
|
|
14.1
|
Code
of Conduct of Garmin Ltd. and Subsidiaries (incorporated by reference to
Exhibit 14.1 of the Registrant’s Annual Report on Form 10-K filed on
February 25, 2009).
|
|
21.1
|
List
of subsidiaries
|
|
23.1
|
Consent
of Ernst & Young LLP
|
|
24.1
|
Power
of Attorney (included in signature page)
|
|
31.1
|
Chief
Executive Officer’s Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Chief
Financial Officer’s Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
|
32.1
|
Chief
Executive Officer’s Certification pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
|
32.2
|
Chief
Financial Officer’s Certification pursuant to Section 906 of the
Sarbanes-Oxley Act of
2002.
|
Exhibit
101.INS
|
XBRL
Instance Document
|
Exhibit
101.SCH
|
XBRL
Taxonomy Extension Schema
|
Exhibit
101.CAL
|
XBRL
Taxonomy Extension Calculation Linkbase
|
Exhibit
101.LAB
|
XBRL
Taxonomy Extension Label Linkbase
|
Exhibit
101.PRE
|
XBRL
Taxonomy Extension Presentation Linkbase
|
Exhibit
101.DEF
|
XBRL
Taxonomy Extension Definition
Linkbase
|
(b)
|
Exhibits.
|
(c)
|
Financial Statement
Schedules.
|
Additions
|
||||||||||||||||||||
Balance at
|
Charged to
|
Charged to
|
Balance at
|
|||||||||||||||||
Beginning of
|
Costs and
|
Other
|
End of
|
|||||||||||||||||
Description
|
Period
|
Expenses
|
Accounts
|
Deductions
|
Period
|
|||||||||||||||
Year
Ended December 26, 2009:
|
||||||||||||||||||||
Deducted
from asset accounts
|
||||||||||||||||||||
Allowance
for doubtful accounts
|
$ | 42,409 | $ | (1,332 | ) | - | $ | (4,404 | ) | $ | 36,673 | |||||||||
Inventory
reserve
|
23,204 | 61,324 | - | (45,630 | ) | $ | 38,898 | |||||||||||||
Deferred
tax asset
|
34,487 | 1,468 | - | (338 | ) | 35,617 | ||||||||||||||
Total
|
$ | 100,100 | $ | 61,460 | - | $ | (50,372 | ) | $ | 111,188 | ||||||||||
Year
Ended December 27, 2008:
|
||||||||||||||||||||
Deducted
from asset accounts
|
||||||||||||||||||||
Allowance
for doubtful accounts
|
$ | 10,246 | $ | 32,355 | - | $ | (192 | ) | $ | 42,409 | ||||||||||
Inventory
reserve
|
31,186 | 24,461 | - | (32,443 | ) | 23,204 | ||||||||||||||
Deferred
tax asset
|
15,491 | 18,996 | - | - | 34,487 | |||||||||||||||
Total
|
$ | 56,923 | $ | 75,812 | - | $ | (32,635 | ) | $ | 100,100 | ||||||||||
Year
Ended December 29, 2007:
|
||||||||||||||||||||
Deducted
from asset accounts
|
||||||||||||||||||||
Allowance
for doubtful accounts
|
$ | 5,340 | $ | 3,617 | - | $ | 1,289 | $ | 10,246 | |||||||||||
Inventory
reserve
|
19,768 | 34,975 | - | (23,557 | ) | 31,186 | ||||||||||||||
Deferred
tax asset
|
28,301 | 1,486 | - | (14,296 | ) | 15,491 | ||||||||||||||
Total
|
$ | 53,409 | $ | 40,078 | - | $ | (36,564 | ) | $ | 56,923 |
GARMIN
LTD.
|
||
By
|
/s/
Min H. Kao
|
|
Min
H. Kao
|
||
Chief
Executive Officer
|
/s/ Min H. Kao
|
|
/s/
Gene M. Betts
|
|
|
Min H. Kao
|
Gene M. Betts
|
|||
Chairman,
Chief
|
Director
|
|||
Executive
Officer and Director
|
||||
(Principal
Executive Officer)
|
||||
/s/
Kevin Rauckman
|
|
/s/Donald
H. Eller
|
|
|
Kevin
Rauckman
|
Donald
H. Eller
|
|||
(Principal Financial Officer and Principal Accounting Officer)
|
Director
|
|||
Chief
Financial Officer and Treasurer
|
||||
/s/
Charles W. Peffer
|
|
/s/
Thomas A. McDonnell
|
|
|
Charles W. Peffer
|
Thomas
A. McDonnell
|
|||
Director
|
Director
|
|||
/s/ Clifton A. Pemble.
|
|
|
||
Clifton A Pemble
|
||||
Director
|
Exhibit
|
||
Number
|
Document
|
|
10.22
|
Amended
and Restated Garmin Ltd. Employee Stock Purchase Plan, effective January
1, 2010.
|
|
10.23
|
Form
of Time Vested Restricted Stock Unit Award Agreement under the Garmin Ltd.
2005 Equity Incentive Plan, as revised by the Registrant’s Board of
Directors on December 11, 2009.
|
|
10.24
|
Form
of Performance Shares Award Agreement under the Garmin Ltd. 2005 Equity
Incentive Plan, as revised by the Registrant’s Board of Directors on
December 11, 2009.
|
|
21.1
|
List
of subsidiaries
|
|
23.1
|
Consent
of Ernst & Young LLP
|
|
31.1
|
Chief
Executive Officer’s Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
|
31.2
|
Chief
Financial Officer’s Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
|
32.1
|
Chief
Executive Officer’s Certification pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|
|
32.2
|
|
Chief
Financial Officer’s Certification pursuant to Section 906 of the
Sarbanes-Oxley Act of
2002
|
Exhibit
101.INS
|
XBRL
Instance Document
|
Exhibit
101.SCH
|
XBRL
Taxonomy Extension Schema
|
Exhibit
101.CAL
|
XBRL
Taxonomy Extension Calculation Linkbase
|
Exhibit
101.LAB
|
XBRL
Taxonomy Extension Label Linkbase
|
Exhibit
101.PRE
|
XBRL
Taxonomy Extension Presentation Linkbase
|
Exhibit
101.DEF
|
XBRL
Taxonomy Extension Definition
Linkbase
|