Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 27, 2021 | Apr. 23, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q/A | |
Amendment Flag | true | |
Amendment Description | This Amendment No. 1 on Form 10-Q/A (this “Amendment”) amends Garmin Ltd.’s Quarterly Report on Form 10-Q for the period ended March 27, 2021 (the “Form 10-Q”) originally filed with the Securities and Exchange Commission on April 28, 2021. This Amendment is being filed solely to address technical issues with the Interactive Data Files of the Form 10-Q filing, which resulted in the omission of Inline eXtensible Business Reporting Language (iXBRL) data from the Condensed Consolidated Statements of Cash Flows. The updated Interactive Data Files are filed as Exhibit 101 to this Amendment. No other changes have been made to the Form 10-Q, but for ease of reference, this Amendment restates in its entirety, as amended, the original Form 10-Q. This Amendment does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way the disclosures made in the originally filed Form 10-Q. | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 27, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-25 | |
Entity File Number | 0-31983 | |
Entity Registrant Name | GARMIN LTD | |
Entity Central Index Key | 0001121788 | |
Entity Tax Identification Number | 98-0229227 | |
Entity Incorporation, State or Country Code | V8 | |
Entity Address, Address Line1 | Mühlentalstrasse 2 | |
Entity Address, City or Town | Schaffhausen | |
Entity Address, Country | CH | |
Entity Address, Postal Zip Code | 8200 | |
City Area Code | 41 52 | |
Local Phone Number | 630 1600 | |
Title of 12(b) Security | Registered Shares, CHF 0.10 Per Share Par Value | |
Trading Symbol | GRMN | |
Security Exchange Name | NASDAQ | |
Entity's Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 192,144,655 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,599,475 | $ 1,458,442 |
Marketable securities | 342,656 | 387,642 |
Accounts receivable, net | 558,192 | 849,469 |
Inventories | 837,934 | 762,084 |
Deferred costs | 18,175 | 20,145 |
Prepaid expenses and other current assets | 201,488 | 191,569 |
Total current assets | 3,557,920 | 3,669,351 |
Property and equipment, net | 861,382 | 855,539 |
Operating lease right-of-use assets | 92,942 | 94,626 |
Marketable securities | 1,212,798 | 1,131,175 |
Deferred income taxes | 248,852 | 245,455 |
Noncurrent deferred costs | 14,520 | 16,510 |
Intangible assets, net | 822,229 | 828,566 |
Other assets | 189,086 | 190,151 |
Total assets | 6,999,729 | 7,031,373 |
Current liabilities: | ||
Accounts payable | 250,789 | 258,885 |
Salaries and benefits payable | 148,558 | 181,937 |
Accrued warranty costs | 39,288 | 42,643 |
Accrued sales program costs | 64,557 | 109,891 |
Deferred revenue | 83,891 | 86,865 |
Accrued advertising expense | 23,805 | 31,950 |
Other accrued expenses | 137,968 | 149,817 |
Income taxes payable | 67,064 | 68,585 |
Dividend payable | 117,205 | 233,644 |
Total current liabilities | 933,125 | 1,164,217 |
Deferred income taxes | 117,596 | 116,844 |
Noncurrent income taxes | 95,505 | 92,810 |
Noncurrent deferred revenue | 44,856 | 49,934 |
Noncurrent operating lease liabilities | 74,741 | 75,958 |
Other liabilities | 18,079 | 15,494 |
Stockholders’ equity: | ||
Shares, CHF 0.10 par value, 198,077 shares authorized and issued; 192,144 shares outstanding at March 27, 2021 and 191,571 shares outstanding at December 26, 2020 | 17,979 | 17,979 |
Additional paid-in capital | 1,892,934 | 1,880,354 |
Treasury stock | (309,522) | (320,016) |
Retained earnings | 3,974,184 | 3,754,372 |
Accumulated other comprehensive income | 140,252 | 183,427 |
Total stockholders’ equity | 5,715,827 | 5,516,116 |
Total liabilities and stockholders’ equity | $ 6,999,729 | $ 7,031,373 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - SFr / shares shares in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Statement Of Financial Position [Abstract] | ||
Common shares, par value (in CHF dollars per share) | SFr 0.10 | SFr 0.10 |
Common shares, authorized | 198,077 | 198,077 |
Common shares, issued | 198,077 | 198,077 |
Common shares, outstanding | 192,144 | 191,571 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 1,072,327 | $ 856,108 |
Cost of goods sold | 430,771 | 349,168 |
Gross profit | 641,556 | 506,940 |
Advertising expense | 31,061 | 26,880 |
Selling, general and administrative expenses | 157,622 | 137,186 |
Research and development expense | 203,214 | 165,392 |
Total operating expense | 391,897 | 329,458 |
Operating income | 249,659 | 177,482 |
Other income (expense): | ||
Interest income | 7,652 | 12,026 |
Foreign currency losses | (8,281) | (15,423) |
Other income | 1,484 | 3,550 |
Total other income (expense) | 855 | 153 |
Income before income taxes | 250,514 | 177,635 |
Income tax provision | 30,485 | 16,455 |
Net income | $ 220,029 | $ 161,180 |
Net income per share: | ||
Basic | $ 1.15 | $ 0.84 |
Diluted | $ 1.14 | $ 0.84 |
Weighted average common shares outstanding: | ||
Basic | 191,896 | 190,803 |
Diluted | 192,810 | 191,684 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 220,029 | $ 161,180 |
Foreign currency translation adjustment | (35,291) | (6,176) |
Change in fair value of available-for-sale marketable securities, net of deferred taxes | (7,884) | (17,891) |
Comprehensive income | $ 176,854 | $ 137,113 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance, value at Dec. 28, 2019 | $ 4,793,496 | $ 17,979 | $ 1,835,622 | $ (345,040) | $ 3,229,061 | $ 55,874 |
Net income | 161,180 | 161,180 | ||||
Translation adjustment | (6,176) | (6,176) | ||||
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects | (17,891) | (17,891) | ||||
Comprehensive income | 137,113 | |||||
Dividends declared | (188) | (188) | ||||
Issuance of treasury stock related to equity awards | (21,129) | 21,129 | ||||
Stock compensation | 15,559 | 15,559 | ||||
Purchase of treasury stock related to equity awards | (11,580) | (11,580) | ||||
Ending balance, value at Mar. 28, 2020 | 4,934,400 | 17,979 | 1,830,052 | (335,491) | 3,390,053 | 31,807 |
Beginning balance, value at Dec. 26, 2020 | 5,516,116 | 17,979 | 1,880,354 | (320,016) | 3,754,372 | 183,427 |
Net income | 220,029 | 220,029 | ||||
Translation adjustment | (35,291) | (35,291) | ||||
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects | (7,884) | (7,884) | ||||
Comprehensive income | 176,854 | |||||
Dividends declared | (217) | (217) | ||||
Issuance of treasury stock related to equity awards | 17,657 | (10,118) | 27,775 | |||
Stock compensation | 22,698 | 22,698 | ||||
Purchase of treasury stock related to equity awards | (17,281) | (17,281) | ||||
Ending balance, value at Mar. 27, 2021 | $ 5,715,827 | $ 17,979 | $ 1,892,934 | $ (309,522) | $ 3,974,184 | $ 140,252 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||
Adjustment related to unrealized gains (losses) on available-for-sale securities income tax effects | $ 2,231 | $ 2,807 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Operating Activities: | ||
Net income | $ 220,029 | $ 161,180 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 23,988 | 18,198 |
Amortization | 12,902 | 10,006 |
Loss (gain) on sale or disposal of property and equipment | 133 | (1,846) |
Unrealized foreign currency losses | 7,277 | 16,856 |
Deferred income taxes | 497 | 10,378 |
Stock compensation expense | 22,698 | 15,559 |
Realized loss (gain) on marketable securities | 22 | (272) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net of allowance for doubtful accounts | 281,524 | 197,157 |
Inventories | (87,450) | (47,318) |
Other current and non-current assets | (13,710) | (4,367) |
Accounts payable | (3,470) | (39,851) |
Other current and non-current liabilities | (95,977) | (98,219) |
Deferred revenue | (7,998) | (10,078) |
Deferred costs | 3,945 | 3,511 |
Income taxes payable | 3,952 | (5,020) |
Net cash provided by operating activities | 368,362 | 225,874 |
Investing activities: | ||
Purchases of property and equipment | (36,894) | (41,361) |
Proceeds from sale of property and equipment | 1,907 | |
Purchase of intangible assets | (760) | (953) |
Purchase of marketable securities | (404,599) | (344,342) |
Redemption of marketable securities | 354,039 | 311,935 |
Acquisitions, net of cash acquired | (15,893) | (6,058) |
Net cash used in investing activities | (104,107) | (78,872) |
Financing activities: | ||
Dividends | (116,655) | (108,571) |
Proceeds from issuance of treasury stock related to equity awards | 17,657 | |
Purchase of treasury stock related to equity awards | (17,281) | (11,580) |
Net cash used in financing activities | (116,279) | (120,151) |
Effect of exchange rate changes on cash and cash equivalents | (6,488) | (5,602) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 141,488 | 21,249 |
Cash, cash equivalents, and restricted cash at beginning of period | 1,458,748 | 1,027,638 |
Cash, cash equivalents, and restricted cash at end of period | $ 1,600,236 | $ 1,048,887 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 27, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policies | 1. Accounting Policies Basis of Presentation The accompanying unaudited 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. Certain prior period amounts have been reclassified or presented to conform to the current period presentation. 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. Operating results for the 13-week period ended March 27, 2021 are not necessarily indicative of the results that may be expected for the year ending December 25, 2021. The Condensed Consolidated Balance Sheet at December 26, 2020 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. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 26, 2020. 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 March 27, 2021 and March 28, 2020 both contain operating results for 13 weeks. 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 26, 2020. There were no material changes to the Company’s significant accounting policies during the 13-week period ended March 27, 2021 . Recently Issued Accounting Standards and Pronouncements We do not expect any recently adopted accounting standards, or recently issued accounting pronouncements not yet adopted, to have a material impact on the Company’s consolidated financial statements, accounting policies, processes, or systems. |
Inventories
Inventories | 3 Months Ended |
Mar. 27, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 2. Inventories The components of inventories consist of the following: March 27, December 26, 2020 Raw materials $ 321,939 $ 282,287 Work-in-process 156,426 147,821 Finished goods 359,569 331,976 Inventories $ 837,934 $ 762,084 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 27, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 March 27, 2021 March 28, 2020 Numerator: Numerator for basic and diluted net income per share – net income $ 220,029 $ 161,180 Denominator: Denominator for basic net income per share – weighted-average common shares 191,896 190,803 Effect of dilutive equity awards 914 881 Denominator for diluted net income per share – adjusted weighted-average common shares 192,810 191,684 Basic net income per share $ 1.15 $ 0.84 Diluted net income per share $ 1.14 $ 0.84 Shares excluded from diluted net income per share calculation: Anti-dilutive equity awards 316 412 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 27, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 4. Segment Information Garmin is organized in the six operating segments of auto OEM, aviation, consumer auto, fitness, marine, and outdoor. The aviation, fitness, marine, and outdoor operating segments represent reportable segments. The auto OEM and consumer auto 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. Auto, aviation, fitness, marine, and outdoor are collectively referred to as our reported segments. The Company’s Chief Executive Officer, who has been identified as the Chief Operating Decision Maker (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. 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 Fitness Outdoor Aviation Marine Total Consumer Auto Total 13-Weeks Ended March 27, 2021 Net sales $ 308,125 $ 256,455 $ 173,889 $ 209,372 $ 124,486 $ 62,395 $ 62,091 $ 1,072,327 Gross profit 173,545 171,676 126,182 121,379 48,774 31,964 16,810 641,556 Operating income (loss) 73,736 93,030 44,868 61,564 ( 23,539 ) 8,398 ( 31,937 ) 249,659 13-Weeks Ended March 28, 2020 Net sales $ 223,601 $ 175,102 $ 188,599 $ 163,005 $ 105,801 $ 59,013 $ 46,788 $ 856,108 Gross profit 112,325 112,258 138,808 94,210 49,339 28,112 21,227 506,940 Operating income (loss) 31,011 47,166 59,321 40,159 ( 175 ) 3,213 ( 3,388 ) 177,482 Net sales to external customers by geographic region were as follows for the 13-week periods ended March 27, 2021 and March 28, 2020. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa: 13-Weeks Ended March 27, 2021 March 28, 2020 Americas $ 503,691 $ 427,401 EMEA 399,508 299,867 APAC 169,128 128,840 Net sales to external customers $ 1,072,327 $ 856,108 Net property and equipment by geographic region as of March 27, 2021 and March 28, 2020 are presented below. Americas APAC EMEA Total March 27, 2021 Property and equipment, net $ 478,514 $ 267,487 $ 115,381 $ 861,382 March 28, 2020 Property and equipment, net $ 454,637 $ 230,369 $ 69,543 $ 754,549 |
Warranty Reserves
Warranty Reserves | 3 Months Ended |
Mar. 27, 2021 | |
Product Warranties Disclosures [Abstract] | |
Warranty Reserves | 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 March 27, 2021 March 28, 2020 Balance - beginning of period $ 42,643 $ 39,758 Accrual for products sold (1) 11,456 17,868 Expenditures ( 14,811 ) ( 18,258 ) Balance - end of period $ 39,288 $ 39,368 (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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 27, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Commitments The Company is party to certain commitments, which include purchases of raw materials, capital expenditures, advertising, and other indirect purchases in connection with conducting our business. The aggregate amount of purchase orders and other commitments open as of March 27, 2021 was approximately $ 1,135,000 . We cannot determine the aggregate amount of such purchase orders that represent contractual obligations because purchase orders may represent authorizations to purchase rather than binding agreements. Our purchase orders are based on our current needs and typically fulfilled by our suppliers, contract manufacturers, and logistic providers within short periods of time. 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 $ 761 and $ 306 on March 27, 2021 and December 26, 2020, respectively. The total of the Cash and cash equivalents balance and the restricted cash reported within Other assets in the Condensed Consolidated Balance Sheets reconciles to the total Cash, cash equivalents, and restricted cash shown in the Condensed Consolidated Statements of Cash Flows. Contingencies In the normal course of business, the Company and its subsidiaries are parties to various legal claims, investigations and complaints, including matters alleging patent infringement and other intellectual property claims. The Company evaluates, on a quarterly and annual basis, developments in legal proceedings, investigations, claims, and other loss contingencies that could affect any required accrual or disclosure or estimate of reasonably possible loss or range of loss. An estimated loss from a loss contingency is accrued by a charge to income if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. If a range of loss is estimated, and some amount within that range appears to be a better estimate than any other amount within that range, then that amount is accrued. If no amount within the range can be identified as a better estimate than any other amount, the Company accrues the minimum amount in the range. If an outcome unfavorable to the Company is determined to be probable, but the amount of loss cannot be reasonably estimated or is determined to be reasonably possible, but not probable, we disclose the nature of the contingency and an estimate of the possible loss or range of loss or a statement that such an estimate cannot be made. The Company’s aggregate range of reasonably possible losses includes (1) matters where a liability has been accrued and there is a reasonably possible loss in excess of the amount accrued for that liability, and (2) matters where a loss is believed to be reasonably possible, but not probable, and a liability therefore has not been accrued. This aggregate range only represents the Company’s estimate of reasonably possible losses and does not represent the Company’s maximum loss exposure. The assessment regarding whether a loss is probable or reasonably possible, and whether the loss or a range of loss is estimable, often involves a series of complex judgments about future events. In assessing the probability of an outcome in a lawsuit, claim or assessment that could be unfavorable to the Company, we consider the following factors, among others: a) the nature of the litigation, claim, or assessment; b) the progress of the case; c) the opinions or views of legal counsel and other advisers; d) our experience in similar cases; e) the experience of other entities in similar cases; and f) how we intend to respond to the lawsuit, claim, or assessment. Costs incurred in defending lawsuits, claims or assessments are expensed as incurred. 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 March 27, 2021. 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 period ended March 27, 2021 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 27, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The Company recorded income tax expense of $ 30,485 in the 13-week period ended March 27, 2021, compared to income tax expense of $ 16,455 in the 13-week period ended March 28, 2020. The effective tax rate was 12.2 % in the first quarter of 2021, compared to 9.3 % in the first quarter of 2020. The 290 basis points increase to the first quarter of 2021 compared to the prior year quarter is primarily due to a decrease in uncertain tax position reserves released in the first quarter of 2021 compared to the first quarter of 2020. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 27, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 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 Fair Value Level Amortized Cost Gross Unrealized Gross Unrealized Fair Value U.S. Treasury securities Level 2 $ 400 $ 5 $ — $ 405 Agency securities Level 2 2,498 29 — 2,527 Mortgage-backed securities Level 2 195,903 991 ( 1,283 ) 195,611 Corporate securities Level 2 1,040,217 20,797 ( 5,808 ) 1,055,206 Municipal securities Level 2 257,788 3,019 ( 1,505 ) 259,302 Other Level 2 42,716 139 ( 452 ) 42,403 Total $ 1,539,522 $ 24,980 $ ( 9,048 ) $ 1,555,454 Available-For-Sale Securities Fair Value Level Amortized Cost Gross Unrealized Gross Unrealized Fair Value U.S. Treasury securities Level 2 $ 400 $ 6 $ — $ 406 Agency securities Level 2 5,954 56 — 6,010 Mortgage-backed securities Level 2 239,445 1,051 ( 1,923 ) 238,573 Corporate securities Level 2 984,696 25,962 ( 1,637 ) 1,009,021 Municipal securities Level 2 214,515 3,644 ( 223 ) 217,936 Other Level 2 47,760 167 ( 1,056 ) 46,871 Total $ 1,492,770 $ 30,886 $ ( 4,839 ) $ 1,518,817 The Company’s investment policy targets low risk investments with the objective of minimizing the potential risk of principal loss. 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 $ 9,844 as of March 27, 2021 , 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. No accrued interest was written off during the 13-week period ended March 27, 2021. 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 30 % of securities in the Company’s portfolio were at an unrealized loss position as of March 27, 2021. 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 March 27, 2021 and December 26, 2020. As of March 27, 2021 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 U.S. Treasury securities $ — $ — $ — $ — $ — $ — Agency securities — — — — — — Mortgage-backed securities ( 466 ) 30,984 ( 817 ) 10,697 ( 1,283 ) 41,681 Corporate securities ( 5,622 ) 339,722 ( 186 ) 9,011 ( 5,808 ) 348,733 Municipal securities ( 1,505 ) 123,652 — — ( 1,505 ) 123,652 Other ( 113 ) 10,794 ( 339 ) 10,589 ( 452 ) 21,383 Total $ ( 7,706 ) $ 505,152 $ ( 1,342 ) $ 30,297 $ ( 9,048 ) $ 535,449 As of December 26, 2020 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 U.S. Treasury securities $ — $ — $ — $ — $ — $ — Agency securities — — — — — — Mortgage-backed securities ( 1,849 ) 85,688 ( 74 ) 2,122 ( 1,923 ) 87,810 Corporate securities ( 1,065 ) 199,187 ( 572 ) 8,625 ( 1,637 ) 207,812 Municipal securities ( 223 ) 50,403 — — ( 223 ) 50,403 Other ( 726 ) 22,600 ( 330 ) 3,426 ( 1,056 ) 26,026 Total $ ( 3,863 ) $ 357,878 $ ( 976 ) $ 14,173 $ ( 4,839 ) $ 372,051 As of March 27, 2021 and December 26, 2020 , the Company had no t recognized an allowance for credit losses on any securities in an unrealized loss position. The Company has no t recorded an allowance for credit losses and charge to Other income for the unrealized losses on mortgage-backed, corporate, municipal, and other securities presented above because we do not consider the declines in fair value to have resulted from credit losses. We have 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. The Company 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 March 27, 2021, by maturity, are shown below. Amortized Cost Fair Value Due in one year or less $ 340,693 $ 342,656 Due after one year through five years 1,127,462 1,140,939 Due after five years through ten years 71,222 71,719 Due after ten years 145 140 $ 1,539,522 $ 1,555,454 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 27, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 9. Accumulated Other Comprehensive Income The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the 13-week period ended March 27, 2021: 13-Weeks Ended March 27, 2021 Foreign currency Net gains (losses) on available-for-sale securities Total Balance - beginning of period $ 162,953 $ 20,474 $ 183,427 Other comprehensive income before reclassification, net of income tax benefit of $ 2,097 ( 35,291 ) ( 7,505 ) ( 42,796 ) Amounts reclassified from Accumulated other comprehensive income to Other income, net of income tax expense of $ 134 included in Income tax provision — ( 379 ) ( 379 ) Net current-period other comprehensive income ( 35,291 ) ( 7,884 ) ( 43,175 ) Balance - end of period $ 127,662 $ 12,590 $ 140,252 |
Revenue
Revenue | 3 Months Ended |
Mar. 27, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 10. Revenue In order to further depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors, we disaggregate revenue (or “net sales”) 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. Note 4 also contains disaggregated revenue information of the six major product categories identified by the Company – auto OEM, aviation, consumer auto, fitness, marine, and outdoor. 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 segment 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 March 27, 2021 March 28, 2020 Point in time $ 1,022,777 $ 810,296 Over time 49,550 45,812 Net sales $ 1,072,327 $ 856,108 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 13-week period ended March 27, 2021 are presented below: 13-Weeks Ended March 27, 2021 Deferred (1) Deferred (2) Balance, beginning of period $ 136,799 $ 36,655 Deferrals in period 41,498 2,727 Recognition of deferrals in period ( 49,550 ) ( 6,687 ) Balance, end of period $ 128,747 $ 32,695 (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 $ 49,550 of deferred revenue recognized in the 13-week period ended March 27, 2021 , $ 27,793 was deferred as of the beginning of the period. Approximately two-thirds of the $ 128,747 of deferred revenue at the end of the period, March 27, 2021 , is recognized ratably over a period of three years or less. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 27, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited 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. Certain prior period amounts have been reclassified or presented to conform to the current period presentation. 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. Operating results for the 13-week period ended March 27, 2021 are not necessarily indicative of the results that may be expected for the year ending December 25, 2021. The Condensed Consolidated Balance Sheet at December 26, 2020 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. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 26, 2020. 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 March 27, 2021 and March 28, 2020 both contain operating results for 13 weeks. |
Significant Accounting Policies | 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 26, 2020. There were no material changes to the Company’s significant accounting policies during the 13-week period ended March 27, 2021 . |
Recently Adopted Accounting Standards and Not Yet Adopted Accounting Pronouncements | Recently Issued Accounting Standards and Pronouncements We do not expect any recently adopted accounting standards, or recently issued accounting pronouncements not yet adopted, to have a material impact on the Company’s consolidated financial statements, accounting policies, processes, or systems. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | The components of inventories consist of the following: March 27, December 26, 2020 Raw materials $ 321,939 $ 282,287 Work-in-process 156,426 147,821 Finished goods 359,569 331,976 Inventories $ 837,934 $ 762,084 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income 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 March 27, 2021 March 28, 2020 Numerator: Numerator for basic and diluted net income per share – net income $ 220,029 $ 161,180 Denominator: Denominator for basic net income per share – weighted-average common shares 191,896 190,803 Effect of dilutive equity awards 914 881 Denominator for diluted net income per share – adjusted weighted-average common shares 192,810 191,684 Basic net income per share $ 1.15 $ 0.84 Diluted net income per share $ 1.14 $ 0.84 Shares excluded from diluted net income per share calculation: Anti-dilutive equity awards 316 412 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales (Revenue), Gross Profit, and Operating Income | Auto Fitness Outdoor Aviation Marine Total Consumer Auto Total 13-Weeks Ended March 27, 2021 Net sales $ 308,125 $ 256,455 $ 173,889 $ 209,372 $ 124,486 $ 62,395 $ 62,091 $ 1,072,327 Gross profit 173,545 171,676 126,182 121,379 48,774 31,964 16,810 641,556 Operating income (loss) 73,736 93,030 44,868 61,564 ( 23,539 ) 8,398 ( 31,937 ) 249,659 13-Weeks Ended March 28, 2020 Net sales $ 223,601 $ 175,102 $ 188,599 $ 163,005 $ 105,801 $ 59,013 $ 46,788 $ 856,108 Gross profit 112,325 112,258 138,808 94,210 49,339 28,112 21,227 506,940 Operating income (loss) 31,011 47,166 59,321 40,159 ( 175 ) 3,213 ( 3,388 ) 177,482 |
Schedule of Net Sales to External Customers and Net Property and Equipment by Geographic Region | Net sales to external customers by geographic region were as follows for the 13-week periods ended March 27, 2021 and March 28, 2020. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa: 13-Weeks Ended March 27, 2021 March 28, 2020 Americas $ 503,691 $ 427,401 EMEA 399,508 299,867 APAC 169,128 128,840 Net sales to external customers $ 1,072,327 $ 856,108 Net property and equipment by geographic region as of March 27, 2021 and March 28, 2020 are presented below. Americas APAC EMEA Total March 27, 2021 Property and equipment, net $ 478,514 $ 267,487 $ 115,381 $ 861,382 March 28, 2020 Property and equipment, net $ 454,637 $ 230,369 $ 69,543 $ 754,549 |
Warranty Reserves (Tables)
Warranty Reserves (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Changes in the Aggregate Warranty Reserve | The following reconciliation provides an illustration of changes in the aggregate warranty reserve. 13-Weeks Ended March 27, 2021 March 28, 2020 Balance - beginning of period $ 42,643 $ 39,758 Accrual for products sold (1) 11,456 17,868 Expenditures ( 14,811 ) ( 18,258 ) Balance - end of period $ 39,288 $ 39,368 (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. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Marketable Securities Classified as Available-for-sale Securities | Marketable securities classified as available-for-sale securities are summarized below: Available-For-Sale Securities Fair Value Level Amortized Cost Gross Unrealized Gross Unrealized Fair Value U.S. Treasury securities Level 2 $ 400 $ 5 $ — $ 405 Agency securities Level 2 2,498 29 — 2,527 Mortgage-backed securities Level 2 195,903 991 ( 1,283 ) 195,611 Corporate securities Level 2 1,040,217 20,797 ( 5,808 ) 1,055,206 Municipal securities Level 2 257,788 3,019 ( 1,505 ) 259,302 Other Level 2 42,716 139 ( 452 ) 42,403 Total $ 1,539,522 $ 24,980 $ ( 9,048 ) $ 1,555,454 Available-For-Sale Securities Fair Value Level Amortized Cost Gross Unrealized Gross Unrealized Fair Value U.S. Treasury securities Level 2 $ 400 $ 6 $ — $ 406 Agency securities Level 2 5,954 56 — 6,010 Mortgage-backed securities Level 2 239,445 1,051 ( 1,923 ) 238,573 Corporate securities Level 2 984,696 25,962 ( 1,637 ) 1,009,021 Municipal securities Level 2 214,515 3,644 ( 223 ) 217,936 Other Level 2 47,760 167 ( 1,056 ) 46,871 Total $ 1,492,770 $ 30,886 $ ( 4,839 ) $ 1,518,817 |
Schedule of Gross Unrealized Losses and Fair Value by Major Security Type | 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 March 27, 2021 and December 26, 2020. As of March 27, 2021 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 U.S. Treasury securities $ — $ — $ — $ — $ — $ — Agency securities — — — — — — Mortgage-backed securities ( 466 ) 30,984 ( 817 ) 10,697 ( 1,283 ) 41,681 Corporate securities ( 5,622 ) 339,722 ( 186 ) 9,011 ( 5,808 ) 348,733 Municipal securities ( 1,505 ) 123,652 — — ( 1,505 ) 123,652 Other ( 113 ) 10,794 ( 339 ) 10,589 ( 452 ) 21,383 Total $ ( 7,706 ) $ 505,152 $ ( 1,342 ) $ 30,297 $ ( 9,048 ) $ 535,449 As of December 26, 2020 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 U.S. Treasury securities $ — $ — $ — $ — $ — $ — Agency securities — — — — — — Mortgage-backed securities ( 1,849 ) 85,688 ( 74 ) 2,122 ( 1,923 ) 87,810 Corporate securities ( 1,065 ) 199,187 ( 572 ) 8,625 ( 1,637 ) 207,812 Municipal securities ( 223 ) 50,403 — — ( 223 ) 50,403 Other ( 726 ) 22,600 ( 330 ) 3,426 ( 1,056 ) 26,026 Total $ ( 3,863 ) $ 357,878 $ ( 976 ) $ 14,173 $ ( 4,839 ) $ 372,051 |
Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity | The amortized cost and fair value of marketable securities at March 27, 2021, by maturity, are shown below. Amortized Cost Fair Value Due in one year or less $ 340,693 $ 342,656 Due after one year through five years 1,127,462 1,140,939 Due after five years through ten years 71,222 71,719 Due after ten years 145 140 $ 1,539,522 $ 1,555,454 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) | The following provides required disclosure of changes in accumulated other comprehensive income (AOCI) balances by component for the 13-week period ended March 27, 2021: 13-Weeks Ended March 27, 2021 Foreign currency Net gains (losses) on available-for-sale securities Total Balance - beginning of period $ 162,953 $ 20,474 $ 183,427 Other comprehensive income before reclassification, net of income tax benefit of $ 2,097 ( 35,291 ) ( 7,505 ) ( 42,796 ) Amounts reclassified from Accumulated other comprehensive income to Other income, net of income tax expense of $ 134 included in Income tax provision — ( 379 ) ( 379 ) Net current-period other comprehensive income ( 35,291 ) ( 7,884 ) ( 43,175 ) Balance - end of period $ 127,662 $ 12,590 $ 140,252 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 27, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenue Disaggregated | 13-Weeks Ended March 27, 2021 March 28, 2020 Point in time $ 1,022,777 $ 810,296 Over time 49,550 45,812 Net sales $ 1,072,327 $ 856,108 |
Schedule of Deferred Revenue and Costs | 13-Weeks Ended March 27, 2021 Deferred (1) Deferred (2) Balance, beginning of period $ 136,799 $ 36,655 Deferrals in period 41,498 2,727 Recognition of deferrals in period ( 49,550 ) ( 6,687 ) Balance, end of period $ 128,747 $ 32,695 (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 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 321,939 | $ 282,287 |
Work-in-process | 156,426 | 147,821 |
Finished goods | 359,569 | 331,976 |
Inventories | $ 837,934 | $ 762,084 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Numerator: | ||
Numerator for basic and diluted net income per share - net income | $ 220,029 | $ 161,180 |
Denominator: | ||
Denominator for basic net income per share – weighted-average common shares | 191,896 | 190,803 |
Effect of dilutive equity awards | 914 | 881 |
Denominator for diluted net income per share – adjusted weighted-average common shares | 192,810 | 191,684 |
Basic net income per share | $ 1.15 | $ 0.84 |
Diluted net income per share | $ 1.14 | $ 0.84 |
Shares excluded from diluted net income per share calculation: | ||
Anti-dilutive equity awards | 316 | 412 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 27, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |
Number of operating segments | 6 |
Segment Information - Schedule
Segment Information - Schedule of Net Sales (Revenue), Gross Profit, and Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,072,327 | $ 856,108 |
Gross profit | 641,556 | 506,940 |
Operating income (loss) | 249,659 | 177,482 |
Fitness Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 308,125 | 223,601 |
Gross profit | 173,545 | 112,325 |
Operating income (loss) | 73,736 | 31,011 |
Outdoor Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 256,455 | 175,102 |
Gross profit | 171,676 | 112,258 |
Operating income (loss) | 93,030 | 47,166 |
Aviation Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 173,889 | 188,599 |
Gross profit | 126,182 | 138,808 |
Operating income (loss) | 44,868 | 59,321 |
Marine Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 209,372 | 163,005 |
Gross profit | 121,379 | 94,210 |
Operating income (loss) | 61,564 | 40,159 |
Auto Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 124,486 | 105,801 |
Gross profit | 48,774 | 49,339 |
Operating income (loss) | (23,539) | (175) |
Auto Segment [Member] | Consumer Auto Subsegment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 62,395 | 59,013 |
Gross profit | 31,964 | 28,112 |
Operating income (loss) | 8,398 | 3,213 |
Auto Segment [Member] | Auto OEM Subsegment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 62,091 | 46,788 |
Gross profit | 16,810 | 21,227 |
Operating income (loss) | $ (31,937) | $ (3,388) |
Segment Information - Schedul_2
Segment Information - Schedule of Net Sales to External Customers and Net Property and Equipment by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2021 | Mar. 28, 2020 | Dec. 26, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales to external customers | $ 1,072,327 | $ 856,108 | |
Property and equipment, net | 861,382 | 754,549 | $ 855,539 |
Americas [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales to external customers | 503,691 | 427,401 | |
Property and equipment, net | 478,514 | 454,637 | |
EMEA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales to external customers | 399,508 | 299,867 | |
Property and equipment, net | 115,381 | 69,543 | |
APAC [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales to external customers | 169,128 | 128,840 | |
Property and equipment, net | $ 267,487 | $ 230,369 |
Warranty Reserves - Schedule of
Warranty Reserves - Schedule of Changes in the Aggregate Warranty Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2021 | Mar. 28, 2020 | ||
Product Warranties Disclosures [Abstract] | |||
Balance - beginning of period | $ 42,643 | $ 39,758 | |
Accrual for products sold | [1] | 11,456 | 17,868 |
Expenditures | (14,811) | (18,258) | |
Balance - end of period | $ 39,288 | $ 39,368 | |
[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. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Commitments And Contingencies Disclosure [Abstract] | ||
Aggregate amount of purchase orders and other commitments | $ 1,135,000 | |
Restricted cash balances | $ 761 | $ 306 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 30,485 | $ 16,455 |
Effective income tax rate | 12.20% | 9.30% |
Increase (decrease) in effective income tax rate | (2.90%) |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities Classified as Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 1,539,522 | $ 1,492,770 |
Gross Unrealized Gains | 24,980 | 30,886 |
Gross Unrealized Losses | (9,048) | (4,839) |
Fair Value | 1,555,454 | 1,518,817 |
U.S. Treasury securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 400 | 400 |
Gross Unrealized Gains | 5 | 6 |
Fair Value | 405 | 406 |
Agency securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 2,498 | 5,954 |
Gross Unrealized Gains | 29 | 56 |
Fair Value | 2,527 | 6,010 |
Mortgage-backed securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 195,903 | 239,445 |
Gross Unrealized Gains | 991 | 1,051 |
Gross Unrealized Losses | (1,283) | (1,923) |
Fair Value | 195,611 | 238,573 |
Corporate securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 1,040,217 | 984,696 |
Gross Unrealized Gains | 20,797 | 25,962 |
Gross Unrealized Losses | (5,808) | (1,637) |
Fair Value | 1,055,206 | 1,009,021 |
Municipal securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 257,788 | 214,515 |
Gross Unrealized Gains | 3,019 | 3,644 |
Gross Unrealized Losses | (1,505) | (223) |
Fair Value | 259,302 | 217,936 |
Other [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 42,716 | 47,760 |
Gross Unrealized Gains | 139 | 167 |
Gross Unrealized Losses | (452) | (1,056) |
Fair Value | $ 42,403 | $ 46,871 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 27, 2021 | Dec. 26, 2020 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Accrued interest written off | $ 0 | |
Percentage of available-for-sale securities in unrealized loss positions | 30.00% | |
Allowance For Credit Losses On Available For Sale Debt Securities In Unrealized Loss Position | $ 0 | $ 0 |
Allowance for credit losses and charge to other income | 0 | |
Prepaid Expenses and Other Current Assets [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Accrued interest receivable | $ 9,844,000 |
Marketable Securities - Sched_2
Marketable Securities - Schedule of Gross Unrealized Losses and Fair Value by Major Security Type (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | $ (7,706) | $ (3,863) |
Fair Value Less than 12 Consecutive Months | 505,152 | 357,878 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (1,342) | (976) |
Fair Value 12 Consecutive Months or Longer | 30,297 | 14,173 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | 9,048 | 4,839 |
Fair Value, Total | 535,449 | 372,051 |
Mortgage-backed securities [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (466) | (1,849) |
Fair Value Less than 12 Consecutive Months | 30,984 | 85,688 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (817) | (74) |
Fair Value 12 Consecutive Months or Longer | 10,697 | 2,122 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | 1,283 | 1,923 |
Fair Value, Total | 41,681 | 87,810 |
Corporate securities [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (5,622) | (1,065) |
Fair Value Less than 12 Consecutive Months | 339,722 | 199,187 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (186) | (572) |
Fair Value 12 Consecutive Months or Longer | 9,011 | 8,625 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | 5,808 | 1,637 |
Fair Value, Total | 348,733 | 207,812 |
Municipal securities [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (1,505) | (223) |
Fair Value Less than 12 Consecutive Months | 123,652 | 50,403 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | 1,505 | 223 |
Fair Value, Total | 123,652 | 50,403 |
Other [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (113) | (726) |
Fair Value Less than 12 Consecutive Months | 10,794 | 22,600 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (339) | (330) |
Fair Value 12 Consecutive Months or Longer | 10,589 | 3,426 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | 452 | 1,056 |
Fair Value, Total | $ 21,383 | $ 26,026 |
Marketable Securities - Sched_3
Marketable Securities - Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 27, 2021 | Dec. 26, 2020 |
Investments Debt And Equity Securities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 340,693 | |
Amortized Cost, Due after one year through five years | 1,127,462 | |
Amortized Cost, Due after five years through ten years | 71,222 | |
Amortized Cost, Due after ten years | 145 | |
Amortized Cost | 1,539,522 | $ 1,492,770 |
Fair Value, Due in one year or less | 342,656 | |
Fair Value, Due after one year through five years | 1,140,939 | |
Fair Value, Due after five years through ten years | 71,719 | |
Fair Value, Due after ten years | 140 | |
Fair Value, Total | $ 1,555,454 | $ 1,518,817 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) (Details) $ in Thousands | 3 Months Ended |
Mar. 27, 2021USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance, value | $ 5,516,116 |
Other comprehensive income before reclassification, net of income tax benefit | (42,796) |
Amounts reclassified from Accumulated other comprehensive income to Other income, net of income tax expense | (379) |
Net current-period other comprehensive income | (43,175) |
Ending balance, value | 5,715,827 |
Foreign Currency Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance, value | 162,953 |
Other comprehensive income before reclassification, net of income tax benefit | (35,291) |
Net current-period other comprehensive income | (35,291) |
Ending balance, value | 127,662 |
Net Gains (Losses) on Available-for-Sale Securities [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance, value | 20,474 |
Other comprehensive income before reclassification, net of income tax benefit | (7,505) |
Amounts reclassified from Accumulated other comprehensive income to Other income, net of income tax expense | (379) |
Net current-period other comprehensive income | (7,884) |
Ending balance, value | 12,590 |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance, value | 183,427 |
Ending balance, value | $ 140,252 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) (Parenthetical) (Details) $ in Thousands | 3 Months Ended |
Mar. 27, 2021USD ($) | |
Equity [Abstract] | |
Net of income tax expense | $ 2,097 |
Net of income tax expense | $ 134 |
Revenue - Schedule of Revenue D
Revenue - Schedule of Revenue Disaggregated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021 | Mar. 28, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,072,327 | $ 856,108 |
Point in time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,022,777 | 810,296 |
Over time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 49,550 | $ 45,812 |
Revenue - Schedule of Deferred
Revenue - Schedule of Deferred Revenue and Costs (Details) $ in Thousands | 3 Months Ended | |
Mar. 27, 2021USD ($) | ||
Revenue From Contract With Customer [Abstract] | ||
Deferred Revenue, Balance, beginning of period | $ 136,799 | [1] |
Deferred Revenue, Deferrals in period | 41,498 | [1] |
Deferred Revenue, Recognition of deferrals in period | (49,550) | [1] |
Deferred Revenue, Balance, end of period | 128,747 | [1] |
Deferred costs, Balance, beginning of period | 36,655 | [2] |
Deferred Costs, Deferrals in period | 2,727 | [2] |
Deferred Costs, Recognition of deferrals in period | (6,687) | [2] |
Deferred Costs, Balance, end of period | $ 32,695 | [2] |
[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 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2021 | Dec. 26, 2020 | ||
Revenue From Contract With Customer [Abstract] | |||
Recognition of deferrals in period | [1] | $ 49,550 | |
Amount of Deferred revenue recognized in the period that was deferred as of the beginning of the period | $ 27,793 | ||
Amount of Deferred revenue that is recognized ratably over a period of three years or less | Approximately two-thirds of the $128,747 of deferred revenue at the end of the period, March 27, 2021, is recognized ratably over a period of three years or less. | ||
Deferred revenue | [1] | $ 128,747 | $ 136,799 |
[1] | Deferred revenue is comprised of both Deferred revenue and Noncurrent deferred revenue per the Condensed Consolidated Balance Sheets |