United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June 25,~~September 24, 2022


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-41118

GARMIN LTD.

(Exact name of Company as specified in its charter)


Switzerland		98-0229227
(State or other jurisdiction		(I.R.S. Employer
of incorporation or organization)		identification no.)

Mühlentalstrasse 2
8200 Schaffhausen
Switzerland		N/A
(Address of principal executive offices)		(Zip Code)

Company’s telephone number, including area code: +41 52 630 1600

Securities registered pursuant to Section 12(b) of the Act:


Registered Shares, CHF 0.10 Per Share Par Value	GRMN	New York Stock Exchange
(Title of each class)	(Trading Symbol)	(Name of each exchange on which registered)

Indicate by check mark whether the Company (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☑	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. YES ☐ NO ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES ☐ NO ☑

Number of shares outstanding of the registrant’s common shares as of ~~July 22,~~October 21, 2022

Registered Shares, CHF 0.10 par value: ~~192,855,133~~191,663,933 (excluding treasury shares)

Garmin Ltd.

Form 10-Q

Quarter Ended ~~June 25,~~September 24, 2022

Table of Contents


		Page

Part I - Financial Information		1

Item 1.	Condensed Consolidated Financial Statements	1

	Condensed Consolidated Balance Sheets at ~~June 25,~~September 24, 2022 and December 25, 2021 (Unaudited)	1

	Condensed Consolidated Statements of Income for the 13-Weeks and ~~26-Weeks~~39-Weeks ended ~~June 25,~~September 24, 2022 and ~~June 26,~~September 25, 2021 (Unaudited)	2

	Condensed Consolidated Statements of Comprehensive Income for the 13-Weeks and ~~26-Weeks~~39-Weeks ended ~~June 25,~~September 24, 2022 and ~~June 26,~~September 25, 2021 (Unaudited)	3

	Condensed Consolidated Statements of Stockholders’ Equity for the 13-Weeks and ~~26-Weeks~~39-Weeks ended ~~June 25,~~September 24, 2022 and ~~June 26,~~September 25, 2021 (Unaudited)	4

	Condensed Consolidated Statements of Cash Flows for the ~~26-Weeks~~39-Weeks ended ~~June 25,~~September 24, 2022 and ~~June 26,~~September 25, 2021 (Unaudited)	6

	Notes to Condensed Consolidated Financial Statements (Unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23

Item 4.	Controls and Procedures	23

Part II - Other Information		24

Item 1.	Legal Proceedings	24

Item 1A.	Risk Factors	24

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24

Item 3.	Defaults Upon Senior Securities	24

Item 4.	Mine Safety Disclosures	24

Item 5.	Other Information	24

Item 6.	Exhibits	25

Signature Page		26

Part I - Financial Information

Item I - Condensed Consolidated Financial Statements

Garmin Ltd. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands, except per share information)


	June 25, 2022			December 25, 2021			September 24, 2022			December 25, 2021
Assets
Current assets:
Cash and cash equivalents	$	1,087,381		$	1,498,058		$	1,082,338		$	1,498,058
Marketable securities		526,639			347,980			378,705			347,980
Accounts receivable, net		698,859			843,445			641,072			843,445
Inventories		1,454,868			1,227,609			1,533,271			1,227,609
Deferred costs		14,541			15,961			14,398			15,961
Prepaid expenses and other current assets		340,329			328,719			318,339			328,719
Total current assets		4,122,617			4,261,772			3,968,123			4,261,772

Property and equipment, net		1,113,562			1,067,478			1,100,257			1,067,478
Operating lease right-of-use assets		128,615			89,457			121,937			89,457
Noncurrent marketable securities		1,247,490			1,268,698			1,236,350			1,268,698
Deferred income tax assets		347,998			260,205			390,105			260,205
Noncurrent deferred costs		10,818			12,361			10,393			12,361
Goodwill		561,395			575,080			540,740			575,080
Other intangible assets, net		194,070			215,993			179,890			215,993
Other noncurrent assets		87,131			103,383			79,811			103,383
Total assets	$	7,813,696		$	7,854,427		$	7,627,606		$	7,854,427

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	319,732		$	370,048		$	268,674		$	370,048
Salaries and benefits payable		178,670			211,371			184,802			211,371
Accrued warranty costs		39,949			45,467			39,925			45,467
Accrued sales program costs		89,981			121,514			75,182			121,514
Other accrued expenses		216,862			225,988			195,117			225,988
Deferred revenue		86,553			87,654			88,563			87,654
Income taxes payable		127,685			128,083			169,665			128,083
Dividend payable		564,454			258,023			420,995			258,023
Total current liabilities		1,623,886			1,448,148			1,442,923			1,448,148

Deferred income tax liabilities		118,062			117,595			117,941			117,595
Noncurrent income taxes payable		60,233			62,539			50,943			62,539
Noncurrent deferred revenue		38,297			41,618			37,068			41,618
Noncurrent operating lease liabilities		106,952			70,044			100,181			70,044
Other noncurrent liabilities		333			324			361			324

Stockholders’ equity:
Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 193,058 shares outstanding at June 25, 2022 and 192,608 shares outstanding at December 25, 2021		17,979			17,979
Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 192,180 shares outstanding at September 24, 2022 and 192,608 shares outstanding at December 25, 2021								17,979			17,979
Additional paid-in capital		2,008,931			1,960,722			2,027,019			1,960,722
Treasury stock (5,019 and 5,469 shares, respectively)		(315,886	)		(303,114	)
Treasury stock (5,897 and 5,469 shares, respectively)								(398,974	)		(303,114	)
Retained earnings		4,225,521			4,320,737			4,439,004			4,320,737
Accumulated other comprehensive (loss) income		(70,612	)		117,835			(206,839	)		117,835
Total stockholders’ equity		5,865,933			6,114,159			5,878,189			6,114,159
Total liabilities and stockholders’ equity	$	7,813,696		$	7,854,427		$	7,627,606		$	7,854,427

See accompanying notes.

Garmin Ltd. and Subsidiaries

Condensed Consolidated Statements of Income (Unaudited)

(In thousands, except per share information)


	13-Weeks Ended						26-Weeks Ended						13-Weeks Ended						39-Weeks Ended
	June 25, 2022			June 26, 2021			June 25, 2022			June 26, 2021			September 24, 2022			September 25, 2021			September 24, 2022			September 25, 2021
Net sales	$	1,240,833		$	1,326,905		$	2,413,496		$	2,399,232		$	1,140,434		$	1,191,973		$	3,553,931		$	3,591,206
Cost of goods sold		512,007			546,054			1,022,190			976,825			469,935			496,026			1,492,126			1,472,852
Gross profit		728,826			780,851			1,391,306			1,422,407			670,499			695,947			2,061,805			2,118,354

Advertising expense		43,357			42,939			77,490			74,000			32,888			36,705			110,378			110,705
Selling, general and administrative expenses		191,211			180,717			381,995			352,705			189,546			177,647			571,541			530,351
Research and development expense		201,518			186,023			410,524			374,871			208,692			198,925			619,215			573,798
Total operating expense		436,086			409,679			870,009			801,576			431,126			413,277			1,301,134			1,214,854

Operating income		292,740			371,172			521,297			620,831			239,373			282,670			760,671			903,500
Other income (expense):
Interest income		8,495			7,018			16,048			14,670			10,472			6,897			26,520			21,568
Foreign currency losses		(22,439	)		(7,326	)		(25,946	)		(15,607	)		(29,863	)		(15,014	)		(55,809	)		(30,621	)
Other income		170			1,195			3,431			2,679			285			833			3,716			3,511
Total other income (expense)		(13,774	)		887			(6,467	)		1,742			(19,106	)		(7,284	)		(25,573	)		(5,542	)

Income before income taxes		278,966			372,059			514,830			622,573			220,267			275,386			735,098			897,958
Income tax provision		21,093			55,062			45,366			85,548			9,419			16,347			54,785			101,894
Net income	$	257,873		$	316,997		$	469,464		$	537,025		$	210,848		$	259,039		$	680,313		$	796,064

Net income per share:
Basic	$	1.34		$	1.65		$	2.43		$	2.80		$	1.09		$	1.35		$	3.53		$	4.14
Diluted	$	1.33		$	1.64		$	2.43		$	2.78		$	1.09		$	1.34		$	3.52		$	4.13

Weighted average common shares outstanding:
Basic		193,074			192,150			192,980			192,023			192,672			192,322			192,878			192,123
Diluted		193,450			192,871			193,515			192,840			193,105			193,185			193,378			192,955

See accompanying notes.

Garmin Ltd. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(In thousands)


	13-Weeks Ended						26-Weeks Ended						13-Weeks Ended						39-Weeks Ended
	June 25, 2022			June 26, 2021			June 25, 2022			June 26, 2021			September 24, 2022			September 25, 2021			September 24, 2022			September 25, 2021
Net income	$	257,873		$	316,997		$	469,464		$	537,025		$	210,848		$	259,039		$	680,313		$	796,064
Foreign currency translation adjustment		(64,895	)		27,680			(121,807	)		(7,611	)		(117,360	)		(8,702	)		(239,167	)		(16,313	)
Change in fair value of available-for-sale marketable securities, net of deferred taxes		(16,628	)		(1,305	)		(66,640	)		(9,189	)		(18,867	)		(3,169	)		(85,507	)		(12,358	)
Comprehensive income	$	176,350		$	343,372		$	281,017		$	520,225		$	74,621		$	247,168		$	355,639		$	767,393

See accompanying notes.

Garmin Ltd. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

For the 13-Weeks Ended ~~June 25,~~September 24, 2022 and ~~June 26,~~September 25, 2021

(In thousands, except per share information)


	Common Stock		Additional Paid-In Capital		Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total			Common Stock		Additional Paid-In Capital			Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
Balance at March 27, 2021	$	17,979	$	1,892,934	$	(309,522	)	$	3,974,184		$	140,252		$	5,715,827
Balance at June 26, 2021																	$	17,979	$	1,927,137		$	(303,369	)	$	3,775,874		$	166,627		$	5,584,248
Net income		—		—		—			316,997			—			316,997			—		—			—			259,039			—			259,039
Translation adjustment		—		—		—			—			27,680			27,680			—		—			—			—			(8,702	)		(8,702	)
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $78		—		—		—			—			(1,305	)		(1,305	)
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $609																		—		—			—			—			(3,169	)		(3,169	)
Comprehensive income															343,372																	247,168
Dividends declared ($2.68 per share)		—		—		—			(515,307	)		—			(515,307	)
Dividends																		—		—			—			(1	)		—			(1	)
Issuance of treasury stock related to equity awards		—		11,600		6,476			—			—			18,076			—		(28	)		28			—			—			—
Stock compensation		—		22,603		—			—			—			22,603			—		23,355			—			—			—			23,355
Purchase of treasury stock related to equity awards		—		—		(323	)		—			—			(323	)		—		—			(32	)		—			—			(32	)
Balance at June 26, 2021	$	17,979	$	1,927,137	$	(303,369	)	$	3,775,874		$	166,627		$	5,584,248
Balance at September 25, 2021																	$	17,979	$	1,950,464		$	(303,373	)	$	4,034,912		$	154,756		$	5,854,738

	Common Stock		Additional Paid-In Capital		Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total			Common Stock		Additional Paid-In Capital			Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
Balance at March 26, 2022	$	17,979	$	1,982,561	$	(294,711	)	$	4,532,102		$	10,911		$	6,248,842
Balance at June 25, 2022																	$	17,979	$	2,008,931		$	(315,886	)	$	4,225,521		$	(70,612	)	$	5,865,933
Net income		—		—		—			257,873			—			257,873			—		—			—			210,848			—			210,848
Translation adjustment		—		—		—			—			(64,895	)		(64,895	)		—		—			—			—			(117,360	)		(117,360	)
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $4,757		—		—		—			—			(16,628	)		(16,628	)
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $5,744																		—		—			—			—			(18,867	)		(18,867	)
Comprehensive income															176,350																	74,621
Dividends declared ($2.92 per share)		—		—		—			(564,454	)		—			(564,454	)
Dividends																		—		—			—			2,635			—			2,635
Issuance of treasury stock related to equity awards		—		11,322		9,582			—			—			20,904			—		(28	)		28			—			—			—
Stock compensation		—		15,048		—			—			—			15,048			—		18,116			—			—			—			18,116
Purchase of treasury stock related to equity awards		—		—		(111	)		—			—			(111	)		—		—			(27	)		—			—			(27	)
Purchase of treasury stock under share repurchase plan		—		—		(30,646	)		—			—			(30,646	)		—		—			(83,089	)		—			—			(83,089	)
Balance at June 25, 2022	$	17,979	$	2,008,931	$	(315,886	)	$	4,225,521		$	(70,612	)	$	5,865,933
Balance at September 24, 2022																	$	17,979	$	2,027,019		$	(398,974	)	$	4,439,004		$	(206,839	)	$	5,878,189

See accompanying notes.

Garmin Ltd. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

For the ~~26-Weeks~~39-Weeks Ended ~~June 25,~~September 24, 2022 and ~~June 26,~~September 25, 2021

(In thousands, except per share information)


	Common Stock		Additional Paid-In Capital		Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total			Common Stock		Additional Paid-In Capital		Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
Balance at December 26, 2020	$	17,979	$	1,880,354	$	(320,016	)	$	3,754,372		$	183,427		$	5,516,116		$	17,979	$	1,880,354	$	(320,016	)	$	3,754,372		$	183,427		$	5,516,116
Net income		—		—		—			537,025			—			537,025			—		—		—			796,064			—			796,064
Translation adjustment		—		—		—			—			(7,611	)		(7,611	)		—		—		—			—			(16,313	)		(16,313	)
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $2,308		—		—		—			—			(9,189	)		(9,189	)
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $2,918																		—		—		—			—			(12,358	)		(12,358	)
Comprehensive income															520,225																767,393
Dividends declared ($2.68 per share)		—		—		—			(515,523	)		—			(515,523	)
Dividends																		—		—		—			(515,524	)		—			(515,524	)
Issuance of treasury stock related to equity awards		—		1,482		34,251			—			—			35,733			—		1,454		34,279			—			—			35,733
Stock compensation		—		45,301		—			—			—			45,301			—		68,656		—			—			—			68,656
Purchase of treasury stock related to equity awards		—		—		(17,604	)		—			—			(17,604	)		—		—		(17,636	)		—			—			(17,636	)
Balance at June 26, 2021	$	17,979	$	1,927,137	$	(303,369	)	$	3,775,874		$	166,627		$	5,584,248
Balance at September 25, 2021																	$	17,979	$	1,950,464	$	(303,373	)	$	4,034,912		$	154,756		$	5,854,738

	Common Stock		Additional Paid-In Capital		Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total			Common Stock		Additional Paid-In Capital		Treasury Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
Balance at December 25, 2021	$	17,979	$	1,960,722	$	(303,114	)	$	4,320,737		$	117,835		$	6,114,159		$	17,979	$	1,960,722	$	(303,114	)	$	4,320,737		$	117,835		$	6,114,159
Net income		—		—		—			469,464			—			469,464			—		—		—			680,313			—			680,313
Translation adjustment		—		—		—			—			(121,807	)		(121,807	)		—		—		—			—			(239,167	)		(239,167	)
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $19,459		—		—		—			—			(66,640	)		(66,640	)
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects of $25,202																		—		—		—			—			(85,507	)		(85,507	)
Comprehensive income															281,017																355,639
Dividends declared ($2.92 per share)		—		—		—			(564,680	)		—			(564,680	)
Dividends																		—		—		—			(562,046	)		—			(562,046	)
Issuance of treasury stock related to equity awards		—		8,454		32,596			—			—			41,050			—		8,426		32,626			—			—			41,052
Stock compensation		—		39,755		—			—			—			39,755			—		57,871		—			—			—			57,871
Purchase of treasury stock related to equity awards		—		—		(14,722	)		—			—			(14,722	)		—		—		(14,750	)		—			—			(14,750	)
Purchase of treasury stock under share repurchase plan		—		—		(30,646	)		—			—			(30,646	)		—		—		(113,736	)		—			—			(113,736	)
Balance at June 25, 2022	$	17,979	$	2,008,931	$	(315,886	)	$	4,225,521		$	(70,612	)	$	5,865,933
Balance at September 24, 2022																	$	17,979	$	2,027,019	$	(398,974	)	$	4,439,004		$	(206,839	)	$	5,878,189

See accompanying notes.

Garmin Ltd. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)


	26-Weeks Ended						39-Weeks Ended
	June 25, 2022			June 26, 2021			September 24, 2022			September 25, 2021
Operating Activities:
Net income	$	469,464		$	537,025		$	680,313		$	796,064
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		58,986			48,776			88,005			75,272
Amortization		23,870			25,903			34,349			38,485
(Gain) loss on sale or disposal of property and equipment		(1,666	)		207			(1,652	)		246
Unrealized foreign currency losses		21,217			12,205			45,498			24,390
Deferred income taxes		(66,382	)		5,560			(101,133	)		8,358
Stock compensation expense		39,755			45,301			57,871			68,656
Realized loss (gain) on marketable securities		773			(374	)		982			(513	)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net of allowance for doubtful accounts		122,428			103,928			156,666			197,024
Inventories		(294,766	)		(177,193	)		(442,312	)		(357,387	)
Other current and noncurrent assets		775			(27,279	)		29,299			(31,398	)
Accounts payable		(29,829	)		44,144			(64,199	)		57,602
Other current and noncurrent liabilities		(74,273	)		(39,377	)		(84,287	)		(39,941	)
Deferred revenue		(4,246	)		(7,317	)		(3,299	)		(6,914	)
Deferred costs		2,920			5,863			3,426			7,547
Income taxes		(3,550	)		20,670			20,067			5,974
Net cash provided by operating activities		265,476			598,042			419,594			843,465

Investing activities:
Purchases of property and equipment		(134,798	)		(146,542	)		(184,928	)		(187,960	)
Proceeds from sale of property and equipment		1,672			8			1,693			26
Purchase of intangible assets		(887	)		(1,170	)		(1,411	)		(1,408	)
Purchase of marketable securities		(873,110	)		(755,360	)		(1,044,942	)		(1,081,789	)
Redemption of marketable securities		620,796			720,937			923,894			975,318
Acquisitions, net of cash acquired		(10,828	)		(15,893	)		(13,455	)		(15,893	)
Net cash used in investing activities		(397,155	)		(198,020	)		(319,149	)		(311,706	)

Financing activities:
Dividends		(258,249	)		(233,860	)		(399,074	)		(362,602	)
Proceeds from issuance of treasury stock related to equity awards		41,050			35,733			41,052			35,733
Purchase of treasury stock related to equity awards		(14,722	)		(17,604	)		(14,750	)		(17,636	)
Purchase of treasury stock under share repurchase plan		(25,117	)		0			(105,206	)		—
Net cash used in financing activities		(257,038	)		(215,731	)		(477,978	)		(344,505	)

Effect of exchange rate changes on cash and cash equivalents		(21,999	)		(2,819	)		(38,265	)		(6,172	)

Net (decrease) increase in cash, cash equivalents, and restricted cash		(410,716	)		181,472			(415,798	)		181,082
Cash, cash equivalents, and restricted cash at beginning of period		1,498,843			1,458,748			1,498,843			1,458,748
Cash, cash equivalents, and restricted cash at end of period	$	1,088,127		$	1,640,220		$	1,083,045		$	1,639,830

See accompanying notes.

Garmin Ltd. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

~~June 25,~~September 24, 2022

(In thousands, except per share information)

1. Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of Garmin Ltd. and wholly-owned subsidiaries (collectively, the “Company” or “Garmin”). Intercompany balances and transactions have been eliminated.

The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The condensed consolidated balance sheet at December 25, 2021 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Additionally, the condensed consolidated financial statements should be read in conjunction with Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-Q, and the Company’s Annual Report on Form 10-K for the year ended December 25, 2021. Operating results for the 13-week and ~~26-week~~39-week periods ended ~~June 25,~~September 24, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.

The Company’s fiscal year is based on a 52- or 53-week period ending on the last Saturday of the calendar year. Therefore, the financial results of certain 53-week fiscal years, and the associated 14-week quarters, will not be exactly comparable to the prior and subsequent 52-week fiscal years and the associated 13-week quarters. The quarters ended ~~June 25,~~September 24, 2022 and ~~June 26,~~September 25, 2021 both contain operating results for 13 weeks.

Changes in Classification and Allocation

Certain prior period amounts have been reclassified or presented to conform to the current period presentation.

In the first quarter of fiscal 2022, the Company refined the methodology used in classifying certain indirect costs in accordance with the way the Company's management is now using the information in decision making, which management believes provides a more meaningful representation of costs incurred to support research and development activities. As a result, the Company’s condensed consolidated statements of income have been recast for the 13-week and ~~26-week~~39-week periods ended ~~June 26,~~September 25, 2021 to reflect reclassifications of $~~14,958~~15,132 and $~~29,323~~44,455, respectively, from research and development expense to selling, general, and administrative expense.

Additionally, in the first quarter of fiscal 2022, the methodology used to allocate certain selling, general, and administrative expenses to the segments was refined to allocate these expenses in a more direct manner to provide the Company's Chief Operating Decision Maker (CODM) with a more meaningful representation of segment profit or loss. The Company’s composition of operating segments and reportable segments did not change.

These changes in classification and allocation had no effect on the Company’s consolidated operating or net income.

Significant Accounting Policies

For a description of the significant accounting policies and methods used in the preparation of the Company’s condensed consolidated financial statements, refer to Note 2, “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2021. There were no material changes to the Company’s significant accounting policies during the ~~26-week~~39-week period ended ~~June 25,~~September 24, 2022.

Recently Issued Accounting Standards and Pronouncements

Recently adopted accounting standards and recently issued accounting pronouncements not yet adopted are not expected to have a material impact on the Company’s consolidated financial statements, accounting policies, processes, or systems.

2. Inventories

The components of inventories consist of the following:


	June 25, 2022		December 25, 2021		September 24, 2022		December 25, 2021
Raw materials	$	581,560	$	509,435	$	539,691	$	509,435
Work-in-process		206,573		213,801		194,398		213,801
Finished goods		666,735		504,373		799,182		504,373
Inventories	$	1,454,868	$	1,227,609	$	1,533,271	$	1,227,609

3. Earnings Per Share

The following table sets forth the computation of basic and diluted net income per share. Stock options, stock appreciation rights, and restricted stock units are collectively referred to as “equity awards”.


	13-Weeks Ended				26-Weeks Ended				13-Weeks Ended				39-Weeks Ended
	June 25, 2022		June 26, 2021		June 25, 2022		June 26, 2021		September 24, 2022		September 25, 2021		September 24, 2022		September 25, 2021
Numerator:
Numerator for basic and diluted net income per share – net income	$	257,873	$	316,997	$	469,464	$	537,025	$	210,848	$	259,039	$	680,313	$	796,064

Denominator:
Denominator for basic net income per share – weighted-average common shares		193,074		192,150		192,980		192,023		192,672		192,322		192,878		192,123

Effect of dilutive equity awards		376		721		535		817		433		863		500		832

Denominator for diluted net income per share – adjusted weighted-average common shares		193,450		192,871		193,515		192,840		193,105		193,185		193,378		192,955

Basic net income per share	$	1.34	$	1.65	$	2.43	$	2.80	$	1.09	$	1.35	$	3.53	$	4.14

Diluted net income per share	$	1.33	$	1.64	$	2.43	$	2.78	$	1.09	$	1.34	$	3.52	$	4.13

Shares excluded from diluted net income per share calculation:
Anti-dilutive equity awards		757		313		761		315		754		311		759		313

4. Segment Information and Geographic Data

Garmin is organized in the 6six operating segments of fitness, outdoor, aviation, marine, consumer auto, and auto OEM. The fitness, outdoor, aviation, and marine operating segments represent reportable segments. The consumer auto and auto OEM operating segments, which serve the auto market, do not meet the quantitative thresholds to separately qualify as reportable segments, and they are therefore reported together in an “all other” category captioned as auto. Fitness, outdoor, aviation, marine, and auto are collectively referred to as the Company's reported segments.

The Company’s Chief Executive Officer, who has been identified as the CODM, uses operating income as the measure of profit or loss, combined with other measures, to assess segment performance and allocate resources. Operating income represents net sales less costs of goods sold and operating expenses. Net sales are directly attributed to each segment. Most costs of goods sold and the majority of operating expenses are also directly attributed to each segment, while certain other costs of goods sold and operating expenses are allocated to the segments in a manner appropriate to the specific facts and circumstances of the expenses being allocated.

As indicated in Note 1 to the condensed consolidated financial statements, in the first quarter of fiscal 2022 the methodology used to allocate certain selling, general, and administrative expenses to the segments was refined to allocate these expenses in a more direct manner to provide the Company’s CODM with a more meaningful representation of segment profit or loss. The Company’s composition of operating segments and reportable segments did not change. Results for the 13-week and ~~26-week~~39-week periods ended ~~June 26,~~September 25, 2021 have been recast below to conform with the current period presentation.

Net sales (“revenue”), gross profit, and operating income for each of the Company’s five reported segments are presented below, along with supplemental financial information for the auto OEM and consumer auto operating segments that management believes is useful.


									Auto																		Auto
	Fitness		Outdoor		Aviation		Marine		Total Auto			Consumer Auto		Auto OEM			Total		Fitness		Outdoor		Aviation		Marine		Total Auto			Consumer Auto		Auto OEM			Total
13-Weeks Ended June 25, 2022
13-Weeks Ended September 24, 2022
Net sales	$	272,095	$	381,915	$	204,739	$	242,794	$	139,290		$	80,328	$	58,962		$	1,240,833	$	279,875	$	340,388	$	188,043	$	196,506	$	135,622		$	66,444	$	69,178		$	1,140,434
Gross profit		134,016		253,255		147,931		137,406		56,218			37,253		18,965			728,826		147,716		219,980		137,732		110,747		54,324			30,432		23,892			670,499
Operating income (loss)		23,462		154,250		61,745		68,619		(15,336	)		9,121		(24,457	)		292,740		40,850		120,842		48,487		44,950		(15,756	)		2,105		(17,861	)		239,373

13-Weeks Ended June 26, 2021
13-Weeks Ended September 25, 2021
Net sales	$	413,201	$	323,405	$	180,832	$	261,790	$	147,677		$	86,278	$	61,399		$	1,326,905	$	342,316	$	323,856	$	180,165	$	207,534	$	138,102		$	82,914	$	55,188		$	1,191,973
Gross profit		225,192		208,158		131,934		152,609		62,958			42,261		20,697			780,851		183,028		210,522		131,260		116,152		54,985			39,342		15,643			695,947
Operating income (loss)		113,733		120,843		51,126		91,091		(5,621	)		16,355		(21,976	)		371,172		74,469		122,875		51,747		55,142		(21,563	)		11,979		(33,542	)		282,670

26-Weeks Ended June 25, 2022
39-Weeks Ended September 24, 2022
Net sales	$	492,992	$	766,519	$	379,505	$	496,863	$	277,617		$	145,458	$	132,159		$	2,413,496	$	772,867	$	1,106,908	$	567,548	$	693,369	$	413,239		$	211,902	$	201,337		$	3,553,931
Gross profit		240,205		500,751		275,474		265,987		108,889			68,213		40,676			1,391,306		387,921		720,731		413,206		376,734		163,213			98,645		64,568			2,061,805
Operating income (loss)		24,043		303,229		101,871		127,501		(35,347	)		12,953		(48,300	)		521,297		64,894		424,071		150,359		172,451		(51,104	)		15,058		(66,162	)		760,671

26-Weeks Ended June 26, 2021
39-Weeks Ended September 25, 2021
Net sales	$	721,326	$	579,859	$	354,721	$	471,163	$	272,163		$	148,673	$	123,490		$	2,399,232	$	1,063,642	$	903,715	$	534,886	$	678,698	$	410,265		$	231,587	$	178,678		$	3,591,206
Gross profit		398,737		379,833		258,116		273,989		111,732			74,225		37,507			1,422,407		581,765		590,355		389,376		390,141		166,717			113,567		53,150			2,118,354
Operating income (loss)		184,415		212,854		96,140		153,997		(26,575	)		25,393		(51,968	)		620,831		258,884		335,728		147,888		209,140		(48,140	)		37,371		(85,511	)		903,500

Net sales to external customers by geographic region were as follows for the 13-week and ~~26-week~~39-week periods ended ~~June 25,~~September 24, 2022 and ~~June 26,~~September 25, 2021. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa:


	13-Weeks Ended				26-Weeks Ended				13-Weeks Ended				39-Weeks Ended
	June 25, 2022		June 26, 2021		June 25, 2022		June 26, 2021		September 24, 2022		September 25, 2021		September 24, 2022		September 25, 2021
Americas	$	646,172	$	646,393	$	1,216,807	$	1,150,085	$	563,310	$	573,331	$	1,780,117	$	1,723,415
EMEA		412,550		488,724		810,027		888,232		382,865		442,622		1,192,893		1,330,855
APAC		182,111		191,788		386,662		360,915		194,259		176,020		580,921		536,936
Net sales to external customers	$	1,240,833	$	1,326,905	$	2,413,496	$	2,399,232	$	1,140,434	$	1,191,973	$	3,553,931	$	3,591,206

5. Warranty Reserves

The Company’s standard warranty obligation to its end-users provides for a period of one to two years from the date of shipment, while certain auto, aviation, and marine OEM products have a warranty period of two years or more from the date of installation. The Company’s estimates of costs to service its warranty obligations are based on historical experience and management’s expectations and judgments of future conditions, and are recorded as a liability on the balance sheet.The following reconciliation provides an illustration of changes in the aggregate warranty reserve.


	13-Weeks Ended						26-Weeks Ended						13-Weeks Ended						39-Weeks Ended
	June 25, 2022			June 26, 2021			June 25, 2022			June 26, 2021			September 24, 2022			September 25, 2021			September 24, 2022			September 25, 2021
Balance - beginning of period	$	40,698		$	39,288		$	45,467		$	42,643		$	39,949		$	44,575		$	45,467		$	42,643
Accrual for products sold (1)		14,154			22,988			25,025			34,445			16,913			13,272			41,939			47,717
Expenditures		(14,903	)		(17,701	)		(30,543	)		(32,513	)		(16,937	)		(14,998	)		(47,481	)		(47,511	)
Balance - end of period	$	39,949		$	44,575		$	39,949		$	44,575		$	39,925		$	42,849		$	39,925		$	42,849

(1) Changes in cost estimates related to pre-existing warranties were not material and aggregated with accruals for new warranty contracts in the ‘accrual for products sold’ line.

6. Commitments and Contingencies

Commitments

The Company is party to certain commitments that require the future purchase of goods or services (“unconditional purchase obligations”). The Company’s unconditional purchase obligations primarily consist of payments for inventory, capital expenditures, and other indirect purchases in connection with conducting the business. The aggregate amount of purchase orders and other commitments open as of ~~June 25,~~September 24, 2022 that may represent noncancellable unconditional purchase obligations having a remaining term in excess of one year was approximately $~~323,000~~363,000.

Certain cash balances are held as collateral in relation to bank guarantees. This restricted cash is reported within other assets on the condensed consolidated balance sheets and totaled $~~746~~707 and $785 on ~~June 25,~~September 24, 2022 and December 25, 2021, respectively. The total of the cash and cash equivalents balance and the restricted cash reported within other assets in the condensed consolidated balance sheets equals the total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows.

Contingencies

Management of the Company currently does not believe it is reasonably possible that the Company may have incurred a material loss, or a material loss in excess of recorded accruals, with respect to loss contingencies in the aggregate, for the fiscal quarter ended ~~June 25,~~September 24, 2022. The results of legal proceedings, investigations and claims, however, cannot be predicted with certainty. An adverse resolution of one or more of such matters in excess of management’s expectations could have a material adverse effect in the particular quarter or fiscal year in which a loss is recorded, but based on information currently known, the Company does not believe it is likely that losses from such matters would have a material adverse effect on the Company’s business or its consolidated financial position, results of operations or cash flows.

The Company settled or resolved certain matters during the 13-week and ~~26-week~~39-week periods ended ~~June 25,~~September 24, 2022 that did not individually or in the aggregate have a material impact on the Company’s business or its consolidated financial position, results of operations or cash flows.

7. Income Taxes

The Company recorded income tax expense of $~~21,093~~9,419 in the 13-week period ended ~~June 25,~~September 24, 2022, compared to income tax expense of $~~55,062~~16,347 in the 13-week period ended ~~June 26,~~September 25, 2021. The effective tax rate was ~~7.6~~4.3% in the ~~second~~third quarter of 2022, compared to ~~14.8~~5.9% in the ~~second~~third quarter of 2021. The decrease was primarily due to income mix by jurisdiction and an increase in U.S. tax deductions and credits in the ~~second~~third quarter of 2022 compared to the ~~second~~third quarter of 2021.

The Company recorded income tax expense of $~~45,366~~54,785 in the first ~~half~~three quarters of 2022, compared to income tax expense of $~~85,548~~101,894 in the first ~~half~~three quarters of 2021. The effective tax rate was ~~8.8~~7.5% in the first ~~half~~three quarters of 2022, compared to ~~13.7~~11.3% in the first ~~half~~three quarters of 2021. The decrease was primarily due to income mix by jurisdiction and an increase in U.S. tax deductions and credits in the first ~~half~~three quarters of 2022 compared to the first ~~half~~three quarters of 2021.

8. Marketable Securities

The FASB ASC topic entitled Fair Value Measurements and Disclosures defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The accounting guidance classifies the inputs used to measure fair value into the following hierarchy:


	Level 1	Unadjusted quoted prices in active markets for the identical asset or liability


	Level 2	Observable inputs for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability


	Level 3	Unobservable inputs for the asset or liability

The Company endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Valuation is based on prices obtained from an independent pricing vendor using both market and income approaches. The primary inputs to the valuation include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, and credit spreads.

The method described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Marketable securities classified as available-for-sale securities are summarized below:


	Available-For-Sale Securities as of June 25, 2022										Available-For-Sale Securities as of September 24, 2022
	Fair Value Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Fair Value Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Agency securities	Level 2		7,000		0		(597	)		6,403	Level 2		7,000		—		(790	)		6,210
Mortgage-backed securities	Level 2		158,957		3		(3,494	)		155,466	Level 2		47,923		1		(4,556	)		43,368
Commercial paper	Level 2		200,329		0		0			200,329	Level 2		201,363		—		—			201,363
Corporate debt securities	Level 2		1,147,667		249		(64,004	)		1,083,912	Level 2		1,132,104		123		(81,781	)		1,050,446
Municipal securities	Level 2		339,483		78		(23,260	)		316,301	Level 2		332,225		17		(28,396	)		303,846
Other	Level 2		13,366		0		(1,648	)		11,718	Level 2		11,724		—		(1,902	)		9,822
Total		$	1,866,802	$	330	$	(93,003	)	$	1,774,129		$	1,732,339	$	141	$	(117,425	)	$	1,615,055


	Available-For-Sale Securities as of December 25, 2021										Available-For-Sale Securities as of December 25, 2021
	Fair Value Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Fair Value Level	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Agency securities	Level 2		7,000		0		(110	)		6,890	Level 2		7,000		—		(110	)		6,890
Mortgage-backed securities	Level 2		149,692		257		(880	)		149,069	Level 2		149,692		257		(880	)		149,069
Commercial paper	Level 2		0		0		0			0	Level 2		—		—		—			—
Corporate debt securities	Level 2		1,079,390		9,830		(11,827	)		1,077,393	Level 2		1,079,390		9,830		(11,827	)		1,077,393
Municipal securities	Level 2		356,037		1,870		(4,864	)		353,043	Level 2		356,037		1,870		(4,864	)		353,043
Other	Level 2		31,134		22		(873	)		30,283	Level 2		31,134		22		(873	)		30,283
Total		$	1,623,253	$	11,979	$	(18,554	)	$	1,616,678		$	1,623,253	$	11,979	$	(18,554	)	$	1,616,678

The primary objectives of the Company’s investment policy ~~targets~~are to preserve capital, maintain an acceptable degree of liquidity, and maximize yield within the constraint of low ~~risk investments with the objective of minimizing the potential risk of principal loss.~~credit risk. The fair value of securities varies from period to period due to changes in interest rates, the performance of the underlying collateral, and the credit performance of the underlying issuer, among other factors.

Accrued interest receivable, which totaled $~~11,164~~10,506 as of ~~June 25,~~September 24, 2022, is excluded from both the fair value and amortized cost basis of available-for-sale securities and is included within prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets. The Company writes off impaired accrued interest on a timely basis, generally within 30 days of the due date, by reversing interest income. ~~NaN~~No accrued interest was written off during the ~~26-week~~39-week period ended ~~June 25,~~September 24, 2022.

The Company recognizes impairments relating to credit losses of available-for-sale securities through an allowance for credit losses and other income on the Company’s condensed consolidated statements of income. Impairment not relating to credit losses is recorded in other comprehensive income on the Company’s condensed consolidated balance sheets. The cost of securities sold is based on the specific identification method. Approximately 9197% of securities in the Company’s portfolio were at an unrealized loss position as of ~~June 25,~~September 24, 2022.

The following tables display additional information regarding gross unrealized losses and fair value by major security type for available-for-sale securities in an unrealized loss position as of ~~June 25,~~September 24, 2022 and December 25, 2021.


	As of June 25, 2022															As of September 24, 2022
	Less than 12 Consecutive Months					12 Consecutive Months or Longer					Total					Less than 12 Consecutive Months					12 Consecutive Months or Longer					Total
	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Agency securities		(597	)		6,403		0			0		(597	)		6,403		—			—		(790	)		6,210		(790	)		6,210
Mortgage-backed securities		(2,549	)		45,338		(945	)		5,709		(3,494	)		51,047		(3,208	)		35,482		(1,348	)		7,668		(4,556	)		43,150
Commercial paper		0			0		0			0		0			0		—			—		—			—		—			—
Corporate debt securities		(42,712	)		781,300		(21,292	)		218,091		(64,004	)		999,391		(39,596	)		674,818		(42,185	)		356,855		(81,781	)		1,031,673
Municipal securities		(15,155	)		219,841		(8,105	)		81,579		(23,260	)		301,420		(9,450	)		141,651		(18,946	)		152,896		(28,396	)		294,547
Other		(75	)		1,685		(1,573	)		8,553		(1,648	)		10,238		—			—		(1,902	)		9,327		(1,902	)		9,327
Total	$	(61,088	)	$	1,054,567	$	(31,915	)	$	313,932	$	(93,003	)	$	1,368,499	$	(52,254	)	$	851,951	$	(65,171	)	$	532,956	$	(117,425	)	$	1,384,907


	As of December 25, 2021															As of December 25, 2021
	Less than 12 Consecutive Months					12 Consecutive Months or Longer					Total					Less than 12 Consecutive Months					12 Consecutive Months or Longer					Total
	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
Agency securities		(110	)		6,890		0			0		(110	)		6,890		(110	)		6,890		—			—		(110	)		6,890
Mortgage-backed securities		(148	)		18,909		(732	)		7,598		(880	)		26,507		(148	)		18,909		(732	)		7,598		(880	)		26,507
Commercial paper		0			0		0			0		0			0		—			—		—			—		—			—
Corporate debt securities		(9,466	)		499,084		(2,361	)		85,033		(11,827	)		584,117		(9,466	)		499,084		(2,361	)		85,033		(11,827	)		584,117
Municipal securities		(4,247	)		226,009		(617	)		29,405		(4,864	)		255,414		(4,247	)		226,009		(617	)		29,405		(4,864	)		255,414
Other		(467	)		17,845		(406	)		7,205		(873	)		25,050		(467	)		17,845		(406	)		7,205		(873	)		25,050
Total	$	(14,438	)	$	768,737	$	(4,116	)	$	129,241	$	(18,554	)	$	897,978	$	(14,438	)	$	768,737	$	(4,116	)	$	129,241	$	(18,554	)	$	897,978

As of ~~June 25,~~September 24, 2022 and December 25, 2021, the Company had 0not recognized an allowance for credit losses on any securities in an unrealized loss position.

The Company has 0not recorded an allowance for credit losses and charge to other income for the unrealized losses on agency, mortgage-backed, corporate debt, municipal, and other securities presented above because the Company's management does not consider the declines in fair value to have resulted from credit losses. Management has not observed a significant deterioration in credit quality of these securities, which are highly rated with moderate to low credit risk. Declines in value are largely attributable to current global economic conditions. The securities continue to make timely principal and interest payments, and the fair values are expected to recover as they approach maturity. Management does not intend to sell the securities, and it is not more likely than not that the Company will be required to sell the securities, before the respective recoveries of their amortized cost bases, which may be maturity.

The amortized cost and fair value of marketable securities at ~~June 25,~~September 24, 2022, by maturity, are shown below.


	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	528,438	$	526,639	$	381,607	$	378,705
Due after one year through five years		1,295,777		1,208,474		1,329,366		1,217,361
Due after five years through ten years		38,483		35,575		17,505		15,746
Due after ten years		4,104		3,441		3,861		3,243
Total	$	1,866,802	$	1,774,129	$	1,732,339	$	1,615,055

9. Stockholders' Equity

Dividends

Under Swiss corporate law, dividends must be approved by shareholders at the annual general meeting of the Company’s shareholders. On June 10, 2022, the Company's shareholders approved a dividend of $2.92 per share, subject to possible adjustment based on the total amount of the dividend in Swiss Francs as approved at the annual meeting, and payable in four equal installments on dates to be determined by the Board of ~~Directors, which was recorded as a~~Directors. A reduction of retained ~~earnings.~~earnings and a corresponding liability were recorded at the time of shareholders' approval and are periodically adjusted based on the number of applicable shares outstanding. The Company paid dividends of $~~258,249~~399,074 for the ~~26-week~~39-week period ended September 24, 2022.

On June ~~25, 2022.~~4, 2021, the Company's shareholders approved a dividend of $2.68 per share, $1.34 of which was paid in the Company’s 2021 fiscal year, and $1.34 of which was paid in the Company’s 2022 fiscal year.

Share Repurchase Program

On April 22, 2022, the Board of Directors approved a share repurchase program (the “Program”) authorizing the Company to repurchase up to $300,000 of the common shares of Garmin Ltd. The timing and volume of share repurchases are subject to market conditions, business conditions and applicable laws, and are at management’s discretion. Share repurchases may be made from time to time in the open market or in privately negotiated transactions, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The Program does not require the purchase of any minimum number of shares and may be suspended or discontinued at any time. The share repurchase authorization expires on December 29, 2023. As of ~~June 25,~~September 24, 2022, the Company had repurchased ~~308~~1,187 shares for $~~30,646~~113,736~~. There remains~~, leaving approximately $~~269,354~~186,264 available to repurchase additional shares under the Program.

10. Accumulated Other Comprehensive Income

The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the 13-week and ~~26-week~~39-week periods ended ~~June 25,~~September 24, 2022:

13-Weeks Ended June 25, 2022

Foreign currency
translation adjustment

Net gains (losses) on available-for-sale securities

Total

Balance - beginning of period

$
66,503

$
(55,592
)

$
10,911

Other comprehensive income (loss) before reclassification, net of income tax benefit of $4,969

(64,895
)

(17,191
)

(82,086
)
Amounts reclassified from accumulated other comprehensive income (loss) to other income, net of income tax benefit of $212 included in income tax provision

—

563

563

Net current-period other comprehensive income (loss)

(64,895
)

(16,628
)

(81,523
)
Balance - end of period

$
1,608

$
(72,220
)

$
(70,612
)


	26-Weeks Ended June 25, 2022									13-Weeks Ended September 24, 2022
	Foreign currency translation adjustment			Net gains (losses) on available-for-sale securities			Total			Foreign currency translation adjustment			Net gains (losses) on available-for-sale securities			Total
Balance - beginning of period	$	123,415		$	(5,580	)	$	117,835		$	1,608		$	(72,220	)	$	(70,612	)
Other comprehensive income (loss) before reclassification, net of income tax benefit of $19,670		(121,807	)		(67,202	)		(189,009	)
Amounts reclassified from accumulated other comprehensive income (loss) to other income, net of income tax benefit of $211 included in income tax provision		—			562			562
Other comprehensive income (loss) before reclassification, net of income tax benefit of $5,798											(117,360	)		(19,022	)		(136,382	)
Amounts reclassified from accumulated other comprehensive income (loss) to other income, net of income tax benefit of $54 included in income tax provision											—			155			155
Net current-period other comprehensive income (loss)		(121,807	)		(66,640	)		(188,447	)		(117,360	)		(18,867	)		(136,227	)
Balance - end of period	$	1,608		$	(72,220	)	$	(70,612	)	$	(115,752	)	$	(91,087	)	$	(206,839	)


	39-Weeks Ended September 24, 2022
	Foreign currency translation adjustment			Net gains (losses) on available-for-sale securities			Total
Balance - beginning of period	$	123,415		$	(5,580	)	$	117,835
Other comprehensive income (loss) before reclassification, net of income tax benefit of $25,468		(239,167	)		(86,223	)		(325,390	)
Amounts reclassified from accumulated other comprehensive income (loss) to other income, net of income tax benefit of $266 included in income tax provision		—			716			716
Net current-period other comprehensive income (loss)		(239,167	)		(85,507	)		(324,674	)
Balance - end of period	$	(115,752	)	$	(91,087	)	$	(206,839	)

11. Revenue

In order to further depict how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors, revenue (or “net sales”) is disaggregated by geographic region, major product category, and pattern of recognition.

Disaggregated revenue by geographic region (Americas, APAC, and EMEA) is presented in Note 4 – Segment Information and Geographic Data. Note 4 also contains disaggregated revenue information of the six major product categories identified by the Company – fitness, outdoor, aviation, marine, consumer auto, and auto OEM.

A large majority of the Company’s sales are recognized on a point in time basis, usually once the product is shipped and title and risk of loss have transferred to the customer. Sales recognized over a period of time are primarily within the auto and outdoor segments and relate to performance obligations that are satisfied over the life of the product or contractual service period. Revenue disaggregated by the timing of transfer of the goods or services is presented in the table below:


	13-Weeks Ended				26-Weeks Ended				13-Weeks Ended				39-Weeks Ended
	June 25, 2022		June 26, 2021		June 25, 2022		June 26, 2021		September 24, 2022		September 25, 2021		September 24, 2022		September 25, 2021
Point in time	$	1,179,123	$	1,274,569	$	2,293,324	$	2,297,346	$	1,073,058	$	1,132,339	$	3,366,382	$	3,429,686
Over time		61,710		52,336		120,172		101,886		67,376		59,634		187,549		161,520
Net sales	$	1,240,833	$	1,326,905	$	2,413,496	$	2,399,232	$	1,140,434	$	1,191,973	$	3,553,931	$	3,591,206

Transaction price and costs associated with the Company’s unsatisfied performance obligations are reflected as deferred revenue and deferred costs, respectively, on the Company’s condensed consolidated balance sheets. Such amounts are recognized ratably over the applicable service period or estimated useful life. Changes in deferred revenue and costs during the ~~26-week~~39-week period ended ~~June 25,~~September 24, 2022 are presented below:


	26-Weeks Ended June 25, 2022						39-Weeks Ended September 24, 2022
	Deferred Revenue (1)			Deferred Costs (2)			Deferred Revenue (1)			Deferred Costs (2)
Balance, beginning of period	$	129,272		$	28,322		$	129,272		$	28,322
Deferrals in period		115,750			7,731			183,907			12,307
Recognition of deferrals in period		(120,172	)		(10,694	)		(187,548	)		(15,838	)
Balance, end of period	$	124,850		$	25,359		$	125,631		$	24,791

(1) Deferred revenue is comprised of both deferred revenue and noncurrent deferred revenue per the condensed consolidated balance sheets

(2) Deferred costs are comprised of both deferred costs and noncurrent deferred costs per the condensed consolidated balance sheets

Of the $~~120,172~~187,548 of deferred revenue recognized in the ~~26-week~~39-week period ended ~~June 25,~~September 24, 2022, $~~55,945~~72,898 was deferred as of the beginning of the period. Approximately ~~seventy-five~~eighty percent of the $~~124,850~~125,631 of deferred revenue at the end of the period, ~~June 25,~~September 24, 2022, is recognized ratably over a period of three years or less.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The discussion set forth below, as well as other portions of this Quarterly Report, contain statements concerning potential future events. Such forward-looking statements are based upon assumptions by management, as of the date of this Quarterly Report, including assumptions about risks and uncertainties faced by the Company. Readers can identify these forward-looking statements by their use of such verbs as expects, anticipates, believes or similar verbs or conjugations of such verbs. If any of the Company’s assumptions prove incorrect or should unanticipated circumstances arise, actual results could materially differ from those anticipated by such forward-looking statements. The differences could be caused by a number of factors or combination of factors including, but not limited to, those factors identified in Part II, Item 1A of this Quarterly Report on Form 10-Q and in the Company’s Annual Report on Form 10-K for the year ended December 25, 2021. This report has been filed with the Securities and Exchange Commission (the “SEC” or the “Commission”) in Washington, D.C. and can be obtained by contacting the SEC’s public reference operations or obtaining it through the SEC’s website at http://www.sec.gov. Readers are strongly encouraged to consider those factors when evaluating any forward-looking statement concerning the Company. The Company will not update any forward-looking statements in this Quarterly Report to reflect future events or developments.

The information contained in this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Condensed Consolidated Financial Statements and Notes thereto included in this Form 10-Q and the audited financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 25, 2021. Unless the context otherwise requires, references in this document to "we", "us", "our" and similar terms refer to Garmin Ltd. and its subsidiaries.

Unless otherwise indicated, amounts set forth in the discussion below are in thousands.

Company Overview

The Company is a leading worldwide provider of wireless devices, many of which feature Global Positioning System (GPS) navigation, and applications that are designed for people who live an active lifestyle. We are organized in the six operating segments of fitness, outdoor, aviation, marine, consumer auto, and auto OEM. The operating segments offer products through our network of subsidiary distributors and independent dealers and distributors, our own webshop, as well as through various auto, aviation, and marine original equipment manufacturers (OEMs). Each of the operating segments is managed separately.

Business Environment Update

~~Intensifying~~A number of headwinds including high inflation, rising interest rates, and the strengthening of the U.S. Dollar relative to other major currencies have ~~led~~continued to lead to uncertainty in the economic environment. Additionally, while our global supply chain is routinely subject to component shortages, increased lead times, cost fluctuations, and logistics constraints, these factors have been further amplified by the current environment, including Russia’s invasion of Ukraine and the lingering impacts of the COVID-19 pandemic. We expect these economic and supply chain challenges to persist through ~~at least~~ the end of ~~2022.~~2022 and beyond.

While Russia’s invasion of Ukraine has not had a material direct impact on our business, and our related direct exposure is limited, the nature and degree of the effects of that conflict, as well as the effects of the current economic environment over time ~~remains~~remain uncertain. Refer to Part II, Item 1A, “Risk Factors” of this Quarterly Report for further discussion of the risks and uncertainties facing our Company.

Results of Operations

As indicated in Note 1 to the condensed consolidated financial statements, in the first quarter of fiscal 2022 the Company refined the methodology used in classifying certain indirect costs as research and development expense, which we believe provides a more meaningful representation of costs incurred to support research and development activities.

Additionally, as indicated in Note 1 and Note 4 to the condensed consolidated financial statements, in the first quarter of fiscal 2022 the methodology used to allocate certain selling, general, and administrative expenses to the segments was refined to allocate these expenses in a more direct manner to provide the Company’s CODM with a more meaningful representation of segment profit or loss. The Company’s composition of operating segments and reportable segments did not change.

These changes in classification and allocation had no effect on the Company’s consolidated operating or net income. The amounts presented below for selling, general, and administrative expense, research and development expense, segment operating expense, and segment operating income for the 13-week and ~~26-week~~39-week periods ended ~~June 26,~~September 25, 2021 have been recast to conform with the current period presentation.

Comparison of 13-Weeks ended ~~June 25,~~September 24, 2022 and ~~June 26,~~September 25, 2021

Net Sales


Net Sales	13-Weeks Ended June 25, 2022			Year-over-Year Change			13-Weeks Ended June 26, 2021			13-Weeks Ended September 24, 2022			Year-over-Year Change			13-Weeks Ended September 25, 2021
Fitness	$	272,095			(34	%)	$	413,201		$	279,875			(18	%)	$	342,316
Percentage of Total Net Sales		22	%					31	%		25	%					29	%
Outdoor		381,915			18	%		323,405			340,388			5	%		323,856
Percentage of Total Net Sales		31	%					24	%		30	%					27	%
Aviation		204,739			13	%		180,832			188,043			4	%		180,165
Percentage of Total Net Sales		16	%					14	%		16	%					15	%
Marine		242,794			(7	%)		261,790			196,506			(5	%)		207,534
Percentage of Total Net Sales		20	%					20	%		17	%					17	%
Auto		139,290			(6	%)		147,677			135,622			(2	%)		138,102
Percentage of Total Net Sales		11	%					11	%		12	%					12	%
Consumer Auto		80,328			(7	%)		86,278			66,444			(20	%)		82,914
Percentage of Total Net Sales		6	%					7	%		6	%					7	%
Auto OEM		58,962			(4	%)		61,399			69,178			25	%		55,188
Percentage of Total Net Sales		5	%					5	%		6	%					5	%
Total	$	1,240,833			(6	%)	$	1,326,905		$	1,140,434			(4	%)	$	1,191,973

Net sales decreased 6%4% for the 13-week period ended ~~June 25,~~September 24, 2022 when compared to the year-ago quarter. Total unit sales in the ~~second~~third quarter of 2022 decreased to ~~3,743~~3,491 when compared to total unit sales of ~~4,303~~3,798 in the ~~second~~third quarter of 2021, which differs from the percent decrease in revenue primarily due to shifts in segment and product mix. Outdoor was the largest portion of our revenue mix at ~~31%~~30% in the ~~second~~third quarter of 2022 compared to fitness at ~~31%~~29% in the ~~second~~third quarter of 2021.

The increase in outdoor revenue was primarily driven by ~~strong demand for our adventure watches. Aviation revenue increased due to~~ growth in ~~both OEM~~adventure watches and ~~aftermarket~~inReach devices and services, partially offset by declines in other product ~~categories.~~lines. The aviation revenue increase was driven by sales growth in multiple product lines, primarily in aftermarket. Fitness revenue decreased primarily due to declines ~~across all product categories, driven primarily by~~in our advanced ~~wearables~~wellness and indoor cycling products. Marine revenue decreased primarily due to ~~supply chain constraints that limited~~the return of typical seasonality trends. Auto revenue decreased as a sales decline in our ~~ability to satisfy all demand for our products. The decrease~~consumer auto products more than offset the sales growth in auto ~~revenue was due to sales declines in both consumer auto and auto~~ OEM ~~products.~~programs.

Gross Profit


Gross Profit	13-Weeks Ended June 25, 2022			Year-over-Year Change			13-Weeks Ended June 26, 2021			13-Weeks Ended September 24, 2022			Year-over-Year Change			13-Weeks Ended September 25, 2021
Fitness	$	134,016			(40	%)	$	225,192		$	147,716			(19	%)	$	183,028
Percentage of Segment Net Sales		49	%					54	%		53	%					53	%
Outdoor		253,255			22	%		208,158			219,980			4	%		210,522
Percentage of Segment Net Sales		66	%					64	%		65	%					65	%
Aviation		147,931			12	%		131,934			137,732			5	%		131,260
Percentage of Segment Net Sales		72	%					73	%		73	%					73	%
Marine		137,406			(10	%)		152,609			110,747			(5	%)		116,152
Percentage of Segment Net Sales		57	%					58	%		56	%					56	%
Auto		56,218			(11	%)		62,958			54,324			(1	%)		54,985
Percentage of Segment Net Sales		40	%					43	%		40	%					40	%
Consumer Auto		37,253			(12	%)		42,261			30,432			(23	%)		39,342
Percentage of Segment Net Sales		46	%					49	%		46	%					47	%
Auto OEM		18,965			(8	%)		20,697			23,892			53	%		15,643
Percentage of Segment Net Sales		32	%					34	%		35	%					28	%
Total	$	728,826			(7	%)	$	780,851		$	670,499			(4	%)	$	695,947
Percentage of Total Net Sales		59	%					59	%		59	%					58	%

Gross profit dollars in the ~~second~~third quarter of 2022 decreased 7%4%, primarily due to the decrease in net sales when compared to the year-ago quarter, as described above. Consolidated gross margin was ~~relatively flat~~slightly higher when compared to the year-ago quarter, as a ~~stronger U.S. Dollar~~favorable segment mix and ~~higher~~lower freight costs ~~were~~ offset ~~by a favorable segment and product mix.~~

~~The fitness, outdoor, marine, consumer auto, and auto OEM gross margins were adversely impacted by~~the net unfavorable impact of the strengthening of the U.S. Dollar relative to other major ~~currencies, which created downward pressure on revenues, as well as by higher freight costs. In~~currencies. The fitness, outdoor, aviation, marine, and auto gross margins were each relatively flat when compared to the ~~outdoor segment, these impacts were more than offset by a favorable product mix.~~year-ago quarter.

Operating Expense


Operating Expense	13-Weeks Ended June 25, 2022			Year-over-Year Change			13-Weeks Ended June 26, 2021			13-Weeks Ended September 24, 2022			Year-over-Year Change			13-Weeks Ended September 25, 2021
Advertising expense	$	43,357			1	%	$	42,939		$	32,888			(10	%)	$	36,705
Percentage of Total Net Sales		3	%					3	%		3	%					3	%
Selling, General and administrative expenses		191,211			6	%		180,717			189,546			7	%		177,647
Percentage of Total Net Sales		15	%					14	%		17	%					15	%
Research and development expense		201,518			8	%		186,023			208,692			5	%		198,925
Percentage of Total Net Sales		16	%					14	%		18	%					17	%
Total	$	436,086			6	%	$	409,679		$	431,126			4	%	$	413,277
Percentage of Total Net Sales		35	%					31	%		38	%					35	%

Total operating expense increased ~~430~~310 basis points and 6%4% in absolute dollars when compared to the year-ago quarter.

Advertising expense as a percent of revenue was relatively flat and decreased 10% in absolute dollars ~~was relatively flat~~ when compared to the year-ago quarter. The absolute dollar decrease was primarily attributable to decreased cooperative spend.

Selling, general and administrative expense increased ~~180~~170 basis points as a percent of revenue and 6%7% in absolute dollars compared to the year-ago quarter. The absolute dollar expense increase in the ~~second~~third quarter of 2022 was primarily attributable to increased personnel related expenses and information technology costs. A decrease in fitness expense was less than the decrease in fitness sales, resulting in an increase of 640 basis points as a percent of revenue. Increases in marine, consumer auto, and auto OEM expense, along with the corresponding decreases in sales, resulted in increases as a percent of revenue of 200, 190, and 180 basis points, respectively. Outdoor and aviation expense generally increased in line with the corresponding increases in sales.

Research and development expense increased ~~220~~160 basis points as a percent of revenue and 8%5% in absolute dollars when compared to the year-ago quarter. The absolute dollar expense increase was primarily due to higher engineering personnel costs. An increase in aviation expense was more than offset by the increase in aviation sales, resulting in a decrease of 270 basis points as a percent of revenue. Increases in fitness, marine, and consumer auto expense, along with the corresponding decreases in sales, resulted in increases as a percent of revenue of 580, 210, and 280 basis points, respectively. Auto OEM expense was relatively flat in absolute dollars and increased 230 basis points as a percent of revenue as sales declined from the year-ago quarter. Outdoor expense generally increased in line with the increase in sales.

Operating Income


Operating Income (Loss)	13-Weeks Ended June 25, 2022			Year-over-Year Change			13-Weeks Ended June 26, 2021			13-Weeks Ended September 24, 2022			Year-over-Year Change			13-Weeks Ended September 25, 2021
Fitness	$	23,462			(79	%)	$	113,733		$	40,850			(45	%)	$	74,469
Percentage of Segment Net Sales		9	%					28	%		15	%					22	%
Outdoor		154,250			28	%		120,843			120,842			(2	%)		122,875
Percentage of Segment Net Sales		40	%					37	%		36	%					38	%
Aviation		61,745			21	%		51,126			48,487			(6	%)		51,747
Percentage of Segment Net Sales		30	%					28	%		26	%					29	%
Marine		68,619			(25	%)		91,091			44,950			(18	%)		55,142
Percentage of Segment Net Sales		28	%					35	%		23	%					27	%
Auto		(15,336	)		173	%		(5,621	)		(15,756	)		(27	%)		(21,563	)
Percentage of Segment Net Sales		(11	%)					(4	%)		(12	%)					(16	%)
Consumer Auto		9,121			(44	%)		16,355			2,105			(82	%)		11,979
Percentage of Segment Net Sales		11	%					19	%		3	%					14	%
Auto OEM		(24,457	)		11	%		(21,976	)		(17,861	)		(47	%)		(33,542	)
Percentage of Segment Net Sales		(41	%)					(36	%)		(26	%)					(61	%)
Total	$	292,740			(21	%)	$	371,172		$	239,373			(15	%)	$	282,670
Percentage of Total Net Sales		24	%					28	%		21	%					24	%

Operating income decreased ~~21%~~15% in absolute dollars and ~~440~~270 basis points as a percent of revenue when compared to the year-ago quarter. ~~This~~The decrease as a percent of revenue was due to ~~a relatively flat gross margin compared to the year-ago quarter and~~ higher operating expenses, while net sales declined, as described above. ~~Auto OEM experienced an~~Decreases in operating ~~loss~~income in ~~the current quarter,~~fitness, outdoor, aviation, marine, and ~~we expect this trend to continue through 2022 as we continue to invest~~consumer auto were partially offset by improved performance in ~~certain~~ auto ~~OEM programs.~~OEM.

Other Income (Expense)


Other Income (Expense)	13-Weeks Ended June 25, 2022			13-Weeks Ended June 26, 2021			13-Weeks Ended September 24, 2022			13-Weeks Ended September 25, 2021
Interest income	$	8,495		$	7,018		$	10,472		$	6,897
Foreign currency losses		(22,439	)		(7,326	)		(29,863	)		(15,014	)
Other income		170			1,195			285			833
Total	$	(13,774	)	$	887		$	(19,106	)	$	(7,284	)

The average interest rate returns on cash and investments during the ~~second~~third quarter of 2022 was ~~1.2%~~1.5%, compared to 0.9% during the same quarter of 2021.

Foreign currency gains and losses for the Company are driven by movements of a number of currencies in relation to the U.S. Dollar. The Taiwan Dollar is the functional currency of Garmin Corporation, the Euro is the functional currency of several subsidiaries, and the U.S. Dollar is the functional currency of Garmin (Europe) Ltd., although some transactions and balances are denominated in British Pounds. Other notable currency exposures include the Australian Dollar, Chinese Yuan, Japanese Yen, and Polish Zloty. The majority of the Company’s consolidated foreign currency gain or loss is typically driven by the significant cash and marketable securities, receivables and payables held in a currency other than the functional currency at a given legal entity.

The ~~$22.4~~$29.9 million currency loss recognized in the ~~second~~third quarter of 2022 was primarily due to the U.S. Dollar strengthening against the ~~Australian Dollar,~~ Polish Zloty, Euro, ~~Chinese Yuan,~~Australian Dollar, British Pound Sterling, Chinese Yuan, and Japanese Yen, partially offset by the U.S. Dollar strengthening against the Taiwan Dollar, within the 13-week period ended ~~June 25,~~September 24, 2022. During this period, the U.S. Dollar strengthened ~~8.3%~~8.8% against the Polish Zloty, 8.2% against the Euro, 5.3% against the Australian Dollar, ~~3.1% against the Polish Zloty, 3.9% against the Euro, 4.9% against the Chinese Yuan, 7.0%~~11.5% against the British Pound Sterling, 5.4% against the Chinese Yuan, and ~~9.7%~~5.7% against the Japanese Yen resulting in losses of ~~$7.2~~$15.4 million, ~~$5.3~~$12.2 million, ~~$3.8~~$5.0 million, ~~$3.0~~$4.3 million, ~~$2.4~~$3.3 million, and ~~$2.3~~$1.9 million, respectively, partially offset by the U.S. Dollar strengthening ~~3.5%~~6.6% against the Taiwan Dollar, resulting in a gain of ~~$8.9~~$17.1 million. The remaining net currency loss of ~~$7.3~~$4.9 million was related to the impacts of other currencies, each of which was individually immaterial.

The ~~$7.3~~$15.0 million currency loss recognized in the ~~second~~third quarter of 2021 was primarily due to the U.S. Dollar strengthening against the Euro, Polish Zloty, Australian Dollar, and British Pound Sterling and weakening against the Taiwan Dollar ~~partially offset by the U.S. Dollar weakening against the Euro and the British Pound Sterling,~~ within the 13-week period ended ~~June 26,~~September 25, 2021. During this period, the U.S. Dollar strengthened 1.8% against the Euro, 3.6% against the Polish Zloty, 3.8% against the Australian Dollar, and 1.4% against the British Pound Sterling, resulting in losses of $4.1 million, $3.0 million, $1.4 million, and $0.9 million, respectively, while the U.S. Dollar weakened ~~2.5%~~0.6% against the Taiwan Dollar, resulting in a loss of ~~$9.5 million, partially offset by the U.S. Dollar weakening 1.2% against the Euro and 0.7% against the British Pound Sterling, resulting in gains of $1.2 million and $0.4 million, respectively.~~$2.7 million. The remaining net currency ~~gain~~loss of ~~$0.6~~$2.9 million was related to the impacts of other currencies, each of which was individually immaterial.

Income Tax Provision

The Company recorded income tax expense of ~~$21.1~~$9.4 million in the 13-week period ended ~~June 25,~~September 24, 2022, compared to income tax expense of ~~$55.1~~$16.3 million in the 13-week period ended ~~June 26,~~September 25, 2021. The effective tax rate was ~~7.6%~~4.3% in the ~~second~~third quarter of 2022, compared to ~~14.8%~~5.9% in the ~~second~~third quarter of 2021. The decrease was primarily due to income mix by jurisdiction and an increase in U.S. tax deductions and credits in the 13-week period ended ~~June 25,~~September 24, 2022 compared to the year-ago quarter.

Net Income

As a result of the above, net income for the 13-week period ended ~~June 25,~~September 24, 2022 was ~~$257.9~~$210.8 million compared to ~~$317.0~~$259.0 million for the 13-week period ended ~~June 26,~~September 25, 2021, a decrease of ~~$59.1~~$48.2 million.

Comparison of ~~26-Weeks~~39-Weeks ended ~~June 25,~~September 24, 2022 and ~~June 26,~~September 25, 2021

Net Sales


Net Sales	26-Weeks Ended June 25, 2022			Year-over-Year Change			26-Weeks Ended June 26, 2021			39-Weeks Ended September 24, 2022			Year-over-Year Change			39-Weeks Ended September 25, 2021
Fitness	$	492,992			(32	%)	$	721,326		$	772,867			(27	%)	$	1,063,642
Percentage of Total Net Sales		20	%					30	%		22	%					30	%
Outdoor		766,519			32	%		579,859			1,106,908			22	%		903,715
Percentage of Total Net Sales		32	%					24	%		31	%					25	%
Aviation		379,505			7	%		354,721			567,548			6	%		534,886
Percentage of Total Net Sales		16	%					15	%		16	%					15	%
Marine		496,863			5	%		471,163			693,369			2	%		678,698
Percentage of Total Net Sales		21	%					20	%		19	%					19	%
Auto		277,617			2	%		272,163			413,239			1	%		410,265
Percentage of Total Net Sales		11	%					11	%		12	%					11	%
Consumer Auto		145,458			(2	%)		148,673			211,902			(9	%)		231,587
Percentage of Total Net Sales		6	%					6	%		6	%					6	%
Auto OEM		132,159			7	%		123,490			201,337			13	%		178,678
Percentage of Total Net Sales		5	%					5	%		6	%					5	%
Total	$	2,413,496			1	%	$	2,399,232		$	3,553,931			(1	%)	$	3,591,206

Net sales ~~increased~~decreased 1% for the ~~26-week~~39-week period ended ~~June 25,~~September 24, 2022 when compared to the year-ago period. Total unit sales in the first ~~half~~three quarters of 2022 decreased to ~~7,182~~10,672 when compared to total unit sales of ~~7,763~~11,564 in the first ~~half~~three quarters of 2021, which differs from the ~~increase~~percent decrease in revenue primarily due to shifts in segment and product mix. Outdoor was the largest portion of our revenue mix at ~~32%~~31% in the first ~~half~~three quarters of 2022 compared to fitness at 30% in the first ~~half~~three quarters of 2021.

The increase in outdoor revenue was primarily driven by strong demand for our adventure watches. Aviation revenue increased due to growth in both OEM and aftermarket product categories. Marine revenue increased due to growth across multiple product categories, led by strong demand for our sonar products. The increase in auto revenue was due to sales growth in auto OEM ~~products,~~programs, partially offset by sales declines in our consumer auto products. Fitness revenue decreased due to declines across all product categories, driven primarily by our advanced wearables and cycling products.

Gross Profit


Gross Profit	26-Weeks Ended June 25, 2022			Year-over-Year Change			26-Weeks Ended June 26, 2021			39-Weeks Ended September 24, 2022			Year-over-Year Change			39-Weeks Ended September 25, 2021
Fitness	$	240,205			(40	%)	$	398,737		$	387,921			(33	%)	$	581,765
Percentage of Segment Net Sales		49	%					55	%		50	%					55	%
Outdoor		500,751			32	%		379,833			720,731			22	%		590,355
Percentage of Segment Net Sales		65	%					66	%		65	%					65	%
Aviation		275,474			7	%		258,116			413,206			6	%		389,376
Percentage of Segment Net Sales		73	%					73	%		73	%					73	%
Marine		265,987			(3	%)		273,989			376,734			(3	%)		390,141
Percentage of Segment Net Sales		54	%					58	%		54	%					57	%
Auto		108,889			(3	%)		111,732			163,213			(2	%)		166,717
Percentage of Segment Net Sales		39	%					41	%		39	%					41	%
Consumer Auto		68,213			(8	%)		74,225			98,645			(13	%)		113,567
Percentage of Segment Net Sales		47	%					50	%		47	%					49	%
Auto OEM		40,676			8	%		37,507			64,568			21	%		53,150
Percentage of Segment Net Sales		31	%					30	%		32	%					30	%
Total	$	1,391,306			(2	%)	$	1,422,407		$	2,061,805			(3	%)	$	2,118,354
Percentage of Total Net Sales		58	%					59	%		58	%					59	%

Gross profit dollars in the first ~~half~~three quarters of 2022 decreased 2%3% and consolidated gross margin decreased ~~160~~100 basis points when compared to the year-ago period, primarily due to higher freight costs and the strengthening of the U.S. Dollar relative to other major currencies, which created downward pressure on revenues.

The fitness, outdoor, marine, and ~~consumer~~ auto gross margins were adversely impacted by higher freight costs and a stronger U.S. Dollar. In the outdoor segment, these impacts were partially offset by a favorable product mix.

Operating Expense


Operating Expense	26-Weeks Ended June 25, 2022			Year-over-Year Change			26-Weeks Ended June 26, 2021			39-Weeks Ended September 24, 2022			Year-over-Year Change			39-Weeks Ended September 25, 2021
Advertising expense	$	77,490			5	%	$	74,000		$	110,378			—	%	$	110,705
Percentage of Total Net Sales		3	%					3	%		3	%					3	%
Selling, General and administrative expenses		381,995			8	%		352,705			571,541			8	%		530,351
Percentage of Total Net Sales		16	%					15	%		16	%					15	%
Research and development expense		410,524			10	%		374,871			619,215			8	%		573,798
Percentage of Total Net Sales		17	%					16	%		17	%					16	%
Total	$	870,009			9	%	$	801,576		$	1,301,134			7	%	$	1,214,854
Percentage of Total Net Sales		36	%					33	%		37	%					34	%

Total operating expense increased ~~260~~280 basis points as a percent of revenue and 9%7% in absolute dollars when compared to the year-ago period.

Advertising expense as a percent of revenue and in absolute dollars was relatively flat when compared to the year-ago ~~period and increased 5% in absolute dollars. The absolute dollar increase was primarily attributable to increased spend on tradeshows.~~period.

Selling, general and administrative expense increased ~~110~~130 basis points as a percent of revenue and 8% in absolute dollars when compared to the year-ago period. The absolute dollar increase in the first ~~half~~three quarters of 2022 was primarily attributable to increased personnel related expenses and information technology costs. An increase in outdoor expense was more than offset by the increase in outdoor sales, resulting in a decrease of 140 basis points as percent of revenue. Consumer auto expense increased, while consumer auto sales decreased, resulting in a 160 basis point increase in expense as a percent of revenue. A decrease in fitness expense was less than the decrease in fitness sales, resulting in an increase of 660 basis points as a percent of revenue. Aviation, marine and auto OEM expense generally increased in line with the increase in sales.

Research and development expense increased ~~140~~150 basis points as a percent of revenue and ~~10%~~8% in absolute dollars when compared to the year-ago period. The absolute dollar increase was primarily due to higher engineering personnel costs. An increase in outdoor expense was more than offset by the increase in outdoor sales, resulting in a decrease of 120 basis points as percent of revenue. A decrease in auto OEM expense, along with the increase in auto OEM sales, resulted in a decrease of 510 basis points as a percent of revenue. An increase in marine expense was greater than the increase in marine sales, resulting in an increase as a percent of revenue of 120 basis points. Increases in fitness and consumer auto expense, along with the corresponding decreases in sales, resulted in increases as a percent of revenue of 630 and 300 basis points, respectively. Aviation expense generally increased in line with the increase in sales.

Operating Income


Operating Income (Loss)	26-Weeks Ended June 25, 2022			Year-over-Year Change			26-Weeks Ended June 26, 2021			39-Weeks Ended September 24, 2022			Year-over-Year Change			39-Weeks Ended September 25, 2021
Fitness	$	24,043			(87	%)	$	184,415		$	64,894			(75	%)	$	258,884
Percentage of Segment Net Sales		5	%					26	%		8	%					24	%
Outdoor		303,229			42	%		212,854			424,071			26	%		335,728
Percentage of Segment Net Sales		40	%					37	%		38	%					37	%
Aviation		101,871			6	%		96,140			150,359			2	%		147,888
Percentage of Segment Net Sales		27	%					27	%		26	%					28	%
Marine		127,501			(17	%)		153,997			172,451			(18	%)		209,140
Percentage of Segment Net Sales		26	%					33	%		25	%					31	%
Auto		(35,347	)		33	%		(26,575	)		(51,104	)		6	%		(48,140	)
Percentage of Segment Net Sales		(13	%)					(10	%)		(12	%)					(12	%)
Consumer Auto		12,953			(49	%)		25,393			15,058			(60	%)		37,371
Percentage of Segment Net Sales		9	%					17	%		7	%					16	%
Auto OEM		(48,300	)		(7	%)		(51,968	)		(66,162	)		(23	%)		(85,511	)
Percentage of Segment Net Sales		(37	%)					(42	%)		(33	%)					(48	%)
Total	$	521,297			(16	%)	$	620,831		$	760,671			(16	%)	$	903,500
Percentage of Total Net Sales		22	%					26	%		21	%					25	%

Operating income decreased 16% in absolute dollars and ~~430~~380 basis points as a percent of revenue when compared to the year-ago period. ~~This~~The decrease as a percent of revenue was due to lower gross margin and higher operating expenses, ~~as a percent of revenue,~~while net sales declined, as described above. ~~Auto OEM experienced an~~Decreases in operating ~~loss~~income in ~~the current period,~~fitness, marine, and ~~we expect this trend to continue through 2022 as we continue to invest~~consumer auto were partially offset by improved performance in ~~certain~~outdoor, aviation and auto ~~OEM programs.~~OEM.

Other Income (Expense)


Other Income (Expense)	26-Weeks Ended June 25, 2022			26-Weeks Ended June 26, 2021			39-Weeks Ended September 24, 2022			39-Weeks Ended September 25, 2021
Interest income	$	16,048		$	14,670		$	26,520		$	21,568
Foreign currency losses		(25,946	)		(15,607	)		(55,809	)		(30,621	)
Other Income		3,431			2,679			3,716			3,511
Total	$	(6,467	)	$	1,742		$	(25,573	)	$	(5,542	)

The average interest rate returns on cash and investments during the ~~26-week~~39-week periods ended ~~June 25,~~September 24, 2022 and ~~June 26,~~September 25, 2021 were ~~1.1%~~1.2% and ~~1.0%~~0.9%, respectively.

The ~~$25.9~~$55.8 million currency loss recognized in the ~~26-week~~39-week period ended ~~June 25,~~September 24, 2022 was primarily due to the U.S. Dollar strengthening against the ~~Australian Dollar,~~ Polish Zloty, Euro, ~~Chinese Yuan,~~Australian Dollar, British Pound Sterling, Chinese Yuan, and Japanese Yen, partially offset by the U.S. Dollar strengthening against the Taiwan Dollar, within the ~~26-week~~39-week period ended ~~June 25,~~September 24, 2022. During this period, the U.S. Dollar strengthened ~~4.9%~~16.7% against the Polish Zloty, 14.4% against the Euro, 9.9% against the Australian Dollar, ~~8.6% against the Polish Zloty, 6.7% against the Euro, 4.9% against the Chinese Yuan, 8.4%~~18.9% against the British Pound Sterling, 10.0% against the Chinese Yuan, and ~~15.4%~~20.2% against the Japanese Yen resulting in losses of ~~$6.6~~$26.7 million, ~~$11.3~~$21.1 million, ~~$8.9~~$11.7 million, ~~$3.0~~$6.8 million, ~~$2.5~~$6.2 million, and ~~$3.9~~$5.7 million, respectively, partially offset by the U.S. Dollar strengthening ~~6.8%~~12.9% against the Taiwan Dollar, resulting in a gain of ~~$17.1~~$34.2 million. The remaining net currency loss of ~~$6.8~~$11.8 million was related to the impacts of other currencies, each of which was individually immaterial.

The ~~$15.6~~$30.6 million currency loss recognized in the ~~26-week~~39-week period ended ~~June 26,~~September 25, 2021 was primarily due to the U.S. Dollar strengthening against the Euro and Polish Zloty and weakening against the Taiwan Dollar ~~and strengthening against the Euro, partially offset by the U.S. Dollar weakening against the British Pound Sterling,~~ within the ~~26-week~~39-week period ended ~~June 26,~~September 25, 2021. During this period, the U.S. Dollar strengthened 4.0% against the Euro and 5.9% against the Polish Zloty, resulting in losses of $13.9 million and $3.8 million, respectively, while the U.S. Dollar weakened ~~0.8%~~1.4% against the Taiwan Dollar, ~~and strengthened 2.2% against the Euro, resulting in losses of $4.8 million and $9.8 million, respectively, partially offset by the U.S. Dollar weakening 2.4% against the British Pound Sterling~~ resulting in a ~~gain~~loss of ~~$1.8~~$7.4 million. The remaining net currency loss of ~~$2.8~~$5.5 million was related to the impacts of other currencies, each of which was individually immaterial.

Income Tax Provision

The Company recorded income tax expense of ~~$45.4~~$54.8 million in the first ~~half~~three quarters of 2022, compared to income tax expense of ~~$85.5~~$101.9 million in the first ~~half~~three quarters of 2021. The effective tax rate was ~~8.8%~~7.5% in the first ~~half~~three quarters of 2022, compared to ~~13.7%~~11.3% in the first ~~half~~three quarters of 2021. The decrease was primarily due to income mix by jurisdiction and an increase in U.S. tax deductions and credits in the first ~~half~~three quarters of 2022 compared to the first ~~half~~three quarters of 2021.

Net Income

As a result of the above, net income for the ~~26-week~~39-week period ended ~~June 25,~~September 24, 2022 was ~~$469.5~~$680.3 million compared to ~~$537.0~~$796.1 million for the ~~26-week~~39-week period ended ~~June 26,~~September 25, 2021, a decrease of ~~$67.6~~$115.8 million.

Liquidity and Capital Resources

As of ~~June 25,~~September 24, 2022, we had approximately ~~$2.9~~$2.7 billion of cash, cash equivalents and marketable securities. We primarily use cash flow from operations, and expect that future cash requirements may be used, to fund our capital expenditures, support our working capital requirements, pay dividends, fund share repurchases, and fund strategic acquisitions. We believe that our existing cash balances and cash flow from operations will be sufficient to meet our short- and long-term projected working capital needs, capital expenditures, and other cash requirements.

~~It is management’s goal to invest the on-hand~~Management invests idle or surplus cash in accordance with the investment policy, which has been approved by the Company’s Board of Directors. The investment policy’s primary ~~purpose is~~objectives are to preserve capital, maintain an acceptable degree of liquidity, and maximize yield within the constraint of low credit risk. Garmin’s average interest rate returns on cash and investments during the first ~~half~~three quarters of 2022 and 2021 were approximately ~~1.1%~~1.2% and ~~1.0%~~0.9%, respectively. The fair value of our securities varies from period to period due to changes in interest rates, in the performance of the underlying collateral, and in the credit performance of the underlying issuer, among other factors. See Note 8 for additional information regarding marketable securities.

Cash Flows

Cash provided by operating activities totaled ~~$265.5~~$419.6 million for the first ~~half~~three quarters of 2022, compared to ~~$598.0~~$843.5 million for the first ~~half~~three quarters of 2021. The decrease was primarily due to a higher use of cash on purchases of inventory, principally associated with the Company's strategy to increase days of supply to support our increasingly diversified product lines, optimize shipping methods, and mitigate increased lead times for raw materials. Additionally, the Company used more cash for income taxes and operating expenses, while sales and the associated collections of receivables were down in the first three quarters of 2022 compared to the first three quarters of 2021.

Cash used in investing activities totaled ~~$397.2~~$319.1 million in the first ~~half~~three quarters of 2022, compared to ~~$198.0~~$311.7 million for the first ~~half~~three quarters of 2021. The increase was primarily due to higher net purchases of marketable securities, as more desirable investment opportunities were available compared to the first ~~half~~three quarters of 2021.

Cash used in financing activities totaled ~~$257.0~~$478.0 million for the first ~~half~~three quarters of 2022, compared to ~~$215.7~~$344.5 million for the first ~~half~~three quarters of 2021. This increase was primarily due to the purchase of treasury stock under the share repurchase plan, and higher cash dividend payments in the first ~~half~~three quarters of 2022, as our declared dividend increased from $0.61 per share for the four calendar quarters beginning in June 2020 to $0.67 per share for the four calendar quarters beginning in June ~~2021.~~2021, and to $0.73 per share for the four calendar quarters beginning in June 2022.

Use of Cash

Operating Leases

The Company has lease arrangements for certain real estate properties, vehicles, and equipment. Leased properties are typically used for office space, distribution, and retail. As of ~~June 25,~~September 24, 2022, the Company had fixed lease payment obligations of ~~$149.3~~$139.8 million, with ~~$28.2~~$27.0 million payable within 12 months.

Inventory Purchase Obligations

The Company obtains various raw materials and components for its products from a variety of third party suppliers. The Company’s inventory purchase obligations are primarily noncancelable. As of ~~June 25,~~September 24, 2022, the Company had inventory purchase obligations of ~~$1,142.8~~$893.8 million, with ~~$854.3~~$633.1 million payable within 12 months.

Other Purchase Obligations

The Company’s other purchase obligations primarily consist of noncancelable commitments for capital expenditures and other indirect purchases in connection with conducting our business. As of ~~June 25,~~September 24, 2022, the Company had other purchase obligations of ~~$404.1~~$372.9 million, with ~~$250.2~~$176.5 million payable within 12 months.

Critical Accounting Policies and Estimates

General

Our discussion and analysis of financial condition and results of operations are based upon the Company’s condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The presentation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to customer sales programs and incentives, product returns, bad debts, inventories, investments, intangible assets, income taxes, warranty obligations, and contingencies and litigation. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

For a description of the significant accounting policies and methods used in the preparation of the Company’s condensed consolidated financial statements, refer to Note 2, “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements in Part II, Item 8 and “Critical Accounting Policies and Estimates” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2021. There were no significant changes to the Company’s critical accounting policies and estimates in the 13-week and ~~26-week~~39-week periods ended ~~June 25,~~September 24, 2022.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There are numerous market risks that can affect our future business, financial condition and results of operations. In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part II, Item 7A, "Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended December 25, 2021. There have been no material changes during the 13-week and ~~26-week~~39-week periods ended ~~June 25,~~September 24, 2022 in the risks described in our Annual Report on Form 10-K related to market sensitivity, inflation, foreign currency exchange rate risk and interest rate risk.

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures. The Company maintains a system of disclosure controls and procedures that are designed to provide reasonable assurance that information, which is required to be timely disclosed, is accumulated and communicated to management in a timely fashion. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. As of ~~June 25,~~September 24, 2022, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded as of ~~June 25,~~September 24, 2022 that our disclosure controls and procedures were effective such that the information relating to the Company, required to be disclosed in our Securities and Exchange Commission (“SEC”) reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to the Company’s management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in internal control over financial reporting. There has been no change in the Company’s internal controls over financial reporting that occurred during the Company’s fiscal quarter ended ~~June 25,~~September 24, 2022 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Part II - Other Information

Item 1. Legal Proceedings

In the normal course of business, the Company and its subsidiaries are parties to various legal claims, actions, and complaints, including matters involving patent infringement, other intellectual property, product liability, customer claims and various other risks. It is not possible to predict with certainty whether or not the Company and its subsidiaries will ultimately be successful in any of these legal matters, or if not, what the impact might be. However, the Company’s management does not expect that the results in any of these legal proceedings will have a material adverse effect on the Company’s results of operations, financial position or cash flows. For additional information, see Note 6 – Commitments and Contingencies in the above Condensed Consolidated Financial Statements and Part I, Item 3, “Legal Proceedings” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2021.

Item 1A. Risk Factors

There are many risks and uncertainties that can affect our future business, financial performance or share price. In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 25, 2021. There have been no material changes during the ~~26-week~~39-week period ended ~~June 25,~~September 24, 2022 in the risks described in our Annual Report on Form 10-K. These risks, however, are not the only risks facing our Company. Additional risks and uncertainties, including those not currently known to us or that we currently deem to be immaterial, also may materially adversely affect our business, financial condition and/or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

Share repurchase activity during the 13-week period ended ~~June 25,~~September 24, 2022, summarized on a trade-date basis, was as follows (in thousands, except per share amounts):

Period

Total Number of Shares Purchased (1)

Average Price Paid Per Share (2)

Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs

Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program

March 27, 2022 - April 23, 2022

—

$
—

—

$
300,000

April 24, 2022 - May 21, 2022

39

$
101.07

39

$
296,078

May 22, 2022 - June 25, 2022

269

$
99.42

269

$
269,354

Total

308

308


Period	Total Number of Shares Purchased (1)		Average Price Paid Per Share (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program
June 26, 2022 - July 23, 2022		204	$	100.76		204	$	248,829
July 24, 2022 - August 20, 2022		251	$	98.19		251	$	224,163
August 21, 2022 - September 24, 2022		424	$	89.32		424	$	186,264
Total		879				879

(1) The Board of Directors approved a share repurchase program on April 22, 2022 (the "Program"), authorizing the Company to purchase up to $300 million of its common shares as determined by management at its discretion. Share repurchases may be made in the open market or in privately negotiated transactions, including under plans complying with the provisions of Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing and volume of share repurchases are subject to market conditions, business conditions and applicable laws, and are at management’s discretion. The Program does not require the purchase of any minimum number of shares and may be suspended or discontinued at any time. The share repurchase authorization expires on December 29, 2023. See Note 9 in Part I, Item 1 of this Quarterly Report for additional information related to share repurchases.

(2) Average price paid per share includes costs associated with the repurchases.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

Item 6. Exhibits


Exhibit 3.1		Garmin Ltd. Articles of Association, as amended and restated on June 10, 2022 (incorporated by reference to Exhibit 10.2 of the Registrant’s Current Report on Form 8-K filed on June 13, 2022).

Exhibit 10.1		Garmin Ltd. Employee Stock Purchase Plan, as amended and restated on October 21, 2022.

Exhibit 31.1		Certification of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).

Exhibit 31.2		Certification of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).

Exhibit 32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 101.INS		XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

Exhibit 101.SCH		Inline XBRL Taxonomy Extension Schema

Exhibit 101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase

Exhibit 101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase

Exhibit 101.LAB		Inline XBRL Taxonomy Extension Label Linkbase

Exhibit 101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase

Exhibit 104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	GARMIN LTD.

	By	/s/ Douglas G. Boessen
		Douglas G. Boessen
		Chief Financial Officer
		(Principal Financial Officer and
		Principal Accounting Officer)

Dated: ~~July 27,~~October 26, 2022