Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 30, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 30, 2024 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-28 | |
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, $0.10 Per Share Par Value | |
Trading Symbol | GRMN | |
Security Exchange Name | NYSE | |
Entity's Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 192,077,718 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 1,381,649 | $ 1,147,424 |
Cost of goods sold | 579,510 | 494,630 |
Gross profit | 802,139 | 652,794 |
Research and development expense | 242,535 | 221,485 |
Selling, general and administrative expenses | 261,194 | 234,327 |
Total operating expense | 503,729 | 455,812 |
Operating income | 298,410 | 196,982 |
Other income (expense): | ||
Interest income | 25,027 | 15,899 |
Foreign currency gains | 2,282 | 7,688 |
Other income | 1,321 | 1,203 |
Total other income (expense) | 28,630 | 24,790 |
Income before income taxes | 327,040 | 221,772 |
Income tax provision | 51,079 | 19,445 |
Net income | $ 275,961 | $ 202,327 |
Net income per share: | ||
Basic | $ 1.44 | $ 1.06 |
Diluted | $ 1.43 | $ 1.05 |
Weighted average common shares outstanding: | ||
Basic | 191,890 | 191,498 |
Diluted | 192,698 | 191,886 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ 275,961 | $ 202,327 |
Foreign currency translation adjustment | (59,055) | 16,891 |
Change in fair value of available-for-sale marketable securities, net of deferred taxes | 2,613 | 11,076 |
Comprehensive income | $ 219,519 | $ 230,294 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,921,782 | $ 1,693,452 |
Marketable securities | 274,579 | 274,618 |
Accounts receivable, net | 694,690 | 815,243 |
Inventories | 1,302,230 | 1,345,955 |
Deferred costs | 18,329 | 16,316 |
Prepaid expenses and other current assets | 305,674 | 318,556 |
Total current assets | 4,517,284 | 4,464,140 |
Property and equipment, net of accumulated depreciation of $1,048,936 and $1,030,588 | 1,206,401 | 1,224,097 |
Operating lease right-of-use assets | 136,285 | 143,724 |
Noncurrent marketable securities | 1,133,958 | 1,125,191 |
Deferred income tax assets | 763,083 | 754,635 |
Noncurrent deferred costs | 10,480 | 11,057 |
Goodwill | 601,618 | 608,474 |
Other intangible assets, net | 176,647 | 186,601 |
Other noncurrent assets | 88,124 | 85,650 |
Total assets | 8,633,880 | 8,603,569 |
Current liabilities: | ||
Accounts payable | 243,087 | 253,790 |
Salaries and benefits payable | 192,832 | 190,014 |
Accrued warranty costs | 55,219 | 55,738 |
Accrued sales program costs | 77,592 | 98,610 |
Other accrued expenses | 191,474 | 245,874 |
Deferred revenue | 100,740 | 101,189 |
Income taxes payable | 256,442 | 225,475 |
Dividend payable | 0 | 139,997 |
Total current liabilities | 1,117,386 | 1,310,687 |
Deferred income tax liabilities | 113,932 | 114,682 |
Noncurrent income taxes payable | 16,128 | 16,521 |
Noncurrent deferred revenue | 33,928 | 36,148 |
Noncurrent operating lease liabilities | 105,859 | 113,035 |
Other noncurrent liabilities | 550 | 436 |
Stockholders’ equity: | ||
Common shares (194,901 and 195,880 shares authorized and issued; 192,079 and 191,777 shares outstanding) | 19,490 | 19,588 |
Additional paid-in capital | 2,135,384 | 2,125,467 |
Treasury shares (2,822 and 4,103 shares) | (226,921) | (330,909) |
Retained earnings | 5,440,200 | 5,263,528 |
Accumulated other comprehensive income (loss) | (122,056) | (65,614) |
Total stockholders’ equity | 7,246,097 | 7,012,060 |
Total liabilities and stockholders’ equity | $ 8,633,880 | $ 8,603,569 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Accumualted depreciation | $ 1,048,936 | $ 1,030,588 |
Common shares, authorized | 194,901 | 195,880 |
Common shares, issued | 194,901 | 195,880 |
Common shares, outstanding | 192,079 | 191,777 |
Treasury Stock, Common, Shares | 2,822 | 4,103 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Operating Activities: | ||
Net income | $ 275,961 | $ 202,327 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 33,892 | 31,952 |
Amortization | 10,933 | 11,463 |
Gain on sale or disposal of property and equipment | (12) | (129) |
Unrealized foreign currency losses (gains) | 2,974 | (867) |
Deferred income taxes | (9,611) | (15,713) |
Stock compensation expense | 30,719 | 20,732 |
Realized loss on marketable securities | 0 | 20 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net of allowance for doubtful accounts | 108,453 | 46,873 |
Inventories | 16,545 | 43,712 |
Other current and non-current assets | 2,117 | 4,780 |
Accounts payable | (1,281) | (4,202) |
Other current and non-current liabilities | (64,699) | (67,405) |
Deferred revenue | (2,549) | (1,876) |
Deferred costs | (1,451) | 622 |
Income Taxes | 33,314 | 6,921 |
Net cash provided by operating activities | 435,305 | 279,210 |
Investing activities: | ||
Purchases of property and equipment | (33,168) | (46,814) |
Purchase of marketable securities | (85,626) | (18,684) |
Redemption of marketable securities | 77,131 | 57,789 |
Net cash from (payments for) acquisitions | 5,011 | 0 |
Other investing activities, net | (223) | (190) |
Net cash used in investing activities | (36,875) | (7,899) |
Financing activities: | ||
Dividends | (140,212) | (139,847) |
Purchase of treasury stock related to equity awards | (15,987) | (9,169) |
Purchase of treasury stock under share repurchase plan | 0 | (43,273) |
Net cash used in financing activities | (156,199) | (192,289) |
Effect of exchange rate changes on cash and cash equivalents | (13,913) | 3,387 |
Net increase in cash, cash equivalents, and restricted cash | 228,318 | 82,409 |
Cash, cash equivalents, and restricted cash at beginning of period | 1,694,156 | 1,279,912 |
Cash, cash equivalents, and restricted cash at end of period | $ 1,922,474 | $ 1,362,321 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock, Common [Member] | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance, value at Dec. 31, 2022 | $ 6,204,340 | $ 17,979 | $ 2,042,472 | $ (475,095) | $ 4,733,517 | $ (114,533) |
Net Income (Loss) | 202,327 | 202,327 | ||||
Translation adjustment | 16,891 | 16,891 | ||||
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects | 11,076 | 11,076 | ||||
Comprehensive income | 230,294 | |||||
Dividends | (114) | (114) | ||||
Issuance of treasury shares related to equity awards | (14,865) | 14,865 | ||||
Stock compensation | 20,732 | 20,732 | ||||
Purchase of treasury shares related to equity awards | (9,169) | (9,169) | ||||
Purchase of treasury shares under share repurchase plan, including any associated excise tax | (41,079) | (41,079) | ||||
Ending balance, value at Apr. 01, 2023 | 6,405,004 | 17,979 | 2,048,339 | (510,478) | 4,935,730 | (86,566) |
Beginning balance, value at Dec. 30, 2023 | 7,012,060 | 19,588 | 2,125,467 | (330,909) | 5,263,528 | (65,614) |
Net Income (Loss) | 275,961 | 275,961 | ||||
Translation adjustment | (59,055) | (59,055) | ||||
Adjustment related to unrealized gains (losses) on available-for-sale securities net of income tax effects | 2,613 | 2,613 | ||||
Comprehensive income | 219,519 | |||||
Dividends | (214) | (214) | ||||
Issuance of treasury shares related to equity awards | (20,802) | 20,802 | ||||
Stock compensation | 30,719 | 30,719 | ||||
Purchase of treasury shares related to equity awards | (15,987) | (15,987) | ||||
Cancellation of treasury shares | (98) | 99,173 | (99,075) | |||
Ending balance, value at Mar. 30, 2024 | $ 7,246,097 | $ 19,490 | $ 2,135,384 | $ (226,921) | $ 5,440,200 | $ (122,056) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Adjustment related to unrealized gains (losses) on available-for-sale securities income tax effects | $ 812 | $ 2,613 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 275,961 | $ 202,327 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Clifton Pemble [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Item 5. Other Information (c) Trading Plans During the 13-week period ended March 30, 2024 , no directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) of the Company adopted or terminated any “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K, except as follows: • On March 1, 2024 , Clifton Pemble , President and Chief Executive Officer , adopted a new written trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1 (c) under the Exchange Act for the potential sale of up to (i) 15,931 shares of our common shares, and (ii) 100% of the net shares (net of tax withholding) resulting from the vesting of 31,206 gross shares of our common shares relating to equity awards during the plan period, subject to certain conditions. The first trade date will not occur until June 17, 2024 at the earliest, and the plan's maximum duration is until March 1, 2025 . |
Name | Clifton Pemble |
Title | President and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | March 1, 2024 |
Arrangement Duration | 257 days |
Clifton Pemble Trading Arrangement Tranche One | |
Trading Arrangements, by Individual | |
Aggregate Available | 15,931 |
Clifton Pemble Trading Arrangement Tranche Two | |
Trading Arrangements, by Individual | |
Aggregate Available | 31,206 |
Patrick Desbois [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Item 5. Other Information (c) Trading Plans During the 13-week period ended March 30, 2024 , no directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) of the Company adopted or terminated any “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K, except as follows: • On March 5, 2024 , Patrick Desbois , Executive Vice President , Operations, adopted a new written trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1 (c) under the Exchange Act for the potential sale of up to 4,126 shares of our common shares, subject to certain conditions. The first trade date will not occur until June 4, 2024 at the earliest, and the plan's maximum duration is until July 31, 2024 . |
Name | Patrick Desbois |
Title | Executive Vice President |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | March 5, 2024 |
Arrangement Duration | 57 days |
Aggregate Available | 4,126 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
Accounting Policies | 1. Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Garmin Ltd. and its wholly-owned subsidiaries (collectively, we, our, us, the Company or Garmin). Intercompany balances and transactions have been eliminated. The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The condensed consolidated balance sheet at December 30, 2023 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Additionally, the condensed consolidated financial statements should be read in conjunction with Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-Q, and the Company’s Annual Report on Form 10-K for the year ended December 30, 2023. The Company's operating results are subject to fluctuations associated with seasonal demand for consumer products, the timing of new product introductions, and original equipment manufacturer (OEM) customer production schedules. Therefore, operating results for the 13-week period ended March 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 28, 2024. The Company’s fiscal year is based on a 52- or 53-week period ending on the last Saturday of the calendar year. Therefore, the financial results of certain 53-week fiscal years, and the associated 14-week quarters, will not be exactly comparable to the prior and subsequent 52-week fiscal years and the associated 13-week quarters. The quarters ended March 30, 2024 and April 1, 2023 both contain operating results for 13 weeks. Changes in Classification and Allocation Certain prior period amounts have been reclassified or presented to conform to the current period presentation. In the first quarter of fiscal 2024, the Company changed the presentation of operating expense to include advertising expense within selling, general and administrative expenses on the Company's condensed consolidated statements of income, which management believes to be a more meaningful presentation. As a result, the Company’s condensed consolidated statements of income have been recast for the 13-week period ended April 1, 2023 to conform with the current period presentation. This change had no effect on the Company’s consolidated operating or net income. Significant Accounting Policies For a description of the significant accounting policies and methods used in the preparation of the Company’s condensed consolidated financial statements, refer to Note 1, “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023. There were no material changes to the Company’s significant accounting policies during the 13-week period ended March 30, 2024 . Recently Adopted Accounting Standards There are no recently adopted accounting standards that have a material impact on the Company’s consolidated financial statements, accounting policies, processes, or systems. Recently Issued Accounting Pronouncements Not Yet Adopted Income Taxes In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) to enhance the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the updated standard will have on its financial statement disclosures. Segment Reporting In November 2023, the FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”) to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the updated standard will have on its financial statement disclosures . |
Revenue
Revenue | 3 Months Ended |
Mar. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 2. Revenue In order to further depict how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors, we disaggregate revenue (“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 five major product categories identified by the Company – fitness, outdoor, aviation, marine, 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 OEM 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: 13-Weeks Ended March 30, 2024 April 1, 2023 Point in time $ 1,306,447 $ 1,081,068 Over time 75,202 66,356 Net sales $ 1,381,649 $ 1,147,424 Transaction price and costs associated with the Company’s unsatisfied performance obligations are reflected as deferred revenue and deferred costs, respectively, on the Company’s condensed consolidated balance sheets. Such amounts are recognized ratably over the applicable service period or estimated useful life. Changes in deferred revenue and costs during the 13-week period ended March 30, 2024 are presented below: 13-Weeks Ended Deferred (1) Deferred (2) Balance, beginning of period $ 137,337 $ 27,373 Deferrals in period 72,533 13,474 Recognition of deferrals in period ( 75,202 ) ( 12,038 ) Balance, end of period $ 134,668 $ 28,809 (1) Deferred revenue is comprised of both deferred revenue and noncurrent deferred revenue per the condensed consolidated balance sheets. (2) Deferred costs are comprised of both deferred costs and noncurrent deferred costs per the condensed consolidated balance sheets. Of the $ 75,202 of deferred revenue recognized in the 13-week period ended March 30, 2024, approximately $ 39,000 was deferred as of the beginning of the period. Of the $ 134,668 of deferred revenue as of March 30, 2024 , the Company expects to recognize approximately 85% percent ratably over a total period of three years or less. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share The following table sets forth the computation of basic and diluted net income per share. Stock options, stock appreciation rights, and restricted stock units are collectively referred to as “equity awards”. 13-Weeks Ended March 30, April 1, Numerator: Numerator for basic and diluted net income per share – net income $ 275,961 $ 202,327 Denominator: Denominator for basic net income per share – weighted-average common shares 191,890 191,498 Effect of dilutive equity awards 808 388 Denominator for diluted net income per share – adjusted weighted-average common shares 192,698 191,886 Basic net income per share $ 1.44 $ 1.06 Diluted net income per share $ 1.43 $ 1.05 Shares excluded from diluted net income per share calculation: Anti-dilutive equity awards — 218 |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities Accounting Standards Codification 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 U.S. Treasury securities Level 2 $ 3,446 $ — $ — $ 3,446 Agency securities Level 2 20,695 21 ( 598 ) 20,118 Mortgage-backed securities Level 2 37,510 — ( 4,516 ) 32,994 Corporate debt securities Level 2 1,111,977 732 ( 43,402 ) 1,069,307 Municipal securities Level 2 296,722 49 ( 17,069 ) 279,702 Other Level 2 3,193 — ( 223 ) 2,970 Total $ 1,473,543 $ 802 $ ( 65,808 ) $ 1,408,537 Available-For-Sale Securities Fair Value Level Amortized Cost Gross Unrealized Gross Unrealized Fair Value U.S. Treasury securities Level 2 $ 2,971 $ 1 $ — $ 2,972 Agency securities Level 2 23,692 32 ( 585 ) 23,139 Mortgage-backed securities Level 2 38,743 — ( 4,731 ) 34,012 Corporate debt securities Level 2 1,104,834 1,680 ( 46,073 ) 1,060,441 Municipal securities Level 2 294,240 98 ( 18,430 ) 275,908 Other Level 2 3,760 — ( 423 ) 3,337 Total $ 1,468,240 $ 1,811 $ ( 70,242 ) $ 1,399,809 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 totale d $ 11,852 a s of March 30, 2024 , is excluded from both the fair value and amortized cost basis of available-for-sale securities and is included within prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets. The Company writes off impaired accrued interest on a timely basis, generally within 30 days of the due date, by reversing interest income. No accrued interest was written off during the 13-week period ended March 30, 2024. 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 condensed consolidated statements of income. Impairment not relating to credit losses is recorded in accumulated other comprehensive income (loss) on the Company’s condensed consolidated balance sheets. The cost of securities sold is based on the specific identification method. Approximately 95 % of securities in the Company’s portfolio were at an unrealized loss position as of March 30, 2024. The following tables display additional information regarding gross unrealized losses and fair value by major security type for available-for-sale securities in an unrealized loss position as of March 30, 2024 and December 30, 2023. As of March 30, 2024 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 ( 38 ) 7,919 ( 560 ) 6,440 ( 598 ) 14,359 Mortgage-backed securities — — ( 4,516 ) 32,994 ( 4,516 ) 32,994 Corporate debt securities ( 1,634 ) 153,897 ( 41,768 ) 835,475 ( 43,402 ) 989,372 Municipal securities ( 47 ) 10,640 ( 17,022 ) 260,669 ( 17,069 ) 271,309 Other — — ( 223 ) 2,970 ( 223 ) 2,970 Total $ ( 1,719 ) $ 172,456 $ ( 64,089 ) $ 1,138,548 $ ( 65,808 ) $ 1,311,004 As of December 30, 2023 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 ( 31 ) 10,923 ( 554 ) 6,446 ( 585 ) 17,369 Mortgage-backed securities — — ( 4,731 ) 34,012 ( 4,731 ) 34,012 Corporate debt securities ( 702 ) 64,637 ( 45,371 ) 889,785 ( 46,073 ) 954,422 Municipal securities ( 32 ) 2,654 ( 18,398 ) 261,651 ( 18,430 ) 264,305 Other — — ( 423 ) 3,337 ( 423 ) 3,337 Total $ ( 765 ) $ 78,214 $ ( 69,477 ) $ 1,195,231 $ ( 70,242 ) $ 1,273,445 As of March 30, 2024 and December 30, 2023 , 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 (expense) for the unrealized losses on agency, mortgage-backed, corporate debt, municipal, and other securities presented above because the Company does not consider the declines in fair value to have resulted from credit losses. The Company has not observed a significant deterioration in credit quality of these securities, which are highly rated with moderate to low credit risk. Declines in value are largely attributable to current global economic conditions. The securities continue to make timely principal and interest payments, and the fair values are expected to recover as they approach maturity. Management does not intend to sell the securities, and it is not more likely than not that the Company will be required to sell the securities, before the respective recoveries of their amortized cost bases, which may be maturity. The amortized cost and fair value of marketable securities at March 30, 2024, by maturity, are shown below. Amortized Cost Fair Value Due in one year or less $ 279,010 $ 274,579 Due after one year through five years 1,173,293 1,115,240 Due after five years through ten years 13,661 12,512 Due after ten years 7,579 6,206 Total $ 1,473,543 $ 1,408,537 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Company recorded income tax expense of $ 51,079 in the 13-week period ended March 30, 2024, compared to income tax expense of $ 19,445 in the 13-week period ended April 1, 2023. The effective tax rate was 15.6 % in the first quarter of 2024, compared to 8.8 % in the first quarter of 2023. The increase in effective tax rate between comparative periods was primarily due to the increase in the combined federal and cantonal Switzerland statutory tax rate in response to the implementation of global minimum tax requirements. |
Inventories
Inventories | 3 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories The components of inventories consist of the following: March 30, December 30, 2023 Raw materials $ 488,357 $ 493,493 Work-in-process 174,085 160,919 Finished goods 639,788 691,543 Inventories $ 1,302,230 $ 1,345,955 |
Warranty Reserves
Warranty Reserves | 3 Months Ended |
Mar. 30, 2024 | |
Product Warranties Disclosures [Abstract] | |
Warranty Reserves | 7. Warranty Reserves 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 standard warranty obligation to its end-users provides for a period of one to two years from the 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, with most claims resolved within a year of the sale. The following reconciliation presents details of the changes in the Company's accrued warranty costs: 13-Weeks Ended March 30, 2024 April 1, 2023 Balance - beginning of period $ 55,738 $ 50,952 Accrual for products sold (1) 18,362 22,381 Expenditures ( 18,881 ) ( 20,658 ) Balance - end of period $ 55,219 $ 52,675 (1) Changes in cost estimates related to pre-existing warranties were not material and aggregated with accruals for new warranty contracts in the ‘accrual for products sold’ line. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. 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 its business. The aggregate amount of purchase orders and other commitments open as of March 30, 2024 that may represent noncancelable unconditional purchase obligations having a remaining term in excess of one year was approximately $ 301,000 . Certain cash balances are held as collateral in relation to bank guarantees. This restricted cash is reported within other assets on the condensed consolidated balance sheets and totaled $ 692 and $ 704 on March 30, 2024 and December 30, 2023, respectively. The total of the cash and cash equivalents balance and the restricted cash reported within other assets in the condensed consolidated balance sheets equals the total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows. Contingencies Management of the Company currently does not believe it is reasonably possible that the Company may have incurred a material loss, or a material loss in excess of recorded accruals, with respect to loss contingencies in the aggregate, for the fiscal quarter ended March 30, 2024. The results of legal proceedings, investigations and claims, however, cannot be predicted with certainty. An adverse resolution of one or more of such matters in excess of management’s expectations could have a material adverse effect in the particular quarter or fiscal year in which a loss is recorded, but based on information currently known, the Company does not believe it is likely that losses from such matters would have a material adverse effect on the Company’s business or its consolidated financial position, results of operations or cash flows. The Company settled or resolved certain matters during the 13-week period ended March 30, 2024 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 | 3 Months Ended |
Mar. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 9. 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 payable in four equal installments on dates to be 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. The Company's shareholders approved the following dividends: Approval Date Dividend Payment Date Record Date Dividend Per Share Fiscal 2023 June 9, 2023 June 30, 2023 June 20, 2023 $ 0.73 June 9, 2023 September 29, 2023 September 15, 2023 $ 0.73 June 9, 2023 December 29, 2023 December 15, 2023 $ 0.73 June 9, 2023 March 29, 2024 March 15, 2024 $ 0.73 Total $ 2.92 Fiscal 2022 June 10, 2022 June 30, 2022 June 20, 2022 $ 0.73 June 10, 2022 September 30, 2022 September 15, 2022 $ 0.73 June 10, 2022 December 30, 2022 December 15, 2022 $ 0.73 June 10, 2022 March 31, 2023 March 15, 2023 $ 0.73 Total $ 2.92 Share Repurchase Programs On April 22, 2022, the Board of Directors approved a share repurchase program (the “2022 Program”) authorizing the Company to repurchase up to $ 300,000 of the common shares of Garmin Ltd., exclusive of the cost of any associated excise tax. As of December 30, 2023, the Company had repurchased 3,176 shares for $ 300,000 , leaving $0 available to repurchase additional shares under the 2022 Program when the share repurchase authorization expired on December 29, 2023 . On February 16, 2024, the Board of Directors approved a new share repurchase program (the “2024 Program”) authorizing the Company to repurchase up to $ 300,000 of the common shares of Garmin Ltd., exclusive of the cost of any associated excise tax. 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 2024 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 26, 2026 . As of March 30, 2024, the Company had repurchased no shares, leaving $ 300,000 available to repurchase shares under the 2024 Program. Treasury Shares In March 2024, the Board of Directors authorized the cancellation of 979 shares previously purchased under our share repurchase program. The capital reduction by cancellation of these shares became effective in March 2024. Total stockholders’ equity reported for the Company was not affected. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 30, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 10. Accumulated Other Comprehensive Income (Loss) The following provides required disclosure of changes in accumulated other comprehensive income (loss) balances by component for the 13-week period ended March 30, 2024: 13-Weeks Ended March 30, 2024 Foreign currency Net gains (losses) on available-for-sale securities Total Balance - beginning of period $ ( 11,508 ) $ ( 54,106 ) $ ( 65,614 ) Other comprehensive income (loss) before reclassification, net of income tax expense of $ 812 ( 59,055 ) 2,613 ( 56,442 ) Amounts reclassified from accumulated other comprehensive income (loss) to other income — — — Net current-period other comprehensive income (loss) ( 59,055 ) 2,613 ( 56,442 ) Balance - end of period $ ( 70,563 ) $ ( 51,493 ) $ ( 122,056 ) |
Segment Information and Geograp
Segment Information and Geographic Data | 3 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Data | 11. Segment Information and Geographic Data Garmin is organized in the five operating segments of fitness, outdoor, aviation, marine, and auto OEM. These operating segments represent the Company's reportable segments. The Company’s Chief Executive Officer, who has been identified as the Company’s Chief Operating Decision Maker (CODM), primarily uses operating income as the measure of profit or loss 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. Net sales (“revenue”), gross profit, and operating income for each of the Company’s five reportable segments are presented below. Fitness Outdoor Aviation Marine Auto OEM Total 13-Weeks Ended March 30, 2024 Net sales $ 342,892 $ 366,193 $ 216,855 $ 326,736 $ 128,973 $ 1,381,649 Gross profit 194,802 242,739 162,626 179,252 22,720 802,139 Operating income (loss) 68,133 106,950 52,134 87,692 ( 16,499 ) 298,410 13-Weeks Ended April 1, 2023 Net sales $ 244,721 $ 328,662 $ 213,582 $ 278,975 $ 81,484 $ 1,147,424 Gross profit 120,910 204,948 154,454 149,631 22,851 652,794 Operating income (loss) 10,578 76,743 57,695 71,908 ( 19,942 ) 196,982 Net sales to external customers by geographic region were as follows for the 13-week period ended March 30, 2024 and April 1, 2023. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa: 13-Weeks Ended March 30, 2024 April 1, 2023 Americas $ 716,116 $ 611,704 EMEA 463,384 355,853 APAC 202,149 179,867 Net sales to external customers $ 1,381,649 $ 1,147,424 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Garmin Ltd. and its wholly-owned subsidiaries (collectively, we, our, us, the Company or Garmin). Intercompany balances and transactions have been eliminated. The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The condensed consolidated balance sheet at December 30, 2023 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Additionally, the condensed consolidated financial statements should be read in conjunction with Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-Q, and the Company’s Annual Report on Form 10-K for the year ended December 30, 2023. The Company's operating results are subject to fluctuations associated with seasonal demand for consumer products, the timing of new product introductions, and original equipment manufacturer (OEM) customer production schedules. Therefore, operating results for the 13-week period ended March 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 28, 2024. The Company’s fiscal year is based on a 52- or 53-week period ending on the last Saturday of the calendar year. Therefore, the financial results of certain 53-week fiscal years, and the associated 14-week quarters, will not be exactly comparable to the prior and subsequent 52-week fiscal years and the associated 13-week quarters. The quarters ended March 30, 2024 and April 1, 2023 both contain operating results for 13 weeks. |
Changes in Classification and Allocation | Changes in Classification and Allocation Certain prior period amounts have been reclassified or presented to conform to the current period presentation. In the first quarter of fiscal 2024, the Company changed the presentation of operating expense to include advertising expense within selling, general and administrative expenses on the Company's condensed consolidated statements of income, which management believes to be a more meaningful presentation. As a result, the Company’s condensed consolidated statements of income have been recast for the 13-week period ended April 1, 2023 to conform with the current period presentation. This change had no effect on the Company’s consolidated operating or net income. |
Significant Accounting Policies | Significant Accounting Policies For a description of the significant accounting policies and methods used in the preparation of the Company’s condensed consolidated financial statements, refer to Note 1, “Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023. There were no material changes to the Company’s significant accounting policies during the 13-week period ended March 30, 2024 . |
Recently Issued Accounting Standards and Pronouncements | Recently Adopted Accounting Standards There are no recently adopted accounting standards that have a material impact on the Company’s consolidated financial statements, accounting policies, processes, or systems. Recently Issued Accounting Pronouncements Not Yet Adopted Income Taxes In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) to enhance the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the updated standard will have on its financial statement disclosures. Segment Reporting In November 2023, the FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”) to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the updated standard will have on its financial statement disclosures |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
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: 13-Weeks Ended March 30, 2024 April 1, 2023 Point in time $ 1,306,447 $ 1,081,068 Over time 75,202 66,356 Net sales $ 1,381,649 $ 1,147,424 |
Schedule of Deferred Revenue and Costs | Changes in deferred revenue and costs during the 13-week period ended March 30, 2024 are presented below: 13-Weeks Ended Deferred (1) Deferred (2) Balance, beginning of period $ 137,337 $ 27,373 Deferrals in period 72,533 13,474 Recognition of deferrals in period ( 75,202 ) ( 12,038 ) Balance, end of period $ 134,668 $ 28,809 (1) Deferred revenue is comprised of both deferred revenue and noncurrent deferred revenue per the condensed consolidated balance sheets. (2) Deferred costs are comprised of both deferred costs and noncurrent deferred costs per the condensed consolidated balance sheets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share. Stock options, stock appreciation rights, and restricted stock units are collectively referred to as “equity awards”. 13-Weeks Ended March 30, April 1, Numerator: Numerator for basic and diluted net income per share – net income $ 275,961 $ 202,327 Denominator: Denominator for basic net income per share – weighted-average common shares 191,890 191,498 Effect of dilutive equity awards 808 388 Denominator for diluted net income per share – adjusted weighted-average common shares 192,698 191,886 Basic net income per share $ 1.44 $ 1.06 Diluted net income per share $ 1.43 $ 1.05 Shares excluded from diluted net income per share calculation: Anti-dilutive equity awards — 218 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities Classified as Available-for-sale Securities | Marketable securities classified as available-for-sale securities are summarized below: Available-For-Sale Securities Fair Value Level Amortized Cost Gross Unrealized Gross Unrealized Fair Value U.S. Treasury securities Level 2 $ 3,446 $ — $ — $ 3,446 Agency securities Level 2 20,695 21 ( 598 ) 20,118 Mortgage-backed securities Level 2 37,510 — ( 4,516 ) 32,994 Corporate debt securities Level 2 1,111,977 732 ( 43,402 ) 1,069,307 Municipal securities Level 2 296,722 49 ( 17,069 ) 279,702 Other Level 2 3,193 — ( 223 ) 2,970 Total $ 1,473,543 $ 802 $ ( 65,808 ) $ 1,408,537 Available-For-Sale Securities Fair Value Level Amortized Cost Gross Unrealized Gross Unrealized Fair Value U.S. Treasury securities Level 2 $ 2,971 $ 1 $ — $ 2,972 Agency securities Level 2 23,692 32 ( 585 ) 23,139 Mortgage-backed securities Level 2 38,743 — ( 4,731 ) 34,012 Corporate debt securities Level 2 1,104,834 1,680 ( 46,073 ) 1,060,441 Municipal securities Level 2 294,240 98 ( 18,430 ) 275,908 Other Level 2 3,760 — ( 423 ) 3,337 Total $ 1,468,240 $ 1,811 $ ( 70,242 ) $ 1,399,809 |
Schedule of Gross Unrealized Losses and Fair Value by Major Security Type | The following tables display additional information regarding gross unrealized losses and fair value by major security type for available-for-sale securities in an unrealized loss position as of March 30, 2024 and December 30, 2023. As of March 30, 2024 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 ( 38 ) 7,919 ( 560 ) 6,440 ( 598 ) 14,359 Mortgage-backed securities — — ( 4,516 ) 32,994 ( 4,516 ) 32,994 Corporate debt securities ( 1,634 ) 153,897 ( 41,768 ) 835,475 ( 43,402 ) 989,372 Municipal securities ( 47 ) 10,640 ( 17,022 ) 260,669 ( 17,069 ) 271,309 Other — — ( 223 ) 2,970 ( 223 ) 2,970 Total $ ( 1,719 ) $ 172,456 $ ( 64,089 ) $ 1,138,548 $ ( 65,808 ) $ 1,311,004 As of December 30, 2023 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 ( 31 ) 10,923 ( 554 ) 6,446 ( 585 ) 17,369 Mortgage-backed securities — — ( 4,731 ) 34,012 ( 4,731 ) 34,012 Corporate debt securities ( 702 ) 64,637 ( 45,371 ) 889,785 ( 46,073 ) 954,422 Municipal securities ( 32 ) 2,654 ( 18,398 ) 261,651 ( 18,430 ) 264,305 Other — — ( 423 ) 3,337 ( 423 ) 3,337 Total $ ( 765 ) $ 78,214 $ ( 69,477 ) $ 1,195,231 $ ( 70,242 ) $ 1,273,445 |
Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities by Maturity | The amortized cost and fair value of marketable securities at March 30, 2024, by maturity, are shown below. Amortized Cost Fair Value Due in one year or less $ 279,010 $ 274,579 Due after one year through five years 1,173,293 1,115,240 Due after five years through ten years 13,661 12,512 Due after ten years 7,579 6,206 Total $ 1,473,543 $ 1,408,537 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | The components of inventories consist of the following: March 30, December 30, 2023 Raw materials $ 488,357 $ 493,493 Work-in-process 174,085 160,919 Finished goods 639,788 691,543 Inventories $ 1,302,230 $ 1,345,955 |
Warranty Reserves (Tables)
Warranty Reserves (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Changes in the Aggregate Warranty Reserve | The following reconciliation presents details of the changes in the Company's accrued warranty costs: 13-Weeks Ended March 30, 2024 April 1, 2023 Balance - beginning of period $ 55,738 $ 50,952 Accrual for products sold (1) 18,362 22,381 Expenditures ( 18,881 ) ( 20,658 ) Balance - end of period $ 55,219 $ 52,675 (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. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividends Declared | shareholders approved the following dividends: Approval Date Dividend Payment Date Record Date Dividend Per Share Fiscal 2023 June 9, 2023 June 30, 2023 June 20, 2023 $ 0.73 June 9, 2023 September 29, 2023 September 15, 2023 $ 0.73 June 9, 2023 December 29, 2023 December 15, 2023 $ 0.73 June 9, 2023 March 29, 2024 March 15, 2024 $ 0.73 Total $ 2.92 Fiscal 2022 June 10, 2022 June 30, 2022 June 20, 2022 $ 0.73 June 10, 2022 September 30, 2022 September 15, 2022 $ 0.73 June 10, 2022 December 30, 2022 December 15, 2022 $ 0.73 June 10, 2022 March 31, 2023 March 15, 2023 $ 0.73 Total $ 2.92 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
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 13-week period ended March 30, 2024: 13-Weeks Ended March 30, 2024 Foreign currency Net gains (losses) on available-for-sale securities Total Balance - beginning of period $ ( 11,508 ) $ ( 54,106 ) $ ( 65,614 ) Other comprehensive income (loss) before reclassification, net of income tax expense of $ 812 ( 59,055 ) 2,613 ( 56,442 ) Amounts reclassified from accumulated other comprehensive income (loss) to other income — — — Net current-period other comprehensive income (loss) ( 59,055 ) 2,613 ( 56,442 ) Balance - end of period $ ( 70,563 ) $ ( 51,493 ) $ ( 122,056 ) |
Segment Information and Geogr_2
Segment Information and Geographic Data (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
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 reportable segments are presented below. Fitness Outdoor Aviation Marine Auto OEM Total 13-Weeks Ended March 30, 2024 Net sales $ 342,892 $ 366,193 $ 216,855 $ 326,736 $ 128,973 $ 1,381,649 Gross profit 194,802 242,739 162,626 179,252 22,720 802,139 Operating income (loss) 68,133 106,950 52,134 87,692 ( 16,499 ) 298,410 13-Weeks Ended April 1, 2023 Net sales $ 244,721 $ 328,662 $ 213,582 $ 278,975 $ 81,484 $ 1,147,424 Gross profit 120,910 204,948 154,454 149,631 22,851 652,794 Operating income (loss) 10,578 76,743 57,695 71,908 ( 19,942 ) 196,982 |
Schedule of Net Sales to External Customers by Geographic Region | Net sales to external customers by geographic region were as follows for the 13-week period ended March 30, 2024 and April 1, 2023. Note that APAC includes Asia Pacific and Australian Continent and EMEA includes Europe, the Middle East and Africa: 13-Weeks Ended March 30, 2024 April 1, 2023 Americas $ 716,116 $ 611,704 EMEA 463,384 355,853 APAC 202,149 179,867 Net sales to external customers $ 1,381,649 $ 1,147,424 |
Revenue - Schedule of Revenue D
Revenue - Schedule of Revenue Disaggregated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,381,649 | $ 1,147,424 |
Point in time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,306,447 | 1,081,068 |
Over time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 75,202 | $ 66,356 |
Revenue - Schedule of Deferred
Revenue - Schedule of Deferred Revenue and Costs (Details) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 USD ($) | ||
Revenue from Contract with Customer [Abstract] | ||
Deferred Revenue, Balance, beginning of period | $ 137,337 | [1] |
Deferred Revenue, Deferrals in period | 72,533 | [1] |
Deferred Revenue, Recognition of deferrals in period | (75,202) | [1] |
Deferred Revenue, Balance, end of period | 134,668 | [1] |
Deferred costs, Balance, beginning of period | 27,373 | [2] |
Deferred Costs, Deferrals in period | 13,474 | [2] |
Deferred Costs, Recognition of deferrals in period | (12,038) | [2] |
Deferred Costs, Balance, end of period | $ 28,809 | [2] |
[1] Deferred revenue is comprised of both deferred revenue and noncurrent deferred revenue per the condensed consolidated balance sheets. Deferred costs are comprised of both deferred costs and noncurrent deferred costs per the condensed consolidated balance sheets. |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2024 | Dec. 30, 2023 | ||
Revenue from Contract with Customer [Abstract] | |||
Recognition of deferrals in period | [1] | $ 75,202 | |
Amount of Deferred revenue recognized in the period that was deferred as of the beginning of the period | $ 39,000 | ||
Amount of Deferred revenue that is recognized ratably over a period of three years or less | $134,668 of deferred revenue as of March 30, 2024, the Company expects to recognize approximately 85% percent ratably over a total period of three years or less. | ||
Deferred revenue | [1] | $ 134,668 | $ 137,337 |
[1] Deferred revenue is comprised of both deferred revenue and noncurrent deferred revenue per the condensed consolidated balance sheets. |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Numerator: | ||
Numerator for basic and diluted net income per share - net income | $ 275,961 | $ 202,327 |
Denominator for basic net income per share – weighted-average common shares | 191,890 | 191,498 |
Effect of dilutive equity awards | 808 | 388 |
Denominator for diluted net income per share – adjusted weighted-average common shares | 192,698 | 191,886 |
Basic net income per share | $ 1.44 | $ 1.06 |
Diluted net income per share | $ 1.43 | $ 1.05 |
Shares excluded from diluted net income per share calculation: | ||
Anti-dilutive equity awards | 0 | 218 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities Classified as Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Marketable Securities [Line Items] | ||
Amortized Cost, Total | $ 1,473,543 | $ 1,468,240 |
Gross Unrealized Gains | 802 | 1,811 |
Gross Unrealized Losses | (65,808) | (70,242) |
Fair Value | 1,408,537 | 1,399,809 |
U.S. Treasury securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost, Total | 3,446 | 2,971 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 3,446 | 2,972 |
Agency securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost, Total | 20,695 | 23,692 |
Gross Unrealized Gains | 21 | 32 |
Gross Unrealized Losses | (598) | (585) |
Fair Value | 20,118 | 23,139 |
Mortgage-backed securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost, Total | 37,510 | 38,743 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (4,516) | (4,731) |
Fair Value | 32,994 | 34,012 |
Corporate Debt Securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost, Total | 1,111,977 | 1,104,834 |
Gross Unrealized Gains | 732 | 1,680 |
Gross Unrealized Losses | (43,402) | (46,073) |
Fair Value | 1,069,307 | 1,060,441 |
Municipal securities [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost, Total | 296,722 | 294,240 |
Gross Unrealized Gains | 49 | 98 |
Gross Unrealized Losses | (17,069) | (18,430) |
Fair Value | 279,702 | 275,908 |
Other [Member] | Fair Value, Level 2 [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost, Total | 3,193 | 3,760 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (223) | (423) |
Fair Value | $ 2,970 | $ 3,337 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 30, 2024 | Dec. 30, 2023 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Accrued interest written off | $ 0 | |
Percentage of available-for-sale securities in unrealized loss positions | 95% | |
Allowance For Credit Losses On Available For Sale Debt Securities In Unrealized Loss Position | $ 0 | $ 0 |
Allowance for credit losses and charge to other income | 0 | |
Prepaid Expenses and Other Current Assets [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Accrued interest receivable | $ 11,852,000 |
Marketable Securities - Sched_2
Marketable Securities - Schedule of Gross Unrealized Losses and Fair Value by Major Security Type (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | $ (1,719) | $ (765) |
Fair Value Less than 12 Consecutive Months | 172,456 | 78,214 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (64,089) | (69,477) |
Fair Value 12 Consecutive Months or Longer | 1,138,548 | 1,195,231 |
Gross Unrealized Losses, Total | (65,808) | (70,242) |
Fair Value, Total | 1,311,004 | 1,273,445 |
Agency securities [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (38) | (31) |
Fair Value Less than 12 Consecutive Months | 7,919 | 10,923 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (560) | (554) |
Fair Value 12 Consecutive Months or Longer | 6,440 | 6,446 |
Gross Unrealized Losses, Total | (598) | (585) |
Fair Value, Total | 14,359 | 17,369 |
Mortgage-backed securities [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | 0 | 0 |
Fair Value Less than 12 Consecutive Months | 0 | 0 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (4,516) | (4,731) |
Fair Value 12 Consecutive Months or Longer | 32,994 | 34,012 |
Gross Unrealized Losses, Total | (4,516) | (4,731) |
Fair Value, Total | 32,994 | 34,012 |
Corporate debt securities [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (1,634) | (702) |
Fair Value Less than 12 Consecutive Months | 153,897 | 64,637 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (41,768) | (45,371) |
Fair Value 12 Consecutive Months or Longer | 835,475 | 889,785 |
Gross Unrealized Losses, Total | (43,402) | (46,073) |
Fair Value, Total | 989,372 | 954,422 |
Municipal securities [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | (47) | (32) |
Fair Value Less than 12 Consecutive Months | 10,640 | 2,654 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (17,022) | (18,398) |
Fair Value 12 Consecutive Months or Longer | 260,669 | 261,651 |
Gross Unrealized Losses, Total | (17,069) | (18,430) |
Fair Value, Total | 271,309 | 264,305 |
Other [Member] | ||
Marketable Securities [Line Items] | ||
Gross Unrealized Losses Less than 12 Consecutive Months | 0 | 0 |
Fair Value Less than 12 Consecutive Months | 0 | 0 |
Gross Unrealized Losses 12 Consecutive Months or Longer | (223) | (423) |
Fair Value 12 Consecutive Months or Longer | 2,970 | 3,337 |
Gross Unrealized Losses, Total | (223) | (423) |
Fair Value, Total | $ 2,970 | $ 3,337 |
Marketable Securities - Sched_3
Marketable Securities - Schedule of Amortized Cost and Estimated Fair Value of Marketable Securities by Maturity (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 279,010 | |
Amortized Cost, Due after one year through five years | 1,173,293 | |
Amortized Cost, Due after five years through ten years | 13,661 | |
Amortized Cost, Due after ten years | 7,579 | |
Amortized Cost, Total | 1,473,543 | $ 1,468,240 |
Fair Value, Due in one year or less | 274,579 | |
Fair Value, Due after one year through five years | 1,115,240 | |
Fair Value, Due after five years through ten years | 12,512 | |
Fair Value, Due after ten years | 6,206 | |
Fair Value, Total | $ 1,408,537 | $ 1,399,809 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Income tax expense (benefit) | $ 51,079 | $ 19,445 |
Effective income tax rate | 15.60% | 8.80% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 488,357 | $ 493,493 |
Work-in-process | 174,085 | 160,919 |
Finished goods | 639,788 | 691,543 |
Inventories | $ 1,302,230 | $ 1,345,955 |
Warranty Reserves - Additional
Warranty Reserves - Additional Information (Details) | 3 Months Ended |
Mar. 30, 2024 | |
Minimum [Member] | Standard Warranty on Products [Member] | |
Product Warranty Liability [Line Items] | |
Product warranty term | 1 year |
Minimum [Member] | Certain Aviation, Marine and Auto OEM products [Member] | |
Product Warranty Liability [Line Items] | |
Product warranty term | 2 years |
Maximum [Member] | Standard Warranty on Products [Member] | |
Product Warranty Liability [Line Items] | |
Product warranty term | 2 years |
Warranty Reserves - Schedule of
Warranty Reserves - Schedule of Changes in the Aggregate Warranty Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | ||
Product Warranties Disclosures [Abstract] | |||
Balance - beginning of period | $ 55,738 | $ 50,952 | |
Accrual for products sold | [1] | 18,362 | 22,381 |
Expenditures | (18,881) | (20,658) | |
Balance - end of period | $ 55,219 | $ 52,675 | |
[1] Changes in cost estimates related to pre-existing warranties were not material and aggregated with accruals for new warranty contracts in the ‘accrual for products sold’ line. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Noncancellable unconditional purchase obligations | $ 301,000 | |
Restricted cash balances | $ 692 | $ 704 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Dividends Declared (Details) - $ / shares | Jun. 09, 2023 | Jun. 10, 2022 |
Dividends Declared [Line Items] | ||
Dividend Approval Date | Jun. 09, 2023 | Jun. 10, 2022 |
Dividends declared per share | $ 2.92 | $ 2.92 |
Dividend Declared1 [Member] | ||
Dividends Declared [Line Items] | ||
Dividend Date | Jun. 30, 2023 | Jun. 30, 2022 |
Record Date | Jun. 20, 2023 | Jun. 20, 2022 |
Dividends declared per share | $ 0.73 | $ 0.73 |
Dividend Declared2 [Member] | ||
Dividends Declared [Line Items] | ||
Dividend Date | Sep. 29, 2023 | Sep. 30, 2022 |
Record Date | Sep. 15, 2023 | Sep. 15, 2022 |
Dividends declared per share | $ 0.73 | $ 0.73 |
Dividend Declared3 [Member] | ||
Dividends Declared [Line Items] | ||
Dividend Date | Dec. 29, 2023 | Dec. 30, 2022 |
Record Date | Dec. 15, 2023 | Dec. 15, 2022 |
Dividends declared per share | $ 0.73 | $ 0.73 |
Dividend Declared4 [Member] | ||
Dividends Declared [Line Items] | ||
Dividend Date | Mar. 29, 2024 | Mar. 31, 2023 |
Record Date | Mar. 15, 2024 | Mar. 15, 2023 |
Dividends declared per share | $ 0.73 | $ 0.73 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||||
Mar. 30, 2024 | Apr. 01, 2023 | Feb. 16, 2024 | Dec. 30, 2023 | Apr. 22, 2022 | |
Dividend paid | $ 140,212 | $ 139,847 | |||
Treasury stock, shares retired | 979 | ||||
2022 Share Repurchase Program [Member] | |||||
Share Repurchase Program, Authorized Amount | $ 300,000 | ||||
Share repurchase authorization expires | Dec. 29, 2023 | ||||
Repurchased common stock shares | 3,176 | ||||
Repurchased common stock shares, amount | $ 300,000 | ||||
2024 Share Repurchase Program [Member] | |||||
Share Repurchase Program, Authorized Amount | $ 300,000 | ||||
Share repurchase authorization expires | Dec. 26, 2026 | ||||
Repurchased common stock shares | 0 | ||||
Repurchase additional shares authorization | $ 300,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) (Details) $ in Thousands | 3 Months Ended |
Mar. 30, 2024 USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance, value | $ 7,012,060 |
Ending balance, value | 7,246,097 |
Foreign Currency Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance, value | (11,508) |
Other comprehensive income (loss) before reclassification, net of income tax expense | (59,055) |
Amounts reclassified from accumulated other comprehensive income (loss) to other income, net of income tax benefit | 0 |
Net current-period other comprehensive income (loss) | (59,055) |
Ending balance, value | (70,563) |
Net Gains (Losses) on Available-for-Sale Securities [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance, value | (54,106) |
Other comprehensive income (loss) before reclassification, net of income tax expense | 2,613 |
Amounts reclassified from accumulated other comprehensive income (loss) to other income, net of income tax benefit | 0 |
Net current-period other comprehensive income (loss) | 2,613 |
Ending balance, value | (51,493) |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance, value | (65,614) |
Other comprehensive income (loss) before reclassification, net of income tax expense | (56,442) |
Amounts reclassified from accumulated other comprehensive income (loss) to other income, net of income tax benefit | 0 |
Net current-period other comprehensive income (loss) | (56,442) |
Ending balance, value | $ (122,056) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) (Parenthetical) (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Equity [Abstract] | |
Net of income tax expense | $ 812 |
Segment Information and Geogr_3
Segment Information and Geographic Data - Additional Information (Details) | 3 Months Ended |
Mar. 30, 2024 Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 5 |
Segment Information and Geogr_4
Segment Information and Geographic Data - Schedule of Net Sales (Revenue), Gross Profit, and Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,381,649 | $ 1,147,424 |
Gross profit | 802,139 | 652,794 |
Operating income (loss) | 298,410 | 196,982 |
Fitness Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 342,892 | 244,721 |
Gross profit | 194,802 | 120,910 |
Operating income (loss) | 68,133 | 10,578 |
Outdoor Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 366,193 | 328,662 |
Gross profit | 242,739 | 204,948 |
Operating income (loss) | 106,950 | 76,743 |
Aviation Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 216,855 | 213,582 |
Gross profit | 162,626 | 154,454 |
Operating income (loss) | 52,134 | 57,695 |
Marine Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 326,736 | 278,975 |
Gross profit | 179,252 | 149,631 |
Operating income (loss) | 87,692 | 71,908 |
Auto OEM Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 128,973 | 81,484 |
Gross profit | 22,720 | 22,851 |
Operating income (loss) | $ (16,499) | $ (19,942) |
Segment Information and Geogr_5
Segment Information and Geographic Data - Schedule of Net Sales to External Customers by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Revenues from External Customers [Line Items] | ||
Net sales to external customers | $ 1,381,649 | $ 1,147,424 |
Americas [Member] | ||
Revenues from External Customers [Line Items] | ||
Net sales to external customers | 716,116 | 611,704 |
EMEA [Member] | ||
Revenues from External Customers [Line Items] | ||
Net sales to external customers | 463,384 | 355,853 |
APAC [Member] | ||
Revenues from External Customers [Line Items] | ||
Net sales to external customers | $ 202,149 | $ 179,867 |