| Condensed Consolidated Balance Sheets (USD $) | ||
| In Thousands | Sep. 26, 2009
| Dec. 27, 2008
|
| Current assets: | ||
| Cash and cash equivalents | $1,011,763 | $696,335 |
| Marketable securities | 17,643 | 12,886 |
| Accounts receivable, net | 573,847 | 741,321 |
| Inventories, net | 373,290 | 425,312 |
| Deferred income taxes | 52,824 | 49,825 |
| Prepaid expenses and other current assets | 49,569 | 58,746 |
| Total current assets | 2,078,936 | 1,984,425 |
| Property and equipment, net | 444,172 | 445,252 |
| Marketable securities | 770,444 | 262,009 |
| Restricted cash | 2,044 | 1,941 |
| Licensing agreements, net | 8,885 | 16,013 |
| Other intangible assets, net | 212,070 | 214,941 |
| Total assets | 3,516,551 | 2,924,581 |
| Current liabilities: | ||
| Accounts payable | 185,668 | 160,094 |
| Salaries and benefits payable | 32,787 | 34,241 |
| Accrued warranty costs | 83,081 | 87,408 |
| Accrued sales program costs | 56,318 | 90,337 |
| Deferred revenue | 48,621 | 680 |
| Other accrued expenses | 141,021 | 86,341 |
| Income taxes payable | 14,102 | 20,075 |
| Dividends payable | 150,447 | 0 |
| Total current liabilities | 712,045 | 479,176 |
| Deferred income taxes | 8,447 | 4,070 |
| Non-current income taxes | 239,419 | 214,366 |
| Other liabilities | 1,242 | 1,115 |
| Stockholders' equity: | ||
| Common stock, $0.005 par value, 1,000,000,000 shares authorized: Issued and outstanding shares - 200,596,000 as of September 26, 2009 and 200,363,000 as of December 27, 2008 | 1,002 | 1,002 |
| Additional paid-in capital | 35,428 | 0 |
| Retained earnings | 2,537,598 | 2,262,503 |
| Accumulated other comprehensive loss | (18,630) | (37,651) |
| Total stockholders' equity | 2,555,398 | 2,225,854 |
| Total liabilities and stockholders' equity | $3,516,551 | $2,924,581 |
| Condensed Consolidated Balance Sheets [Parenthetical] (USD $) | ||
| Sep. 26, 2009
| Dec. 27, 2008
| |
| Condensed Consolidated Balance Sheets [Parenthetical] | ||
| Common Stock, Par or Stated Value Per Share | 0.005 | 0.005 |
| Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
| Common Stock, Shares, Issued | 200,596,000 | 200,363,000 |
| Common Stock, Shares, Outstanding | 200,596,000 | 200,363,000 |
| Condensed Consolidated Statements of Income (USD $) | ||||
| In Thousands, except Per Share data | 3 Months Ended
Sep. 26, 2009 | 3 Months Ended
Sep. 27, 2008 | 9 Months Ended
Sep. 26, 2009 | 9 Months Ended
Sep. 27, 2008 |
| Net sales | $781,254 | $870,355 | $1,887,057 | $2,445,830 |
| Cost of goods sold | 371,512 | 484,716 | 929,706 | 1,322,948 |
| Gross profit | 409,742 | 385,639 | 957,351 | 1,122,882 |
| Advertising expense | 45,853 | 50,742 | 103,101 | 147,199 |
| Selling, general and administrative expense | 71,499 | 67,785 | 193,461 | 194,181 |
| Research and development expense | 55,507 | 52,749 | 166,795 | 155,904 |
| Total operating expense | 172,859 | 171,276 | 463,357 | 497,284 |
| Operating income | 236,883 | 214,363 | 493,994 | 625,598 |
| Interest income | 6,360 | 8,435 | 16,646 | 26,563 |
| Foreign currency | 11,752 | (12,744) | 4,478 | 4,818 |
| Gain on sale of equity securities | 0 | 0 | 0 | 50,949 |
| Other | 1,684 | 1,358 | 1,325 | 2,091 |
| Total other income | 19,796 | (2,951) | 22,449 | 84,421 |
| Income before income taxes | 256,679 | 211,412 | 516,443 | 710,019 |
| Income tax provision | 41,546 | 40,168 | 90,901 | 134,904 |
| Net income | $215,133 | $171,244 | $425,542 | $575,115 |
| Net income per share: | ||||
| Basic | 1.07 | 0.83 | 2.12 | 2.71 |
| Diluted | 1.07 | 0.82 | 2.12 | 2.68 |
| Weighted average common shares outstanding: | ||||
| Basic | 200,546 | 206,634 | 200,398 | 212,299 |
| Diluted | 201,599 | 208,107 | 201,038 | 214,252 |
| Condensed Consolidated Statements of Cash Flows (USD $) | ||
| In Thousands | 9 Months Ended
Sep. 26, 2009 | 9 Months Ended
Sep. 27, 2008 |
| Operating Activities: | ||
| Net income | $425,542 | $575,115 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation | 39,945 | 33,797 |
| Amortization | 25,945 | 20,823 |
| Gain on sale of property and equipment | (6) | (243) |
| Provision for doubtful accounts | 3,191 | 4,289 |
| Deferred income taxes | (1,083) | 28,623 |
| Foreign currency transaction gains/losses | (26,936) | 11,266 |
| Provision for obsolete and slow moving inventories | 17,309 | 29,439 |
| Stock compensation expense | 31,502 | 28,815 |
| Realized gains on marketable securities | 110 | (50,884) |
| Changes in operating assets and liabilities, net of acquisitions: | ||
| Accounts receivable | 178,281 | 302,012 |
| Inventories | 43,340 | (196,471) |
| Other current assets | (22,827) | (977) |
| Accounts payable | 22,618 | (175,715) |
| Other current and non-current liabilities | 87,216 | (95,588) |
| Income taxes payable | 28,198 | 1,593 |
| Purchase of licenses | (3,790) | (3,191) |
| Net cash provided by operating activities | 848,555 | 512,703 |
| Investing activities: | ||
| Purchases of property and equipment | (35,441) | (110,480) |
| Proceeds from sale of property and equipment | (7) | 8 |
| Purchase of intangible assets | (7,461) | (4,061) |
| Purchase of marketable securities | (626,155) | (366,336) |
| Redemption of marketable securities | 110,751 | 444,102 |
| Change in restricted cash | (103) | 106 |
| Acquisitions, net of cash acquired | 0 | (50,497) |
| Net cash used in investing activities | (558,416) | (87,158) |
| Financing activities: | ||
| Proceeds from issuance of common stock from exercise of stock options | 1,688 | 2,559 |
| Proceeds from issuance of common stock from stock purchase plan | 3,712 | 5,144 |
| Stock repurchase | (1,908) | (624,688) |
| Tax benefit related to stock option exercise | 455 | 2,309 |
| Net cash provided by(used in) financing activities | 3,947 | (614,676) |
| Effect of exchange rate changes on cash and cash equivalents | 21,342 | 2,982 |
| Net increase(decrease) in cash and cash equivalents | 315,428 | (186,149) |
| Cash and cash equivalents at beginning of period | 696,335 | 707,689 |
| Cash and cash equivalents at end of period | $1,011,763 | $521,540 |
| Basis of Presentation | |
| 9 Months Ended
Sep. 26, 2009 USD / shares | |
| Basis of Presentation [Abstract] | |
| Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the 13-week and 39-week periods ended September 26, 2009 are not necessarily indicative of the results that may be expected for the year ending December 26, 2009. The condensed consolidated balance sheet at December 27, 2008 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Companys Annual Report on Form 10-K for the year ended December 27, 2008. The Companys fiscal year is based on a 52-53 week period ending on the last Saturday of the calendar year. Therefore the financial results of certain 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 quarters having only 13-weeks. The quarters ended September 26, 2009 and September 27, 2008 both contain operating results for 13-weeks for both year-to-date periods. |
| Inventories | |
| 9 Months Ended
Sep. 26, 2009 USD / shares | |
| Inventories [Abstract] | |
| Inventories | 2. Inventories The components of inventories consist of the following: September 26, 2009 December 27, 2008 Raw Materials $107,121 $151,132 Work-in-process 39,517 28,759 Finished goods 245,353 268,625 Inventory Reserves (18,701) (23,204) Inventory, net of reserves $373,290 $425,312 |
| Share Repurchase Plan | |
| 9 Months Ended
Sep. 26, 2009 USD / shares | |
| Share Repurchase Plan [Abstract] | |
| Share Repurchase Plan | 3. Share Repurchase Plan The Board of Directors approved a share repurchase program on October 22, 2008, authorizing the Company to purchase up to $300,000 of its common shares as market and business conditions warrant. The share repurchase authorization expires on December 31, 2009. As of September 26, 2009, the Company had repurchased 117,600 shares using cash of $1,849 with all purchases made in the first quarter. There remains approximately $256,000 available for repurchase under this authorization given the $42,000 of purchases in fiscal 2008. |
| Earnings Per Share | |
| 9 Months Ended
Sep. 26, 2009 USD / shares | |
| Earnings Per Share [Abstract] | |
| Earnings Per Share | 4. Earnings Per Share The following table sets forth the computation of basic and diluted net income per share: 13-Weeks Ended September 26, September 27, 2009 2008 Numerator: Numerator for basic and diluted net income per share - net income $215,133 $171,244 Denominator: Denominator for basic net income per share weighted-average common shares 200,546 206,634 Effect of dilutive securities employee stock options 1,053 1,473 Denominator for diluted net income per share adjusted weighted-average common shares 201,599 208,107 Basic net income per share $1.07 $0.83 Diluted net income per share $1.07 $0.82 39-Weeks Ended September 26, September 27, 2009 2008 Numerator: Numerator for basic and diluted net income per share - net income $425,542 $575,115 Denominator: Denominator for basic net income per share weighted-average common shares 200,398 212,299 Effect of dilutive securities employee stock options 640 1,953 Denominator for diluted net income per share adjusted weighted-average common shares 201,038 214,252 Basic net income per share $2.12 $2.71 Diluted net income per share $2.12 $2.68 There were 7,097,790 anti-dilutive options for the 13-week period ended on September 26, 2009. There were 6,497,596 anti-dilutive options for the 13-week period ended September 27, 2008. There were 7,853,062 anti-dilutive options for the 39-week period ended September 26, 2009. There were 5,655,282 anti-dilutive options for the 39-week period ended September 27, 2008. There were 91,501 shares issued as a result of exercises of stock appreciation rights and stock options for the 13-week period ended September 26, 2009. There were 116,221 shares issued as a result of exercises of stock appreciation rights and stock options for the 39-week period ended September 26, 2009. |
| Comprehensive Income | |
| 9 Months Ended
Sep. 26, 2009 USD / shares | |
| Comprehensive Income [Abstract] | |
| Comprehensive Income | 5. Comprehensive Income Comprehensive income is comprised of the following: 13-Weeks Ended September 26, September 27, 2009 2008 Net income $215,133 $171,244 Translation adjustment 12,135 (46,610) Change in fair value of available-for-sale marketable securities, net of deferred taxes 4,255 (4,144) Comprehensive income $231,523 $120,490 39-Weeks Ended September 26, September 27, 2009 2008 Net income $425,542 $575,115 Translation adjustment 19,608 14,394 Change in fair value of available-for-sale marketable securities, net of deferred taxes (587) (61,409) Comprehensive income $444,563 $528,100 |
| Segment Information | |
| 9 Months Ended
Sep. 26, 2009 USD / shares | |
| Segment Information [Abstract] | |
| Segment Information | 6. Segment Information Net sales, operating income, and income before taxes for each of the Companys reportable segments are presented below: Reportable Segments Outdoor/ Auto/ Fitness Marine Mobile Aviation Total 13-Weeks Ended September 26, 2009 Net sales $132,174 $45,426 $545,707 $57,947 $781,254 Operating income $53,430 $11,783 $160,053 $11,617 $236,883 Income before taxes $48,527 $13,206 $183,324 $11,622 $256,679 13-Weeks Ended September 27, 2008 Net sales $118,614 $44,048 $626,506 $81,187 $870,355 Operating income $52,136 $10,606 $124,359 $27,262 $214,363 Income before taxes $50,365 $10,132 $124,608 $26,307 $211,412 39-Weeks Ended September 26, 2009 Net sales $320,187 $143,641 $1,242,011 $181,218 $1,887,057 Operating income $132,351 $43,696 $271,370 $46,577 $493,994 Income before taxes $127,443 $44,649 $297,955 $46,396 $516,443 39-Weeks Ended September 27, 2008 Net sales $308,255 $171,232 $1,710,248 $256,095 $2,445,830 Operating income $116,892 $52,510 $361,190 $95,006 $625,598 Income before taxes $126,115 $57,370 $428,767 $97,767 $710,019 Allocation of certain research and development expenses, and selling, general, and administrative expenses are made to each segment on a percent of revenue basis. Net sales and property and equipment, net by geographic area are as follows as of and for the 39-week periods ended September 26, 2009 and September 27, 2008: Americas Asia Europe Total September 26, 2009 Net sales to external customers $1,204,755 $104,846 $577,456 $1,887,057 Property and equipment, net $232,859 $157,487 $53,826 $444,172 September 27, 2008 Net sales to external customers $1,572,042 $108,962 $764,826 $2,445,830 Property and equipment, net $220,246 $176,194 $56,979 $453,419 |
| Warranty Reserves | |
| 9 Months Ended
Sep. 26, 2009 USD / shares | |
| Warranty Reserves [Abstract] | |
| Warranty Reserves | 7. Warranty Reserves The Companys products sold are generally covered by a warranty for periods ranging from one to two years. The Companys estimate of costs to service its warranty obligations are based on historical experience and expectation of future conditions and are recorded as a liability on the balance sheet. The following reconciliation provides an illustration of changes in the aggregate warranty reserve. 13-Weeks Ended September 26, September 27, 2009 2008 Balance - beginning of the period $79,968 $83,918 Accrual for products sold during the period 49,981 21,659 Expenditures (46,868) (24,286) Balance - end of the period $83,081 $81,291 39-Weeks Ended September 26, September 27, 2009 2008 Balance - beginning of the period $87,408 $71,636 Accrual for products sold during the period 104,671 94,646 Expenditures (108,998) (84,991) Balance - end of the period $83,081 $81,291 |
| Commitments | |
| 9 Months Ended
Sep. 26, 2009 USD / shares | |
| Commitments [Abstract] | |
| Commitments | 8. Commitments We are a party to certain commitments, which includes raw materials, advertising and other indirect purchases in connection with conducting out business. Pursuant to these agreements, the Company is contractually committed to make purchases of approximately $72,800 over the next 5 years. |
| Income Taxes | |
| 9 Months Ended
Sep. 26, 2009 USD / shares | |
| Income Taxes [Abstract] | |
| Income Taxes | 9. Income Taxes Our earnings before taxes increased 21.4% when compared to the same quarter in 2008, and our income tax expense increased by 3.4%, to $41,546, for the 13-week period ended September 26, 2009, from $40,168 for the 13-week period ended September 27, 2008. The income tax expense increase is due to our earnings before taxes increase offset by a decline in our tax rate. The effective tax rate was 16.2% and 17.6% for the 13-weeks and 39-weeks ended September 26, 2009 compared to 19.0% for both the 13-weeks and 39-weeks ended September 27, 2008.The decline in the tax rate for 2009 is related to the release of 2005 income tax reserves for which the statute of limitations has expired. We have experienced a relatively low effective corporate tax rate due to the proportion of our revenue generated by entities in tax jurisdictions with low statutory rates. In particular, the profit entitlement afforded our parent company based on its intellectual property rights ownership of our consumer products along with substantial tax incentives offered by the Taiwanese government on certain high-technology capital investments have continued to generate a relatively low tax rate. |
| Fair Value Measurements | |
| 9 Months Ended
Sep. 26, 2009 USD / shares | |
| Fair Value Measurements [Abstract] | |
| Fair Value Measurements | 10. Fair Value Measurements The Accounting Standards Code (ASC) 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 ASC classifies the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liability Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets Level 3 Unobservable inputs for the asset or liability 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. For fair value measurements using significant unobservable inputs, an independent third party provided the valuation. The inputs used in the valuations used the following methodology. The collateral composition was used to estimate Weighted Average Life based on historical and projected payment information. Cash flows were projected for the issuing trusts, taking into account underlying loan principal, bonds outstanding, and payout formulas. Taking this information into account, assumptions were made as to the yields likely to be required, based upon then current market conditions for comparable or similar term Asset Based Securities as well as other fixed income securities. Assets and liabilities measured at estimated fair value on a recurring basis are summarized below: Fair Value Measurements as of September 26, 2009 Description Total Level 1 Level 2 Level 3 Available for-sale securites $ 721,534 $ 721,534 - - Failed Auction rate securities 66,553 - - 66,553 Total $ 788,087 $ 721,534 $ - $ 66,553 For assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the period, the ASC requires a reconciliation of the beginning and ending balances, separately for each major category of assets. The reconciliation is as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) 13-Weeks Ended 39-Weeks Ended September 26, 2009 September 26, 2009 Beginning balance of auction rate securities $67,829 $ 71,303 Total unrealized losses included in other comprehensive income (1,276) (4,750) Purchases in and/or out of Level 3 - - Transfers in and/or out of Level 3 - - Ending balance of auction rate securities $66,553 $66,553 The following is a summary of the companys marketable securities classified as available-for-sale securities at September 26, 2009: Gross Gross Other Than Estimated Fair Unrealized Unrealized Temporary Value (Net Amortized Cost Gains Losses Impai |
| Recently Issued Accounting Pronouncements | |
| 9 Months Ended
Sep. 26, 2009 USD / shares | |
| Recently Issued Accounting Pronouncements [Abstract] | |
| Recently Issued Accounting Pronouncements | 11. Recently Issued Accounting Pronouncements In May 2008, the FASB issued EITF 07-1, Accounting for Collaborative Arrangements. EITF Issue 07-1 requires entities entering into collaborative arrangements in which two or more parties actively participate in a joint operating activity and are exposed to significant risks and rewards that depend on the commercial success of the joint operating activity to make specific disclosures regarding that arrangement. Garmin announced a strategic alliance with ASUSTeK Computer Inc. on February 4, 2009 that will leverage the companies navigation and mobile telephony expertise to design, manufacture and distribute cobranded locationcentric mobile phones. The mobile phone product line will be known as the GarminAsus nvifone series. The Company has adopted EITF Issue 071 and the strategic alliance did not have a material impact on the Companys financial condition or operating results in the third quarter of 2009. In January 2009, the FASB released Proposed Staff Position SFAS 107-b and Accounting Principles Board (APB) Opinion No. 28-a, Interim Disclosures about Fair Value of Financial Instruments (SFAS 107-b and APB 28-a).This proposal amends FASB Statement No. 107, Disclosures about Fair Values of Financial Instruments, to require disclosures about fair value of financial instruments in interim financial statements as well as in annual financial statements.The proposal also amends APB Opinion No. 28, Interim Financial Reporting, to require those disclosures in all interim financial statements.This proposal is effective for interim periods ending after June 15, 2009, but early adoption is permitted for interim periods ending after March 15, 2009.The Company has adopted SFAS 107-b and APB 28-a and the guidance did not have a material impact on the Companys financial condition or operating results in the third quarter of 2009. In April 2009, the FASB issued FSP No. FAS 157-4 (FSP FAS 157-4), Determining Fair Value When the Volume and Level of Activity for the Asset or Liability has Significantly Decreased and Identifying Transactions That Are Not Orderly and FSP No. FAS 115-2 and FAS 124-2 (FSP FAS 115-2), Recognition and Presentation of Other-Than-Temporary Impairments.These two FSPs were issued to provide additional guidance about (1) measuring the fair value of financial instruments when the markets become inactive and quoted prices may reflect distressed transactions, and (2) recording impairment charges on investments in debt instruments.Additionally, the FASB issued FSP No. FAS 107-1 and APB 28-1 (FSP FAS 107-1), Interim Disclosures about Fair Value of Financial Instruments, to require disclosures of fair value of certain financial instruments in interim financial statements.We do not anticipate the adoption of these FSPs will materially impact the Company.These FSPs are effective for financial statements issued for interim and annual reporting periods ending after June 15, 2009. The Company has adopted FSP FAS 157-4 and the guidance did not have a material impact on the Companys financial condition or operating results in the third quarter of 2009. In May 2009, the FASB issued SFAS No. 165, |
| Subsequent Events | |
| 9 Months Ended
Sep. 26, 2009 USD / shares | |
| Subsequent Events [Abstract] | |
| Subsequent Events | 12. Subsequent Events The Company evaluated subsequent events through the time of filing this Quarterly Report on Form 10-Q on November 4, 2009 and had none to report. |
| Document Information | |
| 9 Months Ended
Sep. 26, 2009 USD / shares | |
| Document Information [Line Items] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Document Period End Date | 2009-09-26 |
| Entity Information (USD $) | ||
| 9 Months Ended
Sep. 26, 2009 | Oct. 30, 2009
| |
| Entity Information [Line Items] | ||
| Entity Registrant Name | Garmin Ltd. | |
| Entity Central Index Key | 0001121788 | |
| Current Fiscal Year End Date | --12-26 | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Listings [Line Items] | ||
| Entity Common Stock, Shares Outstanding | 200,669,045 |
