Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 24, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-41118 | ||
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 | NYSE | ||
Entity's Reporting Status Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding | 191,359,482 | ||
Entity Public Float | $ 15,461,000,000 | ||
Documents Incorporated by Reference | Documents incorporated by reference: Portions of the following document are incorporated herein by reference into Part III of the Form 10-K as indicated: Document Part of Form 10‑K into which Incorporated Company's Definitive Proxy Statement for the 2022 Annual Meeting of Shareholders which will be filed no later than 120 days after December 31, 2022. Part III | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Kansas City, Missouri | ||
Auditor Firm ID | 42 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | ||
Income Statement [Abstract] | ||||
Net sales | [1] | $ 4,860,286 | $ 4,982,795 | $ 4,186,573 |
Cost of goods sold | 2,053,511 | 2,092,336 | 1,705,237 | |
Gross profit | 2,806,775 | 2,890,459 | 2,481,336 | |
Advertising expense | 168,040 | 171,829 | 151,166 | |
Selling, general and administrative expenses | 775,963 | 721,260 | 623,588 | |
Research and development expense | 834,927 | 778,750 | 652,342 | |
Total operating expense | 1,778,930 | 1,671,839 | 1,427,096 | |
Operating income | 1,027,845 | 1,218,620 | 1,054,240 | |
Other income (expense): | ||||
Interest income | 40,826 | 28,573 | 37,002 | |
Foreign currency gains (losses) | (11,274) | (45,263) | 2,825 | |
Other income | 7,577 | 4,866 | 9,343 | |
Total other income (expense) | 37,129 | (11,824) | 49,170 | |
Income before income taxes | 1,064,974 | 1,206,796 | 1,103,410 | |
Income tax provision (benefit) | ||||
Current | 233,844 | 130,040 | 104,471 | |
Deferred | (142,455) | (5,444) | 6,615 | |
Income tax expenses | 91,389 | 124,596 | 111,086 | |
Net income | $ 973,585 | $ 1,082,200 | $ 992,324 | |
Basic net income per share | $ 5.06 | $ 5.63 | $ 5.19 | |
Diluted net income per share | $ 5.04 | $ 5.61 | $ 5.17 | |
[1] The United States is the only country which constitutes greater than 10 % of net sales to external customers. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 973,585 | $ 1,082,200 | $ 992,324 |
Foreign currency translation adjustment | (149,396) | (39,538) | 107,664 |
Change in fair value of available-for-sale marketable securities, net of deferred taxes | (82,972) | (26,054) | 19,889 |
Comprehensive income | $ 741,217 | $ 1,016,608 | $ 1,119,877 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,279,194 | $ 1,498,058 |
Marketable securities | 173,288 | 347,980 |
Accounts receivable, less allowance for doubtful accounts of $5,098 in 2022 and $7,080 in 2021 | 656,847 | 843,445 |
Inventories | 1,515,045 | 1,227,609 |
Deferred costs | 14,862 | 15,961 |
Prepaid expenses and other current assets | 315,915 | 328,719 |
Total current assets | 3,955,151 | 4,261,772 |
Property and equipment, net | 1,147,005 | 1,067,478 |
Operating lease right-of-use assets | 138,040 | 89,457 |
Noncurrent marketable securities | 1,208,360 | 1,268,698 |
Deferred income tax assets | 441,071 | 260,205 |
Noncurrent deferred costs | 9,831 | 12,361 |
Goodwill | 567,994 | 575,080 |
Other intangible assets, net | 178,461 | 215,993 |
Other noncurrent assets | 85,257 | 103,383 |
Total assets | 7,731,170 | 7,854,427 |
Current liabilities: | ||
Accounts payable | 212,417 | 370,048 |
Salaries and benefits payable | 176,114 | 211,371 |
Accrued warranty costs | 50,952 | 45,467 |
Accrued sales program costs | 97,772 | 121,514 |
Other accrued expenses | 197,376 | 225,988 |
Deferred revenue | 91,092 | 87,654 |
Income taxes payable | 246,180 | 128,083 |
Dividend payable | 139,732 | 258,023 |
Total current liabilities | 1,211,635 | 1,448,148 |
Deferred income tax liabilities | 129,965 | 117,595 |
Noncurrent income taxes payable | 34,627 | 62,539 |
Noncurrent deferred revenue | 35,702 | 41,618 |
Noncurrent operating lease liabilities | 114,541 | 70,044 |
Other noncurrent liabilities | 360 | 324 |
Stockholders’ equity: | ||
Shares, CHF 0.10 par value, 198,077 shares authorized and issued, 191,623 shares outstanding at December 31, 2022; and 192,608 shares outstanding at December 25, 2021: | 17,979 | 17,979 |
Additional paid-in capital | 2,042,472 | 1,960,722 |
Treasury stock (6,454 and 5,469 shares, respectively) | (475,095) | (303,114) |
Retained earnings | 4,733,517 | 4,320,737 |
Accumulated other comprehensive income (loss) | (114,533) | 117,835 |
Total stockholders’ equity | 6,204,340 | 6,114,159 |
Total liabilities and stockholders’ equity | $ 7,731,170 | $ 7,854,427 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) shares in Thousands, $ in Thousands | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 SFr / shares | Dec. 25, 2021 USD ($) shares | Dec. 25, 2021 SFr / shares |
Statement of Financial Position [Abstract] | ||||
Allowance for doubtful accounts | $ | $ 5,098 | $ 7,080 | ||
Common shares, par value (in CHF dollars per share) | SFr / shares | SFr 0.10 | SFr 0.10 | ||
Common shares, authorized | 198,077 | 198,077 | ||
Common shares, issued | 198,077 | 198,077 | ||
Common shares, outstanding | 191,623 | 192,608 | ||
Treasury Stock | 6,454 | 5,469 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Operating Activities: | |||
Net income | $ 973,585 | $ 1,082,200 | $ 992,324 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 118,743 | 103,498 | 78,121 |
Amortization | 45,110 | 51,320 | 48,594 |
(Gain) loss on sale of property and equipment | (2,083) | 298 | (1,799) |
Unrealized foreign currency (gains) losses | (5,867) | 36,385 | (9,873) |
Deferred income taxes | (143,286) | (5,368) | 6,931 |
Stock compensation expense | 76,801 | 92,522 | 80,885 |
Realized gains on marketable securities | 986 | (622) | (1,392) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable, net of allowance for doubtful accounts | 167,336 | (19,106) | (108,859) |
Inventories | (363,327) | (476,454) | 28,726 |
Other current and noncurrent assets | 72,185 | (38,004) | (33,690) |
Accounts payable | (131,268) | 108,946 | 1,447 |
Other current and noncurrent liabilities | (71,756) | 70,007 | 87,761 |
Deferred revenue | (2,379) | (7,377) | (25,211) |
Deferred costs | 3,591 | 8,288 | 11,973 |
Income Taxes | 49,888 | 5,894 | (20,671) |
Net cash provided by operating activities | 788,259 | 1,012,427 | 1,135,267 |
Investing activities: | |||
Purchases of property and equipment | (244,286) | (307,645) | (185,401) |
Proceeds from sale of property and equipment | 2,402 | 35 | 1,977 |
Purchase of intangible assets | (1,907) | (1,942) | (2,065) |
Purchase of marketable securities | (1,051,994) | (1,508,712) | (1,052,640) |
Redemption of marketable securities | 1,164,116 | 1,363,070 | 1,126,253 |
Acquisitions, net of cash acquired | (13,455) | (20,175) | (148,648) |
Net cash used in investing activities | (145,124) | (475,369) | (260,524) |
Financing activities: | |||
Dividends | (679,096) | (491,457) | (450,631) |
Proceeds from issuance of treasury stock related to equity awards | 62,221 | 35,733 | 15,201 |
Purchase of treasury stock related to equity awards | (22,730) | (30,985) | (26,330) |
Purchase of treasury stock under share repurchase plan | (201,012) | ||
Net cash used in financing activities | (840,617) | (486,709) | (461,760) |
Effect of exchange rate changes on cash and cash equivalents | (21,449) | (10,254) | 18,127 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (218,931) | 40,095 | 431,110 |
Cash, cash equivalents, and restricted cash at beginning of year | 1,498,843 | 1,458,748 | 1,027,638 |
Cash, cash equivalents, and restricted cash at end of year | 1,279,912 | 1,498,843 | 1,458,748 |
Supplemental disclosures of cash flow information | |||
Cash paid during the year for income taxes | 184,809 | 131,040 | 133,057 |
Cash received during the year from income tax refunds | 7,786 | 8,264 | 4,820 |
Supplemental disclosure of non-cash investing and financing activities | |||
(Decrease) increase in accrued capital expenditures related to purchases of property and equipment | (4,320) | 9,541 | (4,192) |
Change in marketable securities related to unrealized (depreciation) appreciation | (107,362) | (32,622) | 23,045 |
Fair value of assets acquired | 15,340 | 20,956 | 165,082 |
Liabilities assumed | (1,624) | (764) | (14,884) |
Less: cash acquired | (261) | (17) | (1,550) |
Cash paid for acquisitions, net of cash acquired | $ 13,455 | $ 20,175 | $ 148,648 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 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 | 992,324 | 992,324 | ||||
Translation adjustment | 107,664 | 107,664 | ||||
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects | 19,889 | 19,889 | ||||
Comprehensive income | 1,119,877 | |||||
Dividends | (467,013) | (467,013) | ||||
Issuance of treasury stock related to equity awards | 15,201 | (36,153) | 51,354 | |||
Stock compensation | 80,885 | 80,885 | ||||
Purchase of treasury stock related to equity awards | (26,330) | (26,330) | ||||
Ending balance, value at Dec. 26, 2020 | 5,516,116 | 17,979 | 1,880,354 | (320,016) | 3,754,372 | 183,427 |
Net income | 1,082,200 | 1,082,200 | ||||
Translation adjustment | (39,538) | (39,538) | ||||
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects | (26,054) | (26,054) | ||||
Comprehensive income | 1,016,608 | |||||
Dividends | (515,835) | (515,835) | ||||
Issuance of treasury stock related to equity awards | 35,733 | (12,154) | 47,887 | |||
Stock compensation | 92,522 | 92,522 | ||||
Purchase of treasury stock related to equity awards | (30,985) | (30,985) | ||||
Ending balance, value at Dec. 25, 2021 | 6,114,159 | 17,979 | 1,960,722 | (303,114) | 4,320,737 | 117,835 |
Net income | 973,585 | 973,585 | ||||
Translation adjustment | (149,396) | (149,396) | ||||
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects | (82,972) | (82,972) | ||||
Comprehensive income | 741,217 | |||||
Dividends | (560,805) | (560,805) | ||||
Issuance of treasury stock related to equity awards | 62,221 | 4,949 | 57,272 | |||
Stock compensation | 76,801 | 76,801 | ||||
Purchase of treasury stock related to equity awards | (22,730) | (22,730) | ||||
Purchase of treasury stock under share repurchase plan | (206,523) | (206,523) | ||||
Ending balance, value at Dec. 31, 2022 | $ 6,204,340 | $ 17,979 | $ 2,042,472 | $ (475,095) | $ 4,733,517 | $ (114,533) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Adjustment related to unrealized gains (losses) on available-for-sale securities income tax effects | $ 24,390 | $ 6,568 | $ 3,157 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation Garmin Ltd. and subsidiaries (collectively, the “Company” or “Garmin”) design, develop, manufacture, market, and distribute a diverse family of hand-held, wrist-based, portable, and fixed-mount Global Positioning System (GPS)-enabled products and other navigation, communications, information and sensor-based products and services. Garmin Corporation (GC) is primarily responsible for the manufacturing and distribution of the Company’s products to the Company’s subsidiaries and, to a lesser extent, new product development and sales and marketing of the Company’s products in Asia and the Far East. Garmin International, Inc. (GII) is primarily responsible for sales and marketing of the Company’s products in the Americas region and for most of the Company’s research and new product development. GII also manufactures most of the Company’s products in the aviation segment. Garmin (Europe) Ltd. (GEL) is primarily responsible for sales and marketing of the Company’s products in Europe, the Middle East and Africa (EMEA). Many of GEL’s sales are to other Company-owned distributors in the EMEA region. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The accompanying consolidated financial statements reflect the accounts of Garmin Ltd. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. Changes in Classification and Allocation Certain prior period amounts have been reclassified or presented to conform to 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 consolidated statements of income have been recast for the 52-week periods ended December 25, 2021 and December 26, 2020 to reflect a reclassification of $ 61,274 and $ 53,343 , 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 at that time. Results for the 52-week periods ended December 25, 2021 and December 26, 2020 have been recast to conform to current period presentation. These changes in classification and allocation had no effect on the Company’s consolidated operating or net income. Fiscal Year The Company’s fiscal year is based on a 52-53-week period ending on the last Saturday of the calendar year. Due to the fact that there are not exactly 52 weeks in a calendar year, the Company will have a fiscal year comprising 53 weeks in certain fiscal years, as determined by when the last Saturday of the calendar year occurs. In those resulting fiscal years that have 53 weeks, the Company will record an extra week of sales, costs, and related financial activity. Therefore, the financial results of those 53-week fiscal years, and the associated 14-week fourth quarters, will not be entirely comparable to the prior and subsequent 52-week fiscal years and the associated 13-week quarters. Fiscal year 2022 contains 53 weeks compared to 52 weeks for 2021 and 2020 . Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Foreign Currency Many Garmin Ltd. subsidiaries utilize currencies other than the United States Dollar (USD) as their functional currency. As required by Accounting Standards Codification (ASC) Topic 830, Foreign Currency Matters , the financial statements of these subsidiaries for all periods presented have been translated into USD, the functional currency of Garmin Ltd., and the reporting currency herein, for purposes of consolidation at rates prevailing during the year for sales, costs, and expenses and at end-of-year rates for all assets and liabilities. The effect of this translation is recorded in a separate component of stockholders’ equity. Cumulative currency translation adjustments of $ ( 25,981 ) and $ 123,415 as of December 31, 2022 and December 25, 2021, respectively, have been included in accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. Transactions in foreign currencies are recorded at the approximate rate of exchange at the transaction date. Assets and liabilities resulting from these transactions are translated at the rate of exchange in effect at the balance sheet date. 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. Net foreign currency losses recorded in results of operations were $ 11,274 for the year ended December 31, 2022, net foreign currency losses recorded in results of operations were $ 45,263 for the year ended December 25, 2021, and net foreign currency gains recorded in results of operations were $ 2,825 for the year ended December 26, 2020. The loss in fiscal 2022 was primarily due to the U.S. Dollar strengthening against the Australian Dollar, Polish Zloty, Chinese Yuan, Euro, Japanese Yen, and British Pound Sterling, partially offset by the U.S. Dollar strengthening against the Taiwan Dollar. The loss in fiscal 2021 was primarily due to the U.S. Dollar strengthening against the Euro, Polish Zloty, Japanese Yen, Swiss Franc, and Australian Dollar, while the U.S. Dollar weakened against the Taiwan Dollar. The gain in fiscal 2020 was primarily due to the U.S. Dollar weakening against the Euro, Australian Dollar, Chinese Yuan, and British Pound Sterling, partially offset by the U.S. Dollar weakening against the Taiwan Dollar. Garmin Corporation, one of the Company’s principal subsidiaries, is located in Taiwan. The Taiwan Foreign Exchange Control Statute (the “Statute”), and regulations thereunder, provides that all foreign exchange transactions must be executed by banks designated to handle such business by the Ministry of Finance of Taiwan and by the Central Bank of the Republic of China (Taiwan), also referred to as the CBC. Current regulations favor trade-related foreign exchange transactions, so the Statute does not impose any significant restrictions on import or export activities involving foreign currencies in Taiwan. Non-trade related currency exchanges exceeding $50 million, or its equivalent, in a calendar year require approval of the CBC. Revenue Recognition The Company recognizes revenue upon the transfer of control of promised products or services to the customer in an amount that depicts the consideration to which the Company expects to be entitled for the related products or services. For the large majority of the Company’s sales, transfer of control occurs once product has shipped and title and risk of loss have transferred to the customer. The Company offers certain tangible products with ongoing services promised over a period of time, typically the useful life of the related tangible product. When such services have been identified as both capable of being distinct and separately identifiable from the related tangible product, the associated revenue allocated to such services is recognized over time. The Company generally does not offer specified or unspecified upgrade rights to its customers in connection with software sales. The Company allocates revenue to all performance obligations associated with tangible products containing separately identifiable ongoing services based on the respective performance obligations’ relative standalone selling prices (“SSP”), with the amounts allocated to ongoing services deferred and recognized over a period of time. These ongoing services primarily consist of the Company’s contractual promises to provide personal navigation device (PND) users with map updates and server-based traffic services. In addition, the Company provides map update services (map care) over a contractual period in certain hardware and software contracts with automotive original equipment manufacturers (OEMs). The Company has determined that directly observable prices do not exist for certain map updates, map care, or server-based traffic, as stand-alone and unbundled unit sales do not occur on more than a limited basis. Therefore, the Company uses the expected cost plus a margin as the primary indicator to calculate relative SSP of certain map updates, map care, and traffic performance obligations. The revenue and associated costs allocated to map updates, map care, and server-based traffic service are deferred and recognized ratably over the estimated life of the products. In addition to the products listed above, the Company has offered certain other products with ongoing performance obligations including aviation database and other service subscriptions, incremental navigation and communication service subscriptions, mobile applications, and extended warranties that are recognized over the contractual service period (typically 1 - 3 years ). The Company records revenue net of sales tax or value-added tax and variable consideration such as trade discounts and customer returns. Payment is due typically within 90 days or less of shipment of product, or upon the grant of a given software license (as applicable). The Company records estimated reductions to revenue in the form of variable consideration for customer sales programs, returns, and incentive offerings including rebates, price protection, promotions, and other volume-based incentives. Cooperative advertising incentives payable to dealers and distributors are recorded as reductions of revenue unless the Company obtains proof of a distinct advertising service, in which case the incentive is recorded as advertising expense. The reductions to revenue are based on estimates and judgments using historical experience and expectation of future conditions. Shipping and Handling Costs Shipping and handling activities are typically performed before the customer obtains control of the good, and the related costs are expensed at the approximate time of sale. Shipping and handling costs are included in cost of goods sold in the accompanying consolidated statements of income. Advertising Costs The Company expenses advertising costs as incurred. Advertising expense amounted to approximately $ 168,040 , $ 171,829 , and $ 151,166 for the years ended December 31, 2022, December 25, 2021, and December 26, 2020 , respectively. Software Development Costs ASC Topic 985-20, Software – Costs of Software to Be Sold, Leased, or Marketed , requires companies to expense software development costs as they incur them until technological feasibility has been established, at which time those costs are capitalized until the product is available for general release to customers. The Company’s capitalized software development costs are not significant, as the time elapsed from working model to release is typically short. As required by ASC Topic 730, Research and Development , costs incurred to enhance our existing products or after the general release of the service using the product are expensed in the period they are incurred and included in research and development costs in the accompanying consolidated statements of income. Accounting for Stock Compensation The Company currently sponsors three employee stock compensation plans. ASC Topic 718, Compensation – Stock Compensation , requires the measurement and recognition of compensation expenses for all share-based payment awards made to employees and directors, including employee stock options and restricted stock, based on estimated fair values. Accounting guidance requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as stock compensation expense over the requisite service period in the Company’s consolidated statements of income. As stock compensation expense recognized in the accompanying consolidated statements of income is based on awards ultimately expected to vest, they have been reduced for estimated forfeitures. Accounting guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience and management’s estimates. Excess tax benefits or deficiencies from stock compensation are recognized in the income tax provision and are not estimated in the effective tax rate. Rather, they are recorded as discrete tax items in the period they occur. Excess income tax benefits from stock compensation arrangements are classified as a cash flow from operations. Stock compensation plans are discussed in more detail in Note 10 of the Notes to Consolidated Financial Statements. Research and Development A majority of the Company’s research and development is performed in the United States. Research and development costs, which are typically expensed as incurred, amounted to approximately $ 834,927 , $ 778,750 , and $ 652,342 for the years ended December 31, 2022, December 25, 2021, and December 26, 2020 , respectively. Preproduction Costs Related to Long-Term Supply Arrangements Preproduction design and development costs related to long-term supply arrangements are expensed as incurred, and classified as research and development, unless the customer has provided a contractual guarantee for reimbursement of such costs. Contractually reimbursable costs are capitalized as incurred in the consolidated balance sheets within prepaid expenses and other current assets if reimbursement is expected to be received within one year, or within other noncurrent assets if expected to be received beyond one year. Such capitalized costs were approximately $ 23,510 and $ 67,349 as of December 31, 2022 and December 25, 2021 , respectively. Income Taxes The Company accounts for income taxes using the liability method in accordance with ASC Topic 740, Income Taxes . The liability method provides that deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amount for financial reporting purposes as measured based on the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. The Company accounts for uncertainty in income taxes in accordance with ASC Topic 740. The Company recognizes liabilities based on our estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves not to be required, the reversal of the liabilities results in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. If the Company’s estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. Income taxes are discussed in more detail in Note 5 of the Notes to Consolidated Financial Statements. Earnings Per Share Basic earnings per share amounts are computed based on the weighted-average number of common shares outstanding. For purposes of diluted earnings per share, the number of shares that would be issued from the exercise of dilutive share-based compensation awards has been reduced by the number of shares which could have been purchased from the proceeds of the exercise or release at the average market price of the Company’s stock during the period the awards were outstanding. See Note 3 of the Notes to Consolidated Financial Statements. Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash on hand, operating accounts, money market funds, deposits readily convertible to known amounts of cash, and securities with maturities of three months or less when purchased. The carrying amount of cash and cash equivalents approximates fair value, given the short maturity of those instruments. Restricted cash is reported within other noncurrent assets on the consolidated balance sheets. See Note 7 of the Notes to Consolidated Financial Statements for additional information on restricted cash. The total of the cash and cash equivalents balance and the restricted cash reported within other noncurrent assets on the consolidated balance sheets reconciles to the total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows. Marketable Securities Management determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation as of each balance sheet date. All of the Company’s marketable securities were considered available-for-sale at December 31, 2022. Available-for-sale securities are stated at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) on the Company’s consolidated balance sheets. At December 31, 2022, and December 25, 2021, cumulative unrealized losses of $ 88,552 and $ 5,580 , respectively were reported in accumulated other comprehensive income (loss), net of related taxes. The Company recognizes impairments relating to credit losses of available-for-sale securities through an allowance for credit losses and other income (expense) on the Company’s consolidated statements of income. Impairment not relating to credit losses is recorded in accumulated other comprehensive income (loss) on the Company’s consolidated balance sheets. Testing for impairment of investments requires management judgment. The identification of potentially impaired investments, the determination of their fair value, and the assessment of whether any decline in value is relating to credit losses are the judgmental elements. The discovery of new information and the passage of time can change these judgments. Revisions of impairment judgments are made when new information becomes known, and any resulting impairment adjustments are made at that time. The economic environment and volatility of securities markets increase the difficulty of assessing investment impairment. In making this assessment we evaluate the extent to which the fair value is less than the amortized cost basis, any change in credit rating of the security, adverse conditions specifically related to the security, failure of the issuer to make scheduled payments, and other relevant factors affecting the security. If it is determined that a credit loss exists, the amount of the credit loss is determined by comparing the present value of the expected future cash flows for the security to the amortized cost basis of the security, limited by the amount the fair value is less than the amortized cost basis. The amortized cost of debt securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity, or in the case of mortgage-backed securities, over the estimated life of the security. Such amortization and realized gains/losses are recorded within interest income and other income (expense), respectively, on the Company’s consolidated statements of income. The cost of securities sold is based on the specific identification method. Marketable securities are discussed in more detail in Note 4 of the Notes to Consolidated Financial Statements. Fair Value of Financial Instruments As required by ASC Topic 825, Financial Instruments , the following summarizes required information about the fair value of certain financial instruments for which it is currently practicable to estimate such value. None of the financial instruments are held or issued for trading purposes. The carrying amounts and fair values of the Company’s financial instruments are as follows: December 31, 2022 December 25, 2021 Carrying Fair Carrying Fair Cash and cash equivalents $ 1,279,194 $ 1,279,194 $ 1,498,058 $ 1,498,058 Marketable securities $ 1,381,648 $ 1,381,648 $ 1,616,678 $ 1,616,678 For certain of the Company’s financial instruments, including accounts receivable, accounts payable and other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. Trade Accounts Receivable The Company sells its products to retailers, wholesalers, and other customers and grants credit to certain customers based on its evaluation of the customers' financial condition. Generally, the Company does not require security when trade credit is granted to customers. The Company's trade accounts receivable are carried at net realizable value, typically are collected within 90 days, and do not bear interest. Certain customers are allowed extended terms consistent with normal industry practice. Most of these extended terms can be classified as either relating to seasonal sales variations or to the timing of new product releases by the Company. Credit losses are provided for in the Company’s consolidated financial statements and typically have been within management’s expectations. Past due receivable balances are typically written off when internal collection efforts have been unsuccessful in collecting the amount due. The Company maintains trade credit insurance to provide some security against certain losses within policy limits. Concentration of Credit Risk The Company’s top ten customers have contributed between 20 % and 23 % of net sales annually since 2020 . None of the Company's customers accounted for 10% or more of consolidated net sales in the years ended December 31, 2022, and December 26, 2020. Amazon.com, Inc. and its affiliates (Amazon), a customer of the fitness, outdoor, marine, and consumer auto segments, was our largest customer and accounted for approximately 10% of our consolidated net sales in the fiscal year ended December 25, 2021 . No other customer accounted for 10% or more of Garmin's consolidated net sales in fiscal 2021. Inventories Inventories are stated at the lower of cost or net realizable value. Cost includes materials, labor, and manufacturing overhead associated with purchases and production and is determined on a first-in, first-out (FIFO) basis. The Company writes down its inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. Inventories consisted of the following: December 31, 2022 December 25, 2021 Raw materials $ 600,858 $ 509,435 Work-in-process 180,873 213,801 Finished goods 733,314 504,373 Inventories $ 1,515,045 $ 1,227,609 Deferred Revenues and Costs At December 31, 2022 and December 25, 2021, the Company had deferred revenues totaling $ 126,794 and $ 129,272 , respectively, and related deferred costs totaling $ 24,693 and $ 28,322 , respectively. Deferred revenue consists primarily of the transaction price allocated to performance obligations that are recognized over a period of time basis as discussed in the Revenue Recognition portion of this footnote. Billings associated with such items are typically completed upon the transfer of control of promised products or services to the customer and recorded to accounts receivable until payment is received. Deferred costs primarily refer to the license fees incurred by the Company associated with the aforementioned unsatisfied performance obligations, which are amortized over the same period as the revenue is recognized. The Company typically pays the associated license fees either monthly or quarterly in arrears, on a per item shipped or installed basis. The Company applies a practical expedient, as permitted within ASC Topic 340, Other Assets and Deferred Costs , to expense as incurred the incremental costs to obtain a contract when the amortization period of the asset that would have otherwise been recognized is one year or less. Property and Equipment Property and equipment is recorded at cost and typically depreciated using the straight-line method. The components of property and equipment were as follows and are generally depreciated over the following estimated useful lives: Estimated Useful Life December 31, 2022 December 25, 2021 Land $ 193,861 $ 206,895 Building and improvements 15 to 50 years 856,722 763,654 Machinery, equipment and software 3 to 10 years 1,001,344 917,557 Total, at cost 2,051,927 1,888,106 Accumulated depreciation ( 904,922 ) ( 820,628 ) Property and equipment, net $ 1,147,005 $ 1,067,478 As required by ASC Topic 360, Property, Plant and Equipment , the Company reviews long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset or asset group may not be fully recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. That assessment is based on the carrying amount of the asset at the date it is tested for recoverability. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. The Company did not recognize any material long-lived asset impairment charges in the fiscal years of 2022, 2021, or 2020 . Intangible Assets At December 31, 2022, and December 25, 2021, the Company had intellectual property, customer related intangibles, and other identifiable finite-lived intangible assets recorded at a cost of $ 511,716 and $ 524,566 , respectively. Identifiable, finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis typically over three to ten years . Accumulated amortization was $ 333,256 and $ 308,572 at December 31, 2022 and December 25, 2021, respectively. Amortization expense on these intangible assets was $ 30,561 , $ 35,540 , and $ 34,797 for the years ended December 31, 2022, December 25, 2021, and December 26, 2020, respectively. In the next five years, the amortization expense is estimated to be $ 29,786 , $ 26,644 , $ 23,682 , $ 20,552 , and $ 16,527 , respectively. The Company also reviews finite-lived intangible assets for impairment in accordance with ASC Topic 360, as described above, whenever events or changes in circumstances indicate the carrying amount of an asset or asset group may not be fully recoverable. The Company’s excess purchase cost over fair value of net assets acquired (goodwill) was $ 567,994 at December 31, 2022, and $ 575,080 at December 25, 2021. Changes in the carrying amount of goodwill for the years ended December 31, 2022 and December 25, 2021 are as follows: Fitness Outdoor Aviation Marine Auto Total Goodwill balance as of December 26, 2020 $ 272,449 $ 88,658 $ 60,347 $ 82,602 $ 80,154 $ 584,210 Acquisitions — 14,152 — — — 14,152 Foreign currency translation and other adjustments ( 16,577 ) ( 2,416 ) — ( 2,696 ) ( 1,593 ) ( 23,282 ) Goodwill balance as of December 25, 2021 $ 255,872 $ 100,394 $ 60,347 $ 79,906 $ 78,561 $ 575,080 Acquisitions — 2,518 — 7,340 — 9,858 Foreign currency translation and other adjustments ( 11,570 ) ( 2,019 ) — ( 2,245 ) ( 1,110 ) ( 16,944 ) Goodwill balance as of December 31, 2022 $ 244,302 $ 100,893 $ 60,347 $ 85,001 $ 77,451 $ 567,994 ASC Topic 350, Intangibles – Goodwill and Other , requires that goodwill and intangible assets with indefinite useful lives should not be amortized but rather be assessed for impairment at least annually or sooner whenever events or changes in circumstances indicate that they may be impaired. The Company performs its annual impairment assessments of goodwill and indefinite-lived intangible assets, if any, in the fourth quarter of each year, as of the Company’s fiscal year end date. ASC Topic 350 allows management to first perform a qualitative goodwill assessment by assessing the qualitative factors of relevant events and circumstances at the reporting unit level to determine if it is necessary to perform the quantitative goodwill impairment test. If factors indicate that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, then the quantitative test will be performed. If the fair value of the reporting unit is less than the carrying amount, then a goodwill impairment charge will be recognized in the amount by which carrying amount exceeds fair value, limited to the total amount of goodwill allocated to that reporting unit. Each of the Company’s operating segments (fitness, outdoor, aviation, marine, consumer auto, and auto OEM) represents a distinct reporting unit, and goodwill impairment assessments are therefore performed at that level. Revenue and profits of the consumer auto reporting unit declined for a number of years through fiscal 2020, as competing technologies emerged and market saturation occurred for certain key products. Revenue and profit of the consumer auto reporting unit has since experienced periods of increases and decreases and, considering uncertainty in qualitative factors, management performed a quantitative impairment test of the consumer auto reporting unit in the fourth quarter of 2022. Consistent with the results of the quantitative assessment performed in 2021, the quantitative assessment indicated again in 2022 that the fair value of the reporting unit was substantially in excess of its carrying amount. Management also concluded that no goodwill associated with other reporting units is currently at risk of impairment based on qualitative assessments performed in 2022. The Company did not recognize any material goodwill or intangible asset impairment charges in fiscal years 2022, 2021, or 2020 . Leases The Company leases certain real estate properties, vehicles, and equipment in various countries around the world. Leased properties are typically used for office space, distribution, and retail. The Company’s leases are classified as operating leases with remaining terms of 1 to 31 year s, some of which include an option to extend or renew. If the exercise of an option to extend or renew is determined to be reasonably certain, the associated right-of-use asset and lease liability reflects the extended period and payments. For newly signed leases, the right-of-use asset and lease liability is recognized on lease commencement date. Variable lease costs, such as adjustments to payments based on consumer price indices, are excluded in the recognition of right-of-use assets and lease liabilities. For all real estate leases, any non-lease components, including common area maintenance, have been separated from lease components and excluded from the associated right-of-use asset and lease liability calculations. For all equipment and vehicle leases, an accounting policy election has been made to not separate lease and non-lease components. Leases with an initial term of 12 months or less (“short-term leases”) are not recognized on the Company’s consolidated balance sheets as a right-of-use asset or lease liability. Product Warranty The Company accrues for estimated future warranty costs at the time products are sold. The Company’s standard warranty obligation to retail partners generally provides for a right of return of any product for a full refund in the event that such product is not merchantable, is damaged, or is defective. The Company’s historical experience is that these types of warranty obligations are generally fulfilled within 5 months from time of sale. The Company’s standard warranty obligation to it |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 2. 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 11 – Segment Information and Geographic Data. Note 11 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 outdoor, aviation, and auto segments and relate to performance obligations that are satisfied over the estimated 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: Fiscal Year Ended December 31, 2022 December 25, 2021 December 26, 2020 Point in time $ 4,602,636 $ 4,762,260 $ 3,998,251 Over time 257,650 220,535 188,322 Net sales $ 4,860,286 $ 4,982,795 $ 4,186,573 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 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 53-week period ending December 31, 2022 and 52-week period ending December 25, 2021, are presented below: Fiscal Year Ended December 31, 2022 December 25, 2021 Deferred (1) Deferred (2) Deferred (1) Deferred (2) Balance, beginning of period $ 129,272 $ 28,322 $ 136,799 $ 36,655 Deferrals in period 255,172 17,169 213,008 16,345 Recognition of deferrals in period ( 257,650 ) ( 20,798 ) ( 220,535 ) ( 24,678 ) Balance, end of period $ 126,794 $ 24,693 $ 129,272 $ 28,322 (1) Deferred revenue is comprised of both deferred revenue and noncurrent deferred revenue per the consolidated balance sheets (2) Deferred costs are comprised of both deferred costs and noncurrent deferred costs per the consolidated balance sheets Of the $ 257,650 of deferred revenue recognized in the 53-weeks ended December 31, 2022 , $ 84,227 was deferred as of the beginning of the period. Of the $ 220,535 of deferred revenue recognized in the 52-weeks ended December 25, 2021 , $ 80,786 was deferred as of the beginning of the period. Of the $ 126,794 of deferred revenue as of December 31, 2022 , the Company expects to recognize approximately seventy-five percent ratably over a total period of three years or less. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
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". Fiscal Year Ended December 31, 2022 December 25, 2021 December 26, 2020 Numerator: Numerator for basic and diluted net income per share - net income $ 973,585 $ 1,082,200 $ 992,324 Denominator (in thousands): Denominator for basic net income per share – weighted-average common shares 192,544 192,180 191,085 Effect of dilutive equity awards 498 863 810 Denominator for diluted net income per share – adjusted weighted-average common shares 193,042 193,043 191,895 Basic net income per share $ 5.06 $ 5.63 $ 5.19 Diluted net income per share $ 5.04 $ 5.61 $ 5.17 Shares excluded from diluted net income per share calculation: Anti-dilutive equity awards (in thousands) 625 235 308 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities ASC Topic 820, 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 Agency securities Level 2 $ 7,000 $ — $ ( 786 ) $ 6,214 Mortgage-backed securities Level 2 45,373 — ( 4,525 ) 40,848 Corporate debt securities Level 2 1,106,688 188 ( 77,802 ) 1,029,074 Municipal securities Level 2 326,058 3 ( 28,861 ) 297,200 Other Level 2 10,466 — ( 2,154 ) 8,312 Total $ 1,495,585 $ 191 $ ( 114,128 ) $ 1,381,648 Available-For-Sale Securities Fair Value Level Amortized Cost Gross Unrealized Gross Unrealized Fair Value Agency securities Level 2 $ 7,000 $ — $ ( 110 ) $ 6,890 Mortgage-backed securities Level 2 149,692 257 ( 880 ) 149,069 Corporate debt securities Level 2 1,079,390 9,830 ( 11,827 ) 1,077,393 Municipal securities Level 2 356,037 1,870 ( 4,864 ) 353,043 Other Level 2 31,134 22 ( 873 ) 30,283 Total $ 1,623,253 $ 11,979 $ ( 18,554 ) $ 1,616,678 The primary objectives of the Company’s investment policy are to preserve capital, maintain an acceptable degree of liquidity, and maximize yield within the constraint of low 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 $ 11,086 as of December 31, 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 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 53-week period ended December 31, 2022. The Company recognizes impairments relating to credit losses of available-for-sale securities through an allowance for credit losses and other income (expense) on the Company’s consolidated statements of income. Impairment not relating to credit losses is recorded in accumulated other comprehensive income (loss) on the Company’s consolidated balance sheets. The cost of securities sold is based on the specific identification method. Approximately 98 % of securities in our portfolio were at an unrealized loss position at December 31, 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 December 31, 2022 and December 25, 2021. As of December 31, 2022 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 Agency securities $ — $ — $ ( 786 ) $ 6,214 $ ( 786 ) $ 6,214 Mortgage-backed securities ( 1,900 ) 23,229 ( 2,625 ) 17,619 ( 4,525 ) 40,848 Corporate debt securities ( 26,680 ) 508,956 ( 51,122 ) 498,834 ( 77,802 ) 1,007,790 Municipal securities ( 2,136 ) 69,017 ( 26,725 ) 225,679 ( 28,861 ) 294,696 Other — — ( 2,154 ) 8,067 ( 2,154 ) 8,067 Total $ ( 30,716 ) $ 601,202 $ ( 83,412 ) $ 756,413 $ ( 114,128 ) $ 1,357,615 As of December 25, 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 Agency securities $ ( 110 ) $ 6,890 $ — $ — $ ( 110 ) $ 6,890 Mortgage-backed securities ( 148 ) 18,909 ( 732 ) 7,598 ( 880 ) 26,507 Corporate debt securities ( 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 Other ( 467 ) 17,845 ( 406 ) 7,205 ( 873 ) 25,050 Total $ ( 14,438 ) $ 768,737 $ ( 4,116 ) $ 129,241 $ ( 18,554 ) $ 897,978 As of December 31, 2022 and December 25, 2021 , 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 agency, mortgage-backed, corporate debt, 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 December 31, 2022, by maturity, are shown below. Amortized Cost Fair Value Due in one year or less $ 175,644 $ 173,288 Due after one year through five years 1,303,653 1,194,280 Due after five years through ten years 14,041 12,382 Due after ten years 2,247 1,698 Total $ 1,495,585 $ 1,381,648 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company’s income tax provision (benefit) consists of the following: Fiscal Year Ended December 31, 2022 December 25, 2021 December 26, 2020 U.S. federal: Current $ 45,639 $ ( 13,096 ) $ ( 25,220 ) Deferred ( 149,734 ) ( 42,625 ) ( 7,115 ) $ ( 104,095 ) $ ( 55,721 ) $ ( 32,335 ) U.S. state: Current $ 12,870 $ ( 5,876 ) $ ( 3,931 ) Deferred ( 29,160 ) ( 8,132 ) 2,715 $ ( 16,290 ) $ ( 14,008 ) $ ( 1,216 ) Foreign: Current $ 175,335 $ 149,012 $ 133,622 Deferred 36,439 45,313 11,015 $ 211,774 $ 194,325 $ 144,637 Total $ 91,389 $ 124,596 $ 111,086 The income tax provision differs from the amount computed by applying the U.S. statutory federal income tax rate to income before taxes. The sources and tax effects of the differences, including the impact of establishing tax contingency accruals, are as follows: Fiscal Year Ended December 31, 2022 December 25, 2021 December 26, 2020 Federal income tax expense at U.S. statutory rate $ 223,658 $ 253,429 $ 231,718 State income tax (benefit) expense, net of federal tax effect ( 21,064 ) ( 12,198 ) ( 3,404 ) Foreign-derived intangible income (FDII) deduction ( 12,343 ) — — Foreign tax rate differential ( 114,599 ) ( 117,586 ) ( 98,130 ) Other foreign taxes less incentives and credits 24,273 29,240 3,446 Withholding tax 27,041 22,992 17,026 Net change in uncertain tax positions ( 14,381 ) ( 17,087 ) ( 21,391 ) U.S. federal research and development credit ( 29,384 ) ( 22,764 ) ( 21,342 ) Share-based compensation 30 ( 6,362 ) ( 6,114 ) Switzerland tax reform - tax assets 7,168 ( 177 ) 11,016 Other, net 990 ( 4,891 ) ( 1,739 ) Income tax expense $ 91,389 $ 124,596 $ 111,086 The Company recorded income tax expense of $ 91,389 in the year ended December 31, 2022 , which included income tax expense of $ 7,168 recognized by the Company in the fourth quarter of 2022 related to the revaluation of certain Switzerland tax assets related to the Switzerland tax reform transitional measures. The Company recorded income tax expense of $ 124,596 in the year ended December 25, 2021 . The Company recorded income tax expense of $ 111,086 in the year ended December 26, 2020 , which included a $ 14,308 income tax benefit recognized by the Company in the second quarter of 2020 due to the release of uncertain tax position reserves associated with a 2014 intercompany restructuring and was partially offset by income tax expense of $ 11,016 recognized by the Company in the fourth quarter of 2020 related to the revaluation of certain Switzerland tax assets related to the Switzerland tax reform transitional measures. The Company’s statutory federal and cantonal income tax rate in Switzerland, the Company's place of incorporation, was approximately 14 % in fiscal years 2022, 2021, and 2020. If the Company reconciled taxes at the Swiss holding company federal statutory tax rate to the reported income tax expense for 2022 as presented above, the amounts related to tax at the statutory rate would be approximately $ 77,000 lower, or $ 147,000 , and the foreign tax rate differential would be adjusted by a similar amount to approximately $ 33,000 . For 2021 , the amounts related to tax at the statutory rate would be approximately $ 84,000 lower, or $ 169,000 , and the foreign tax rate differential would be adjusted by a similar amount to approximately $ 28,000 . For 2020 , the amounts related to tax at the statutory rate would be approximately $ 77,000 lower, or $ 155,000 , and the foreign tax rate differential would be adjusted by a similar amount to approximately $ 20,000 . All other amounts would remain substantially unchanged. The Company’s income before income taxes attributable to non-U.S. operations was $ 1,287,794 , $ 1,227,666 , and $ 1,059,074 , for the years ended December 31, 2022, December 25, 2021, and December 26, 2020, respectively. Income taxes of $ 45,459 , $ 50,127 , and $ 47,236 at December 31, 2022, December 25, 2021, and December 26, 2020, respectively, have not been accrued by the Company for the unremitted earnings of several of its foreign subsidiaries because such earnings are intended to be reinvested in the subsidiaries indefinitely. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2022 December 25, 2021 Deferred tax assets: Product warranty accruals $ 12,111 $ 10,578 Accrued vacation 14,986 14,073 Share-based compensation 8,667 12,000 Tax credit carryforwards 19,950 24,508 Intangible assets 156,702 173,468 Capitalized research & development expenses 231,429 53,827 Net operating losses 4,955 9,069 Operating leases 30,310 13,685 Deferred revenue 18,327 20,970 Tax basis in excess of book basis for investments 27,227 4,321 Other 18,259 20,220 Valuation allowance related to loss carryforward and tax credits ( 17,077 ) ( 19,709 ) $ 525,846 $ 337,010 Deferred tax liabilities: Fixed assets 40,526 27,970 Operating leases 29,756 13,322 Prepaid and perpetual license assets 11,798 17,350 Book basis in excess of tax basis for acquired entities 21,970 32,907 Withholding tax 108,692 89,285 Other 1,998 13,566 $ 214,740 $ 194,400 Net deferred tax assets $ 311,106 $ 142,610 Deferred tax assets related to capitalized research and development expenses increased as of December 31, 2022 as compared to December 25, 2021 by $ 177,602 , primarily related to the 2017 United States Tax Cuts and Jobs Act, which included provisions that became effective during 2022 tax year that require us to capitalize certain research and development costs and amortize those capitalized costs on our U.S. tax returns over a period of five or fifteen years, depending on where the associated costs were incurred. At December 31, 2022 , the Company had $ 19,950 of tax credit carryover compared to $ 24,508 at December 25, 2021. At December 31, 2022 , the Company had a deferred tax asset of $ 4,955 related to the future tax benefit of net operating loss (NOL) carryforwards of $ 16,296 . Included in the NOL carryforwards is $ 10,530 that relates to Luxembourg and expires beginning in 2037 , $ 707 that relates to Finland and expires in varying amounts between 2025 and 2029 , $ 575 that relates to the Netherlands and expires in 2026 , $ 39 that relates to Thailand and expires in 2025 , and $ 4,445 that relates to various other jurisdictions and has no expiration date. The Company has recorded a valuation allowance for a portion of its deferred tax asset relating to various tax attributes that it does not believe are more likely than not to be realized. In the future, if the Company determines, based on existence of sufficient evidence, that it should realize more or less of its deferred tax assets, an adjustment to the valuation allowance will be made in the period such a determination is made. The total amount of gross unrecognized tax benefits, as of December 31, 2022 was $ 30,795 . A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for years ended December 31, 2022, December 25, 2021, and December 26, 2020 is as follows: December 31, 2022 December 25, 2021 December 26, 2020 Balance beginning of year $ 65,216 $ 84,985 $ 101,251 Additions based on tax positions related to prior years — — 10,480 Reductions based on tax positions related to prior years ( 6,363 ) ( 4,727 ) ( 4,169 ) Additions based on tax positions related to current period 2,368 4,272 16,859 Reductions related to settlements with tax authorities ( 15,476 ) — ( 935 ) Expiration of statute of limitations ( 14,950 ) ( 19,314 ) ( 38,501 ) Balance at end of year $ 30,795 $ 65,216 $ 84,985 Accounting guidance requires unrecognized tax benefits to be classified as noncurrent liabilities, except for the portion that is expected to be paid within one year of the balance sheet date. The balance of net unrecognized benefits of $ 29,159 , $ 54,443 , and $ 81,938 are required to be classified as noncurrent at December 31, 2022, December 25, 2021, and December 26, 2020, respectively. The net unrecognized tax benefits, if recognized, would reduce the effective tax rate. None of the unrecognized tax benefits are due to uncertainty in the timing of deductibility. Interest and penalties, if any, accrued on the unrecognized tax benefits are reflected in income tax expense. At December 31, 2022, December 25, 2021, and December 26, 2020 , the Company had accrued approximately $ 2,751 , $ 4,225 , and $ 5,666 , respectively, for interest. The interest component of the reserve decreased income tax expense for the years ending December 31, 2022, December 25, 2021, and December 26, 2020 by $ 1,474 , and $ 1,441 , and $ 1,970 , respectively. The Company did no t have significant amounts accrued for penalties for the years ending December 31, 2022, December 25, 2021, and December 26, 2020. The Company files income tax returns in Switzerland, Taiwan, United Kingdom, U.S. federal jurisdiction, as well as various states, local, and foreign jurisdictions. In its major tax jurisdictions, Switzerland, Taiwan, United Kingdom, and U.S. federal and various states, the Company is no longer subject to income tax examinations by tax authorities, with few exceptions, for years prior to 2018, 2017, 2020, and 2019, respectively. The Company recognized a reduction of income tax expense, inclusive of interest and net of deferrals, of $ 12,749 , $ 22,221 , and $ 42,185 in fiscal years ended December 31, 2022, December 25, 2021, and December 26, 2020, respectively, to reflect the expiration of statutes of limitations and releases due to audit settlement in various jurisdictions. The Company believes that it is reasonably possible that approximately $ 5,000 to $ 15,000 of its reserves for certain unrecognized tax benefits will decrease within the next 12 months as the result of the expiration of statutes of limitations. This potential decrease in unrecognized tax benefits would impact the Company’s effective tax rate within the next 12 months. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 6. Leases The following table represents lease costs recognized in the Company’s consolidated statements of income for the 53-weeks ended December 31, 2022 . Lease costs are included in selling, general and administrative expense and research and development expense on the Company’s consolidated statements of income. Fiscal Year Ended December 31, 2022 December 25, 2021 Operating lease cost (1) $ 40,679 $ 35,114 (1) Operating lease cost includes short-term lease costs and variable lease costs, which were not material in the period presented. The following table represents the components of leases that are recognized on the Company’s consolidated balance sheets as of December 31, 2022 and December 25, 2021. December 31, 2022 December 25, 2021 Operating lease right-of-use assets $ 138,040 $ 89,457 Other accrued expenses $ 25,149 $ 20,503 Noncurrent operating lease liabilities 114,541 70,044 Total lease liabilities $ 139,690 $ 90,547 Weighted average remaining lease term 7.3 years 5.6 years Weighted average discount rate 3.3 % 3.3 % The following table represents the maturity of lease liabilities. Year Amount 2023 $ 30,713 2024 27,618 2025 22,094 2026 14,962 2027 13,216 Thereafter 52,737 Total 161,340 Less: imputed interest ( 21,650 ) Present value of lease liabilities 139,690 The following table presents supplemental cash flow and noncash information related to leases. Fiscal Year Ended December 31, 2022 December 25, 2021 Cash paid for amounts included in the measurement of operating lease liabilities (2) $ 28,714 $ 24,930 Right-of-use assets obtained in exchange for new operating lease liabilities $ 68,188 $ 16,229 (2) Included in net cash provided by operating activities on the Company's Statements of Cash Flows |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. 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 December 31, 2022 that may represent noncancellable unconditional purchase obligations having a remaining term in excess of one year was approximately $ 383,000 . Certain cash balances are held as collateral in relation to bank guarantees. The total amount of restricted cash was $ 718 and $ 785 on December 31, 2022 and December 25, 2021, respectively. 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 year ended December 31, 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 legal matters during the fiscal years ended December 31, 2022, December 25, 2021, and December 26, 2020 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. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders' Equity Dividends Under Swiss corporate law, dividends must be approved by shareholders at the annual general meeting of the Company’s shareholders. Approved dividends are subject to possible adjustment based on the total amount of the dividend in Swiss Francs as approved at the annual meeting, and are payable in four equal installments on dates determined by the Board of Directors. A reduction of retained earnings and a corresponding liability are recorded at the time of shareholders' approval and are periodically adjusted based on the number of applicable shares outstanding. Our shareholders approved the following dividends : Declaration Date Dividend Date Record Date Dividend Per Share Payment Amount Fiscal 2022 June 10, 2022 June 30, 2022 June 20, 2022 $ 0.73 $ 140,825 June 10, 2022 September 30, 2022 September 15, 2022 $ 0.73 $ 140,413 June 10, 2022 December 30, 2022 December 15, 2022 $ 0.73 $ 139,610 June 10, 2022 March 31, 2023 March 15, 2023 $ 0.73 $ 139,732 Total $ 2.92 $ 560,579 Fiscal 2021 June 4, 2021 June 30, 2021 June 15, 2021 $ 0.67 $ 128,741 June 4, 2021 September 30, 2021 September 15, 2021 $ 0.67 $ 128,856 June 4, 2021 December 31, 2021 December 15, 2021 $ 0.67 $ 128,856 June 4, 2021 March 31, 2022 March 15, 2022 $ 0.67 $ 129,394 Total $ 2.68 $ 515,846 Fiscal 2020 June 5, 2020 June 30, 2020 June 15, 2020 $ 0.61 $ 116,526 June 5, 2020 September 30, 2020 September 15, 2020 $ 0.61 $ 116,655 June 5, 2020 December 31, 2020 December 15, 2020 $ 0.61 $ 116,655 June 5, 2020 March 31, 2021 March 15, 2021 $ 0.61 $ 117,205 Total $ 2.44 $ 467,040 The estimated payment amount for the dividend scheduled to be paid on March 31, 2023 was included in dividend payable on the Company’s consolidated balance sheets as of December 31, 2022 . Approximately $ 61,129 of retained earnings was indefinitely restricted from distribution to shareholders pursuant to the laws of Taiwan as of December 31, 2022 and December 25, 2021. 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 December 31, 2022 , the Company had repurchased 2,258,990 shares for $ 206,523 , leaving approximately $ 93,477 available to repurchase additional shares under the Program. Cash paid for purchases of the Company’s shares during fiscal 2022 was $ 201,012 , while $ 5,511 was included in other accrued expenses on the Company’s consolidated balance sheets as of December 31, 2022. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 9. Accumulated Other Comprehensive Income (Loss) The following provides required disclosure of changes in accumulated other comprehensive income (loss) balances by component for the year ended December 31, 2022: Foreign currency 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 $ 24,658 ( 149,396 ) ( 83,690 ) ( 233,086 ) Amounts reclassified from accumulated other comprehensive income (loss) to other income (expense), net of income tax benefit of $ 268 included in income tax provision — 718 718 Net current-period other comprehensive income (loss) ( 149,396 ) ( 82,972 ) ( 232,368 ) Balance - end of period $ ( 25,981 ) $ ( 88,552 ) $ ( 114,533 ) |
Employee Stock Compensation and
Employee Stock Compensation and Savings Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Stock Compensation and Savings Plans | 10. Employee Stock Compensation and Savings Plans Stock Compensation The various Company stock compensation plans are summarized below. For all stock compensation plans, the company’s policy is to issue treasury shares for option/stock appreciation right (SAR) exercises, restricted stock unit (RSU) releases, and employee stock purchase plan (ESPP) purchases. 2011 Non-employee Directors’ Equity Incentive Plan In June 2011, the shareholders adopted an equity incentive plan for non-employee directors (the “2011 Directors Plan”) providing for grants of stock options, SARs, RSUs and/or performance shares, pursuant to which up to 122,592 shares were made available for issuance. The term of each award cannot exceed ten years . Awards are subject to a minimum one-year vesting period. In 2022, 2021, and 2020 , there were 6,008 , 4,180 , and 6,376 RSUs granted under this plan, respectively. 2005 Equity Incentive Plan In June 2005, the shareholders adopted an equity incentive plan (the “2005 Plan”) providing for grants of incentive and nonqualified stock options, SARs, RSUs and/or performance shares to employees of the Company and its subsidiaries, pursuant to which up to 10,000,000 common shares were made available for issuance. In 2013, the shareholders approved an additional 3,000,000 shares to the plan, making the total shares authorized under the plan 13,000,000 . Option and SAR grants vest evenly over a period of five years or as otherwise determined by the Board of Directors or the Compensation Committee and generally expire ten years from the date of grant, if not exercised. RSUs vest evenly over a period of three years . In addition to time-based vesting requirements, the vesting of certain RSU grants is also contingent upon the Company’s achievement of certain financial performance goals. During 2022, 2021, and 2020 , there were 1,185,707 , 866,614 , and 753,976 RSUs granted under the 2005 Plan, respectively. No stock options or SARs were granted under the 2005 Plan in 2022, 2021, or 2020. 2000 Equity Incentive Plan In October 2000, the shareholders adopted an equity incentive plan (the “2000 Plan”) providing for grants of incentive and nonqualified stock options, SARs, restricted shares and/or performance shares to employees of the Company and its subsidiaries, pursuant to which up to 7,000,000 common shares were made available for issuance. The stock options and SARs vest evenly over a period of five years or as otherwise determined by the Board of Directors or the Compensation Committee and generally expire ten years from the date of grant, if no t exercised. The Company did not grant any stock awards from the 2000 Plan in 2022, 2021, or 2020. In February 2023, the Board of Directors approved the termination of the 2000 Plan, which was effective immediately. Stock Compensation Activity A summary of the Company’s stock compensation activity and related information under the 2011 Directors Plan, the 2005 Plan, and the 2000 Plan for the years ended December 31, 2022, December 25, 2021, and December 26, 2020 is provided below: Stock Options and SARs Weighted-Average Number of Shares (In Thousands) Outstanding at December 28, 2019 $ 51.46 66 Granted — Exercised $ 51.23 ( 53 ) Forfeited/Expired — Outstanding at December 26, 2020 $ 52.44 13 Granted — Exercised $ 52.44 ( 13 ) Forfeited/Expired — Outstanding at December 25, 2021 — Granted — Exercised — Forfeited/Expired — Outstanding at December 31, 2022 — Exercisable at December 31, 2022 — Expected to vest after December 31, 2022 — Restricted Stock Units Weighted-Average Number of Shares (In Thousands) Outstanding at December 28, 2019 $ 69.47 1,779 Granted $ 99.57 760 Released/Vested $ 64.07 ( 915 ) Cancelled $ 72.10 ( 42 ) Outstanding at December 26, 2020 $ 86.98 1,582 Granted $ 116.40 871 Released/Vested $ 80.12 ( 884 ) Cancelled $ 95.79 ( 56 ) Outstanding at December 25, 2021 $ 107.60 1,513 Granted $ 98.39 1,192 Released/Vested $ 102.80 ( 805 ) Cancelled $ 111.12 ( 63 ) Outstanding at December 31, 2022 $ 103.61 1,837 The weighted-average remaining contract life of restricted stock units at December 31, 2022 was 1.26 years. The total fair value of awards vested during 2022, 2021, and 2020 , was $ 82,734 , $ 70,796 , and $ 58,602 , respectively. The aggregate intrinsic values of options and SARs exercised during 2022, 2021, and 2020 were $ 0 , $ 1,040 , and $ 3,701 , respectively. The aggregate intrinsic value of RSUs outstanding at December 31, 2022 was $ 169,498 . The aggregate intrinsic values of RSUs released during 2022, 2021, and 2020 were $ 74,278 , $ 118,825 , and $ 109,952 , respectively. Aggregate intrinsic value of options and SARs represents the applicable number of awards multiplied by the positive difference between the exercise price and the Company’s closing stock price on the last trading day of the relevant fiscal period. Aggregate intrinsic value of RSUs represents the applicable number of awards multiplied by the Company’s closing stock price on the last trading day of the relevant fiscal period. The Company’s closing stock price was $ 92.29 on December 31, 2022 (based on the closing stock price on December 30, 2022). As of December 31, 2022 , there was $ 95,019 of total unrecognized compensation cost related to unvested share-based compensation awards granted to employees under the stock compensation plans. That cost is expected to be recognized over the remaining vesting period. Employee Stock Purchase Plan The shareholders have adopted an ESPP. Up to 8,000,000 shares of common stock have been reserved for the ESPP. Shares are offered to employees at a price equal to the lesser of 85 % of the fair market value of the Company's stock on the date of purchase or 85 % of the fair market value on the first day of the ESPP period. The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. During 2022, 2021, and 2020 , there were 687,370 , 385,211 , and 195,540 shares purchased under the plan for a total purchase price of $ 62,154 , $ 34,936 , and $ 15,955 , respectively. During 2022, 2021, and 2020, the purchases were issued from treasury shares. At December 31, 2022 , approximately 787,534 shares were available for future issuance. Savings Plans Certain subsidiaries of the Company sponsor various defined contribution employee retirement plans. GII and the Company’s other U.S.-based subsidiaries sponsor a plan under which their employees may contribute up to 50 % of their annual compensation subject to Internal Revenue Code maximum limitations and to which the subsidiaries contribute a specified percentage of each participant’s annual compensation up to certain limits as defined in the retirement plan. During the years ended December 31, 2022, December 25, 2021, and December 26, 2020 , expense related to this and other defined contribution plans of $ 80,435 , $ 71,262 , and $ 63,908 , respectively, was recorded within the Company’s consolidated statements of income. Certain of the Company’s non-U.S. subsidiaries sponsor or participate in local defined benefit pension plans. The obligations, contributions, and associated expense of such plans for the years ended December 31, 2022, December 25, 2021, and December 26, 2020 were not material. |
Segment Information and Geograp
Segment Information and Geographic Data | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Data | 11. Segment Information and Geographic Data During 2022, 2021, and 2020, Garmin was organized in the six operating segments of fitness, outdoor, aviation, marine, consumer auto, and auto OEM. Each operating segment is individually reviewed and evaluated by the CODM, who allocates resources and assesses performance of each segment individually. The fitness, outdoor, aviation, and marine operating segments represented reportable segments during 2022, 2021, and 2020. The consumer auto and auto OEM operating segments, which serve the auto market, did 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 our 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 reasonable manner considering the specific facts and circumstances of the expenses being allocated. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. There are no inter-segment sales or transfers. The Company’s segments share many common resources, infrastructures and assets in the normal course of business. Thus, the Company does not report accounts receivable, inventories, property and equipment, intangible assets, or capital expenditures by segment to the CODM. As indicated in Note 1 to the 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 at that time. Results for the 52-week periods ended December 25, 2021 and December 26, 2020 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 consumer auto and auto OEM operating segments that management believes is useful. Auto Fitness Outdoor Aviation Marine Total Consumer Auto Total 53-Weeks Ended December 31, 2022 Net sales $ 1,109,419 $ 1,495,167 $ 792,799 $ 903,983 $ 558,918 $ 275,108 $ 283,810 $ 4,860,286 Gross profit 552,417 969,810 573,063 491,457 220,028 129,598 90,430 2,806,775 Operating income (loss) 104,738 556,448 213,186 215,304 ( 61,831 ) 16,833 ( 78,664 ) 1,027,845 52-Weeks Ended December 25, 2021 Net sales $ 1,533,788 $ 1,281,933 $ 712,468 $ 875,151 $ 579,455 $ 324,731 $ 254,724 $ 4,982,795 Gross profit 813,325 834,837 519,821 495,310 227,166 153,825 73,341 2,890,459 Operating income (loss) 359,201 476,122 193,188 249,781 ( 59,672 ) 48,347 ( 108,019 ) 1,218,620 52-Weeks Ended December 26, 2020 Net sales $ 1,317,498 $ 1,128,081 $ 622,820 $ 657,848 $ 460,326 $ 275,493 $ 184,833 $ 4,186,573 Gross profit 697,539 739,777 453,008 384,450 206,562 139,864 66,698 2,481,336 Operating income (loss) 305,283 438,197 146,608 177,184 ( 13,032 ) 45,033 ( 58,065 ) 1,054,240 Net sales, property and equipment, and net assets by geographic area are as shown below for the fiscal years ended December 31, 2022, December 25, 2021, and December 26, 2020. Note that APAC includes Asia Pacific and Australian Continent, and EMEA includes Europe, the Middle East and Africa. Americas EMEA APAC Total December 31, 2022 Net sales to external customers (1) $ 2,429,029 $ 1,633,640 $ 797,617 $ 4,860,286 Property and equipment, net 676,855 121,920 348,230 1,147,005 Net assets (2) 3,717,198 1,210,461 1,276,681 6,204,340 December 25, 2021 Net sales to external customers (1) $ 2,349,514 $ 1,858,908 $ 774,373 $ 4,982,795 Property and equipment, net 576,481 120,004 370,993 1,067,478 Net assets (2) 3,745,120 1,227,928 1,141,111 6,114,159 December 26, 2020 Net sales to external customers (1) $ 1,968,080 $ 1,579,749 $ 638,744 $ 4,186,573 Property and equipment, net 467,269 114,313 273,957 855,539 Net assets (2) 3,327,748 1,163,127 1,025,241 5,516,116 (1) The United States is the only country which constitutes greater than 10 % of net sales to external customers. (2) Americas and APAC net assets are primarily held in the United States and Taiwan, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events In January 2023, the Company announced an organization realignment, which combines the consumer auto operating segment with the outdoor operating segment. As a result, beginning with reports filed in the first quarter of fiscal 2023, the Company’s operating segments will be fitness, outdoor, aviation, marine, and auto OEM. Prior periods will be recast to conform to the revised composition. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Garmin Ltd. and subsidiaries (collectively, the “Company” or “Garmin”) design, develop, manufacture, market, and distribute a diverse family of hand-held, wrist-based, portable, and fixed-mount Global Positioning System (GPS)-enabled products and other navigation, communications, information and sensor-based products and services. Garmin Corporation (GC) is primarily responsible for the manufacturing and distribution of the Company’s products to the Company’s subsidiaries and, to a lesser extent, new product development and sales and marketing of the Company’s products in Asia and the Far East. Garmin International, Inc. (GII) is primarily responsible for sales and marketing of the Company’s products in the Americas region and for most of the Company’s research and new product development. GII also manufactures most of the Company’s products in the aviation segment. Garmin (Europe) Ltd. (GEL) is primarily responsible for sales and marketing of the Company’s products in Europe, the Middle East and Africa (EMEA). Many of GEL’s sales are to other Company-owned distributors in the EMEA region. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The accompanying consolidated financial statements reflect the accounts of Garmin Ltd. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. |
Changes in Classification and Allocation | Changes in Classification and Allocation Certain prior period amounts have been reclassified or presented to conform to 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 consolidated statements of income have been recast for the 52-week periods ended December 25, 2021 and December 26, 2020 to reflect a reclassification of $ 61,274 and $ 53,343 , 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 at that time. Results for the 52-week periods ended December 25, 2021 and December 26, 2020 have been recast to conform to current period presentation. These changes in classification and allocation had no effect on the Company’s consolidated operating or net income. |
Fiscal Year | Fiscal Year The Company’s fiscal year is based on a 52-53-week period ending on the last Saturday of the calendar year. Due to the fact that there are not exactly 52 weeks in a calendar year, the Company will have a fiscal year comprising 53 weeks in certain fiscal years, as determined by when the last Saturday of the calendar year occurs. In those resulting fiscal years that have 53 weeks, the Company will record an extra week of sales, costs, and related financial activity. Therefore, the financial results of those 53-week fiscal years, and the associated 14-week fourth quarters, will not be entirely comparable to the prior and subsequent 52-week fiscal years and the associated 13-week quarters. Fiscal year 2022 contains 53 weeks compared to 52 weeks for 2021 and 2020 . |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Foreign Currency | Foreign Currency Many Garmin Ltd. subsidiaries utilize currencies other than the United States Dollar (USD) as their functional currency. As required by Accounting Standards Codification (ASC) Topic 830, Foreign Currency Matters , the financial statements of these subsidiaries for all periods presented have been translated into USD, the functional currency of Garmin Ltd., and the reporting currency herein, for purposes of consolidation at rates prevailing during the year for sales, costs, and expenses and at end-of-year rates for all assets and liabilities. The effect of this translation is recorded in a separate component of stockholders’ equity. Cumulative currency translation adjustments of $ ( 25,981 ) and $ 123,415 as of December 31, 2022 and December 25, 2021, respectively, have been included in accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. Transactions in foreign currencies are recorded at the approximate rate of exchange at the transaction date. Assets and liabilities resulting from these transactions are translated at the rate of exchange in effect at the balance sheet date. 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. Net foreign currency losses recorded in results of operations were $ 11,274 for the year ended December 31, 2022, net foreign currency losses recorded in results of operations were $ 45,263 for the year ended December 25, 2021, and net foreign currency gains recorded in results of operations were $ 2,825 for the year ended December 26, 2020. The loss in fiscal 2022 was primarily due to the U.S. Dollar strengthening against the Australian Dollar, Polish Zloty, Chinese Yuan, Euro, Japanese Yen, and British Pound Sterling, partially offset by the U.S. Dollar strengthening against the Taiwan Dollar. The loss in fiscal 2021 was primarily due to the U.S. Dollar strengthening against the Euro, Polish Zloty, Japanese Yen, Swiss Franc, and Australian Dollar, while the U.S. Dollar weakened against the Taiwan Dollar. The gain in fiscal 2020 was primarily due to the U.S. Dollar weakening against the Euro, Australian Dollar, Chinese Yuan, and British Pound Sterling, partially offset by the U.S. Dollar weakening against the Taiwan Dollar. Garmin Corporation, one of the Company’s principal subsidiaries, is located in Taiwan. The Taiwan Foreign Exchange Control Statute (the “Statute”), and regulations thereunder, provides that all foreign exchange transactions must be executed by banks designated to handle such business by the Ministry of Finance of Taiwan and by the Central Bank of the Republic of China (Taiwan), also referred to as the CBC. Current regulations favor trade-related foreign exchange transactions, so the Statute does not impose any significant restrictions on import or export activities involving foreign currencies in Taiwan. Non-trade related currency exchanges exceeding $50 million, or its equivalent, in a calendar year require approval of the CBC. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue upon the transfer of control of promised products or services to the customer in an amount that depicts the consideration to which the Company expects to be entitled for the related products or services. For the large majority of the Company’s sales, transfer of control occurs once product has shipped and title and risk of loss have transferred to the customer. The Company offers certain tangible products with ongoing services promised over a period of time, typically the useful life of the related tangible product. When such services have been identified as both capable of being distinct and separately identifiable from the related tangible product, the associated revenue allocated to such services is recognized over time. The Company generally does not offer specified or unspecified upgrade rights to its customers in connection with software sales. The Company allocates revenue to all performance obligations associated with tangible products containing separately identifiable ongoing services based on the respective performance obligations’ relative standalone selling prices (“SSP”), with the amounts allocated to ongoing services deferred and recognized over a period of time. These ongoing services primarily consist of the Company’s contractual promises to provide personal navigation device (PND) users with map updates and server-based traffic services. In addition, the Company provides map update services (map care) over a contractual period in certain hardware and software contracts with automotive original equipment manufacturers (OEMs). The Company has determined that directly observable prices do not exist for certain map updates, map care, or server-based traffic, as stand-alone and unbundled unit sales do not occur on more than a limited basis. Therefore, the Company uses the expected cost plus a margin as the primary indicator to calculate relative SSP of certain map updates, map care, and traffic performance obligations. The revenue and associated costs allocated to map updates, map care, and server-based traffic service are deferred and recognized ratably over the estimated life of the products. In addition to the products listed above, the Company has offered certain other products with ongoing performance obligations including aviation database and other service subscriptions, incremental navigation and communication service subscriptions, mobile applications, and extended warranties that are recognized over the contractual service period (typically 1 - 3 years ). The Company records revenue net of sales tax or value-added tax and variable consideration such as trade discounts and customer returns. Payment is due typically within 90 days or less of shipment of product, or upon the grant of a given software license (as applicable). The Company records estimated reductions to revenue in the form of variable consideration for customer sales programs, returns, and incentive offerings including rebates, price protection, promotions, and other volume-based incentives. Cooperative advertising incentives payable to dealers and distributors are recorded as reductions of revenue unless the Company obtains proof of a distinct advertising service, in which case the incentive is recorded as advertising expense. The reductions to revenue are based on estimates and judgments using historical experience and expectation of future conditions. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling activities are typically performed before the customer obtains control of the good, and the related costs are expensed at the approximate time of sale. Shipping and handling costs are included in cost of goods sold in the accompanying consolidated statements of income. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. Advertising expense amounted to approximately $ 168,040 , $ 171,829 , and $ 151,166 for the years ended December 31, 2022, December 25, 2021, and December 26, 2020 , respectively. |
Software Development Costs | Software Development Costs ASC Topic 985-20, Software – Costs of Software to Be Sold, Leased, or Marketed , requires companies to expense software development costs as they incur them until technological feasibility has been established, at which time those costs are capitalized until the product is available for general release to customers. The Company’s capitalized software development costs are not significant, as the time elapsed from working model to release is typically short. As required by ASC Topic 730, Research and Development , costs incurred to enhance our existing products or after the general release of the service using the product are expensed in the period they are incurred and included in research and development costs in the accompanying consolidated statements of income. |
Accounting for Stock-Based Compensation | Accounting for Stock Compensation The Company currently sponsors three employee stock compensation plans. ASC Topic 718, Compensation – Stock Compensation , requires the measurement and recognition of compensation expenses for all share-based payment awards made to employees and directors, including employee stock options and restricted stock, based on estimated fair values. Accounting guidance requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as stock compensation expense over the requisite service period in the Company’s consolidated statements of income. As stock compensation expense recognized in the accompanying consolidated statements of income is based on awards ultimately expected to vest, they have been reduced for estimated forfeitures. Accounting guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience and management’s estimates. Excess tax benefits or deficiencies from stock compensation are recognized in the income tax provision and are not estimated in the effective tax rate. Rather, they are recorded as discrete tax items in the period they occur. Excess income tax benefits from stock compensation arrangements are classified as a cash flow from operations. Stock compensation plans are discussed in more detail in Note 10 of the Notes to Consolidated Financial Statements. |
Research and Development | Research and Development A majority of the Company’s research and development is performed in the United States. Research and development costs, which are typically expensed as incurred, amounted to approximately $ 834,927 , $ 778,750 , and $ 652,342 for the years ended December 31, 2022, December 25, 2021, and December 26, 2020 , respectively. |
Preproduction Costs Related to Long-Term Supply Arrangements | Preproduction Costs Related to Long-Term Supply Arrangements Preproduction design and development costs related to long-term supply arrangements are expensed as incurred, and classified as research and development, unless the customer has provided a contractual guarantee for reimbursement of such costs. Contractually reimbursable costs are capitalized as incurred in the consolidated balance sheets within prepaid expenses and other current assets if reimbursement is expected to be received within one year, or within other noncurrent assets if expected to be received beyond one year. Such capitalized costs were approximately $ 23,510 and $ 67,349 as of December 31, 2022 and December 25, 2021 , respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method in accordance with ASC Topic 740, Income Taxes . The liability method provides that deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amount for financial reporting purposes as measured based on the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. The Company accounts for uncertainty in income taxes in accordance with ASC Topic 740. The Company recognizes liabilities based on our estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves not to be required, the reversal of the liabilities results in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. If the Company’s estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. Income taxes are discussed in more detail in Note 5 of the Notes to Consolidated Financial Statements. |
Earnings Per Share | Earnings Per Share Basic earnings per share amounts are computed based on the weighted-average number of common shares outstanding. For purposes of diluted earnings per share, the number of shares that would be issued from the exercise of dilutive share-based compensation awards has been reduced by the number of shares which could have been purchased from the proceeds of the exercise or release at the average market price of the Company’s stock during the period the awards were outstanding. See Note 3 of the Notes to Consolidated Financial Statements. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash on hand, operating accounts, money market funds, deposits readily convertible to known amounts of cash, and securities with maturities of three months or less when purchased. The carrying amount of cash and cash equivalents approximates fair value, given the short maturity of those instruments. Restricted cash is reported within other noncurrent assets on the consolidated balance sheets. See Note 7 of the Notes to Consolidated Financial Statements for additional information on restricted cash. The total of the cash and cash equivalents balance and the restricted cash reported within other noncurrent assets on the consolidated balance sheets reconciles to the total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows. |
Marketable Securities | Marketable Securities Management determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation as of each balance sheet date. All of the Company’s marketable securities were considered available-for-sale at December 31, 2022. Available-for-sale securities are stated at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) on the Company’s consolidated balance sheets. At December 31, 2022, and December 25, 2021, cumulative unrealized losses of $ 88,552 and $ 5,580 , respectively were reported in accumulated other comprehensive income (loss), net of related taxes. The Company recognizes impairments relating to credit losses of available-for-sale securities through an allowance for credit losses and other income (expense) on the Company’s consolidated statements of income. Impairment not relating to credit losses is recorded in accumulated other comprehensive income (loss) on the Company’s consolidated balance sheets. Testing for impairment of investments requires management judgment. The identification of potentially impaired investments, the determination of their fair value, and the assessment of whether any decline in value is relating to credit losses are the judgmental elements. The discovery of new information and the passage of time can change these judgments. Revisions of impairment judgments are made when new information becomes known, and any resulting impairment adjustments are made at that time. The economic environment and volatility of securities markets increase the difficulty of assessing investment impairment. In making this assessment we evaluate the extent to which the fair value is less than the amortized cost basis, any change in credit rating of the security, adverse conditions specifically related to the security, failure of the issuer to make scheduled payments, and other relevant factors affecting the security. If it is determined that a credit loss exists, the amount of the credit loss is determined by comparing the present value of the expected future cash flows for the security to the amortized cost basis of the security, limited by the amount the fair value is less than the amortized cost basis. The amortized cost of debt securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts to maturity, or in the case of mortgage-backed securities, over the estimated life of the security. Such amortization and realized gains/losses are recorded within interest income and other income (expense), respectively, on the Company’s consolidated statements of income. The cost of securities sold is based on the specific identification method. Marketable securities are discussed in more detail in Note 4 of the Notes to Consolidated Financial Statements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments As required by ASC Topic 825, Financial Instruments , the following summarizes required information about the fair value of certain financial instruments for which it is currently practicable to estimate such value. None of the financial instruments are held or issued for trading purposes. The carrying amounts and fair values of the Company’s financial instruments are as follows: December 31, 2022 December 25, 2021 Carrying Fair Carrying Fair Cash and cash equivalents $ 1,279,194 $ 1,279,194 $ 1,498,058 $ 1,498,058 Marketable securities $ 1,381,648 $ 1,381,648 $ 1,616,678 $ 1,616,678 For certain of the Company’s financial instruments, including accounts receivable, accounts payable and other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. |
Trade Accounts Receivable | Trade Accounts Receivable The Company sells its products to retailers, wholesalers, and other customers and grants credit to certain customers based on its evaluation of the customers' financial condition. Generally, the Company does not require security when trade credit is granted to customers. The Company's trade accounts receivable are carried at net realizable value, typically are collected within 90 days, and do not bear interest. Certain customers are allowed extended terms consistent with normal industry practice. Most of these extended terms can be classified as either relating to seasonal sales variations or to the timing of new product releases by the Company. Credit losses are provided for in the Company’s consolidated financial statements and typically have been within management’s expectations. Past due receivable balances are typically written off when internal collection efforts have been unsuccessful in collecting the amount due. The Company maintains trade credit insurance to provide some security against certain losses within policy limits. |
Concentration of Credit Risk | Concentration of Credit Risk The Company’s top ten customers have contributed between 20 % and 23 % of net sales annually since 2020 . None of the Company's customers accounted for 10% or more of consolidated net sales in the years ended December 31, 2022, and December 26, 2020. Amazon.com, Inc. and its affiliates (Amazon), a customer of the fitness, outdoor, marine, and consumer auto segments, was our largest customer and accounted for approximately 10% of our consolidated net sales in the fiscal year ended December 25, 2021 . No other customer accounted for 10% or more of Garmin's consolidated net sales in fiscal 2021. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost includes materials, labor, and manufacturing overhead associated with purchases and production and is determined on a first-in, first-out (FIFO) basis. The Company writes down its inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. Inventories consisted of the following: December 31, 2022 December 25, 2021 Raw materials $ 600,858 $ 509,435 Work-in-process 180,873 213,801 Finished goods 733,314 504,373 Inventories $ 1,515,045 $ 1,227,609 |
Deferred Revenues and Costs | Deferred Revenues and Costs At December 31, 2022 and December 25, 2021, the Company had deferred revenues totaling $ 126,794 and $ 129,272 , respectively, and related deferred costs totaling $ 24,693 and $ 28,322 , respectively. Deferred revenue consists primarily of the transaction price allocated to performance obligations that are recognized over a period of time basis as discussed in the Revenue Recognition portion of this footnote. Billings associated with such items are typically completed upon the transfer of control of promised products or services to the customer and recorded to accounts receivable until payment is received. Deferred costs primarily refer to the license fees incurred by the Company associated with the aforementioned unsatisfied performance obligations, which are amortized over the same period as the revenue is recognized. The Company typically pays the associated license fees either monthly or quarterly in arrears, on a per item shipped or installed basis. The Company applies a practical expedient, as permitted within ASC Topic 340, Other Assets and Deferred Costs , to expense as incurred the incremental costs to obtain a contract when the amortization period of the asset that would have otherwise been recognized is one year or less. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost and typically depreciated using the straight-line method. The components of property and equipment were as follows and are generally depreciated over the following estimated useful lives: Estimated Useful Life December 31, 2022 December 25, 2021 Land $ 193,861 $ 206,895 Building and improvements 15 to 50 years 856,722 763,654 Machinery, equipment and software 3 to 10 years 1,001,344 917,557 Total, at cost 2,051,927 1,888,106 Accumulated depreciation ( 904,922 ) ( 820,628 ) Property and equipment, net $ 1,147,005 $ 1,067,478 As required by ASC Topic 360, Property, Plant and Equipment , the Company reviews long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset or asset group may not be fully recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. That assessment is based on the carrying amount of the asset at the date it is tested for recoverability. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. The Company did not recognize any material long-lived asset impairment charges in the fiscal years of 2022, 2021, or 2020 . |
Intangible Assets | Intangible Assets At December 31, 2022, and December 25, 2021, the Company had intellectual property, customer related intangibles, and other identifiable finite-lived intangible assets recorded at a cost of $ 511,716 and $ 524,566 , respectively. Identifiable, finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis typically over three to ten years . Accumulated amortization was $ 333,256 and $ 308,572 at December 31, 2022 and December 25, 2021, respectively. Amortization expense on these intangible assets was $ 30,561 , $ 35,540 , and $ 34,797 for the years ended December 31, 2022, December 25, 2021, and December 26, 2020, respectively. In the next five years, the amortization expense is estimated to be $ 29,786 , $ 26,644 , $ 23,682 , $ 20,552 , and $ 16,527 , respectively. The Company also reviews finite-lived intangible assets for impairment in accordance with ASC Topic 360, as described above, whenever events or changes in circumstances indicate the carrying amount of an asset or asset group may not be fully recoverable. The Company’s excess purchase cost over fair value of net assets acquired (goodwill) was $ 567,994 at December 31, 2022, and $ 575,080 at December 25, 2021. Changes in the carrying amount of goodwill for the years ended December 31, 2022 and December 25, 2021 are as follows: Fitness Outdoor Aviation Marine Auto Total Goodwill balance as of December 26, 2020 $ 272,449 $ 88,658 $ 60,347 $ 82,602 $ 80,154 $ 584,210 Acquisitions — 14,152 — — — 14,152 Foreign currency translation and other adjustments ( 16,577 ) ( 2,416 ) — ( 2,696 ) ( 1,593 ) ( 23,282 ) Goodwill balance as of December 25, 2021 $ 255,872 $ 100,394 $ 60,347 $ 79,906 $ 78,561 $ 575,080 Acquisitions — 2,518 — 7,340 — 9,858 Foreign currency translation and other adjustments ( 11,570 ) ( 2,019 ) — ( 2,245 ) ( 1,110 ) ( 16,944 ) Goodwill balance as of December 31, 2022 $ 244,302 $ 100,893 $ 60,347 $ 85,001 $ 77,451 $ 567,994 ASC Topic 350, Intangibles – Goodwill and Other , requires that goodwill and intangible assets with indefinite useful lives should not be amortized but rather be assessed for impairment at least annually or sooner whenever events or changes in circumstances indicate that they may be impaired. The Company performs its annual impairment assessments of goodwill and indefinite-lived intangible assets, if any, in the fourth quarter of each year, as of the Company’s fiscal year end date. ASC Topic 350 allows management to first perform a qualitative goodwill assessment by assessing the qualitative factors of relevant events and circumstances at the reporting unit level to determine if it is necessary to perform the quantitative goodwill impairment test. If factors indicate that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, then the quantitative test will be performed. If the fair value of the reporting unit is less than the carrying amount, then a goodwill impairment charge will be recognized in the amount by which carrying amount exceeds fair value, limited to the total amount of goodwill allocated to that reporting unit. Each of the Company’s operating segments (fitness, outdoor, aviation, marine, consumer auto, and auto OEM) represents a distinct reporting unit, and goodwill impairment assessments are therefore performed at that level. Revenue and profits of the consumer auto reporting unit declined for a number of years through fiscal 2020, as competing technologies emerged and market saturation occurred for certain key products. Revenue and profit of the consumer auto reporting unit has since experienced periods of increases and decreases and, considering uncertainty in qualitative factors, management performed a quantitative impairment test of the consumer auto reporting unit in the fourth quarter of 2022. Consistent with the results of the quantitative assessment performed in 2021, the quantitative assessment indicated again in 2022 that the fair value of the reporting unit was substantially in excess of its carrying amount. Management also concluded that no goodwill associated with other reporting units is currently at risk of impairment based on qualitative assessments performed in 2022. The Company did not recognize any material goodwill or intangible asset impairment charges in fiscal years 2022, 2021, or 2020 . |
Leases | Leases The Company leases certain real estate properties, vehicles, and equipment in various countries around the world. Leased properties are typically used for office space, distribution, and retail. The Company’s leases are classified as operating leases with remaining terms of 1 to 31 year s, some of which include an option to extend or renew. If the exercise of an option to extend or renew is determined to be reasonably certain, the associated right-of-use asset and lease liability reflects the extended period and payments. For newly signed leases, the right-of-use asset and lease liability is recognized on lease commencement date. Variable lease costs, such as adjustments to payments based on consumer price indices, are excluded in the recognition of right-of-use assets and lease liabilities. For all real estate leases, any non-lease components, including common area maintenance, have been separated from lease components and excluded from the associated right-of-use asset and lease liability calculations. For all equipment and vehicle leases, an accounting policy election has been made to not separate lease and non-lease components. Leases with an initial term of 12 months or less (“short-term leases”) are not recognized on the Company’s consolidated balance sheets as a right-of-use asset or lease liability. |
Product Warranty | Product Warranty The Company accrues for estimated future warranty costs at the time products are sold. The Company’s standard warranty obligation to retail partners generally provides for a right of return of any product for a full refund in the event that such product is not merchantable, is damaged, or is defective. The Company’s historical experience is that these types of warranty obligations are generally fulfilled within 5 months from time of sale. The Company’s standard warranty obligation to its end-users provides for a period of one to two years from date of shipment while certain aviation, marine, and auto 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. To the extent the Company experiences increased warranty claim activity or increased costs associated with servicing those claims, its warranty accrual will increase, which may result in decreased gross profit. The following reconciliation presents details of the changes in the Company’s accrued warranty costs: Fiscal Year Ended December 31, 2022 December 25, 2021 December 26, 2020 Balance - beginning of period $ 45,467 $ 42,643 $ 39,758 Accrual for products sold (1) 72,821 69,810 67,028 Expenditures ( 67,336 ) ( 66,986 ) ( 64,143 ) Balance - end of period $ 50,952 $ 45,467 $ 42,643 (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. |
Contingencies | 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. See Note 7 of the Notes to Consolidated Financial Statements for additional information on contingencies. |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted Accounting Standards Financial Instruments – Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 changed how entities assess and measure credit losses of certain financial instruments, including available-for-sale securities and accounts receivable. The Company adopted the new standard as of the beginning of the 2020 fiscal year. The adoption of the standard did no t have a material impact on the Company’s consolidated financial statements. Receivables – Nonrefundable Fees and Other Costs In March 2017, the FASB issued Accounting Standards Update No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”), which shortened the amortization period for certain callable debt securities held at a premium, requiring the premium to be amortized to the earliest call date. The Company adopted the new standard as of the beginning of the 2020 fiscal year. The adoption of the standard did no t have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted We do not expect any recently issued accounting pronouncements not yet adopted to have a material impact on the Company’s consolidated financial statements, accounting policies, processes, or systems upon adoption. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of the Company’s financial instruments are as follows: December 31, 2022 December 25, 2021 Carrying Fair Carrying Fair Cash and cash equivalents $ 1,279,194 $ 1,279,194 $ 1,498,058 $ 1,498,058 Marketable securities $ 1,381,648 $ 1,381,648 $ 1,616,678 $ 1,616,678 |
Schedule of Inventory | Inventories consisted of the following: December 31, 2022 December 25, 2021 Raw materials $ 600,858 $ 509,435 Work-in-process 180,873 213,801 Finished goods 733,314 504,373 Inventories $ 1,515,045 $ 1,227,609 |
Schedule of Property and Equipment | The components of property and equipment were as follows and are generally depreciated over the following estimated useful lives: Estimated Useful Life December 31, 2022 December 25, 2021 Land $ 193,861 $ 206,895 Building and improvements 15 to 50 years 856,722 763,654 Machinery, equipment and software 3 to 10 years 1,001,344 917,557 Total, at cost 2,051,927 1,888,106 Accumulated depreciation ( 904,922 ) ( 820,628 ) Property and equipment, net $ 1,147,005 $ 1,067,478 |
Schedule of Intangible Assets | The Company’s excess purchase cost over fair value of net assets acquired (goodwill) was $ 567,994 at December 31, 2022, and $ 575,080 at December 25, 2021. Changes in the carrying amount of goodwill for the years ended December 31, 2022 and December 25, 2021 are as follows: Fitness Outdoor Aviation Marine Auto Total Goodwill balance as of December 26, 2020 $ 272,449 $ 88,658 $ 60,347 $ 82,602 $ 80,154 $ 584,210 Acquisitions — 14,152 — — — 14,152 Foreign currency translation and other adjustments ( 16,577 ) ( 2,416 ) — ( 2,696 ) ( 1,593 ) ( 23,282 ) Goodwill balance as of December 25, 2021 $ 255,872 $ 100,394 $ 60,347 $ 79,906 $ 78,561 $ 575,080 Acquisitions — 2,518 — 7,340 — 9,858 Foreign currency translation and other adjustments ( 11,570 ) ( 2,019 ) — ( 2,245 ) ( 1,110 ) ( 16,944 ) Goodwill balance as of December 31, 2022 $ 244,302 $ 100,893 $ 60,347 $ 85,001 $ 77,451 $ 567,994 |
Schedule of Product Warranty | The following reconciliation presents details of the changes in the Company’s accrued warranty costs: Fiscal Year Ended December 31, 2022 December 25, 2021 December 26, 2020 Balance - beginning of period $ 45,467 $ 42,643 $ 39,758 Accrual for products sold (1) 72,821 69,810 67,028 Expenditures ( 67,336 ) ( 66,986 ) ( 64,143 ) Balance - end of period $ 50,952 $ 45,467 $ 42,643 (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. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregated | Revenue disaggregated by the timing of transfer of the goods or services is presented in the table below: Fiscal Year Ended December 31, 2022 December 25, 2021 December 26, 2020 Point in time $ 4,602,636 $ 4,762,260 $ 3,998,251 Over time 257,650 220,535 188,322 Net sales $ 4,860,286 $ 4,982,795 $ 4,186,573 |
Schedule of Deferred Revenue and Costs | Changes in deferred revenue and costs during the 53-week period ending December 31, 2022 and 52-week period ending December 25, 2021, are presented below: Fiscal Year Ended December 31, 2022 December 25, 2021 Deferred (1) Deferred (2) Deferred (1) Deferred (2) Balance, beginning of period $ 129,272 $ 28,322 $ 136,799 $ 36,655 Deferrals in period 255,172 17,169 213,008 16,345 Recognition of deferrals in period ( 257,650 ) ( 20,798 ) ( 220,535 ) ( 24,678 ) Balance, end of period $ 126,794 $ 24,693 $ 129,272 $ 28,322 (1) Deferred revenue is comprised of both deferred revenue and noncurrent deferred revenue per the consolidated balance sheets (2) Deferred costs are comprised of both deferred costs and noncurrent deferred costs per the consolidated balance sheets |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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". Fiscal Year Ended December 31, 2022 December 25, 2021 December 26, 2020 Numerator: Numerator for basic and diluted net income per share - net income $ 973,585 $ 1,082,200 $ 992,324 Denominator (in thousands): Denominator for basic net income per share – weighted-average common shares 192,544 192,180 191,085 Effect of dilutive equity awards 498 863 810 Denominator for diluted net income per share – adjusted weighted-average common shares 193,042 193,043 191,895 Basic net income per share $ 5.06 $ 5.63 $ 5.19 Diluted net income per share $ 5.04 $ 5.61 $ 5.17 Shares excluded from diluted net income per share calculation: Anti-dilutive equity awards (in thousands) 625 235 308 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 Agency securities Level 2 $ 7,000 $ — $ ( 786 ) $ 6,214 Mortgage-backed securities Level 2 45,373 — ( 4,525 ) 40,848 Corporate debt securities Level 2 1,106,688 188 ( 77,802 ) 1,029,074 Municipal securities Level 2 326,058 3 ( 28,861 ) 297,200 Other Level 2 10,466 — ( 2,154 ) 8,312 Total $ 1,495,585 $ 191 $ ( 114,128 ) $ 1,381,648 Available-For-Sale Securities Fair Value Level Amortized Cost Gross Unrealized Gross Unrealized Fair Value Agency securities Level 2 $ 7,000 $ — $ ( 110 ) $ 6,890 Mortgage-backed securities Level 2 149,692 257 ( 880 ) 149,069 Corporate debt securities Level 2 1,079,390 9,830 ( 11,827 ) 1,077,393 Municipal securities Level 2 356,037 1,870 ( 4,864 ) 353,043 Other Level 2 31,134 22 ( 873 ) 30,283 Total $ 1,623,253 $ 11,979 $ ( 18,554 ) $ 1,616,678 |
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 December 31, 2022 and December 25, 2021. As of December 31, 2022 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 Agency securities $ — $ — $ ( 786 ) $ 6,214 $ ( 786 ) $ 6,214 Mortgage-backed securities ( 1,900 ) 23,229 ( 2,625 ) 17,619 ( 4,525 ) 40,848 Corporate debt securities ( 26,680 ) 508,956 ( 51,122 ) 498,834 ( 77,802 ) 1,007,790 Municipal securities ( 2,136 ) 69,017 ( 26,725 ) 225,679 ( 28,861 ) 294,696 Other — — ( 2,154 ) 8,067 ( 2,154 ) 8,067 Total $ ( 30,716 ) $ 601,202 $ ( 83,412 ) $ 756,413 $ ( 114,128 ) $ 1,357,615 As of December 25, 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 Agency securities $ ( 110 ) $ 6,890 $ — $ — $ ( 110 ) $ 6,890 Mortgage-backed securities ( 148 ) 18,909 ( 732 ) 7,598 ( 880 ) 26,507 Corporate debt securities ( 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 Other ( 467 ) 17,845 ( 406 ) 7,205 ( 873 ) 25,050 Total $ ( 14,438 ) $ 768,737 $ ( 4,116 ) $ 129,241 $ ( 18,554 ) $ 897,978 |
Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities by Maturity | The amortized cost and fair value of marketable securities at December 31, 2022, by maturity, are shown below. Amortized Cost Fair Value Due in one year or less $ 175,644 $ 173,288 Due after one year through five years 1,303,653 1,194,280 Due after five years through ten years 14,041 12,382 Due after ten years 2,247 1,698 Total $ 1,495,585 $ 1,381,648 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision (Benefit) | The Company’s income tax provision (benefit) consists of the following: Fiscal Year Ended December 31, 2022 December 25, 2021 December 26, 2020 U.S. federal: Current $ 45,639 $ ( 13,096 ) $ ( 25,220 ) Deferred ( 149,734 ) ( 42,625 ) ( 7,115 ) $ ( 104,095 ) $ ( 55,721 ) $ ( 32,335 ) U.S. state: Current $ 12,870 $ ( 5,876 ) $ ( 3,931 ) Deferred ( 29,160 ) ( 8,132 ) 2,715 $ ( 16,290 ) $ ( 14,008 ) $ ( 1,216 ) Foreign: Current $ 175,335 $ 149,012 $ 133,622 Deferred 36,439 45,313 11,015 $ 211,774 $ 194,325 $ 144,637 Total $ 91,389 $ 124,596 $ 111,086 |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | The sources and tax effects of the differences, including the impact of establishing tax contingency accruals, are as follows: Fiscal Year Ended December 31, 2022 December 25, 2021 December 26, 2020 Federal income tax expense at U.S. statutory rate $ 223,658 $ 253,429 $ 231,718 State income tax (benefit) expense, net of federal tax effect ( 21,064 ) ( 12,198 ) ( 3,404 ) Foreign-derived intangible income (FDII) deduction ( 12,343 ) — — Foreign tax rate differential ( 114,599 ) ( 117,586 ) ( 98,130 ) Other foreign taxes less incentives and credits 24,273 29,240 3,446 Withholding tax 27,041 22,992 17,026 Net change in uncertain tax positions ( 14,381 ) ( 17,087 ) ( 21,391 ) U.S. federal research and development credit ( 29,384 ) ( 22,764 ) ( 21,342 ) Share-based compensation 30 ( 6,362 ) ( 6,114 ) Switzerland tax reform - tax assets 7,168 ( 177 ) 11,016 Other, net 990 ( 4,891 ) ( 1,739 ) Income tax expense $ 91,389 $ 124,596 $ 111,086 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2022 December 25, 2021 Deferred tax assets: Product warranty accruals $ 12,111 $ 10,578 Accrued vacation 14,986 14,073 Share-based compensation 8,667 12,000 Tax credit carryforwards 19,950 24,508 Intangible assets 156,702 173,468 Capitalized research & development expenses 231,429 53,827 Net operating losses 4,955 9,069 Operating leases 30,310 13,685 Deferred revenue 18,327 20,970 Tax basis in excess of book basis for investments 27,227 4,321 Other 18,259 20,220 Valuation allowance related to loss carryforward and tax credits ( 17,077 ) ( 19,709 ) $ 525,846 $ 337,010 Deferred tax liabilities: Fixed assets 40,526 27,970 Operating leases 29,756 13,322 Prepaid and perpetual license assets 11,798 17,350 Book basis in excess of tax basis for acquired entities 21,970 32,907 Withholding tax 108,692 89,285 Other 1,998 13,566 $ 214,740 $ 194,400 Net deferred tax assets $ 311,106 $ 142,610 |
Schedule of Gross Unrecognized Tax Benefits | The total amount of gross unrecognized tax benefits, as of December 31, 2022 was $ 30,795 . A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for years ended December 31, 2022, December 25, 2021, and December 26, 2020 is as follows: December 31, 2022 December 25, 2021 December 26, 2020 Balance beginning of year $ 65,216 $ 84,985 $ 101,251 Additions based on tax positions related to prior years — — 10,480 Reductions based on tax positions related to prior years ( 6,363 ) ( 4,727 ) ( 4,169 ) Additions based on tax positions related to current period 2,368 4,272 16,859 Reductions related to settlements with tax authorities ( 15,476 ) — ( 935 ) Expiration of statute of limitations ( 14,950 ) ( 19,314 ) ( 38,501 ) Balance at end of year $ 30,795 $ 65,216 $ 84,985 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Lease Costs Recognized in the Company's Consolidated Statements of Income | Lease costs are included in selling, general and administrative expense and research and development expense on the Company’s consolidated statements of income. Fiscal Year Ended December 31, 2022 December 25, 2021 Operating lease cost (1) $ 40,679 $ 35,114 (1) Operating lease cost includes short-term lease costs and variable lease costs, which were not material in the period presented. |
Components of Leases Recognized on the Company's Consolidated Balance Sheets | The following table represents the components of leases that are recognized on the Company’s consolidated balance sheets as of December 31, 2022 and December 25, 2021. December 31, 2022 December 25, 2021 Operating lease right-of-use assets $ 138,040 $ 89,457 Other accrued expenses $ 25,149 $ 20,503 Noncurrent operating lease liabilities 114,541 70,044 Total lease liabilities $ 139,690 $ 90,547 Weighted average remaining lease term 7.3 years 5.6 years Weighted average discount rate 3.3 % 3.3 % |
Schedule of Maturity of Lease Liabilities | The following table represents the maturity of lease liabilities. Year Amount 2023 $ 30,713 2024 27,618 2025 22,094 2026 14,962 2027 13,216 Thereafter 52,737 Total 161,340 Less: imputed interest ( 21,650 ) Present value of lease liabilities 139,690 |
Summary of Supplemental Cash Flow and Noncash Information Related to Leases | The following table presents supplemental cash flow and noncash information related to leases. Fiscal Year Ended December 31, 2022 December 25, 2021 Cash paid for amounts included in the measurement of operating lease liabilities (2) $ 28,714 $ 24,930 Right-of-use assets obtained in exchange for new operating lease liabilities $ 68,188 $ 16,229 (2) Included in net cash provided by operating activities on the Company's Statements of Cash Flows |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Dividends Declared | : Declaration Date Dividend Date Record Date Dividend Per Share Payment Amount Fiscal 2022 June 10, 2022 June 30, 2022 June 20, 2022 $ 0.73 $ 140,825 June 10, 2022 September 30, 2022 September 15, 2022 $ 0.73 $ 140,413 June 10, 2022 December 30, 2022 December 15, 2022 $ 0.73 $ 139,610 June 10, 2022 March 31, 2023 March 15, 2023 $ 0.73 $ 139,732 Total $ 2.92 $ 560,579 Fiscal 2021 June 4, 2021 June 30, 2021 June 15, 2021 $ 0.67 $ 128,741 June 4, 2021 September 30, 2021 September 15, 2021 $ 0.67 $ 128,856 June 4, 2021 December 31, 2021 December 15, 2021 $ 0.67 $ 128,856 June 4, 2021 March 31, 2022 March 15, 2022 $ 0.67 $ 129,394 Total $ 2.68 $ 515,846 Fiscal 2020 June 5, 2020 June 30, 2020 June 15, 2020 $ 0.61 $ 116,526 June 5, 2020 September 30, 2020 September 15, 2020 $ 0.61 $ 116,655 June 5, 2020 December 31, 2020 December 15, 2020 $ 0.61 $ 116,655 June 5, 2020 March 31, 2021 March 15, 2021 $ 0.61 $ 117,205 Total $ 2.44 $ 467,040 The estimated payment amount for the dividend scheduled to be paid on March 31, 2023 was included in dividend payable on the Company’s consolidated balance sheets as of December 31, 2022 . |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) | The following provides required disclosure of changes in accumulated other comprehensive income (loss) balances by component for the year ended December 31, 2022: Foreign currency 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 $ 24,658 ( 149,396 ) ( 83,690 ) ( 233,086 ) Amounts reclassified from accumulated other comprehensive income (loss) to other income (expense), net of income tax benefit of $ 268 included in income tax provision — 718 718 Net current-period other comprehensive income (loss) ( 149,396 ) ( 82,972 ) ( 232,368 ) Balance - end of period $ ( 25,981 ) $ ( 88,552 ) $ ( 114,533 ) |
Employee Stock Compensation a_2
Employee Stock Compensation and Savings Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Options and Stock Appreciation Rights Award Activity | A summary of the Company’s stock compensation activity and related information under the 2011 Directors Plan, the 2005 Plan, and the 2000 Plan for the years ended December 31, 2022, December 25, 2021, and December 26, 2020 is provided below: Stock Options and SARs Weighted-Average Number of Shares (In Thousands) Outstanding at December 28, 2019 $ 51.46 66 Granted — Exercised $ 51.23 ( 53 ) Forfeited/Expired — Outstanding at December 26, 2020 $ 52.44 13 Granted — Exercised $ 52.44 ( 13 ) Forfeited/Expired — Outstanding at December 25, 2021 — Granted — Exercised — Forfeited/Expired — Outstanding at December 31, 2022 — Exercisable at December 31, 2022 — Expected to vest after December 31, 2022 — |
Summary of Restricted Stock Units Award Activity | Restricted Stock Units Weighted-Average Number of Shares (In Thousands) Outstanding at December 28, 2019 $ 69.47 1,779 Granted $ 99.57 760 Released/Vested $ 64.07 ( 915 ) Cancelled $ 72.10 ( 42 ) Outstanding at December 26, 2020 $ 86.98 1,582 Granted $ 116.40 871 Released/Vested $ 80.12 ( 884 ) Cancelled $ 95.79 ( 56 ) Outstanding at December 25, 2021 $ 107.60 1,513 Granted $ 98.39 1,192 Released/Vested $ 102.80 ( 805 ) Cancelled $ 111.12 ( 63 ) Outstanding at December 31, 2022 $ 103.61 1,837 |
Segment Information and Geogr_2
Segment Information and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales (Revenue), Gross Profit, and Operating Income | 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 consumer auto and auto OEM operating segments that management believes is useful. Auto Fitness Outdoor Aviation Marine Total Consumer Auto Total 53-Weeks Ended December 31, 2022 Net sales $ 1,109,419 $ 1,495,167 $ 792,799 $ 903,983 $ 558,918 $ 275,108 $ 283,810 $ 4,860,286 Gross profit 552,417 969,810 573,063 491,457 220,028 129,598 90,430 2,806,775 Operating income (loss) 104,738 556,448 213,186 215,304 ( 61,831 ) 16,833 ( 78,664 ) 1,027,845 52-Weeks Ended December 25, 2021 Net sales $ 1,533,788 $ 1,281,933 $ 712,468 $ 875,151 $ 579,455 $ 324,731 $ 254,724 $ 4,982,795 Gross profit 813,325 834,837 519,821 495,310 227,166 153,825 73,341 2,890,459 Operating income (loss) 359,201 476,122 193,188 249,781 ( 59,672 ) 48,347 ( 108,019 ) 1,218,620 52-Weeks Ended December 26, 2020 Net sales $ 1,317,498 $ 1,128,081 $ 622,820 $ 657,848 $ 460,326 $ 275,493 $ 184,833 $ 4,186,573 Gross profit 697,539 739,777 453,008 384,450 206,562 139,864 66,698 2,481,336 Operating income (loss) 305,283 438,197 146,608 177,184 ( 13,032 ) 45,033 ( 58,065 ) 1,054,240 |
Schedule of Net Sales, Property and Equipment, and Net Assets by Geographic Area | Net sales, property and equipment, and net assets by geographic area are as shown below for the fiscal years ended December 31, 2022, December 25, 2021, and December 26, 2020. Note that APAC includes Asia Pacific and Australian Continent, and EMEA includes Europe, the Middle East and Africa. Americas EMEA APAC Total December 31, 2022 Net sales to external customers (1) $ 2,429,029 $ 1,633,640 $ 797,617 $ 4,860,286 Property and equipment, net 676,855 121,920 348,230 1,147,005 Net assets (2) 3,717,198 1,210,461 1,276,681 6,204,340 December 25, 2021 Net sales to external customers (1) $ 2,349,514 $ 1,858,908 $ 774,373 $ 4,982,795 Property and equipment, net 576,481 120,004 370,993 1,067,478 Net assets (2) 3,745,120 1,227,928 1,141,111 6,114,159 December 26, 2020 Net sales to external customers (1) $ 1,968,080 $ 1,579,749 $ 638,744 $ 4,186,573 Property and equipment, net 467,269 114,313 273,957 855,539 Net assets (2) 3,327,748 1,163,127 1,025,241 5,516,116 (1) The United States is the only country which constitutes greater than 10 % of net sales to external customers. (2) Americas and APAC net assets are primarily held in the United States and Taiwan, respectively. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Customer | Dec. 25, 2021 USD ($) | Dec. 26, 2020 USD ($) Customer | ||
Summary Of Significant Accounting Policies [Line Items] | ||||
Cumulative currency translation adjustments | $ 25,981 | $ 123,415 | ||
Foreign currency gains (losses) | (11,274) | (45,263) | $ 2,825 | |
Reclassification From Research and Development Expense to Selling, General and Administrative Expense | 61,274 | 53,343 | ||
Intangible assets, net | 511,716 | 524,566 | ||
Accumulated amortization intangible assets | 333,256 | 308,572 | ||
Amortization expense intangible assets | 30,561 | 35,540 | 34,797 | |
Amortization expense intangible assets, Next twelve months | 29,786 | |||
Amortization expense intangible assets, Year two | 26,644 | |||
Amortization expense intangible assets, Year three | 23,682 | |||
Amortization expense intangible assets, Year four | 20,552 | |||
Amortization expense intangible assets, Year five | 16,527 | |||
Goodwill | 567,994 | 575,080 | 584,210 | |
Fair value available-for-sale securities unrealized gains (losses) | (88,552) | (5,580) | ||
Deferred revenues | 126,794 | 129,272 | ||
Deferred costs | [1] | 24,693 | 28,322 | 36,655 |
Advertising expense | 168,040 | 171,829 | 151,166 | |
Research and development costs | 834,927 | 778,750 | $ 652,342 | |
Capitalized costs | $ 23,510 | 67,349 | ||
ASU 2016-13 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, Adopted | true | |||
Change in accounting principle, accounting standards update, Immaterial Effect | true | |||
ASU 2017-08 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, Adopted | true | |||
Change in accounting principle, accounting standards update, Immaterial Effect | true | |||
Other Product Other Than Aviation Product [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Product warranty term | 2 years | |||
State Administration of Taxation, China [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Restricted retained earnings | $ 61,129 | $ 61,129 | ||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Acquired intangible assets useful life | 3 years | |||
Operating lease term, remaining | 1 year | |||
Minimum [Member] | Other Products [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Contractual service period | 1 year | |||
Minimum [Member] | Other Product Other Than Aviation Product [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Product warranty term | 1 year | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Acquired intangible assets useful life | 10 years | |||
Operating lease term, remaining | 31 years | |||
Maximum [Member] | Other Products [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Contractual service period | 3 years | |||
Maximum [Member] | Other Product Other Than Aviation Product [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Product warranty term | 2 years | |||
Customer Concentration Risk [Member] | Net Sales [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customers contributed more than or equal to 10% of net sales | Customer | 0 | 0 | ||
Customer Concentration Risk [Member] | Net Sales [Member] | Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk net sales | 20% | |||
Ten Customer Concentration Risk [Member] | Net Sales [Member] | Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk net sales | 23% | |||
[1] Deferred costs are comprised of both deferred costs and noncurrent deferred costs per the consolidated balance sheets |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Accounting Policies [Abstract] | ||
Raw materials | $ 600,858 | $ 509,435 |
Work-in-process | 180,873 | 213,801 |
Finished goods | 733,314 | 504,373 |
Inventories | $ 1,515,045 | $ 1,227,609 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Total, at cost | $ 2,051,927 | $ 1,888,106 | |
Accumulated depreciation | (904,922) | (820,628) | |
Property and equipment, net | 1,147,005 | 1,067,478 | $ 855,539 |
Land | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Total, at cost | 193,861 | 206,895 | |
Buildings and Improvements [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Total, at cost | $ 856,722 | 763,654 | |
Buildings and Improvements [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Life | 15 years | ||
Buildings and Improvements [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Life | 50 years | ||
Machinery Equipment and Software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Total, at cost | $ 1,001,344 | $ 917,557 | |
Machinery Equipment and Software [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Life | 3 years | ||
Machinery Equipment and Software [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Life | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities | $ 1,381,648 | $ 1,616,678 |
Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 1,279,194 | 1,498,058 |
Marketable securities | 1,381,648 | 1,616,678 |
Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 1,279,194 | 1,498,058 |
Marketable securities | $ 1,381,648 | $ 1,616,678 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill balance at beginning of year | $ 575,080 | $ 584,210 |
Acquisitions | 9,858 | 14,152 |
Foreign currency translation and other adjustments | (16,944) | (23,282) |
Goodwill balance at end of year | 567,994 | 575,080 |
Fitness Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill balance at beginning of year | 255,872 | 272,449 |
Foreign currency translation and other adjustments | (11,570) | (16,577) |
Goodwill balance at end of year | 244,302 | 255,872 |
Outdoor Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill balance at beginning of year | 100,394 | 88,658 |
Acquisitions | 2,518 | 14,152 |
Foreign currency translation and other adjustments | (2,019) | (2,416) |
Goodwill balance at end of year | 100,893 | 100,394 |
Aviation Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill balance at beginning of year | 60,347 | 60,347 |
Foreign currency translation and other adjustments | ||
Goodwill balance at end of year | 60,347 | 60,347 |
Marine Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill balance at beginning of year | 79,906 | 82,602 |
Acquisitions | 7,340 | |
Foreign currency translation and other adjustments | (2,245) | (2,696) |
Goodwill balance at end of year | 85,001 | 79,906 |
Auto Segment [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill balance at beginning of year | 78,561 | 80,154 |
Foreign currency translation and other adjustments | (1,110) | (1,593) |
Goodwill balance at end of year | $ 77,451 | $ 78,561 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Product Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | ||
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Balance - beginning of period | $ 45,467 | $ 42,643 | $ 39,758 | |
Accrual for products sold | [1] | 72,821 | 69,810 | 67,028 |
Expenditures | (67,336) | (66,986) | (64,143) | |
Balance - end of period | $ 50,952 | $ 45,467 | $ 42,643 | |
[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. |
Revenue - Schedule of Revenue D
Revenue - Schedule of Revenue Disaggregated (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | $ 4,860,286 | $ 4,982,795 | $ 4,186,573 |
Point in time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,602,636 | 4,762,260 | 3,998,251 | |
Over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 257,650 | $ 220,535 | $ 188,322 | |
[1] The United States is the only country which constitutes greater than 10 % of net sales to external customers. |
Revenue - Schedule of Deferred
Revenue - Schedule of Deferred Revenue and Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | ||
Revenue from Contract with Customer [Abstract] | |||
Deferred Revenue, Balance, beginning of period | [1] | $ 129,272 | $ 136,799 |
Deferred Revenue, Deferrals in period | [1] | 255,172 | 213,008 |
Deferred Revenue, Recognition of deferrals in period | [1] | (257,650) | (220,535) |
Deferred Revenue, Balance, end of period | [1] | 126,794 | 129,272 |
Deferred Costs, Balance, beginning of period | [2] | 28,322 | 36,655 |
Deferred Costs, Deferrals in period | [2] | 17,169 | 16,345 |
Deferred Costs, Recognition of deferrals in period | [2] | (20,798) | (24,678) |
Deferred Costs, Balance, end of period | [2] | $ 24,693 | $ 28,322 |
[1] Deferred revenue is comprised of both deferred revenue and noncurrent deferred revenue per the consolidated balance sheets Deferred costs are comprised of both deferred costs and noncurrent deferred costs per the consolidated balance sheets |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | ||
Revenue from Contract with Customer [Abstract] | ||||
Recognition of deferrals in period | [1] | $ 257,650 | $ 220,535 | |
Amount of Deferred revenue recognized in the period that was deferred as of the beginning of the period | $ 84,227 | 80,786 | ||
Amount of Deferred revenue that is recognized ratably over a period of three years or less | approximately seventy-five percent ratably over a total period of three years or less. | |||
Deferred revenue | [1] | $ 126,794 | $ 129,272 | $ 136,799 |
[1] Deferred revenue is comprised of both deferred revenue and noncurrent deferred revenue per the consolidated balance sheets |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Net Income Per Share shares in Thousands (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Numerator: | |||
Numerator for basic and diluted net income per share - net income | $ 973,585 | $ 1,082,200 | $ 992,324 |
Denominator for basic net income per share – weighted-average common shares | 192,544 | 192,180 | 191,085 |
Effect of dilutive equity awards | 498 | 863 | 810 |
Denominator for diluted net income per share – adjusted weighted-average common shares | 193,042 | 193,043 | 191,895 |
Basic net income per share | $ 5.06 | $ 5.63 | $ 5.19 |
Diluted net income per share | $ 5.04 | $ 5.61 | $ 5.17 |
Earnings Per Share, Diluted, Other Disclosure [Abstract] | |||
Anti-dilutive equity awards | 625 | 235 | 308 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities Classified as Available-for-sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Marketable Securities [Line Items] | ||
Amortized Cost, Total | $ 1,495,585 | $ 1,623,253 |
Gross Unrealized Gains | 191 | 11,979 |
Gross Unrealized Losses | (114,128) | (18,554) |
Fair Value | 1,381,648 | 1,616,678 |
Agency securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost, Total | 7,000 | 7,000 |
Gross Unrealized Losses | (786) | (110) |
Fair Value | 6,214 | 6,890 |
Mortgage-backed securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost, Total | 45,373 | 149,692 |
Gross Unrealized Gains | 257 | |
Gross Unrealized Losses | (4,525) | (880) |
Fair Value | 40,848 | 149,069 |
Corporate debt securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost, Total | 1,106,688 | 1,079,390 |
Gross Unrealized Gains | 188 | 9,830 |
Gross Unrealized Losses | (77,802) | (11,827) |
Fair Value | 1,029,074 | 1,077,393 |
Municipal securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost, Total | 326,058 | 356,037 |
Gross Unrealized Gains | 3 | 1,870 |
Gross Unrealized Losses | (28,861) | (4,864) |
Fair Value | 297,200 | 353,043 |
Other [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost, Total | 10,466 | 31,134 |
Gross Unrealized Gains | 22 | |
Gross Unrealized Losses | (2,154) | (873) |
Fair Value | $ 8,312 | $ 30,283 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Percentage of available-for-sale securities in unrealized loss positions | 98% | |
Accrued interest written off | $ 0 | |
Allowance for credit losses on securities in an unrealized loss position | 0 | $ 0 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | 0 | |
Prepaid Expenses and Other Current Assets [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Accrued interest receivable | $ 11,086 |
Marketable Securities - Sched_2
Marketable Securities - Schedule of Gross Unrealized Losses and Fair Value by Major Security Type (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | $ (30,716) | $ (14,438) |
Fair Value Less than 12 Consecutive Months | 601,202 | 768,737 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (83,412) | (4,116) |
Fair Value 12 Consecutive Months or Longer | 756,413 | 129,241 |
Gross Unrealized Losses, Total | (114,128) | (18,554) |
Fair Value, Total | 1,357,615 | 897,978 |
Agency securities [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (110) | |
Fair Value Less than 12 Consecutive Months | 6,890 | |
Gross Unrealized Losses 12 Consecutive Months or Longer | (786) | |
Fair Value 12 Consecutive Months or Longer | 6,214 | |
Gross Unrealized Losses, Total | (786) | (110) |
Fair Value, Total | 6,214 | 6,890 |
Mortgage-backed securities [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (1,900) | (148) |
Fair Value Less than 12 Consecutive Months | 23,229 | 18,909 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (2,625) | (732) |
Fair Value 12 Consecutive Months or Longer | 17,619 | 7,598 |
Gross Unrealized Losses, Total | (4,525) | (880) |
Fair Value, Total | 40,848 | 26,507 |
Corporate debt securities [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (26,680) | (9,466) |
Fair Value Less than 12 Consecutive Months | 508,956 | 499,084 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (51,122) | (2,361) |
Fair Value 12 Consecutive Months or Longer | 498,834 | 85,033 |
Gross Unrealized Losses, Total | (77,802) | (11,827) |
Fair Value, Total | 1,007,790 | 584,117 |
Municipal securities [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (2,136) | (4,247) |
Fair Value Less than 12 Consecutive Months | 69,017 | 226,009 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (26,725) | (617) |
Fair Value 12 Consecutive Months or Longer | 225,679 | 29,405 |
Gross Unrealized Losses, Total | (28,861) | (4,864) |
Fair Value, Total | 294,696 | 255,414 |
Other [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (467) | |
Fair Value Less than 12 Consecutive Months | 17,845 | |
Gross Unrealized Losses 12 Consecutive Months or Longer | (2,154) | (406) |
Fair Value 12 Consecutive Months or Longer | 8,067 | 7,205 |
Gross Unrealized Losses, Total | (2,154) | (873) |
Fair Value, Total | $ 8,067 | $ 25,050 |
Marketable Securities - Sched_3
Marketable Securities - Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities by Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 175,644 | |
Amortized Cost, Due after one year through five years | 1,303,653 | |
Amortized Cost, Due after five years through ten years | 14,041 | |
Amortized Cost, Due after ten years | 2,247 | |
Amortized Cost, Total | 1,495,585 | $ 1,623,253 |
Fair Value, Due in one year or less | 173,288 | |
Fair Value, Due after one year through five years | 1,194,280 | |
Fair Value, Due after five years through ten years | 12,382 | |
Fair Value, Due after ten years | 1,698 | |
Fair Value, Total | $ 1,381,648 | $ 1,616,678 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Jun. 27, 2020 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
U.S. federal: | |||||
Current | $ 45,639 | $ (13,096) | $ (25,220) | ||
Deferred | (149,734) | (42,625) | (7,115) | ||
Total federal income tax provision (benefit) | (104,095) | (55,721) | (32,335) | ||
U.S. state: | |||||
Current | 12,870 | (5,876) | (3,931) | ||
Deferred | (29,160) | (8,132) | 2,715 | ||
Total state income tax provision (benefit) | (16,290) | (14,008) | (1,216) | ||
Foreign: | |||||
Current | 175,335 | 149,012 | 133,622 | ||
Deferred | 36,439 | 45,313 | 11,015 | ||
Total foreign income tax provision (benefit) | 211,774 | 194,325 | 144,637 | ||
Income tax expenses | $ 7,168 | $ 14,308 | $ 91,389 | $ 124,596 | $ 111,086 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 26, 2020 | Jun. 27, 2020 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Income Tax Disclosure [Line Items] | ||||||
Federal income tax expense at U.S. statutory rate | $ 223,658 | $ 253,429 | $ 231,718 | |||
State income tax (benefit) expense, net of federal tax effect | (21,064) | (12,198) | (3,404) | |||
Foreign-derived intangible income (FDII) deduction | (12,343) | |||||
Foreign tax rate differential | (114,599) | (117,586) | (98,130) | |||
Other foreign taxes less incentives and credits | 24,273 | 29,240 | 3,446 | |||
Withholding tax | 27,041 | 22,992 | 17,026 | |||
Net change in uncertain tax positions | (14,381) | (17,087) | (21,391) | |||
U.S. federal research and development credit | (29,384) | (22,764) | (21,342) | |||
Share-based compensation | 30 | (6,362) | (6,114) | |||
Other, net | 990 | (4,891) | (1,739) | |||
Income tax expenses | $ 7,168 | $ 14,308 | 91,389 | 124,596 | 111,086 | |
Swiss Federal Tax Administration (FTA) [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Switzerland tax reform - tax assets | $ 11,016 | $ 7,168 | $ (177) | $ 11,016 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 26, 2020 | Jun. 27, 2020 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Dec. 28, 2019 | |
Income tax expense (benefit) | $ 7,168 | $ 14,308 | $ 91,389 | $ 124,596 | $ 111,086 | ||
Effective income tax amount | 223,658 | 253,429 | 231,718 | ||||
Effective income tax foreign tax rate differential | (114,599) | (117,586) | (98,130) | ||||
Income before income taxes | 1,064,974 | 1,206,796 | 1,103,410 | ||||
Tax credit carryforward amount | 19,950 | 24,508 | |||||
Deferred tax assets related to future tax benefit on net operating loss carryforward | 4,955 | 9,069 | |||||
Deferred tax assets related to future tax benefit | 177,602 | ||||||
Net operating loss carryforwards | 16,296 | ||||||
Unrecognized tax benefits gross | $ 84,985 | 30,795 | 65,216 | 84,985 | $ 101,251 | ||
Net unrecognized tax benefits | 81,938 | 29,159 | 54,443 | 81,938 | |||
Accrued interest and penalties on unrecognized tax benefits | 5,666 | 2,751 | 4,225 | 5,666 | |||
Increase (decrease) in income tax penalties and interest | (1,474) | (1,441) | (1,970) | ||||
Accrued penalties on unrecognized tax benefits | 0 | 0 | 0 | 0 | |||
Reduction in income tax expense | 14,950 | 19,314 | 38,501 | ||||
Non-U.S. Operations Entity's [Member] | |||||||
Income before income taxes | 1,287,794 | 1,227,666 | 1,059,074 | ||||
Foreign Subsidiaries [Member] | |||||||
Income tax expense (benefit) | 45,459 | 50,127 | 47,236 | ||||
Maximum [Member] | |||||||
Reserves for certain unrecognized tax benefits | 15,000 | ||||||
Minimum [Member] | |||||||
Reserves for certain unrecognized tax benefits | 5,000 | ||||||
Various Other Jurisdictions [Member] | |||||||
Net operating loss carryforwards | 4,445 | ||||||
Reduction in income tax expense | 12,749 | 22,221 | 42,185 | ||||
Swiss Federal Tax Administration (FTA) [Member] | |||||||
Switzerland tax reform | $ 11,016 | $ 7,168 | $ (177) | 11,016 | |||
Swiss Federal Tax Administration (FTA) [Member] | Foreign Tax Authority [Member] | |||||||
Effective income tax rate | 14% | 14% | |||||
Effective income tax foreign tax rate differential | $ 33,000 | $ 28,000 | 20,000 | ||||
Swiss Federal Tax Administration (FTA) [Member] | Foreign Tax Authority [Member] | Maximum [Member] | |||||||
Effective income tax amount | 77,000 | 84,000 | 77,000 | ||||
Swiss Federal Tax Administration (FTA) [Member] | Foreign Tax Authority [Member] | Minimum [Member] | |||||||
Effective income tax amount | 147,000 | $ 169,000 | $ 155,000 | ||||
Finnish Tax Administration [Member] | Foreign Tax Authority [Member] | |||||||
Net operating loss carryforwards | $ 707 | ||||||
Finnish Tax Administration [Member] | Foreign Tax Authority [Member] | Maximum [Member] | |||||||
Operating Loss Carryforwards Expiration Year | 2029 | ||||||
Finnish Tax Administration [Member] | Foreign Tax Authority [Member] | Minimum [Member] | |||||||
Operating Loss Carryforwards Expiration Year | 2025 | ||||||
Luxembourg Inland Revenue [Member] | Foreign Tax Authority [Member] | |||||||
Net operating loss carryforwards | $ 10,530 | ||||||
Operating Loss Carryforwards Expiration Year | 2037 | ||||||
Tax and Customs Administration, Netherlands [Member] | Foreign Tax Authority [Member] | |||||||
Net operating loss carryforwards | $ 575 | ||||||
Operating Loss Carryforwards Expiration Year | 2026 | ||||||
Tax and Customs Administration, Thailand [Member] | Foreign Tax Authority [Member] | |||||||
Net operating loss carryforwards | $ 39 | ||||||
Operating Loss Carryforwards Expiration Year | 2025 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Deferred tax assets: | ||
Product warranty accruals | $ 12,111 | $ 10,578 |
Accrued vacation | 14,986 | 14,073 |
Share based compensation | 8,667 | 12,000 |
Tax credit carryforwards | 19,950 | 24,508 |
Intangible assets | 156,702 | 173,468 |
Capitalized research & development expenses | 231,429 | 53,827 |
Net operating losses | 4,955 | 9,069 |
Operating leases | 30,310 | 13,685 |
Deferred revenue | 18,327 | 20,970 |
Tax basis in excess of book basis for investments | 27,227 | 4,321 |
Other | 18,259 | 20,220 |
Valuation allowance related to loss carryforward and tax credits | (17,077) | (19,709) |
Total deferred tax assets | 525,846 | 337,010 |
Deferred tax liabilities: | ||
Fixed assets | 40,526 | 27,970 |
Operating leases | 29,756 | 13,322 |
Prepaid and perpetual license assets | 11,798 | 17,350 |
Book basis in excess of tax basis for acquired entities | 21,970 | 32,907 |
Withholding tax | 108,692 | 89,285 |
Other | 1,998 | 13,566 |
Total deferred tax liabilities | 214,740 | 194,400 |
Net deferred tax assets | $ 311,106 | $ 142,610 |
Income Taxes - Schedule of Gros
Income Taxes - Schedule of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |||
Balance beginning of year | $ 65,216 | $ 84,985 | $ 101,251 |
Additions based on tax positions related to prior years | 0 | 0 | 10,480 |
Reductions based on tax positions related to prior years | (6,363) | (4,727) | (4,169) |
Additions based on tax positions related to current period | 2,368 | 4,272 | 16,859 |
Reductions related to settlements with tax authorities | (15,476) | 0 | (935) |
Expiration of statute of limitations | (14,950) | (19,314) | (38,501) |
Balance at end of year | $ 30,795 | $ 65,216 | $ 84,985 |
Leases - Summary of Lease Costs
Leases - Summary of Lease Costs Recognized in the Company's Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | ||
Leases [Abstract] | |||
Operating lease cost | [1] | $ 40,679 | $ 35,114 |
[1] Operating lease cost includes short-term lease costs and variable lease costs, which were not material in the period presented. |
Leases - Components of Leases R
Leases - Components of Leases Recognized on the Company's Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 138,040 | $ 89,457 |
Other accrued expenses | 25,149 | 20,503 |
Noncurrent operating lease liabilities | 114,541 | 70,044 |
Total lease liabilities | $ 139,690 | $ 90,547 |
Weighted average remaining lease term | 7 years 3 months 18 days | 5 years 7 months 6 days |
Weighted average discount rate | 3.30% | 3.30% |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Leases [Abstract] | ||
2023 | $ 30,713 | |
2024 | 27,618 | |
2025 | 13,216 | |
2026 | 14,962 | |
2027 | 22,094 | |
Thereafter | 52,737 | |
Total | 161,340 | |
Less: imputed interest | (21,650) | |
Total lease liabilities | $ 139,690 | $ 90,547 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow and Noncash Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | ||
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | [1] | $ 28,714 | $ 24,930 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 68,188 | $ 16,229 | |
[1] Included in net cash provided by operating activities on the Company's Statements of Cash Flows |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Restricted cash balances | $ 718 | $ 785 |
Noncancellable unconditional purchase obligations | $ 383,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Apr. 22, 2022 | |
Dividends Payable [Line Items] | ||||
Dividend paid | $ 679,096 | $ 491,457 | $ 450,631 | |
Share Repurchase Program, Authorized Amount | $ 300,000 | |||
Share repurchase authorization expires | Dec. 29, 2023 | |||
Repurchased common stock shares | 2,258,990 | |||
Repurchased common stock shares, amount | $ 206,523 | |||
Repurchase additional shares authorization | 93,477 | |||
Cash paid for purchases of shares | 201,012 | |||
Cash paid for purchases of shares include in other accrued expenses | 5,511 | |||
State Administration of Taxation, China [Member] | ||||
Dividends Payable [Line Items] | ||||
Restricted retained earnings | $ 61,129 | $ 61,129 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 10, 2022 | Jun. 04, 2021 | Jun. 05, 2020 |
Dividends Declared [Line Items] | |||
Dividend Declaration Date | Jun. 10, 2022 | Jun. 04, 2021 | Jun. 05, 2020 |
Dividends declared per share | $ 2.92 | $ 2.68 | $ 2.44 |
Dividends, Common Stock, Cash | $ 560,579 | $ 515,846 | $ 467,040 |
Dividend Declared1 [Member] | |||
Dividends Declared [Line Items] | |||
Dividend Date | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Record Date | Jun. 20, 2022 | Jun. 15, 2021 | Jun. 15, 2020 |
Dividends declared per share | $ 0.73 | $ 0.67 | $ 0.61 |
Dividends, Common Stock, Cash | $ 140,825 | $ 128,741 | $ 116,526 |
Dividend Declared2 [Member] | |||
Dividends Declared [Line Items] | |||
Dividend Date | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Record Date | Sep. 15, 2022 | Sep. 15, 2021 | Sep. 15, 2020 |
Dividends declared per share | $ 0.73 | $ 0.67 | $ 0.61 |
Dividends, Common Stock, Cash | $ 140,413 | $ 128,856 | $ 116,655 |
Dividend Declared3 [Member] | |||
Dividends Declared [Line Items] | |||
Dividend Date | Dec. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Record Date | Dec. 15, 2022 | Dec. 15, 2021 | Dec. 15, 2020 |
Dividends declared per share | $ 0.73 | $ 0.67 | $ 0.61 |
Dividends, Common Stock, Cash | $ 139,610 | $ 128,856 | $ 116,655 |
Dividend Declared4 [Member] | |||
Dividends Declared [Line Items] | |||
Dividend Date | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 |
Record Date | Mar. 15, 2023 | Mar. 15, 2022 | Mar. 15, 2021 |
Dividends declared per share | $ 0.73 | $ 0.67 | $ 0.61 |
Dividends, Common Stock, Cash | $ 139,732 | $ 129,394 | $ 117,205 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance, value | $ 6,114,159 |
Ending balance, value | 6,204,340 |
Foreign Currency Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance, value | 123,415 |
Other comprehensive income before reclassification, net of income tax expense | (149,396) |
Net current-period other comprehensive income | (149,396) |
Ending balance, value | (25,981) |
Net Gains (Losses) on Available-for-Sale Securities [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance, value | (5,580) |
Other comprehensive income before reclassification, net of income tax expense | (83,690) |
Amounts reclassified from Accumulated other comprehensive income to Other income (expense), net of income tax expense | 718 |
Net current-period other comprehensive income | (82,972) |
Ending balance, value | (88,552) |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance, value | 117,835 |
Other comprehensive income before reclassification, net of income tax expense | (233,086) |
Amounts reclassified from Accumulated other comprehensive income to Other income (expense), net of income tax expense | 718 |
Net current-period other comprehensive income | (232,368) |
Ending balance, value | $ (114,533) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) (Parenthetical) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Equity [Abstract] | |
Net of income tax benefit | $ 24,658 |
Net of income tax benefit | $ 268 |
Employee Stock Compensation a_3
Employee Stock Compensation and Savings Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2011 | Jun. 30, 2005 | Oct. 31, 2000 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Dec. 28, 2013 | |
Total fair value of vested awards | $ 82,734 | $ 70,796 | $ 58,602 | |||||
Closing stock price (in dollars per share) | $ 92.29 | |||||||
Total unrecognized compensation cost related to unvested share-based compensation awards | $ 95,019 | |||||||
Expenses related to other defined contribution plans | $ 80,435 | $ 71,262 | $ 63,908 | |||||
Restricted Stock Units | ||||||||
Number of shares granted (in shares) | 1,192,000 | 871,000 | 760,000 | |||||
Outstanding awards weighted-average remaining contract life | 1 year 3 months 3 days | |||||||
Outstanding awards aggregate intrinsic values | $ 169,498 | |||||||
Aggregate intrinsic values | 74,278 | $ 118,825 | $ 109,952 | |||||
Stock Option & Stock Appreciation Rights | ||||||||
Aggregate intrinsic values | $ 0 | $ 1,040 | $ 3,701 | |||||
Defined Contribution Retirement Plan [Member] | Garmin International, Inc & Other U.S. - based Subsidiaries Sponsor [Member] | ||||||||
Maximum percentage of annual employee compensation eligible to be contributed to retirement plan | 50% | |||||||
2011 Non-employee Directors' Equity Incentive Plan | ||||||||
Maximum number of authorized shares available for issuance (in shares) | 122,592 | |||||||
Award expiration period | 10 years | |||||||
Award vesting period | 1 year | |||||||
2011 Non-employee Directors' Equity Incentive Plan | Restricted Stock Units | ||||||||
Number of shares granted (in shares) | 6,008 | 4,180 | 6,376 | |||||
2005 Equity Incentive Plan | ||||||||
Maximum number of authorized shares available for issuance (in shares) | 10,000,000 | 13,000,000 | ||||||
Number of additional authorized shares issued (in shares) | 3,000,000 | |||||||
2005 Equity Incentive Plan | Restricted Stock Units | ||||||||
Award vesting period | 3 years | |||||||
Number of shares granted (in shares) | 1,185,707 | 866,614 | 753,976 | |||||
Description of vesting period | RSUs vest evenly over a period of three years | |||||||
2005 Equity Incentive Plan | Stock Option & Stock Appreciation Rights | ||||||||
Award expiration period | 10 years | |||||||
Award vesting period | 5 years | |||||||
Number of shares granted (in shares) | 0 | 0 | 0 | |||||
2000 Equity Incentive Plan | ||||||||
Maximum number of authorized shares available for issuance (in shares) | 7,000,000 | |||||||
2000 Equity Incentive Plan | Stock Option & Stock Appreciation Rights | ||||||||
Award expiration period | 10 years | |||||||
Award vesting period | 5 years | |||||||
Number of shares granted (in shares) | 0 | 0 | 0 | |||||
Employee Stock Purchase Plan | ||||||||
Maximum number of authorized shares available for issuance (in shares) | 8,000,000 | |||||||
Number of shares purchased (in shares) | 687,370 | 385,211 | 195,540 | |||||
Total shares purchase price | $ 62,154 | $ 34,936 | $ 15,955 | |||||
Number of shares available for future issuance (in shares) | 787,534 | |||||||
Employee Stock Purchase Plan | Condition One [Member] | ||||||||
Purchase price of common stock (fair market value of the stock on the date of purchase) (in percent) | 85% | |||||||
Employee Stock Purchase Plan | Condition Two [Member] | ||||||||
Purchase price of common stock (fair market value of the stock on the date of purchase) (in percent) | 85% |
Employee Stock Compensation a_4
Employee Stock Compensation and Savings Plans - Summary of Stock Options and Stock Appreciation Rights Award Activity (Details) - Stock Option & Stock Appreciation Rights - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at beginning | $ 52.44 | $ 51.46 | |
Exercised | $ 52.44 | 51.23 | |
Outstanding at end | $ 52.44 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Outstanding [Roll Forward] | |||
Outstanding at beginning | 0 | 13 | 66 |
Exercised | 0 | (13) | (53) |
Outstanding at end | 0 | 0 | 13 |
Exercisable at end | 0 |
Employee Stock Compensation a_5
Employee Stock Compensation and Savings Plans - Summary of Restricted Stock Units Award Activity (Details) - Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding at beginning | $ 107.60 | $ 86.98 | $ 69.47 |
Granted | 98.39 | 116.40 | 99.57 |
Released/Vested | 102.80 | 80.12 | 64.07 |
Cancelled | 111.12 | 95.79 | 72.10 |
Outstanding at end | $ 103.61 | $ 107.60 | $ 86.98 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding at beginning | 1,513 | 1,582 | 1,779 |
Granted | 1,192 | 871 | 760 |
Released/Vested | (805) | (884) | (915) |
Cancelled | (63) | (56) | (42) |
Outstanding at end | 1,837 | 1,513 | 1,582 |
Segment Information and Geogr_3
Segment Information and Geographic Data - Additional Information (Details) - Segment | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | 6 | 6 | 6 |
Segment Information and Geogr_4
Segment Information and Geographic Data - Schedule of Net Sales (Revenue), Gross Profit, and Operating Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | ||
Segment Reporting Information [Line Items] | ||||
Net sales | [1] | $ 4,860,286 | $ 4,982,795 | $ 4,186,573 |
Gross profit | 2,806,775 | 2,890,459 | 2,481,336 | |
Operating income (loss) | 1,027,845 | 1,218,620 | 1,054,240 | |
Fitness Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,109,419 | 1,533,788 | 1,317,498 | |
Gross profit | 552,417 | 813,325 | 697,539 | |
Operating income (loss) | 104,738 | 359,201 | 305,283 | |
Outdoor Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,495,167 | 1,281,933 | 1,128,081 | |
Gross profit | 969,810 | 834,837 | 739,777 | |
Operating income (loss) | 556,448 | 476,122 | 438,197 | |
Marine Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 903,983 | 875,151 | 657,848 | |
Gross profit | 491,457 | 495,310 | 384,450 | |
Operating income (loss) | 215,304 | 249,781 | 177,184 | |
Aviation Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 792,799 | 712,468 | 622,820 | |
Gross profit | 573,063 | 519,821 | 453,008 | |
Operating income (loss) | 213,186 | 193,188 | 146,608 | |
Auto Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 558,918 | 579,455 | 460,326 | |
Gross profit | 220,028 | 227,166 | 206,562 | |
Operating income (loss) | (61,831) | (59,672) | (13,032) | |
Auto Segment [Member] | Customer Auto Subsegment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 275,108 | 324,731 | 275,493 | |
Gross profit | 129,598 | 153,825 | 139,864 | |
Operating income (loss) | 16,833 | 48,347 | 45,033 | |
Auto Segment [Member] | Auto OEM Subsegment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 283,810 | 254,724 | 184,833 | |
Gross profit | 90,430 | 73,341 | 66,698 | |
Operating income (loss) | $ (78,664) | $ (108,019) | $ (58,065) | |
[1] The United States is the only country which constitutes greater than 10 % of net sales to external customers. |
Segment Information and Geogr_5
Segment Information and Geographic Data - Schedule of Net Sales, Property and Equipment, and Net Assets by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales to external customers | [1] | $ 4,860,286 | $ 4,982,795 | $ 4,186,573 |
Property and equipment, net | 1,147,005 | 1,067,478 | 855,539 | |
Net assets | [2] | 6,204,340 | 6,114,159 | 5,516,116 |
Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales to external customers | [1] | 2,429,029 | 2,349,514 | 1,968,080 |
Property and equipment, net | 676,855 | 576,481 | 467,269 | |
Net assets | [2] | 3,717,198 | 3,745,120 | 3,327,748 |
EMEA [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales to external customers | [1] | 1,633,640 | 1,858,908 | 1,579,749 |
Property and equipment, net | 121,920 | 120,004 | 114,313 | |
Net assets | [2] | 1,210,461 | 1,227,928 | 1,163,127 |
APAC [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales to external customers | [1] | 797,617 | 774,373 | 638,744 |
Property and equipment, net | 348,230 | 370,993 | 273,957 | |
Net assets | [2] | $ 1,276,681 | $ 1,141,111 | $ 1,025,241 |
[1] The United States is the only country which constitutes greater than 10 % of net sales to external customers. Americas and APAC net assets are primarily held in the United States and Taiwan, respectively. |
Segment Information and Geogr_6
Segment Information and Geographic Data - Schedule of Net Sales, Property and Equipment, and Net Assets by Geographic Area (Parenthetical) (Details) - Customer Concentration Risk [Member] - Net Sales [Member] - Minimum [Member] | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk net sales | 20% | ||
U.S. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk net sales | 10% | 10% | 10% |